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

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>As filed with the Securities and Exchange Commission on
    April&#160;29, 2010.</B>
</DIV>

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    <!-- /XBRL,dc --><B>Registration
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;</FONT></B>
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<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 14pt">SECURITIES AND EXCHANGE
    COMMISSION</FONT></B>
</DIV>

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    <B><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
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<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;S-1</FONT></FONT></B>
</DIV>

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    <B><FONT style="font-size: 12pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

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<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 24pt">AURORA DIAGNOSTICS,
    INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact Name of Registrant as
    Specified in its Charter)</FONT></I>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

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    <B>Delaware<BR>
    </B><I><FONT style="font-size: 8pt">(State or Other Jurisdiction
    of<BR>
    Incorporation or Organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>8071<BR>
    </B><I><FONT style="font-size: 8pt">(Primary Standard
    Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>27-2416884<BR>
    </B><I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification Number)</FONT></I><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">11025 RCA
    Center Drive, Suite&#160;300<BR>
    Palm Beach Gardens, FL 33410<BR>
    <FONT style="white-space: nowrap">(866)&#160;420-5512</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address, including zip code,
    and telephone number, including area code, of registrant&#146;s
    principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Gregory
    A. Marsh<BR>
    Chief Financial Officer<BR>
    11025 RCA Center Drive, Suite&#160;300<BR>
    Palm Beach Gardens, FL 33410<BR>
    <FONT style="white-space: nowrap">(866)&#160;420-5512</FONT></FONT></B>
</DIV>

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    <I><FONT style="font-size: 8pt">(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)</FONT></I>
</DIV>

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    <B><I>Copies to:</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    <B>J. Mark Ray<BR>
    Alston&#160;&#038; Bird LLP<BR>
    1201&#160;West Peachtree Street<BR>
    Atlanta, GA
    <FONT style="white-space: nowrap">30309-3424</FONT><BR>
    <FONT style="white-space: nowrap">(404)&#160;881-7000</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>Michael Benjamin<BR>
    Shearman &#038; Sterling LLP<BR>
    599 Lexington Avenue<BR>
    New York, NY 10022<BR>
    (212) 848-4000</B>
</TD>
</TR>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale to the
    public:&#160;&#160;</B>As soon as practicable after this
    Registration Statement becomes effective.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act, check the following
    box.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in Rule
    <FONT style="white-space: nowrap">12b-2</FONT> of the
    Exchange Act. (Check one):
</DIV>

<DIV style="margin-top: 5pt; font-size: 1pt">&nbsp;</DIV>

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<TR>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">Large
    accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    <FONT style="white-space: nowrap">Non-accelerated</FONT>
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-size: 8pt; font-family: 'Times New Roman', Times">
    Smaller reporting
    company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
</TR>

</TABLE>



<DIV align="center" style="margin-left: 28%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">(Do not check if a smaller
    reporting company)
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
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<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
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<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">Title of Each Class of<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">Aggregate <BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">Amount of<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering
    Price<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration
    Fee<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

    </B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Class&#160;A common stock, par value $0.01 per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
    $150,000,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-top: 1px solid #000000">
    $10,695
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Estimated solely for the purpose of
    computing the amount of the registration fee pursuant to
    Rule&#160;457(o) under the Securities Act of 1933, as amended.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes shares the underwriters
    have the option to purchase to cover over-allotments, if any.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Calculated pursuant to
    Rule&#160;457(o) of the Securities Act of 1933, as amended,
    based on an estimate of the proposed maximum aggregate offering
    price.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Commission
    acting pursuant to said Section&#160;8(a) may determine.</B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

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

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<B><FONT style="font-size: 9pt; font-family: Arial, Helvetica; color: #F93F26">The
information in this prospectus is not complete and may be
changed. Neither we nor the selling stockholders may sell these
securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities, and neither we nor the
selling stockholders are soliciting offers to buy these
securities in any state where the offer or sale is not
permitted.<BR>
</FONT></B>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt; color: #F93F26">PROSPECTUS
    (Subject to Completion)<BR>
    </FONT><FONT style="font-size: 11pt; color: #F93F26">Issued
    April&#160;29, 2010
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 16pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shares
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265802.gif" alt="(AURORA LOGO"><FONT style="font-size: 16pt">
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt">Class&#160;A Common Stock
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Aurora Diagnostics, Inc. is
    offering&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of its Class&#160;A common stock and the selling
    stockholders are
    offering&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of Class&#160;A common stock. We will not receive any
    proceeds from the sale of shares by the selling stockholders.
    This is our initial public offering and no public market exists
    for our shares. We anticipate that the initial public offering
    price will be between $&#160;&#160;&#160;&#160;&#160; and
    $&#160;&#160;&#160;&#160;&#160; per share.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We intend to apply to have our Class&#160;A common stock
    listed on the NASDAQ Global Market under the symbol
    &#147;ARDX.&#148;</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in our Class&#160;A common stock involves risks.
    See &#147;Risk Factors&#148; beginning on page&#160;16.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Price
    <FONT style="font-size: 12pt">$&#160;&#160;&#160;&#160;&#160;
    </FONT>Per Share
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underwriting<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Proceeds to<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Discounts and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Proceeds to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Selling<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Public</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Commissions</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Us</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stockholders</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and the selling stockholders have granted the underwriters
    the right to purchase up to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock to cover over-allotments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Securities and Exchange Commission and state securities
    regulators have not approved or disapproved these securities or
    determined if this prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters expect to deliver the shares of Class&#160;A
    common stock to purchasers
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 04 -->

<TR>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">Morgan
    Stanley</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">
    UBS Investment Bank</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 18pt; font-family: 'Times New Roman', Times">
    Barclays Capital</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 04 -->

<TR>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">RBC
    Capital Markets</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">
    BMO Capital Markets</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">
    Lazard Capital Markets</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>


<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Prospectus Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Organizational Structure</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Dividend Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Capitalization</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Dilution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Unaudited Pro Forma Financial Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Selected Consolidated Financial Data</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Industry</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Management and Board of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Executive Compensation&#160;&#151; Compensation
    Discussion and Analysis</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Principal and Selling Stockholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Certain Relationships and Related Party
    Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Description of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>Shares&#160;Eligible for Future Sale</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>Certain U.S. Federal Income and Estate Tax
    Consequences to
    <FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders of Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>Underwriters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    137
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#124'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#125'>Index to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22658exv23w1.htm">EX-23.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="g22658exv23w2.htm">EX-23.2</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information contained in this
    prospectus and in any free writing prospectus. We, the
    underwriters and the selling stockholders have not authorized
    anyone to provide you with information different from that
    contained in this prospectus. We, the underwriters and the
    selling stockholders are offering to sell, and seeking offers to
    buy, shares of our Class&#160;A common stock only in
    jurisdictions where offers and sales are permitted. The
    information in this prospectus is accurate only as of the date
    of this prospectus, regardless of the time of delivery of this
    prospectus or any sale of shares of our Class&#160;A common
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 (25&#160;days after the commencement of this offering), all
    dealers that buy, sell or trade shares of our Class&#160;A
    common stock, whether or not participating in this offering, may
    be required to deliver a prospectus. This delivery requirement
    is in addition to the obligation of dealers to deliver a
    prospectus when acting as underwriters and with respect to their
    unsold allotments or subscriptions.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For investors outside of the United States, neither we, nor the
    selling stockholders or any of the underwriters have done
    anything that would permit this offering or possession or
    distribution of this prospectus in any jurisdiction where action
    for that purpose is required. Persons outside the United States
    who come into possession of this prospectus must inform
    themselves about, and observe any restrictions relating to, the
    offering of the shares of Class&#160;A common stock and the
    distribution of this prospectus outside of the United States.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INDUSTRY
    AND MARKET DATA</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Industry and market data used throughout this prospectus were
    obtained through company research, surveys and studies conducted
    by third parties and industry and general publications. The
    information contained in &#147;Prospectus Summary,&#148;
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations,&#148; &#147;Industry&#148;
    and &#147;Business&#148; is based on studies, analyses and
    surveys prepared by Washington G-2 Reports, Laboratory
    Economics, U.S.&#160;Census Bureau, American Hospital
    Association, the National Institutes of Health and the American
    Cancer Society. Information originally published in Washington
    G2 Reports &#147;Laboratory Industry Strategic Outlook: Market
    Trends &#038; Analysis 2009&#148; is used herein with the
    express written permission of Washington G2 Reports. Copyright
    <SUP style="font-size: 85%; vertical-align: text-top">&#169;</SUP>2010.

    www.g2reports.com. While we are not aware of any misstatements
    regarding the industry data presented herein, estimates involve
    risks and uncertainties and are subject to change based on
    various factors, including those discussed under the heading
    &#147;Risk Factors.&#148;
</DIV>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TRADEMARKS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AURORA DIAGNOSTICS and CONNECTDX THE INFORMATION GATEWAY and
    Design and other trademarks or service marks of Aurora appearing
    in this prospectus are our property. All trade names, trademarks
    and service marks of other companies appearing in this
    prospectus are the property of the respective holders.
</DIV>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights all material information about us and
    this offering, but does not contain all of the information that
    you should consider before investing in our Class&#160;A common
    stock. You should read this entire prospectus carefully,
    including the &#147;Risk Factors&#148; and the consolidated
    financial statements and related notes. This prospectus includes
    forward-looking statements that involve risks and uncertainties.
    See &#147;Forward-Looking Statements.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Unless we state otherwise or the context otherwise requires,
    the terms &#147;we,&#148; &#147;us,&#148; &#147;our,&#148;
    &#147;Aurora Diagnostics&#148; and the &#147;Company&#148; refer
    to Aurora Diagnostics, Inc. and our subsidiaries, as well as the
    professional associations and professional corporations which
    are separate legal entities in certain states that we control
    through contractual arrangements. All information in this
    prospectus with respect to Aurora Diagnostics, Inc. gives effect
    to the reorganization transactions described under
    &#147;Prospectus Summary&#160;&#151; Reorganization
    Transactions&#148; and &#147;Organizational Structure&#148; as
    if they had occurred on December&#160;31, 2009. &#147;Aurora
    Holdings&#148; refers to our subsidiary &#147;Aurora Diagnostics
    Holdings, LLC.&#148; With respect to periods prior to
    April&#160;23, 2010, the terms &#147;we,&#148; &#147;us,&#148;
    &#147;our,&#148; &#147;Aurora&#148; and the &#147;Company&#148;
    refer to Aurora Holdings and its subsidiaries.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a specialized diagnostics company providing services that
    play a key role in the diagnosis of cancer and other diseases.
    Our experienced pathologists deliver comprehensive diagnostic
    reports of a patient&#146;s condition and consult frequently
    with referring physicians to help determine the appropriate
    treatment. Our diagnostic reports often enable the early
    detection of disease, allowing referring physicians to make
    informed and timely treatment decisions that improve their
    patients&#146; health in a cost-effective manner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a leading specialized diagnostics company in terms of
    revenues, focused on the anatomic pathology market. We are
    well-positioned in the higher-growth subspecialties of anatomic
    pathology, with a leading market position in dermatopathology
    and in the women&#146;s health pathology subspecialty, and a
    growing market position in urologic pathology, hematopathology
    and general surgical pathology. Our strengths in anatomic
    pathology are complemented by our specialized clinical and
    molecular diagnostics offerings, which enable us to provide a
    broad selection of diagnostic services to our referring
    physicians, our primary clients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of our revenues in 2009 were derived from
    physicians providing diagnostic services in the non-hospital
    outpatient channel of the anatomic pathology market, which in
    2008 was one of the fastest-growing and largest channels of that
    market. We also maintain 36 exclusive contracts with hospitals
    under which we provide inpatient and outpatient professional
    anatomic pathology services. We also provide medical director
    services and, for some hospitals, technical slide preparation
    services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business model builds upon the expertise of our experienced
    pathologists to provide seamless, reliable and comprehensive
    pathology and molecular diagnostics offerings to referring
    physicians. We typically have established, long-standing
    relationships with our referring physicians as a result of
    focused localized delivery of diagnostic services, personalized
    responses and frequent consultations, and flexible information
    technology, or IT, solutions that are customizable to our
    clients&#146; needs. Our IT and communications platform enables
    us to deliver diagnostic reports to our clients generally within
    24&#160;hours of specimen receipt, helping to improve patient
    care. In addition, our IT platform enables us to closely track
    and monitor volume trends from referring physicians.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The success of our business model and the value of our
    specialized diagnostic service offering are reflected in our
    significant growth allowing us to reach $171.6&#160;million in
    annual revenues in 2009. Through a combination of organic growth
    and strategic acquisitions, we have achieved a scale allowing us
    to provide diagnostic services to the patients of our
    approximately 10,000 referring physicians, generating
    approximately 1.6&#160;million accessions in 2009. With 19
    primary laboratories across the United States, we have achieved
    a national footprint and a leading presence in our local markets
    upon which we are continuing to build a more integrated and
    larger-scale diagnostics company.
</DIV>
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    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Industry</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;diagnostic testing industry had revenues of
    approximately $55&#160;billion in 2008 and grew at a rate of
    7&#160;percent compounded annually from 2000 to 2008, according
    to Washington G-2 Reports &#147;Lab Industry Strategic Outlook:
    Market Trends of Analysis 2009.&#148; Within the overall
    industry in 2008, the anatomic pathology market totaled
    approximately $13&#160;billion in revenues, or 24&#160;percent
    of total industry revenues, according to Laboratory Economics.
    Anatomic pathology services involve the diagnosis of cancer and
    other medical conditions through the examination of tissues
    (histology) and the analysis of cells (cytology) and generally
    command higher reimbursement rates, on a per specimen basis,
    than clinical pathology services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    According to the Washington G-2 Reports, the anatomic pathology
    market has expanded more rapidly than the overall industry, with
    revenues growing 4.8&#160;percent on a compound annual basis
    between 2006 and 2009, compared to 4.5&#160;percent for the rest
    of the industry. Excluding growth in esoteric testing, the
    remainder of the industry grew at a compound annual rate of only
    0.1&#160;percent over the same period. Substantially all of the
    revenues for anatomic pathology businesses consist of payments
    or reimbursements for specialized diagnostic services rendered
    to referring physicians, and these revenues are affected
    primarily by changes in case volume, which we refer to as
    accession volume, payor mix and reimbursement rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The non-hospital outpatient channel is the largest component of
    the anatomic pathology market and has grown more rapidly than
    other channels. This channel accounted for $7.6&#160;billion, or
    57&#160;percent, of anatomic pathology revenues for the year
    ended December&#160;31, 2008, representing 10&#160;percent
    growth in 2008 according to Laboratory Economics. The remainder
    of the anatomic pathology market is comprised of the hospital
    inpatient channel, which accounted for $3.7&#160;billion or
    28&#160;percent, of anatomic pathology revenues, representing
    2&#160;percent growth in 2008, and the hospital outpatient
    channel, which accounted for $1.9&#160;billion, or
    15&#160;percent, of anatomic pathology revenues, representing
    4&#160;percent growth in 2008, according to Laboratory Economics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that demand for non-hospital outpatient anatomic
    pathology services will continue to expand due to the following
    trends:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Aging of the U.S.&#160;Population</I>:&#160;&#160;The number
    of individuals
    <FONT style="white-space: nowrap">65-years-old</FONT>
    and older will increase to 55&#160;million, or by
    36&#160;percent, over the next decade, a percentage rate that is
    nearly four times faster than that of the overall population,
    according to the U.S.&#160;Census Bureau. According to the
    American Cancer Society, the risk of being diagnosed with cancer
    increases as individuals age, with an estimated 52&#160;percent
    of all new cancer cases diagnosed in persons
    <FONT style="white-space: nowrap">65-years-old</FONT>
    and older in 2009.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Increasing Incidence of Cancer:</I>&#160;&#160;The number of
    new cancer cases grew by 2&#160;percent between 2007 and 2009 to
    approximately 1.5&#160;million new cases according to the
    American Cancer Society. The number of new skin cancer cases
    grew by 15&#160;percent between 2007 and 2009, representing the
    highest percentage increase among all diagnosed cancer types.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expanding Demand for Non-Hospital Outpatient
    Services:</I>&#160;&#160;The non-hospital outpatient channel of
    the anatomic pathology market is expected to continue growing at
    a higher percentage rate than the overall industry, principally
    driven by patient preference and the cost-effectiveness of
    outpatient diagnostic services compared to inpatient diagnostic
    services.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Medical Advancements Allowing for Earlier Diagnosis and
    Treatment of Disease</I>:&#160;&#160;Physicians are increasingly
    relying on diagnostic testing to help identify the risk of
    disease, to detect the symptoms of disease earlier, to aid in
    the choice of therapeutic regimen, to monitor patient compliance
    and to evaluate treatment results. We believe physicians,
    patients and payors increasingly recognize the value of
    diagnostic testing as a means to improve health and reduce the
    overall cost of health care through early detection.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The anatomic pathology market remains highly-fragmented, with
    the two largest clinical laboratory companies accounting for
    only 14&#160;percent of annual revenues for the market in 2008.
    The remaining 86&#160;percent of annual revenues for the market
    was comprised of over 13,000 pathologists and numerous
    specialized testing companies that offer a relatively narrow
    menu of diagnostic tests. In 2008, approximately 70&#160;percent
    of pathologists licensed in the U.S.&#160;were in private
    practice according to Washington G-2 Reports. As a result, we
    believe that there
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    are substantial consolidation opportunities in the anatomic
    pathology market as smaller operators seek access to the
    resources of diagnostics companies with a more comprehensive
    selection of services for referring physicians.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Competitive Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we are distinguished by the following
    competitive strengths:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Leading Market Position in Higher-Growth Subspecialties of
    Expanding Industry</I>.&#160;&#160;We are a leading specialized
    diagnostics company, focused on the faster-growing non-hospital
    outpatient channel within the anatomic pathology market with
    leading market positions in two of the three higher-growth
    subspecialties of the market: dermatopathology and women&#146;s
    health pathology.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Locally-Focused Business Model with National
    Scale.</I>&#160;&#160;Our business model centers on achieving
    significant local market share, which yields operating
    efficiencies and national scale when consolidated across all of
    our operations. The diagnostic services we provide are designed
    specifically to meet the needs of the local markets we serve.
    Our national infrastructure enables us to more efficiently
    manage our operations, improve productivity and deliver a more
    extensive menu of diagnostic services to our local clients. As a
    result of our strong local presence and high-quality diagnostic
    services, we have established significant loyalty with referring
    physicians and key payors in our local markets. In 2009, we
    derived more than 85&#160;percent of our revenues from
    locally-focused,
    <FONT style="white-space: nowrap">in-network</FONT>
    payor contracts.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Experienced, Specialized Pathologists Focused on Client
    Service</I>.&#160;&#160;We believe our pathologists have
    long-standing client relationships and provide high-quality
    service within their respective local communities. Over
    one-third of our pathologists are specialized in
    dermatopathology, with the remainder focused on women&#146;s
    health pathology, urologic pathology, hematopathology and
    general surgical pathology. This alignment of our
    pathologists&#146; specialties with those of the referring
    physicians is critical to our ability to retain existing and
    attract new clients. Our clinical expertise and frequent
    interactions with clients on patient diagnoses enables us to
    establish effective consultative and long-term relationships
    with referring physicians.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Professional Sales, Marketing and Client Service
    Team.</I>&#160;&#160;We maintain a sales, marketing and client
    service team of over 100 professionals who are highly-trained
    and organized by subspecialty to better meet the needs of our
    referring physicians and their patients. Our sales
    representatives are incentivized through compensation plans to
    not only secure new physician clients, but also to maintain and
    enhance relationships with existing physician clients. As a
    result, they have enabled us to expand our geographic market
    presence to 30&#160;states and increase market penetration and
    market share in our local markets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Proprietary IT Solutions.</I>&#160;&#160;Delivery of clinical
    information is essential to our business and a critical aspect
    of the differentiated service that we provide to our clients. We
    have developed scalable IT solutions that maximize the
    flexibility,
    <FONT style="white-space: nowrap">ease-of-use</FONT>
    and speed of delivery of our diagnostic reports, which has
    enabled us to rapidly grow our accession volume and meet the
    increasing physician demand for our diagnostic services. We also
    monitor referral patterns on a daily basis using our IT
    infrastructure, which allows us to respond quickly to referring
    physicians through our sales and marketing teams. We achieved
    this through the development of a proprietary suite of IT
    solutions called <B>ConnectDX </B>that is compatible with most
    electronic medical record, or EMR, systems. <B>ConnectDX
    </B>incorporates customized interface solutions, low cost and
    efficient printer capabilities, compliant web portal capacities,
    and proprietary software, all resulting in efficient and
    reliable onsite client connections.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Proven Acquisition, Integration and Development
    Capabilities</I>.&#160;&#160;We have significant expertise and a
    proven track record of identifying, acquiring and integrating
    pathology practices into our diagnostic laboratory network. Our
    management team successfully expanded our operations through the
    acquisition of 16 anatomic pathology laboratories and one
    clinical laboratory and through the development of two&#160;de
    novo diagnostic laboratories. We have improved the performance
    of the laboratories we have acquired by applying our standard
    operating procedures, enhancing sales and marketing
    capabilities, implementing our IT platform and realizing
    efficiencies from our national operations and management. We
    believe our operational platform, expertise and value
    proposition enable us to capitalize on the considerable
</TD>
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    <BR>
    3
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<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    consolidation opportunities in the highly-fragmented anatomic
    pathology market, as reflected by our significant current
    pipeline of potential acquisition targets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Experienced Senior Leadership.</I>&#160;&#160;Our senior
    management team has approximately 80&#160;years of combined
    experience in the health care industry, including senior
    management positions with leading diagnostic companies including
    AmeriPath, DIANON Systems and Laboratory Corporation of America,
    and collectively have successfully completed over 65
    acquisitions and built a number of de novo specialized
    diagnostic laboratories. We believe that our management&#146;s
    strong reputation, extensive network of industry relationships
    and experience in building and growing successful companies in
    the industry help us to drive operating performance, hire and
    retain talented pathologists and other employees and attract
    acquisition candidates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Business Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to achieve growth by pursuing the following strategies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    <TD width="4%"></TD>
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    <TD width="94%"></TD>
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<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Continue to Drive Market Penetration through Sales and
    Marketing</I>.&#160;&#160;We plan to drive organic growth
    through our professional sales and marketing organization. Our
    <FONT style="white-space: nowrap">63-person</FONT>
    sales and marketing team provides us with broad coverage to
    augment and further penetrate existing physician relationships
    and to develop new referral relationships. We plan to
    strategically add sales professionals to laboratories in markets
    that will most benefit from enhanced outreach, increasing our
    presence in existing and new markets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Leverage our IT Platform to Increase Operating
    Efficiencies</I>.&#160;&#160;We believe our IT platform will
    allow us to gain market share in our existing subspecialties by
    improving productivity and reducing turnaround times. We have
    recently introduced an IT solution called <B>doc2MD</B>, a
    leading EMR system for dermatology practices for which we have
    an exclusive, long-term license. We intend to continue to
    develop our internal IT operations into a better-integrated
    diagnostic platform, which will improve national coordination
    and provide real time visibility into key performance metrics.
    In addition, we plan to continue to introduce innovative IT
    solutions, interface capabilities and market-specific IT
    solutions that enhance our value proposition to referring
    physicians.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand through Targeted Acquisitions.</I>&#160;&#160;We plan
    to identify and acquire leading laboratories to augment our
    organic growth, broaden our geographic presence and enhance our
    service offering. We intend to continue to build our business
    and enhance our reputation as a preferred acquiror for
    independent laboratories. We believe that our recognizable
    identity and strong reputation make us a preferred partner for
    independent laboratories.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand Diagnostic Services Capabilities.</I>&#160;&#160;We
    intend to expand our services in the areas of clinical and
    molecular diagnostics to complement our existing anatomic
    pathology businesses. We believe we can leverage our depth of
    experience and physician relationships to sell these new
    diagnostic services in conjunction with our existing testing
    services as a comprehensive offering. As a &#147;one-stop&#148;
    diagnostic services provider, we would not only better serve our
    current clients, but also position ourselves to attract new
    business under a more diverse service model.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Develop De Novo Diagnostics Laboratories.</I>&#160;&#160;We
    plan to continue to selectively develop diagnostic laboratories
    on a de novo basis, as we have done in certain markets, to
    expand our market presence, broaden our service offering and
    leverage the capabilities of our existing laboratories and
    pathologists.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand Contracts with Hospitals in Target
    Markets.</I>&#160;&#160;We intend to continue to develop
    additional contracts with hospitals in target markets as part of
    a broader strategy to strengthen and grow our outpatient
    business and expand our local market share.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Further Expand into Growing Long-Term Care
    Market.</I>&#160;&#160;We have a growing presence providing
    clinical diagnostic services to the long-term care markets in
    Central and Northern Florida. We intend to expand this regional
    coverage into the large South Florida market and replicate our
    success in other states with growing long-term care markets. We
    believe that our IT solutions, and our ability to meet the rapid
    service requirements for the long term care market, provide us
    with a significant competitive advantage in these markets.
</TD>
</TR>

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    <BR>
    4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is subject to numerous risks, which are highlighted
    in the section entitled &#147;Risk Factors.&#148; These risks
    represent challenges to the successful implementation of our
    strategy and the growth of our business. Some of these risks are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="4%"></TD>
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    <TD width="94%"></TD>
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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adverse changes in coverage or reimbursement guidelines and
    amounts applicable to our specialized diagnostic services,
    including health care reimbursement reform and cost-containment
    measures implemented by government agencies, could reduce our
    revenues and have a material adverse impact on our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If referring physicians, who are our primary clients, choose to
    internalize technologies or technical or professional diagnostic
    services functions that we currently use or perform, and we do
    not develop new or alternative technologies or functions that
    are attractive to our clients, it may reduce the demand for our
    specialized diagnostic services and adversely affect our
    business;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Proposed federal or state health care reform measures, if
    enacted, could increase our costs, decrease our revenues, expose
    us to expanded liability or require us to revise the ways in
    which we conduct our business, any of which could adversely
    affect our operating results and financial condition.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further discussion of these and other risks you should
    consider before making an investment in our Class&#160;A common
    stock, see the section entitled &#147;Risk Factors&#148;
    beginning on page&#160;16.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    History and Organizational Structure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated in Delaware on April&#160;23, 2010. We are
    a holding company and our principal asset after the completion
    of this offering will be our indirect equity interest in Aurora
    Holdings. In June 2006, Aurora Holdings was organized as a
    limited liability company and was initially capitalized by
    affiliates of Summit Partners, affiliates of GSO Capital
    Partners and members of our senior management team. In June
    2009, GSO Capital Partners&#146; equity interest in Aurora
    Holdings was purchased by an affiliate of KRG Capital Partners.
    Prior to giving effect to the reorganization transactions
    described below, affiliates of Summit Partners, whom we refer to
    as the Summit Partners Equityholders, owned 51&#160;percent  of
    the economic interest in Aurora Holdings; an affiliate of KRG
    Capital Partners, whom we refer to as the KRG Equityholders,
    owned 34&#160;percent of the economic interest in Aurora
    Holdings and members of our senior management team and
    consultants, whom we refer to as the Management Equityholders,
    owned 15&#160;percent of the economic interest in Aurora
    Holdings. We refer to the Summit Partners Equityholders, the KRG
    Equityholders and the Management Equityholders as our Principal
    Equityholders. We refer to membership interests in Aurora
    Holdings as Aurora Holdings Units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reorganization
    Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, we will enter into a series of
    transactions as described below that will result in our indirect
    acquisition of all of the business and operational control of
    Aurora Holdings
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the Aurora Holdings Units. We refer to this series of
    transactions as the Reorganization Transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of the Reorganization Transactions, we will indirectly,
    through a newly-formed, wholly-owned subsidiary, ARDX Sub, Inc.,
    which we refer to as ARDX Sub, acquire Aurora Holdings Units
    from certain of the Summit Partners Equityholders and the KRG
    Equityholders in exchange for shares of our Class&#160;A common
    stock, as well as rights, which we refer to as TRA Rights, under
    an agreement that we refer to as the Tax Receivable Agreement.
    This Tax Receivable Agreement will obligate Aurora Diagnostics,
    Inc. to pay to an entity controlled by our Principal
    Equityholders 85&#160;percent of certain cash tax savings, if
    any, realized by Aurora Diagnostics, Inc. after the completion
    of this offering. See &#147;Certain Relationships and Related
    Party Transactions&#160;&#151; Tax Receivable Agreement.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the Reorganization Transactions, certain of the Summit
    Partners Equityholders and all of the Management Equityholders,
    who we refer to as the Aurora Holdings Continuing Members, will
    continue to own&#160;&#160;&#160;&#160;&#160;&#160;percent of
    the Aurora Holdings Units. See &#147;Organizational
    Structure&#160;&#151; Reorganization Transactions.&#148; The KRG
    Equityholders will not continue to own any Aurora Holdings Units
    following the consummation of the
</DIV>
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    <BR>
    5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reorganization Transactions. In addition, we will indirectly
    acquire all of the business and operational control of Aurora
    Holdings, and an immaterial amount of cash, from the Aurora
    Holdings Continuing Members in exchange for newly-issued shares
    of our Class&#160;B common stock. The Aurora Holdings Continuing
    Members will also receive rights to distributions that are
    calculated in a manner that is similar to the TRA Rights under
    the Aurora Holdings limited liability company agreement, which
    will be further amended and restated in connection with the
    Reorganization Transactions. We refer to the Aurora Holdings
    limited liability company agreement, as further amended and
    restated, as the Second Amended and Restated Aurora Holdings LLC
    Agreement. See &#147;Organizational Structure&#160;&#151;
    Reorganization Transactions.&#148; Our Class&#160;B common stock
    is intended to provide voting rights in us to the Aurora
    Holdings Continuing Members that reflect their continuing
    economic interest in Aurora Holdings after the completion of
    this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of these Reorganization Transactions will be consummated
    immediately prior to the closing of this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the completion of the Reorganization Transactions, we
    will have two classes of common stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Class&#160;A common stock.</I>&#160;&#160;We will sell shares
    of our Class&#160;A common stock in this offering. Each share of
    our Class&#160;A common stock will be entitled to one vote on
    matters submitted to a vote of our stockholders. Our
    Class&#160;A common stock will represent all of the economic
    rights in us (including rights to dividends and distributions
    upon liquidation, but excluding the return of the par value of
    the Class&#160;B common stock upon liquidation). Immediately
    following consummation of the Reorganization Transactions, but
    without giving effect to the sale of shares of our Class&#160;A
    common stock by us or the selling stockholders in this offering:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Summit Partners Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of our Class&#160;A common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the KRG Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of our Class&#160;A common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Management Equityholders will hold no shares of our
    Class&#160;A common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Class&#160;B common stock.</I>&#160;&#160;The Aurora Holdings
    Continuing Members will be the only holders of our Class&#160;B
    common stock. Each share of our Class&#160;B common stock will
    be entitled to one vote on matters submitted to a vote of our
    stockholders. Our Class B common stock will only represent
    voting rights and will not represent any economic rights in us
    (including rights to dividends and distributions upon
    liquidation, but excluding the return of the par value of the
    Class&#160;B common stock upon liquidation). The Aurora Holdings
    Continuing Members will hold one share of our Class B common
    stock for each Aurora Holdings Unit held by them. Immediately
    following consummation of the Reorganization Transactions, but
    without giving effect to the purchase of shares of our
    Class&#160;B common stock with a portion of the net proceeds
    that we will receive from this offering:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Summit Partners Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of our Class&#160;B common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the KRG Equityholders will hold no shares of our Class&#160;B
    common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Management Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    shares of our Class&#160;B common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Principal and Selling Stockholders&#148; for more
    information on the shares of our Class&#160;A common stock to be
    offered by the selling stockholders in this offering.
</DIV>
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</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The diagram below depicts our organizational structure
    immediately after the completion of this offering, after giving
    effect to the Reorganization Transactions and after giving
    effect to this offering and the application of the net proceeds
    that we will receive from this offering.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265804.gif" alt="(CHART)">
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Summit Partners Equityholders
    will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the Aurora Holdings Units.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Summit Partners Equityholders
    will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of our Class&#160;A common stock.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Summit Partners Equityholders
    will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of our Class&#160;B common stock.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Public stockholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of our Class&#160;A common stock.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The KRG Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    our Class&#160;A common stock.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Management Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    our Class&#160;B common stock.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Management Equityholders will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the Aurora Holdings Units.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">We will hold 100&#160;percent of
    ARDX Sub common stock.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">ARDX Sub will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the Aurora Holdings Units.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the Reorganization Transactions, and after giving
    effect to this offering and the application of the net proceeds
    that we will receive from this offering, we will indirectly
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the Aurora Holdings Units and will, through ARDX Sub, be the
    sole managing member of Aurora Holdings. As the sole managing
    member of Aurora Holdings, we will have all business and
    operational control of Aurora Holdings and its subsidiaries. We
    will consolidate the financial results of Aurora Holdings and
    our net income (loss) will be reduced by the noncontrolling
    interest expense to reflect the rights of the Aurora Holdings
    Continuing Members with respect to their retained Aurora
    Holdings Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of this offering, the Summit Partners Equityholders and
    the KRG Equityholders will sell a portion of their shares of our
    Class&#160;A common stock. We will not receive any of the
    proceeds from the sale of shares of our Class&#160;A common
    stock in this offering by the selling stockholders. Immediately
    following the completion of this offering, we will use a portion
    of the net proceeds that we will receive from this offering,
    along with TRA Rights, to purchase shares of our Class&#160;B
    common stock and Aurora Holdings Units from the Aurora Holdings
    Continuing Members.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Receivable Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, Aurora Diagnostics, Inc. will
    enter into the Tax Receivable Agreement, with ARDX Sub and an
    entity controlled by our Principal Equityholders, which we refer
    to as the Tax Receivable Entity, to which our Principal
    Equityholders are contributing the TRA Rights they receive in
    the Reorganization Transactions. This Tax Receivable Agreement
    will provide for the payment by Aurora Diagnostics, Inc. to the
    Tax Receivable Entity of 85&#160;percent of certain cash tax
    savings, if any, in U.S.&#160;federal, state, local and foreign
    income tax realized by Aurora Diagnostics, Inc. after the
    completion of this offering as a result of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any <FONT style="white-space: nowrap">step-up</FONT>
    in tax basis in our share of Aurora Holdings&#146; assets
    resulting from:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class&#160;A common stock or cash,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments under the Tax Receivable Agreement to the Tax
    Receivable Entity;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated in Delaware in April 2010 and began
    laboratory operations in June 2006. Our executive offices are
    located at 11025 RCA Center Drive, Suite&#160;300, Palm Beach
    Gardens, FL 33410. Our telephone number is
    <FONT style="white-space: nowrap">(866)&#160;420-5512</FONT>
    or
    <FONT style="white-space: nowrap">(561)&#160;626-5512.</FONT>
    Our website address is www.auroradx.com. Information included or
    referred to on our website is not part of this prospectus.
</DIV>
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</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    OFFERING</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Shares of Class&#160;A common stock outstanding before this
    offering </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Shares of Class&#160;A common stock offered by us </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Shares of Class&#160;A common stock offered by the selling
    stockholders </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    &#160;&#160;Total </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Shares of Class&#160;A common stock to be outstanding after this
    offering </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares.
    If, immediately after the completion of this offering and the
    application of the net proceeds that we will receive from this
    offering, all of the Aurora Holdings Continuing Members elected
    to exchange their Aurora Holdings Units for shares of our
    Class&#160;A common
    stock,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock would be outstanding.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Shares of Class&#160;B common stock to be outstanding after this
    offering </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares.
    Shares of our Class&#160;B common stock have voting but no
    economic rights (including rights to dividends and distributions
    upon liquidation, but excluding the return of par value upon
    liquidation) and will be issued in an amount equal to the number
    of Aurora Holdings Units held by the Aurora Holdings Continuing
    Members. When an Aurora Holdings Unit is exchanged by an Aurora
    Holdings Continuing Member for a share of Class&#160;A common
    stock, a share of our Class&#160;B common stock will be
    cancelled.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Over-allotment option to be offered by us </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares.
    All of the net proceeds we receive from any over-allotment
    option to be offered by us will be used to acquire additional
    Aurora Holdings Units and shares of Class B common stock from
    the Aurora Holdings Continuing Members.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Over-allotment option to be offered by the selling stockholders </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Voting Rights </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    Each share of our Class&#160;A common stock entitles its holder
    to one vote per share, representing an aggregate
    of&#160;&#160;&#160;&#160;&#160; percent of the combined voting
    power of our common stock upon completion of this offering and
    the application of the net proceeds that we will receive from
    this offering.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    Each share of our Class&#160;B common stock entitles its holder
    to one vote per share, representing an aggregate
    of&#160;&#160;&#160;&#160;&#160; percent of the combined voting
    power of our common stock upon completion of this offering and
    the application of the net proceeds that we will receive from
    this offering.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    All classes of our common stock generally vote together as a
    single class on all matters submitted to a vote of our
    stockholders. Upon completion of this offering, our Class&#160;B
    common stock will be held exclusively by the Aurora Holdings
    Continuing Members.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    See &#147;Description of Capital Stock.&#148;</TD>
</TR>

</TABLE>
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    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Exchange </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    Aurora Holdings Units held by the Aurora Holdings Continuing
    Members (along with a corresponding number of shares of our
    Class&#160;B common stock) may be exchanged with us for shares
    of our Class&#160;A common stock on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis or, in certain circumstances, an equivalent amount of
    cash. The Aurora Holdings Continuing Members will
    hold&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units, or&#160;&#160;&#160;&#160;&#160; percent
    of the outstanding Aurora Holdings Units, following the
    completion of this offering and the application of the net
    proceeds that we will receive from this offering.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Use of proceeds </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    We expect the net proceeds that we will receive from this
    offering will be approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million based on an assumed
    initial public offering price of $&#160;&#160;&#160;&#160;&#160;
    per share, which is the midpoint of the price range set forth on
    the cover page of this prospectus, after deducting underwriting
    discounts and commissions and estimated offering expenses
    payable by us and after giving effect to estimates of certain
    expenses that we expect to be reimbursed.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    Based on an assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, we intend to use $&#160;&#160;&#160;&#160;&#160; of
    the proceeds from this offering, along with TRA Rights, to
    purchase&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock held by the Aurora Holdings
    Continuing Members (or $&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock if the underwriters exercise
    their over-allotment option in full).</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to use the remaining proceeds from this offering for
    working capital and general corporate purposes, which may
    include future acquisitions.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    We will not receive any of the proceeds from the sale of shares
    of Class&#160;A common stock by the selling stockholders in this
    offering.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
</DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    See &#147;Use of Proceeds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Risk Factors </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    You should read the &#147;Risk Factors&#148; section of this
    prospectus for a discussion of factors to consider carefully
    before deciding to invest in shares of our Class&#160;A common
    stock.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
<DIV style="text-indent: -5%; margin-left: 5%">
    Proposed NASDAQ Global Market Symbol </DIV>
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#145;&#145;ARDX&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares of our Class&#160;A common stock that will
    be outstanding after this offering excludes shares of our
    Class&#160;A common stock reserved for issuance upon the
    exchange of our Class&#160;B common stock and Aurora Holdings
    Units into Class&#160;A common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless we indicate otherwise, all information in this prospectus
    assumes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consummation of the Reorganization Transactions described under
    &#147;Prospectus Summary&#160;&#151; Reorganization
    Transactions&#148; and &#147;Organizational Structure;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    that the underwriters do not exercise their option to purchase
    up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock from us and the selling
    stockholders to cover over-allotments;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus.
</TD>
</TR>

</TABLE>
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    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Historical and Pro Forma<BR>
    Consolidated Financial and Operating Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our summary historical and pro
    forma consolidated financial data, at the dates and for the
    periods indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The historical financial data as of December&#160;31, 2008 and
    2009, and for each of the three years in the period ended
    December&#160;31, 2009, have been derived from our historical
    consolidated financial statements included elsewhere in this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary unaudited pro forma condensed consolidated financial
    data have been derived by the application of pro forma
    adjustments to our historical consolidated financial statements
    included elsewhere in this prospectus. The unaudited pro forma
    condensed consolidated statements of operations data for the
    year ended December&#160;31, 2009 and balance sheet data as of
    December&#160;31, 2009 give effect to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2009 acquisition of South Texas Dermatopathology Lab, P.A.,
    as if that acquisition occurred January&#160;1, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory,&#160;P.C., as if those acquisitions
    had occurred as of January&#160;1, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consummation of the Reorganization Transactions as if they
    occurred as of December&#160;31, 2009;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    this offering and the use of the net proceeds that we will
    receive from this offering, as if effective on December&#160;31,
    2009 for the unaudited pro forma consolidated balance sheet and
    January&#160;1, 2009 for the unaudited pro forma consolidated
    statement of operations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The unaudited pro forma financial information does not include
    our most recent acquisition, which was completed March&#160;12,
    2010, as we continue to obtain the necessary financial
    information to complete the pro forma financial presentation for
    that acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary pro forma financial information is included for
    illustrative purposes only and may not accurately reflect our
    results of operations or financial position for the periods and
    as of the dates described above had the relevant transactions
    occurred as of these dates. In addition, the summary pro forma
    financial information is based on certain preliminary estimates
    which may change materially upon completion of further analysis
    and is not necessarily indicative of future results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should read this summary historical and pro forma
    consolidated financial data together with our consolidated
    financial statements and the related notes, &#147;Unaudited Pro
    Forma Financial Information&#148; and &#147;Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations,&#148; in each case, included elsewhere in this
    prospectus.
</DIV>
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    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Consolidated Financial and Operating
    Data<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>As Adjusted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Consolidated Income Statement Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,451
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    157,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Provision for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Intangible asset amortization expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Impairment of goodwill and other intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Acquisition and business development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Equity based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159,877
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,114
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,577
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,969
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17,956
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Write-off of deferred debt issue
    costs<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,330
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    <B>Total other expense, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,452
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,941
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,253
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    <B>Income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Provision for income
    taxes<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income available to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income available to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income available to common stockholders per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Basic net income per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Diluted net income per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Consolidated operating data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Number of accessions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    619
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,557
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Other financial data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,390
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Consolidated Financial and Operating Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Actual<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Acquisitions<SUP style="font-size: 85%; vertical-align: top">(7)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">As
    Adjusted<SUP style="font-size: 85%; vertical-align: top">(8)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consolidated balance sheet data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    462,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    471,732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Working capital, excluding deferred tax items
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,081
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long term debt, including current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tax receivable arrangement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The summary consolidated financial
    data for the years ended December&#160;31, 2007, 2008 and 2009
    are that of Aurora Holdings prior to the completion of the
    Reorganization Transactions, this offering and our pending
    refinancing.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The pro forma, as adjusted,
    consolidated income statement data for the year ended
    December&#160;31, 2009 gives effect to the following as if they
    had occurred January&#160;1, 2009:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2009 acquisition of South Texas Dermatopathology Lab, P.A.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory,&#160;P.C.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the consummation of the Reorganization Transactions;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the use of the net proceeds that we will receive from this
    offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">During 2008, we adopted a new
    equity incentive plan, which we refer to as the New Plan, to
    replace our original equity incentive plan. The New Plan
    provides awards of membership interest units in Aurora Holdings.
    These interests are denominated as
    <FONT style="white-space: nowrap">Class&#160;D-1,</FONT>
    <FONT style="white-space: nowrap">Class&#160;D-2,</FONT>
    and
    <FONT style="white-space: nowrap">Class&#160;D-3&#160;units</FONT>
    of Aurora Holdings. During 2008, we authorized and issued 4,000
    D-1&#160;units, 3,000 D-2&#160;units and 3,000 D-3&#160;units of
    Aurora Holdings under the New Plan. All membership interest
    units in Aurora Holdings issued in 2008 were fully vested as of
    December&#160;31, 2008. We recorded compensation expense of
    $1.2&#160;million for these awards. There were no other grants
    under the New Plan. In connection with the Reorganization
    Transactions, the Class&#160;D Units of Aurora Holdings issued
    under the New Plan will be either exchanged for shares of our
    Class&#160;A common stock or cancelled without consideration.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">As of September&#160;30, 2009, we
    tested goodwill and intangible assets for potential impairment
    and recorded a non-cash impairment expense of $8.0&#160;million
    resulting from a write down of $6.6&#160;million in the carrying
    value of goodwill and a write down of $1.4&#160;million in the
    carrying value of other intangible assets. The write-down of the
    goodwill and other intangible assets related to one reporting
    unit. Regarding this reporting unit, we believe events occurred
    and circumstances changed that more likely than not reduced the
    fair value of the intangible assets and goodwill below their
    carrying amounts. These events during 2009 consisted primarily
    of the loss of significant customers present at the acquisition
    date, which adversely affected the current year and expected
    future revenues and operating profit of the reporting unit.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">In December 2007, we refinanced our
    previous credit facilities. As a result, we wrote off
    $3.5&#160;million of unamortized deferred debt issue costs. Pro
    forma, as adjusted 2009 represents the write off of
    $1.1&#160;million and $3.9&#160;million of unamortized original
    issue discount and deferred debt issuance costs, respectively,
    originally incurred in connection with our current credit
    facilities, as well as $2.3&#160;million related to a prepayment
    penalty under the current credit agreement.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Aurora Holdings is a Delaware
    limited liability company taxed as a partnership for federal and
    state income tax purposes, in accordance with the applicable
    provisions of the Internal Revenue Code. Accordingly, Aurora
    Holdings was not generally subject to income taxes. The income
    attributable to Aurora Holdings was allocated to the members of
    Aurora Holdings in accordance with the terms of the existing
    Aurora Holdings limited liability company agreement, which we
    refer to as the Aurora Holdings LLC Agreement. However, certain
    of our subsidiaries are corporations, file separate returns and
    are subject to federal and state income taxes. The historical
    provision for income taxes for these subsidiaries is reflected
    in our consolidated financial statements and includes federal
    and state taxes currently payable and changes in deferred tax
    assets and liabilities excluding the establishment of deferred
    tax assets and liabilities related to the acquisitions. The pro
    forma, as adjusted, provision for income taxes assumes a
    40&#160;percent effective tax rate, after giving effect to the
    Reorganization Transactions.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The pro forma, for acquisitions,
    consolidated balance sheet data as of December&#160;31, 2009
    gives effect to our 2010 acquisitions of Bernhardt Laboratories,
    Inc. and Pinkus Dermatopathology Laboratory,&#160;P.C. as if
    they were effective December&#160;31, 2009.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The pro forma, as adjusted,
    consolidated balance sheet data as of December&#160;31, 2009
    gives effect to the following, as if they were effective as of
    December&#160;31, 2009:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory,&#160;P.C.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The consummation of the Reorganization Transactions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The use of the net proceeds that we will receive from this
    offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The following is a reconciliation
    of net income to Adjusted EBITDA:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">As
    Adjusted<SUP style="font-size: 85%; vertical-align: top">(A)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net Income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>EBITDA</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,741
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Management
    fees<SUP style="font-size: 85%; vertical-align: top">(B)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unusual
    charges<SUP style="font-size: 85%; vertical-align: top">(C)(D)(E)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,451
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (124
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (28
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Adjusted EBITDA, as defined</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,390
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Adjusted EBITDA is a non-GAAP
    financial measure used in key financial covenants contained in
    our senior credit facilities, which are material facilities
    supporting our capital structure and providing liquidity to our
    business. Adjusted EBITDA is defined as earnings before
    interest, taxes, depreciation and amortization (EBITDA), further
    adjusted to exclude unusual items and other adjustments
    permitted in calculating covenant compliance under our senior
    credit facilities. We believe that the inclusion of
    supplementary adjustments to EBITDA applied in presenting
    Adjusted EBITDA is appropriate to provide additional information
    to investors to demonstrate compliance with the specified
    financial ratios and other financial condition tests contained
    in our credit facilities.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Our management uses Adjusted EBITDA
    to gauge the costs of our capital structure on a
    <FONT style="white-space: nowrap">day-to-day</FONT>
    basis when full financial statements are unavailable. Our
    management further believes that providing this information
    allows our investors greater transparency and a better
    understanding of our ability to meet our debt service
    obligations and make capital expenditures.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Any breach of covenants in our
    senior credit facilities that are tied to ratios based on
    Adjusted EBITDA could result in a default under that agreement,
    in which case the lenders could elect to declare all amounts
    borrowed due and payable and to terminate any commitments they
    have to provide further borrowings. Any default and subsequent
    acceleration of payments under our debt agreements would have a
    material adverse effect on our results of operations, financial
    position and cash flows. Additionally, under our debt
    agreements, our ability to engage in activities such as
    incurring additional indebtedness, making investments and paying
    dividends or making distributions is also tied to ratios based
    on Adjusted EBITDA.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Adjusted EBITDA does not represent
    net income or cash flow from operations as those terms are
    defined by GAAP and does not necessarily indicate whether cash
    flows will be sufficient to fund cash needs. Further, our senior
    credit facilities require that Adjusted EBITDA be calculated for
    the most recent four fiscal quarters. As a result, the measure
    can be disproportionately affected by a particularly strong or
    weak quarter. Further, it may not be comparable to the measure
    for any subsequent four-quarter period or any complete fiscal
    year.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Adjusted EBITDA is not a recognized
    measurement under GAAP, and investors should not consider
    Adjusted EBITDA as a substitute for measures of our financial
    performance and liquidity as determined in accordance with GAAP,
    such as net income, operating income or net cash provided by
    operating activities. Because other companies may calculate
    Adjusted EBITDA differently than we do, Adjusted EBITDA may not
    be comparable to similarly titled measures reported by other
    companies. Adjusted EBITDA has other limitations as an
    analytical tool, when compared to the use of net income, which
    is the most directly comparable GAAP financial measure,
    including:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA does not reflect the provision of income tax
    expense in our various jurisdictions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA does not reflect the interest expense we incur;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA does not reflect any attribution of costs to our
    operations related to our investments and capital expenditures
    through depreciation and amortization charges;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA does not reflect the cost of compensation we
    provide to our employees in the form of stock option
    awards;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Adjusted EBITDA excludes expenses that we believe are unusual or
    non-recurring, but which others may believe are normal expenses
    for the operation of a business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(A)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The pro forma, as adjusted,
    Adjusted EBITDA does not give effect to our 2010 acquisition of
    Pathology Solutions, LLC, which we believe, based on preliminary
    estimates, would increase 2009 Pro forma, as adjusted, Adjusted
    EBITDA by $4.0&#160;million to $6.0&#160;million. Our final
    estimates and related accounting may differ materially from the
    preliminary estimates.
    </FONT></TD>
</TR>





<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(B)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Management fees related to expenses
    payable to affiliates. These management fees will terminate
    along with our management services agreement upon the completion
    of this offering.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(C)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">During 2007, net income included
    the write-off of previously deferred debt issue costs in
    connection with the refinancing of our previous credit facility.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(D)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">During 2009, we recorded a non-cash
    impairment charge of $8.0&#160;million related to goodwill and
    other intangible assets and a non-recurring charge of
    $0.6&#160;million for acquisition costs.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(E)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The 2009 pro forma, as adjusted
    amount includes the following charges:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Non Cash Charges:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Impairment of goodwill and other intangibles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Write off of unamortized deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Write off of unamortized original issue discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total Non Cash Charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Prepayment penalty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Total unusual charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Buying shares of our Class&#160;A common stock involves risk.
    You should consider carefully the risks and uncertainties
    described below, together with all of the other information in
    this prospectus, including the financial statements and the
    related notes appearing in the back of this prospectus, before
    deciding to purchase shares of our Class&#160;A common stock.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in regulation and policies may adversely affect reimbursement
    for diagnostic services and could have a material adverse impact
    on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reimbursement levels for health care services are subject to
    continuous and often unexpected changes in policies, and we face
    a variety of efforts by government payors to reduce utilization
    and reimbursement for diagnostic testing services. Changes in
    governmental reimbursement may result from statutory and
    regulatory changes, retroactive rate adjustments, administrative
    rulings, competitive bidding initiatives, and other policy
    changes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2010, the U.S.&#160;Congress passed legislation relating to
    health care reform, including the Patient Protection and
    Affordable Care Act, or PPACA, and the Health Care and Education
    Affordability Reconciliation Act of 2010, or HCEARA. While the
    comprehensive health reform legislation passed by the
    U.S.&#160;Congress and signed into law by the President in 2010
    did not adversely affect reimbursement for our anatomic
    pathology services, this legislation provides for two separate
    reductions in the reimbursement rates for our clinical
    laboratory services: a &#147;productive adjustment&#148;
    (currently estimated to be between 1.1 and 1.4&#160;percent),
    and an additional 1.75&#160;percent reduction. Each of these
    would reduce the annual Consumer Price Index-based update that
    would otherwise determine our reimbursement for clinical
    laboratory services. The U.S.&#160;Congress has considered, at
    least yearly in conjunction with budgetary legislation, changes
    to one or both of the Medicare fee schedules under which we
    receive reimbursement, which include the physician fee schedule
    and the clinical laboratory fee schedule. Further reductions in
    reimbursement for Medicare services or changes in policy
    regarding coverage of tests may be implemented from time to
    time. A substantial portion of our anatomic pathology services
    are billed under a single code (CPT 88305) and our revenue and
    business may be adversely affected if the reimbursement rate
    associated with that code is reduced. Even when reimbursement
    rates are not reduced, policy changes add to our costs by
    increasing the complexity and volume of administrative
    requirements. Medicaid reimbursement, which varies by state, is
    also subject to administrative and billing requirements and
    budget pressures. Recently, state budget pressures have caused
    states to consider several policy changes that may impact our
    financial condition and results of operations, such as delaying
    payments, reducing reimbursement, restricting coverage
    eligibility and service coverage, and imposing taxes on our
    services.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Increased
    internalization of diagnostic testing by our clients or
    patients, including the use of new testing technologies by our
    clients or patients, could adversely affect our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our clients, such as referring physicians and hospitals, may
    internalize diagnostic testing or technologies that have
    historically been performed by diagnostic laboratory companies
    like us. Our industry has experienced a recent market trend in
    which physicians and hospitals perform the technical
    <FONT style="white-space: nowrap">and/or</FONT>
    professional components of their laboratory testing needs in
    their own offices. If this trend continues or becomes more
    pronounced and our clients internalize diagnostic testing
    functions or technologies that we currently perform or use, and
    we do not develop new or alternative functions or technologies
    that are attractive to our clients, it may reduce the demand for
    our diagnostic testing services and adversely affect our
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, advances in technology may lead to the development
    of more cost-effective tests that can be performed outside of a
    commercial laboratory such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <FONT style="white-space: nowrap">point-of-care</FONT>
    tests that can be performed by physicians in their offices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tests that can be performed by hospitals in their own
    laboratories;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    home testing that can be performed by patients in their homes.
</TD>
</TR>

</TABLE>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any advance in technology could reduce demand for our services
    or render them obsolete.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Compliance costs associated with the Clinical Laboratory
    Improvement Amendments of 1988, or CLIA, make it
    cost-prohibitive for many physicians to operate clinical
    laboratories in their offices. However, diagnostic tests
    approved or cleared by the U.S.&#160;Food and Drug
    Administration, or FDA, for home use are automatically deemed to
    be &#147;waived&#148; tests under CLIA and may be performed by
    our referring physicians and their patients with minimal
    regulatory oversight under CLIA. Test kit manufacturers could
    seek to increase sales to both our referring physicians and
    their patients of test kits approved by the FDA for
    <FONT style="white-space: nowrap">point-of-care</FONT>
    testing or home use. Development of such technology and its use
    by our clients would reduce the demand for our laboratory-based
    testing services and adversely affect our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to timely or accurately bill for our services or collect
    outstanding payments could have a material adverse effect on our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billing for diagnostic services is complex. We bill numerous
    payors, including physicians, patients, insurance companies,
    Medicare, and Medicaid, according to applicable law, billing
    requirements and, as applicable, contractual arrangements. This
    complexity is further compounded by rapidly changing
    requirements for auditing, external compliance, and internal
    compliance policies and procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our bad debt expense in 2009, which totaled
    5.5&#160;percent of revenues, resulted from the failure of
    patients to pay their bills, including copayments and
    deductibles. Failure to timely or correctly bill could lead to
    lack of reimbursement for services or an increase in the aging
    of our accounts receivable, which could adversely affect our
    results of operations. Increases in write-offs of doubtful
    accounts, delays in receiving payments, potential retroactive
    adjustments, and penalties resulting from audits by payors would
    also adversely affect our financial condition. Failure to comply
    with applicable laws relating to billing governmental health
    care programs could also lead to various penalties, including
    exclusion from participation in Medicare or Medicaid programs,
    asset forfeitures, civil and criminal fines and penalties, and
    the loss of various licenses, certificates, and authorizations
    necessary to operate our business, any of which could have a
    material adverse effect on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Non-governmental
    third-party payors have taken steps to control the utilization
    and reimbursement of diagnostic services.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We face efforts by non-governmental third-party payors,
    including health plans, to reduce utilization of diagnostic
    testing services and reimbursement for diagnostic services. For
    instance, third-party payors often use the payment amounts under
    the Medicare fee schedules as a reference in negotiating their
    payment amounts. As a result, a reduction in Medicare
    reimbursement rates could result in a reduction in the
    reimbursements we receive from such third-party payors. Changes
    in test coverage policies of and reimbursement from other
    third-party payors may also occur independently from changes in
    Medicare. Such reimbursement and coverage changes in the past
    have resulted in reduced prices, added costs and reduced
    accession volume and have added more complex and new regulatory
    and administrative requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The health care industry has also experienced a trend of
    consolidation among health insurance plans, resulting in fewer,
    larger health plans with significant bargaining power to
    negotiate fee arrangements with health care providers like us.
    Some of these health plans, as well as independent physician
    associations, have demanded that laboratories accept discounted
    fee structures or assume a portion or all of the financial risk
    associated with providing diagnostic testing services to their
    members through capitated payment arrangements. In addition,
    some health plans have limited the preferred provider
    organization or
    <FONT style="white-space: nowrap">point-of-service</FONT>
    laboratory network to only a single national laboratory to
    obtain improved
    <FONT style="white-space: nowrap">fee-for-service</FONT>
    pricing. The increased consolidation among health plans also has
    increased the potential adverse impact of ceasing to be a
    contracted provider with any such insurer. See
    &#147;&#151;&#160;Failure to participate as a provider with
    payors or operating as a non-contracted provider could have a
    material adverse effect on our business.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that efforts to reduce reimbursements, impose more
    stringent cost controls and reduce utilization of diagnostic
    testing services will continue. These efforts may have a
    material adverse effect on our business and results of
    operations.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in payor mix may adversely affect reimbursement for diagnostic
    services and could have a material adverse impact on our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our services are billed to a party other than the
    physician that ordered the test. In 2009, we received
    25&#160;percent of our revenues from Medicare and Medicaid and
    61&#160;percent of our revenues from non-governmental
    third-party payors, including health plans. If we bill a higher
    percentage of our services to payors who reimburse at rates
    lower than our current payors, our results of operations and
    financial condition would suffer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Integration
    of our operations with newly acquired businesses may be
    difficult and costly.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since our inception, we have acquired 17 existing diagnostic
    services businesses. We expect to evaluate potential strategic
    acquisitions of diagnostic services and other businesses that
    might augment our existing specialized diagnostic testing
    services. These acquisitions have involved and could continue to
    involve the integration of a separate company that previously
    operated independently and had different systems, processes and
    cultures. As such, we have not yet completed the integration of
    several of our past acquisitions. In particular, many of our
    operations, such as our laboratory information systems and
    billing systems, are not yet standardized and some aspects of
    the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    operations of our laboratories continue to be conducted on a
    decentralized basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The process of integrating businesses we acquire may
    substantially disrupt both our existing businesses and the
    businesses we acquire. This disruption may divert management
    from the operation of our business or may cause us to lose key
    employees or clients. Additionally, we may have difficulty
    consolidating facilities and infrastructure, standardizing
    information and other systems and coordinating
    geographically-separated facilities and workforces, resulting in
    a decline in the quality of services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any past or future acquisitions, and the related integration
    efforts, may be difficult, costly or unsuccessful. In each case,
    our existing business and the businesses we acquire may be
    adversely affected. Even if we are able to successfully
    integrate businesses we have acquired, we may not be able to
    realize the benefits that we expect from them.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Businesses
    we acquire may have significant unknown or contingent
    liabilities that could adversely impact our operating
    results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Businesses we acquire may have unknown or contingent liabilities
    or liabilities that are in excess of the amounts that we
    originally estimated. Although we generally seek indemnification
    from the sellers of businesses we acquire for matters that are
    not properly disclosed to us, we may not successfully obtain
    indemnification. Even in cases where we are able to obtain
    indemnification, we may be subject to liabilities greater than
    the contractual limits of our indemnification or the financial
    resources of the indemnifying party. In the event that we are
    responsible for liabilities substantially in excess of any
    amounts recovered through rights to indemnification, this could
    adversely impact our operating results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business is subject to rapid technological innovation, and the
    development by third parties of new or improved diagnostic
    testing technologies or treatments for diseases could have a
    material adverse effect on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The anatomic pathology market is characterized by rapid changes
    in technology, frequent introductions of new diagnostic tests,
    and evolving industry standards and client demands for new
    diagnostic technologies. Advances in technology may result in
    the creation of enhanced diagnostic tools that enable other
    laboratories, hospitals, physicians, patients or third parties
    to provide specialized diagnostic services that are superior to
    ours or more patient-friendly, efficient or cost-effective. Our
    success depends upon our ability to acquire or license these
    technologies on favorable terms or to develop new and improved
    technologies for early diagnosis before our competitors and to
    obtain appropriate reimbursement for diagnostic tests using
    these technologies. Furthermore, introduction of prophylactic
    treatments or cures for some of the diseases on which we focus
    could substantially reduce or eliminate demand for our services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any failure to maintain pace with technological changes could
    reduce our competitiveness, reduce demand for our services or
    render our services obsolete.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    of our IT or communication systems, or the failure of these
    systems to keep pace with technological advances or changes in
    regulation and policies related to our IT or communication
    systems, could adversely impact our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our laboratory operations depend significantly on the
    uninterrupted performance of our IT and communication systems.
    Sustained system failures or interruption of our systems in one
    or more of our laboratories could disrupt our ability to process
    laboratory requisitions, handle client service, perform testing,
    provide our reports or test results in a timely manner, or bill
    the appropriate party for our services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our efforts to invest in new or improved IT systems and billing
    systems may be costly, and require time and resources for
    implementation. While we have begun implementing a plan to
    standardize and improve our laboratory information systems and
    billing systems, we expect that it will take several years to
    complete full implementation. Our efforts to invest in new or
    improved IT systems and billing systems may not ultimately be
    successful, and our failure to properly implement our plan to
    standardize and improve our laboratory information systems and
    billing systems could adversely impact our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Public and private initiatives to create electronic medical
    record standards and to mandate standardized coding systems for
    the electronic exchange of information, including test orders
    and test results, could require costly modifications to our
    existing IT systems. We expect that any standards that might be
    adopted or implemented would allow us adequate time to comply
    with such standards. However, any failure or delay in
    implementing standards may result in a loss of clients and
    business opportunities, which could adversely impact our
    business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to adequately safeguard data, including patient data that is
    subject to regulations related to patient privacy, could
    adversely impact our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The success of our business depends on our ability to obtain,
    process, analyze, maintain and manage data, including sensitive
    information such as patient data. If we do not adequately
    safeguard that information and it were to become available to
    persons or entities that should not have access to it, our
    business could be impaired, our reputation could suffer and we
    could be subject to fines, penalties and litigation. Although we
    have implemented security measures, our infrastructure is
    vulnerable to computer viruses, break-ins and similar disruptive
    problems caused by our clients or others that could result in
    interruption, delay or cessation of service. Break-ins, whether
    electronic or physical, could potentially jeopardize the
    security of confidential client and supplier information stored
    physically at our locations or electronically in our computer
    systems. Such an event could damage our reputation, cause us to
    lose existing clients and deter potential clients. It could also
    expose us to liability to parties whose security or privacy has
    been infringed, to regulatory actions by the Centers for
    Medicare &#038; Medicaid Services, or CMS, part of the United
    States Department of Health and Human Services, or HHS, or to
    civil or criminal sanctions. The occurrence of any of the
    foregoing events could adversely impact our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The American Recovery and Reinvestment Act of 2009 imposed
    additional obligations on health care entities with respect to
    data privacy and security, including new notifications in case
    of a breach of privacy and security standards. We are unable to
    predict the extent to which these new obligations may prove
    technically difficult, time-consuming or expensive to implement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to attract and retain experienced and qualified personnel could
    adversely affect our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success depends on our ability to attract, retain and
    motivate experienced anatomic pathologists, histotechnologists,
    cytotechnologists, skilled laboratory and IT staff, experienced
    sales representatives and other personnel. Competition for these
    employees is strong, and if we are not able to attract and
    retain qualified personnel it would have a material adverse
    effect on our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are dependent on the expertise of our local medical directors
    and our executive officers. The loss of these individuals could
    have a material adverse effect on our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our sales representatives have developed and maintain close
    relationships with a number of health care professionals, and
    our specialized approach to marketing our services positions our
    sales representatives to have a deep knowledge of the needs of
    the referring physicians they serve. Given the nature of the
    relationships we seek to develop with our clients, losses of
    sales representatives may cause us to lose clients.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in medical treatment, reimbursement rates and other market
    conditions in the dermatopathology market could adversely affect
    our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derive a significant portion of our revenues from our
    dermatopathology subspecialty, which makes us particularly
    sensitive to changes in medical treatment, reimbursement rates
    and other market conditions in the dermatopathology market. Our
    revenues are particularly sensitive to changes that affect the
    number of or reimbursement for dermatopathology-related
    services. In 2009, we derived approximately 47&#160;percent of
    our revenues from our dermatopathology subspecialty services,
    primarily from biopsies of the skin. If there is a significant
    development in the prevention of skin cancer, or an adverse
    development in the reimbursement rate for skin biopsies, it
    could have a material adverse effect on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to adequately scale our infrastructure to meet demand for our
    diagnostic services or to support our growth could create
    capacity constraints and divert resources, resulting in a
    material adverse effect on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Increases in demand for our diagnostic services, including
    unforeseen or significant increases in demand due to client or
    accession volume, could strain the capacity of our personnel and
    infrastructure. Any strain on our personnel or infrastructure
    could lead to inaccurate test results, unacceptable turn-around
    times or client service failures. Furthermore, although we are
    not currently subject to these capacity constraints, if demand
    increases for our diagnostic services, we may not be able to
    scale our personnel or infrastructure accordingly. Any failure
    to handle increases in demand, including increases due to client
    or accession volumes, could lead to the loss of established
    clients and have a material adverse effect on our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to expand by establishing laboratories in additional
    geographic markets. In addition to acquisition or development
    costs, this will require us to spend considerable time and money
    to expand our infrastructure and to hire and retain experienced
    anatomic pathologists, histotechnologists, cytotechnologists,
    skilled laboratory and IT staff, experienced sales
    representatives, client service associates and other personnel
    for our additional laboratories. We will also need federal,
    state and local certifications, as well as supporting
    operational, logistical and administrative infrastructure. Even
    after new laboratories are operational, it may take time for us
    to derive the same economies of scale we have in our existing
    laboratories. Moreover, we may suffer reduced economies of scale
    in our existing laboratories as we seek to balance the amount of
    work allocated to each facility and expand those laboratories.
    An expansion of our laboratories or systems could divert
    resources, including the focus of our management, away from our
    current business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to effectively continue or manage our strategic and organic
    growth could cause our growth rate to decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business strategy includes continuing to selectively acquire
    existing diagnostic services businesses. Since our inception, we
    have acquired 17 existing diagnostic services businesses. To
    continue this strategic growth, we will need to continue to
    identify appropriate businesses to acquire and successfully
    undertake the acquisition of these businesses on reasonable
    terms. Consolidation and competition within our industry, among
    other factors, may make it difficult or impossible to identify
    businesses to acquire on a timely basis, or at all. In
    particular, the competition to acquire independent private labs
    and pathology groups has increased. In addition to historical
    competitors such as national lab companies, regional hospital
    centers and specialty lab companies, a number of private equity
    firms have recently made initial investments in the laboratory
    industry and may become potential competitors to our efforts to
    source new acquisitions. Our inability to continue our strategic
    growth would cause our growth rate to decline and could have a
    material adverse effect on our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also seek to continue our organic growth through the
    expansion of our sales force, the development of de novo
    laboratories, strategic extension of our operations into markets
    such as long-term care, and the inclusion of new clinical and
    molecular tests in our testing menu. Because of limitations in
    available capital and competition within our industry, among
    other factors, we may not be able to implement any or all of
    these organic growth strategies on a reasonable schedule, or at
    all. Our failure to continue our organic growth would cause our
    growth rate to decline and could have a material adverse effect
    on our business.
</DIV>
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    <BR>
    20
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our revenues have grown from $3.5&#160;million in 2006 to
    $171.6&#160;million in 2009. To manage our growth, we must
    continue to implement and improve our operational and financial
    systems and to expand, train, manage and motivate our employees.
    We may not be able to effectively manage the expansion of our
    operations, and our systems, procedures or controls may not be
    adequate to support our operations. Our management may not be
    able to rapidly scale the infrastructure necessary to exploit
    the market opportunity for our services. Our inability to manage
    growth could have a material adverse effect on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to participate as a provider with payors or operating as a
    non-contracted provider could have a material adverse effect on
    our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The health care industry has experienced a trend of
    consolidation among health care insurers, resulting in fewer,
    larger insurers with significant bargaining power in negotiating
    fee arrangements with health care providers like us. Managed
    care providers often restrict their contracts to a small number
    of laboratories that may be used for tests ordered by physicians
    in the managed care provider&#146;s network. If we do not have a
    contract with a managed care provider, we may be unable to gain
    those physicians as clients, and it could adversely affect our
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In cases in which we do contract with a specified insurance
    company as a participating provider, we are considered
    <FONT style="white-space: nowrap">&#147;in-network,&#148;</FONT>
    and the reimbursement of third-party payments is governed by
    contractual relationships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In cases in which we do not have a contractual relationship with
    an insurance company or we are not an approved provider for a
    government program, we have no contractual right to collect for
    our services and such payors may refuse to reimburse us for our
    services. This could lead to a decrease in accession volume and
    a corresponding decrease in our revenues. In instances where we
    are an
    <FONT style="white-space: nowrap">out-of-network</FONT>
    provider, reductions in reimbursement rates for
    non-participating providers could also adversely affect us.
    Third-party payors with whom we do not participate as a
    contracted provider may also require that we enter into
    contracts, which may have pricing and other terms that are
    materially less favorable to us than the terms under which we
    currently operate. While accession volume may increase as a
    result of these contracts, our revenues per accession may
    decrease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Use of our diagnostic services as a non-participating provider
    also typically results in greater copayments for the patient
    unless we elect to treat them as if we were a participating
    provider in accordance with applicable law. Treating such
    patients as if we were a participating provider may adversely
    impact results of operations because we may be unable to collect
    patient copayments and deductibles. In some states, applicable
    law prohibits us from treating these patients as if we were a
    participating provider. As a result, referring physicians may
    avoid use of our services, which could result in a decrease in
    accession volume and adversely affect revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to raise additional capital or generate the significant capital
    necessary to continue our growth could reduce our ability to
    compete and could harm our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that our existing cash and cash equivalents, together
    with the net proceeds that we will retain from this offering and
    availability under our credit facilities, will be sufficient to
    meet our anticipated cash needs until 2012. After that, we may
    need to raise additional funds, and we may not be able to obtain
    additional debt or equity financing on favorable terms, if at
    all. If we raise additional equity financing, our stockholders
    may experience significant dilution of their ownership
    interests, and the per share value of our Class&#160;A common
    stock could decline. Furthermore, if we engage in debt
    financing, the holders of debt would have priority over the
    holders of common stock, and we may be required to accept terms
    that restrict our ability to incur additional indebtedness, and
    take other actions that would otherwise be in the interests of
    our stockholders and force us to maintain specified liquidity or
    other ratios, any of which could harm our business, operating
    results and financial condition. If we need additional capital
    and cannot raise it on acceptable terms, we may not, among other
    things, be able to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    continue to expand our sales and marketing and research and
    development organizations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    develop or acquire complementary technologies, services,
    products or businesses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    expand operations both organically and through acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    hire, train and retain employees;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    respond to competitive pressures or unanticipated working
    capital requirements.
</TD>
</TR>

</TABLE>
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    <BR>
    21
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our failure to do any of these things could seriously harm our
    business, financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    agreement governing our credit facility contains, and future
    debt agreements may contain, various covenants that limit our
    discretion in the operation of our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our agreement and the related instruments governing borrowings
    under our credit facility contain, and the agreements and
    instruments governing any future debt agreements of ours may
    contain, various restrictive covenants that, among other things,
    require us to comply with or maintain certain financial tests
    and ratios and restrict our ability to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    incur more debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    redeem or repurchase stock, pay dividends or make other
    distributions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make certain investments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    create liens;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into transactions with affiliates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    merge or consolidate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    transfer or sell assets;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make fundamental changes in our corporate existence and
    principal business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, events beyond our control could affect our ability
    to comply with and maintain the financial tests and ratios
    contained in these documents. Any failure by us to comply with
    or maintain all applicable financial tests and ratios and to
    comply with all applicable covenants could result in an event of
    default with respect to our term loan and revolving credit
    facility or future debt agreements. This could lead to the
    acceleration of the maturity of our outstanding loans and the
    termination of the commitments to make further extensions of
    credit. Even if we are able to comply with all applicable
    covenants, the restrictions on our ability to operate our
    business at our sole discretion could harm our business by,
    among other things, limiting our ability to take advantage of
    financing, mergers, acquisitions and other corporate
    opportunities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be unable to obtain, maintain or enforce our intellectual
    property rights and may be subject to intellectual property
    litigation that could adversely impact our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may be unable to obtain or maintain adequate proprietary
    rights for our products and services or to successfully enforce
    our proprietary rights, and we cannot assure you that our
    products or methods do not infringe the patents or other
    intellectual property rights of third parties. Infringement and
    other intellectual property claims and proceedings brought
    against us, whether successful or not, could result in
    substantial costs and harm our reputation. Such claims and
    proceedings can also distract and divert management and key
    personnel from other tasks important to the success of our
    business. In addition, intellectual property litigation or
    claims could force us to do one or more of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cease developing, performing or selling products or services
    that incorporate the challenged intellectual property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    obtain and pay for licenses from the holder of the infringed
    intellectual property right, which licenses may not be available
    on reasonable terms, or at all;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    redesign or reengineer our tests;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    change our business processes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pay substantial damages, court costs and attorneys&#146; fees,
    including potentially increased damages for any infringement
    held to be willful.
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of an adverse determination in an intellectual
    property suit or proceeding, or our failure to license essential
    technology, our sales could be harmed
    <FONT style="white-space: nowrap">and/or</FONT> our
    costs could increase, which would harm our financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have a limited operating history, which may make it difficult to
    accurately evaluate our business and prospects.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We commenced operations in June 2006. As a result, we have a
    limited operating history upon which to accurately predict our
    potential revenue. Our revenues and income potential and our
    ability to expand our business into additional anatomic
    pathology specialties and markets is still unproven. As a result
    of these factors, the future revenues and income potential of
    our business is uncertain. Although we have experienced
    significant revenue growth since our inception, we may not be
    able to sustain this growth. Any evaluation of our business and
    our prospects must be considered in light of these factors and
    the risks and uncertainties often encountered by companies in
    our stage of development. Our profitability may be adversely
    affected as we expand our infrastructure or if we incur
    increased selling expenses or other general and administrative
    expenses. Some of these risks and uncertainties include our
    ability to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    execute our business model;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    create brand recognition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    respond effectively to competition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    manage growth in our operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    respond to changes in applicable government regulations and
    legislation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    access additional capital when required;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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</TD>
    <TD align="left">
    attract and retain key personnel.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Current
    economic conditions, including the current recession in the
    United States and the worldwide economic slowdown, as well as
    further disruptions in the financial markets, could adversely
    impact our operating results and financial
    condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The current economic recession in the United States and
    worldwide economic slowdown could adversely affect our operating
    results and financial condition. Among other things, the
    potential decline in federal and state revenues that may result
    from these conditions may create additional pressures to contain
    or reduce reimbursements for our services from Medicare,
    Medicaid and other government sponsored programs. The increased
    job losses and elevated unemployment rates in the United States
    resulting from the recession could result in a smaller
    percentage of our patients being covered by commercial payors
    and a larger percentage being covered by lower-paying Medicaid
    programs. Employers may also begin to select more restrictive
    commercial plans with lower reimbursement rates. To the extent
    that payors are adversely affected by a decline in the economy,
    we may experience further pressure on commercial rates, delays
    in fee collections and a reduction in the amounts we are able to
    collect. In addition, if the current turmoil in the financial
    markets continues, interest rates may increase and it could be
    more difficult to obtain credit in the future. Any or all of
    these factors, as well as other consequences of the current
    economic conditions which currently cannot be anticipated, could
    adversely impact our operating results and financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to adequately protect our proprietary rights could adversely
    affect operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We consider our trademarks, service marks, trade secrets,
    copyrights, unpatented know-how and similar intellectual
    property critical to our success. We rely upon intellectual
    property law, trade secret protection and confidentiality and
    license agreements with our employees, contractors, clients and
    others to protect our proprietary rights. Any of these parties
    may breach these agreements, and we may not have adequate
    remedies for any specific breach. In addition, our competitors
    may independently develop equivalent knowledge, methods and
    know-how, and we would not be able to prevent their use of such
    information. To the extent that our employees or contractors use
    intellectual property owned by others in their work for us,
    disputes may arise as to the rights in the related or
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    resulting know-how and inventions. If any of our trade secrets,
    know-how or other technologies were to be disclosed to or
    independently developed by a competitor, our business, financial
    condition and results of operations could be materially
    adversely affected. A loss of key personnel or their work
    product, including software code, related to our trade secrets,
    unpatented know-how or other technologies could adversely affect
    our business, financial condition and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may have to engage in litigation to defend our trademarks,
    service marks, trade secrets, copyrights and other intellectual
    property rights. Even if we are successful, such litigation
    could result in substantial costs and be a distraction to
    management. If we fail in such litigation, we may lose valuable
    intellectual property rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further, we are a party to licenses that grant us rights to
    intellectual property that is necessary or useful to our
    business. One or more of our licensors may allege that we have
    breached our license agreement with them and accordingly seek to
    terminate our license. If successful, this could result in our
    loss of the right to use the licensed intellectual property,
    which could adversely affect our ability to commercialize our
    technologies, products or services, as well as harm our
    competitive business position and our business prospects.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Competition
    in our industry from existing or new companies and failure to
    obtain and retain clients could have a material adverse impact
    on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success depends on our ability to obtain and retain clients
    and maintain accession volume. A reduction in the number of our
    clients, or in the tests ordered or specimens submitted by our
    clients, without offsetting increases or growth, could impact
    our ability to maintain or grow our business and could have a
    material adverse effect on our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While there has been significant consolidation in recent years
    in the diagnostic testing industry, the industry remains
    fragmented and highly-competitive both in terms of price and
    service. We primarily compete with various clinical test
    providers, anatomic pathology practices, hospital-affiliated
    laboratories, commercial clinical laboratories and
    physician-office laboratories. This competition is based
    primarily on price, clinical expertise, quality of service,
    client relationships, breadth of testing menu, speed of
    turnaround of test results, reporting and IT systems, reputation
    in the medical community and ability to employ qualified
    personnel. Some of our competitors may have greater technical,
    financial and other resources than we do. Our failure to
    successfully compete on any of these factors could result in a
    loss of clients and adversely affect our ability to grow.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Replication of our business model by competitors may adversely
    affect growth and profitability. Barriers to entry in anatomic
    pathology markets include the need to form strong relationships
    with referring physicians, hire experienced pathologists, make
    capital investments and acquire IT. These barriers may not be
    sufficient to prevent or deter new entrants to our market, and
    competitors could replicate or improve some or all aspects of
    our business model and cause us to lose market share in the
    areas where we compete or inhibit our growth, which could have a
    material adverse effect on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to acquire rights to new tests, technology and services, or
    discontinuations or recalls of existing tests, technologies or
    services, could negatively impact our testing volume and net
    revenues.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The diagnostic testing industry is continuously faced with
    changing technology and new product introductions. Other
    companies or individuals, including our competitors, may obtain
    patents or other property rights that would prevent, limit or
    interfere with our ability to develop, perform or sell our tests
    or operate our business or increase our costs. In addition, they
    could introduce new tests that may result in a decrease in the
    demand for our tests or cause us to reduce the prices for our
    tests. We may be unable to develop or introduce new tests on our
    own, which means that our success may depend, in part, on our
    ability to license new and improved technologies on favorable
    terms. We may be unable to continue to negotiate acceptable
    licensing arrangements, and arrangements that we do conclude may
    not yield commercially successful diagnostic tests. If we are
    unable to acquire rights to these testing methods at competitive
    rates, our research and development costs may increase as a
    result. In addition, if we are unable to develop and introduce,
    or acquire rights to, new tests, technology and services to
    expand our testing business, our testing methods may become
    outdated when compared with our competition and our testing
    volume and revenues may be materially and adversely affected.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, manufacturers discontinue or recall reagents,
    test kits or instruments we use to perform diagnostic services.
    Such discontinuations or recalls could adversely affect our
    costs, testing volume and revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Regulatory
    Risks</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    and proposed federal or state health care reform measures could
    adversely affect our operating results and financial
    condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;Congress and state legislatures continue to focus
    on health care reform. Together, the recently-enacted PPACA and
    HCEARA comprise a broad health care reform initiative. While
    this legislation does not adversely affect reimbursement for our
    anatomic pathology services, it provides for two separate
    reductions in the reimbursement rates for our clinical
    laboratory services: a &#147;productive adjustment&#148;
    (currently estimated to be between 1.1 and 1.4&#160;percent) and
    an additional 1.75&#160;percent reduction. Each of these would
    reduce the annual Consumer Price Index-based update that would
    otherwise determine our reimbursement for clinical laboratory
    services. The effect of the new legislation on the extent of
    coverage and reimbursement for new services is uncertain. This
    legislation also provides for increases in the number of persons
    covered by public and private insurance programs in the U.S.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, several key legislators and appointed and elected
    officials have proposed significant reform to the federal health
    care system. Some of the reforms call for universal health care
    coverage, including the availability of a new
    government-sponsored health plan, and tax levies on
    laboratories. A number of states, including California,
    Colorado, Connecticut, Massachusetts, New York and Pennsylvania,
    are contemplating significant reform of their health insurance
    markets. These federal and state proposals are still being
    debated in the U.S.&#160;Congress and various legislatures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot predict whether the federal and state health care
    reform legislation that has been enacted will have a material
    impact on us. Further, we cannot predict whether federal or
    state governments will enact any additional laws to effect
    health care reform and, if any such new laws were enacted, what
    their terms would be and whether or in what ways any new laws
    would affect us. However, it is possible that new laws could
    increase our costs, decrease our revenues, expose us to expanded
    liability or require us to revise the ways in which we conduct
    our business, any of which could adversely affect our operating
    results and financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    fail to comply with the complex federal, state and local
    government laws and regulations that apply to our business, we
    could suffer severe consequences that could adversely affect our
    operating results and financial condition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations are subject to extensive federal, state and local
    government regulations, all of which are subject to change.
    These government laws and regulations currently include, among
    other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the federal Anti-Kickback Statute, which prohibits persons from
    knowingly and willfully soliciting, receiving, offering or
    providing remuneration, directly or indirectly, in cash or in
    kind, in exchange for or to induce either the referral of an
    individual for, or the purchase, order or recommendation of, any
    goods or service for which payment may be made under
    governmental payor programs such as Medicare and Medicaid;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the federal False Claims Act, which prohibits individuals or
    entities from knowingly presenting to, or causing to be
    presented to, the federal government, claims for payment that
    are false or fraudulent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Health Insurance Portability and Accountability Act, or
    HIPAA, which established comprehensive federal standards with
    respect to the use and disclosure of protected health
    information;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Health Information Technology for Economic and Clinical
    Health Act, or HITECH Act, which was passed as part of the
    American Recovery and Reinvestment Act and which strengthens
    many of the requirements applicable to privacy and security,
    among other things;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Stark Law, which prohibits a physician from making a
    referral to an entity for certain designated health services
    reimbursed by Medicare or Medicaid if the physician (or a member
    of the physician&#146;s family) has a
</TD>
</TR>
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    <TD width="94%"></TD>
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    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    financial relationship with the entity and which also prohibits
    the submission of any claim for reimbursement for designated
    health services furnished pursuant to a prohibited referral;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the federal Civil Monetary Penalty Law, which prohibits the
    offering of remuneration or other inducements to beneficiaries
    of federal health care programs to influence the
    beneficiaries&#146; decisions to seek specific governmentally
    reimbursable items or services or to choose particular providers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Clinical Laboratory Improvement Amendments, which requires
    that laboratories be certified by the federal government or by a
    federally-approved accreditation agency;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the anti-markup rule, which prohibits a physician or supplier
    billing the Medicare program from marking up the price of a
    purchased diagnostic service performed by another physician or
    supplier who does not &#147;share a practice&#148; with the
    billing physician or supplier;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    state law equivalents of the above, such as anti-kickback and
    false claims laws that may apply to items or services reimbursed
    by any third-party payor, including commercial insurers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    state laws that prohibit the splitting or sharing of fees
    between physicians and non-physicians;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    state laws that govern the manner in which licensed physicians
    can be organized to perform and bill for medical services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the reassignment rules, which preclude Medicare payment for
    covered services to anyone other than the patient, physician, or
    other person who provided the service, with limited
    exceptions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    state laws that prohibit other specified practices, such as
    billing an entity that does not have ultimate financial
    responsibility for the service, waiving coinsurance or
    deductibles, billing Medicaid a higher charge than the lowest
    charge offered to another payor, and placing professionals who
    draw blood, or phlebotomists, in the offices of referring
    physicians.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we operate in material compliance with these
    laws and regulations. However, these laws and regulations are
    complex and, among other things, practices that are permissible
    under federal law may not be permissible in all states. In
    addition, these laws and regulations are subject to
    interpretation by courts and enforcement agencies. Our failure
    to comply could lead to civil and criminal penalties, exclusion
    from participation in Medicare and Medicaid, and possible
    prohibitions or restrictions on our laboratories&#146; ability
    to provide diagnostic services, and any such penalties,
    exclusions, prohibitions or restrictions could have a material
    adverse effect on our arrangements with managed care
    organizations and private payors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Governmental investigations of laboratories have been ongoing
    for a number of years and are expected to continue. In fact, a
    substantial increase in funding of Medicare and Medicaid program
    integrity and anti-fraud efforts has been proposed.
    Investigations of our laboratories, regardless of their outcome,
    could damage our reputation and adversely affect important
    business relationships that we have with third parties, as well
    as have a material adverse effect on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to comply with complex federal and state laws and regulations
    related to submission of claims for our services could result in
    significant monetary damages and penalties and exclusion from
    the Medicare and Medicaid programs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to extensive federal and state laws and
    regulations relating to the submission of claims for payment for
    our services, including those that relate to coverage of our
    services under Medicare, Medicaid and other governmental health
    care programs, the amounts that may be billed for our services
    and to whom claims for services may be submitted. Submission of
    our claims is particularly complex because we provide both
    anatomic pathology services and clinical laboratory tests, which
    generally are paid using different reimbursement principles. Our
    failure to comply with applicable laws and regulations could
    result in our inability to receive payment for our services or
    result in attempts by third-party payors, such as Medicare and
    Medicaid, to recover payments from us that have already been
    made. Submission of claims in violation of certain statutory or
    regulatory requirements can result in penalties, including civil
    money penalties of up to $10,000 for each item or service billed
    to Medicare in violation of the legal requirement, and exclusion
    from participation in Medicare and Medicaid. Government
    authorities may
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    also assert that violations of laws and regulations related to
    submission of claims violate the federal False Claims Act or
    other laws related to fraud and abuse, including submission of
    claims for services that were not medically necessary. We could
    be adversely affected if it was determined that the services we
    provided were not medically necessary and not reimbursable,
    particularly if it were asserted that we contributed to the
    physician&#146;s referrals of unnecessary services to us. It is
    also possible that the government could attempt to hold us
    liable under fraud and abuse laws for improper claims submitted
    by an entity for services that we performed if we were found to
    have knowingly participated in the arrangement that resulted in
    submission of the improper claims.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business could be harmed by the loss or suspension of a license
    or imposition of a fine or penalties under, or future changes
    in, the law or regulations of the Clinical Laboratory
    Improvement Amendments or those of Medicare, Medicaid or other
    federal, state or local agencies.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The diagnostic testing industry is subject to extensive
    regulation, and many of these statutes and regulations have not
    been interpreted by the courts. CLIA requires that laboratories
    be certified by the federal government or by a
    federally-approved accreditation agency every two years. CLIA
    mandates specific standards in the areas of personnel
    qualifications, administration, proficiency testing, patient
    test management, quality control, quality assurance and
    inspections. CLIA regulations include special rules applicable
    to cytology testing, such as pap smears, including workload
    limits, specialized proficiency testing requirements that apply
    not just to the laboratory, but also to the individuals
    performing the tests, specialized personnel standards and
    quality control procedures. A laboratory may be sanctioned based
    on its failure to participate in an acceptable proficiency
    testing program, unsatisfactory performance in proficiency
    testing or for prohibited activities related to proficiency
    testing, such as failing to test the proficiency testing samples
    in the same manner as patient specimens or communicating with
    other laboratories regarding proficiency testing results. The
    sanction for failure to comply with CLIA requirements, including
    proficiency testing violations, may be suspension, revocation or
    limitation of a laboratory&#146;s CLIA certificate, as well as
    the imposition of significant fines and criminal penalties.
    While imposition of certain CLIA sanctions may be subject to
    appeal, few, if any, such appeals have been successful. A CLIA
    certificate is necessary to conduct business. As a result, any
    CLIA sanction or our failure to renew a CLIA certificate could
    have a material adverse effect on our business. Although each
    laboratory facility is separately certified by CLIA, if the CLIA
    certificate of any our laboratories is revoked, CMS could seek
    revocation of our other laboratories&#146; CLIA certificates
    based on their common ownership or operation with the laboratory
    facility whose certificate was revoked. Some states have enacted
    analogous state laws that are more strict than CLIA.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in laws and regulations that address billing arrangements for
    our services could have a material adverse effect on our
    revenues.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While we do not bill referring physicians for our services when
    those services are covered under a government program, in some
    cases, we do, where permissible, bill referring physicians for
    services that are not covered under a government program. Laws
    and regulations in several states currently preclude us from
    billing referring physicians, either by requiring us to bill
    directly the third-party payor or other person ultimately
    responsible for payment for the service, or by prohibiting or
    limiting the referring physician&#146;s or other
    purchaser&#146;s ability to bill a greater amount than the
    amount paid for the service. An increase in the number of states
    whose laws prevent such arrangements could adversely affect us
    by encouraging physicians to furnish such services directly or
    by causing physicians to refer services to another laboratory
    for testing. Currently, Medicare does not require beneficiaries
    to pay coinsurance for clinical laboratory testing or subject
    such tests to a deductible. From time to time, legislation has
    been proposed that would subject diagnostic services to
    coinsurance and deductibles. Such legislation could be enacted
    in the future. Legislation subjecting diagnostic services to
    coinsurance or deductibles could adversely affect our revenues
    given the anticipated difficulty in collecting such amounts from
    Medicare beneficiaries. In addition, we could be subject to
    potential fraud and abuse violations if adequate procedures to
    bill and collect copayments were not established and followed.
</DIV>
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    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    increasingly subject to initiatives to recover improper payments
    and overpayments and such initiatives could result in
    significant monetary damages and penalties and exclusion from
    the Medicare and Medicaid programs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Government payors have increased initiatives to recover improper
    payments and overpayments. For example, in March 2005, CMS
    initiated a demonstration project using Recovery Audit
    Contractors, or RACs, who are paid a contingent fee to detect
    and correct improper Medicare payments. As part of their duties,
    RACs collect overpayments from Medicare providers, including
    those providers who were paid for services that were not
    medically necessary or were incorrectly coded. Effective
    January&#160;1, 2010, the RAC program will be operated
    throughout the United States on a permanent basis, and RACs will
    then have authority to pursue improper payments made on or after
    October&#160;1, 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to comply with environmental, health and safety laws and
    regulations could adversely affect our ability to operate and
    result in fines, litigation or other consequences.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to licensing and regulation under numerous
    federal, state and local laws and regulations relating to the
    protection of the environment and human health and safety. Our
    use, generation, manufacture, handling, transportation, storage
    and disposal of medical specimens, such as human tissue,
    infectious and hazardous waste, and radioactive materials, as
    well as the health and safety of our laboratory employees, are
    covered under these laws and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In particular, the federal Occupational Safety and Health
    Administration has established extensive requirements relating
    to workplace safety for health care employers, including certain
    laboratories, whose workers may be exposed to blood-borne
    pathogens such as HIV and the hepatitis B virus. These
    requirements, among other things, require work practice
    controls, protective clothing and equipment, training, medical
    <FONT style="white-space: nowrap">follow-up,</FONT>
    vaccinations and other measures designed to minimize exposure
    to, and the transmission of, blood-borne pathogens. In addition,
    the Needlestick Safety and Prevention Act requires, among other
    things, that we include in our safety programs the evaluation
    and use of engineering controls such as safety needles if found
    to be effective at reducing the risk of needlestick injuries in
    the workplace.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot entirely eliminate the risk of accidental injury,
    contamination or sabotage from working with hazardous materials
    or wastes. Our general liability insurance or workers&#146;
    compensation insurance policies may not cover damages and fines
    arising from biological or hazardous waste exposure or
    contamination. In the event of contamination or injury, we could
    be held liable for damages or subject to fines in an amount
    exceeding our resources, and our operations could be suspended
    or otherwise adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Failure to comply with federal, state and local laws and
    regulations could subject us to denial of the right to conduct
    business, fines, criminal penalties
    <FONT style="white-space: nowrap">and/or</FONT> other
    enforcement actions which would have a material adverse effect
    on our business. In addition, the current environmental, health
    and safety requirements applicable to our business, facilities
    and employees could be revised to become more stringent, and new
    laws and requirements could be adopted in the future. Thus,
    compliance with applicable environmental, health and safety laws
    and regulations could become both more costly and more difficult
    in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to comply with the Health Insurance Portability and
    Accountability Act security and privacy regulations may increase
    our costs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    HIPAA and related regulations establish comprehensive federal
    standards with respect to the use and disclosure of protected
    health information by health plans, health care providers and
    health care clearinghouses. Additionally, HIPAA establishes
    standards to protect the confidentiality, integrity and
    availability of protected health information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal privacy regulations restrict our ability to use or
    disclose patient identifiable laboratory data, without patient
    authorization for purposes other than payment, treatment or
    health care operations, as defined by HIPAA. These privacy and
    security regulations provide for significant fines and other
    penalties for wrongful use or disclosure of protected health
    information, including civil and criminal fines and penalties.
    We believe we are in substantial compliance with the privacy
    regulations. However, the documentation and process requirements
    of the
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    privacy regulations are complex and subject to interpretation
    and our efforts in this respect are ongoing. Our failure to
    comply with the privacy regulations could subject us to
    sanctions or penalties. Although the HIPAA statute and
    regulations do not expressly provide for a private right of
    damages, we could also incur damages under state laws to private
    parties for the wrongful use or disclosure of confidential
    health information or other private information. We have
    policies and procedures to comply with the HIPAA regulations and
    state laws. In addition, we must also comply with
    <FONT style="white-space: nowrap">non-U.S.&#160;laws</FONT>
    governing the transfer of health care data relating to citizens
    of other countries.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in regulations or failure to follow regulations requiring the
    use of &#147;standard transactions&#148; for health care
    services issued under the Health Insurance Portability and
    Accountability Act could adversely affect our profitability and
    cash flows.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to HIPAA, the Secretary of HHS has issued final
    regulations designed to facilitate the electronic exchange of
    information in certain financial and administrative
    transactions. HIPAA transaction standards are complex and
    subject to differences in interpretation by payors. For
    instance, some payors may interpret the standards to require us
    to provide certain types of information, including demographic
    information not usually provided to us by physicians. As a
    result of inconsistent application of transaction standards by
    payors or our inability to obtain certain billing information
    not usually provided to us by physicians, we could face
    increased costs and complexity, a temporary disruption in
    receipts and ongoing reductions in reimbursements and revenues.
    Any future requirements for additional standard transactions,
    such as claims attachments or use of a national provider
    identifier, could prove technically difficult, time-consuming or
    expensive to implement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business could be adversely impacted by the Centers for Medicare
    &#038; Medicaid Services&#146; adoption of the new coding set
    for diagnoses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CMS has adopted a new coding set for diagnosis, commonly known
    as ICD-10, which significantly expands the coding set for
    diagnoses. The new coding set is currently required to be
    implemented by October&#160;1, 2013. We may be required to incur
    significant expense in implementing the new coding set, and if
    we do not adequately implement it, our business could be
    adversely impacted. In addition, if as a result of the new
    coding set physicians fail to provide appropriate codes for
    desired tests, we may not be reimbursed for tests we perform.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be subject to liability claims for damages and other expenses
    not covered by insurance that could adversely impact our
    operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision of diagnostic testing services to patients may
    subject us to litigation and liability for damages based on an
    allegation of malpractice, professional negligence in the
    performance of our treatment and related services, the acts or
    omissions of our employees, or other matters. Our exposure to
    this litigation and liability for damages increases with growth
    in the number of our laboratories and tests performed. Potential
    judgments, settlements or costs relating to potential future
    claims, complaints or lawsuits could result in substantial
    damages and could subject us to the incurrence of significant
    fees and costs. Our insurance may not be sufficient or available
    to cover these damages, costs or expenses. Our business,
    profitability and growth prospects could suffer if we face
    negative publicity or if we pay damages or defense costs in
    connection with a claim that is outside the scope of any
    applicable insurance coverage, including claims related to
    contractual disputes and professional and general liability
    claims.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    insurance costs may increase over the next several years, and
    our coverage may not be sufficient to cover claims and
    losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain a program of insurance coverage against a broad
    range of risks in our business. In particular, we maintain
    professional liability insurance, subject to deductibles. The
    premiums and deductibles under our insurance may increase over
    the next several years as a result of general business rate
    increases, coupled with our continued growth. We are unable to
    predict whether such increases in premiums and deductibles will
    occur and the amount of any such increases, but such increases
    could adversely impact our earnings. The liability exposure of
    operations in the health care services industry has increased,
    resulting not only in increased premiums, but also in limited
    liability on behalf of the insurance carriers. Our ability to
    obtain the necessary and sufficient insurance coverage for our
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    operations upon expiration of our insurance policies may be
    limited, and sufficient insurance may not be available on
    favorable terms, if at all. We could be materially and adversely
    affected by any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our inability to obtain sufficient insurance for our operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the collapse or insolvency of one or more of our insurance
    carriers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    further increases in premiums and deductibles;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an inability to obtain one or more types of insurance on
    acceptable terms.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Organization and Structure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    a holding company and our principal asset after completion of
    this offering will be our equity interests in Aurora Holdings,
    and we are accordingly dependent upon distributions from Aurora
    Holdings to pay dividends, if any, taxes and other
    expenses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a holding company and, upon completion of the
    Reorganization Transactions and this offering, our principal
    asset will be our indirect ownership of equity interests in
    Aurora Holdings. See &#147;Prospectus Summary&#160;&#151;
    Reorganization Transactions&#148; and &#147;Organizational
    Structure&#160;&#151; Reorganization Transactions.&#148; We have
    no independent means of generating revenue. We intend to cause
    Aurora Holdings to make pro rata distributions to its
    unitholders, including us, in an amount sufficient to cover all
    applicable taxes payable. We also intend to cause Aurora
    Holdings to make distributions to us, including for purposes of
    paying corporate and other overhead expenses and payments under
    the Tax Receivable Agreement, but our ability to make these
    distributions will be limited by restrictions in our debt
    agreements. To the extent that we need funds and Aurora Holdings
    is restricted from making such distributions under applicable
    law or regulation or as a result of the terms in our debt
    agreements, or is otherwise unable to provide such funds, it
    could adversely affect our liquidity and financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We are
    controlled by our Principal Equityholders whose interest in our
    business may be different than yours, and certain statutory
    provisions afforded to stockholders are not applicable to
    us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Together, our Principal Equityholders will control
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the combined voting power of our Class&#160;A common stock
    and Class&#160;B common stock
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    if the underwriters exercise their over-allotment option in
    full) after the completion of this offering and the application
    of the net proceeds that we will receive from this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accordingly, our Principal Equityholders can exercise
    significant influence over our business policies and affairs,
    including the power to nominate our Board of Directors. In
    addition, our Principal Equityholders can control any action
    requiring the general approval of our stockholders, including
    the adoption of amendments to our certificate of incorporation
    and bylaws and the approval of mergers or sales of substantially
    all of our assets. The concentration of ownership and voting
    power of our Principal Equityholders may also delay, defer or
    even prevent an acquisition by a third party or other change of
    control of our company and may make some transactions more
    difficult or impossible without the support of our Principal
    Equityholders, even if such events are in the best interests of
    noncontrolling stockholders. Moreover, this concentration of
    ownership may make it difficult for stockholders other than our
    Principal Equityholders to replace management. The concentration
    of voting power among our Principal Equityholders may have an
    adverse effect on the price of our Class&#160;A common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have opted out of section&#160;203 of the General Corporation
    Law of the State of Delaware, or the Delaware General
    Corporation Law, which, subject to certain exceptions, prohibits
    a publicly-held Delaware corporation from engaging in a business
    combination transaction with an interested stockholder for a
    period of three years after the interested stockholder became
    such. Therefore, after the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period expires, our Principal Equityholders are able to transfer
    control of us to a third party by transferring their
    Class&#160;A common stock, which would not require the approval
    of our Board of Directors or our other stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation will provide that the doctrine
    of &#147;corporate opportunity&#148; will not apply against our
    Principal Equityholders and their respective affiliates in a
    manner that would prohibit them from investing in competing
    businesses or doing business with our clients. To the extent
    they invest in such other businesses, our Principal
    Equityholders may have differing interests than our other
    stockholders.
</DIV>
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    30
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are party to a Registration Agreement with certain of our
    Principal Equityholders. Under the Registration Agreement, our
    Principal Equityholders have certain registration rights with
    respect to our Class&#160;A common stock. See &#147;Certain
    Relationships and Related Party Transactions&#160;&#151;
    Registration Agreement.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Principal and Selling Stockholders&#148; and
    &#147;Certain Relationships and Related Party Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    U.S. Congress has enacted new legislation that affects the
    taxation of our Class A common stock held by or through foreign
    entities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Recently enacted legislation generally will impose a withholding
    tax of 30 percent on dividend income from our Class A common
    stock and the gross proceeds of a disposition of our Class A
    common stock paid to certain foreign entities after
    December&#160;31, 2012, unless the foreign entity complies with
    certain conditions or an exception applies. See &#147;Certain
    U.S. Federal Income and Estate Tax Consequences to Non-U.S.
    Holders of Common Stock&#160;&#151; Recently-Enacted Federal Tax
    Legislation.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    will be required to pay an affiliate of our Principal
    Equityholders for certain tax benefits we may claim (but may
    never fully realize) as a result of transactions before and
    after this offering.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beginning in 2006, certain acquisitions by Aurora Holdings have
    resulted in an increase in the tax basis of intangible assets,
    primarily goodwill, which results in tax amortization deductions
    that would not have been available in the absence of those
    acquisitions. The Aurora Holdings Units held by the Aurora
    Holdings Continuing Members (along with shares of our
    Class&#160;B common stock) will be exchangeable in the future
    for cash or shares of our Class&#160;A common stock. These
    future exchanges are likely to result in tax basis adjustments
    to the assets of Aurora Holdings, which adjustments would also
    be allocated to us. The existing tax basis and the anticipated
    tax basis adjustments are expected to reduce the amount of tax
    that we would otherwise be required to pay in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, Aurora Diagnostics, Inc. will
    enter into the Tax Receivable Agreement with ARDX Sub and the
    Tax Receivable Entity that will provide for the payment by
    Aurora Diagnostics Inc. to the Tax Receivable Entity of
    85&#160;percent of certain cash tax savings, if any, in
    U.S.&#160;federal, state, local and foreign income tax realized
    by Aurora Diagnostics Inc. after the completion of this offering
    as a result of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any <FONT style="white-space: nowrap">step-up</FONT>
    in tax basis in our share of Aurora Holdings&#146; assets
    resulting from:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class&#160;A common stock or cash,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments under the Tax Receivable Agreement to the Tax
    Receivable Entity;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual increase in tax basis, as well as the amount and
    timing of any payments under the Tax Receivable Agreement, will
    vary depending upon a number of factors, including the timing of
    exchanges by the Aurora Holdings Continuing Members, the price
    of our Class&#160;A common stock at the time of the exchange,
    the extent to which such exchanges are taxable, the amount and
    timing of the taxable income we generate in the future and the
    tax rate then applicable and the portion of our payments under
    the Tax Receivable Agreement constituting imputed interest or
    amortizable basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The payments we are required to make under the Tax Receivable
    Agreement could be substantial. We expect that, as a result of
    the amount of the increases in the tax basis of the tangible and
    intangible assets of Aurora Holdings, assuming no material
    changes in the relevant tax law and that we earn sufficient
    taxable income to realize in full the potential tax benefit
    described above, future payments under the Tax Receivable
    Agreement in respect of the existing tax attributes will
    aggregate $&#160;&#160;&#160;&#160;&#160; and range from
    approximately $&#160;&#160;&#160;&#160;&#160; to
    $&#160;&#160;&#160;&#160;&#160; per year over the
    next&#160;&#160;&#160;years. These amounts reflect only the cash
    tax savings attributable to current tax attributes resulting
    from past acquisitions described above as well as from the
    Reorganization Transactions. Future payments under the Tax
    Receivable Agreement in respect of subsequent acquisitions of
    Aurora Holdings Units would be in addition to these
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amounts and would, if such exchanges took place at
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, be of substantial but relatively smaller magnitude.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, although we do not believe that the Internal
    Revenue Service, or IRS, would challenge the tax basis increases
    or other benefits arising under the Tax Receivable Agreement,
    the Tax Receivable Entity will not reimburse or indemnify us for
    any payments previously made if such tax basis increases or
    other tax benefits are subsequently disallowed or for any other
    claims made by the IRS, except that excess payments made to the
    Tax Receivable Entity will be netted against payments otherwise
    to be made, if any, after our determination of such excess. As a
    result, in such circumstances, we could make payments under the
    Tax Receivable Agreement that are greater than our cash tax
    savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we are a holding company with no operations of our own,
    our ability to make payments under the Tax Receivable Agreement
    is dependent on the ability of Aurora Holdings and its
    subsidiaries to make distributions to us. Our debt agreements
    will restrict the ability of our subsidiaries to make
    distributions to us, which could affect our ability to make
    payments under the Tax Receivable Agreement. To the extent that
    we are unable to make payments under the Tax Receivable
    Agreement because of such restrictions, such payments will be
    deferred and will accrue interest until paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Tax Receivable Agreement, certain events
    may cause the acceleration or modification of our obligation to
    make payments to our Principal Equityholders. In the event of an
    adverse change in tax law or if we choose to terminate the Tax
    Receivable Agreement (with the consent of our independent
    directors), we would be required to pay a lump sum amount in
    lieu of the estimated future payments otherwise provided for in
    the Tax Receivable Agreement. The lump sum amount would be based
    on assumptions regarding tax margins and would be calculated
    based on a present value of the total amount otherwise payable
    under the Tax Receivable Agreement. If the assumptions used turn
    out to be false, we may pay more or less than the 85 percent of
    the cash tax savings that would have been realized by us.
    Furthermore, in the event of a change of control, our
    successor&#146;s obligations under the Tax Receivable Agreement
    would be based on the assumption that the cash tax savings to us
    were realized in full. See &#147;Certain Relationships and
    Related Party Transactions&#160;&#151; Tax Receivable
    Agreement.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to This Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have broad discretion in the use of the net proceeds that we
    will receive from this offering and may not use them in a manner
    in which our stockholders would consider
    appropriate.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A portion of the net proceeds that we will receive from this
    offering will be used to acquire Aurora Holdings Units (and
    accompanying shares of our Class&#160;B common stock) from the
    Aurora Holdings Continuing Members, but we cannot specify with
    certainty the particular uses of the remaining net proceeds that
    we will receive from this offering. Our management will have
    broad discretion in the application of the remaining net
    proceeds that we will receive from this offering, including for
    any of the purposes described under the heading &#147;Use of
    Proceeds&#148; included elsewhere in this prospectus. Our
    stockholders may not agree with the manner in which our
    management chooses to allocate and spend the net proceeds that
    we will receive from this offering. The failure by our
    management to apply these funds effectively could have a
    material adverse effect on our business. Pending their use, we
    may invest the net proceeds that we will receive from this
    offering in a manner that does not produce income or that loses
    value.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">After
    this offering, our executive officers, directors and major
    stockholders will maintain the ability to control all matters
    submitted to stockholders for approval.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When this offering is completed, our Principal Equityholders
    will beneficially own shares representing, in aggregate,
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of our
    common stock. Specifically, the Summit Partners Equityholders
    will, in aggregate, beneficially
    own&#160;&#160;&#160;&#160;&#160;&#160;percent of our common
    stock immediately following the completion of this offering, the
    KRG Equityholders will, in aggregate, beneficially own
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of our
    common stock immediately following the completion of this
    offering, and our Managing Equityholders will, in aggregate,
    beneficially own
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of our
    common stock immediately following the completion of this
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    offering. As a
    result,&#160;&#160;&#160;&#160;&#160;,&#160;&#160;&#160;&#160;&#160;
    <FONT style="white-space: nowrap">and/or&#160;&#160;&#160;&#160;&#160;</FONT>
    as a group, will be able to control all matters submitted to our
    stockholders for approval, as well as our management and
    affairs. For example, such parties will control the election of
    directors and approval of any merger, consolidation or sale of
    all or substantially all of our assets. This concentration of
    voting power could delay or prevent an acquisition of our
    company on terms that other stockholders may desire. See
    &#147;&#151;&#160;Risks Related to Our Organization and
    Structure&#160;&#151; We are controlled by our Principal
    Equityholders whose interest in our business may be different
    than yours, and certain statutory provisions afforded to
    stockholders are not applicable to us.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    become involved in securities class action litigation that could
    harm our reputation and business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The public equities markets intermittently experience
    significant price and volume fluctuations that have affected the
    market prices of shares of diagnostic services companies like
    ours. Market fluctuations may cause the price of our stock to
    decline. In the past, public companies have often been subject
    to securities class action litigation following a broad decline
    in the market price of their securities. This risk is especially
    relevant for us because diagnostic services companies have
    experienced significant stock price volatility in recent years.
    We may become involved in this type of litigation in the future.
    Litigation often is lengthy and costly and may divert
    management&#146;s attention and resources, which could adversely
    affect our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to manage increased costs, including those related to company
    compliance programs, as a result of operating as a public
    company may have an adverse effect on our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a public company, we will incur significant additional
    administrative, legal, accounting and other expenses beyond
    those of a private company. In addition, the Sarbanes-Oxley Act
    of 2002, as well as rules subsequently implemented by the
    Securities and Exchange Commission, or the SEC, and the NASDAQ
    Global Market in the past several years have imposed numerous
    additional requirements on public companies. These requirements
    have included the establishment and maintenance of effective
    disclosure and financial controls and changes in corporate
    governance practices. We will need to devote significant
    resources to deal with these public company-associated
    requirements, including compliance programs, investor relations
    and financial reporting obligations. These rules and regulations
    will increase our legal and financial compliance costs and will
    make some activities more time-consuming and costly. As a public
    company, it will be more difficult and more expensive for us to
    obtain director and officer liability insurance, and we may be
    required to accept reduced policy limits and coverage or incur
    substantially higher costs to obtain the same or similar
    coverage. If we are not able to comply with the requirements of
    the Sarbanes-Oxley Act of 2002 or if we or our independent
    registered public accounting firm identify deficiencies in our
    internal control over financial reporting that are deemed to be
    significant deficiencies or material weaknesses, the market
    price of our Class&#160;A common stock could decline. We could
    also be subject to sanctions or investigations by the NASDAQ
    Global Market, the SEC or other regulatory authorities, which
    could adversely affect our reputation, results of operations,
    and financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Failure
    to achieve and maintain effective internal control over
    financial reporting in accordance with Section&#160;404 of the
    Sarbanes-Oxley Act of 2002 could have a material adverse effect
    on our business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a public company, we will be required to document and test
    our internal control procedures in order to satisfy the
    requirements of Section&#160;404 of the Sarbanes-Oxley Act of
    2002, which will require annual management assessments of the
    effectiveness of our internal control over financial reporting.
    Our independent registered public accounting firm will also be
    required to deliver a report providing its own assessment of the
    effectiveness of our internal control over financial reporting.
    During the course of our testing, we may identify deficiencies
    that we may not be able to remediate in time to meet our
    deadline for compliance with Section&#160;404. We will first be
    required to comply with the requirements of Section&#160;404 for
    our fiscal year ended December&#160;31, 2011. We also may not be
    able to conclude on an ongoing basis that our internal control
    over financial reporting is effective in accordance with
    Section&#160;404, and our independent registered public
    accounting firm may not be able to or willing to agree with our
    assessment of the effectiveness of our internal control over
    financial reporting. Failure to achieve and maintain an
    effective internal control environment could harm our operating
    results, cause us to fail to meet our reporting obligations or
    require that we restate our financial statements for prior
    periods, any of which could cause a decline in
</DIV>
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    33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the market price of our Class&#160;A common stock. Testing and
    maintaining internal control over financial reporting will also
    involve significant costs and could divert management&#146;s
    attention from other matters that are important to our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Provisions
    in our certificate of incorporation and under Delaware law may
    prevent or frustrate attempts by our stockholders to change our
    management and hinder efforts to acquire a controlling interest
    in us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provisions of our certificate of incorporation and bylaws may
    discourage, delay or prevent a merger, acquisition or other
    change in control that stockholders may consider favorable,
    including transactions in which you might otherwise receive a
    premium for your shares. These provisions may also prevent or
    frustrate attempts by our stockholders to replace or remove our
    management. These provisions include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a classified board of directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limitations on the removal of directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    advance notice requirements for stockholder proposals and
    nominations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the inability of stockholders to act by written consent or to
    call special meetings;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability of our Board of Directors to designate the terms of
    and issue new series of preferred stock without stockholder
    approval.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of the holders of at least two-thirds of
    our shares of capital stock entitled to vote is necessary to
    amend or repeal the above provisions of our certificate of
    incorporation. In addition, absent approval of our Board of
    Directors, our bylaws may only be amended or repealed by the
    affirmative vote of the holders of at least two-thirds of our
    shares of capital stock entitled to vote.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If an
    active, liquid trading market for our Class&#160;A common stock
    does not develop, you may not be able to sell your shares
    quickly or at or above the initial offering price.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has not been a public market for
    our Class&#160;A common stock. An active and liquid trading
    market for our Class&#160;A common stock may not develop or be
    sustained following the completion of this offering. You may not
    be able to sell your shares quickly, at or above the initial
    offering price or at all if trading in our stock is not active.
    The initial public offering price may not be indicative of
    prices that will prevail in the trading market. See
    &#147;Underwriters&#148; for more information regarding the
    factors that will be considered in determining the initial
    public offering price.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If you
    purchase shares of our Class&#160;A common stock in this
    offering, you will suffer immediate and substantial dilution of
    your investment and may suffer dilution in the
    future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Purchasers of our Class&#160;A common stock in this offering
    will pay a price per share that substantially exceeds the per
    share value of our tangible assets after subtracting our
    liabilities and the per share price paid by our existing
    stockholders. Accordingly, if you purchase shares at an assumed
    initial public offering price of $&#160;&#160;&#160;&#160;&#160;
    per share, you will experience immediate and substantial
    dilution of $&#160;&#160;&#160;&#160;&#160; per share,
    representing the difference between our pro forma net tangible
    book value per share after giving effect to this offering at the
    assumed initial public offering price and the public offering
    price of $&#160;&#160;&#160;&#160;&#160; per share. In addition,
    purchasers of our Class&#160;A common stock in this offering
    will have contributed
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    aggregate price paid by all purchasers of our stock but will own
    only approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of
    our Class&#160;A common stock outstanding after this offering.
    In the future, we may also acquire other companies or assets,
    raise additional needed capital or finance strategic alliances
    by issuing equity, which may result in additional dilution to
    you.
</DIV>
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    <BR>
    34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    equity research analysts do not publish research or reports
    about our business, or if they issue unfavorable commentary or
    downgrade our Class&#160;A common stock, the price of our
    Class&#160;A common stock could decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trading market for our Class&#160;A common stock will rely
    in part on the research and reports that equity research
    analysts publish about us and our business. We do not control
    these analysts or the content and opinions included in their
    reports. Securities analysts may elect not to provide research
    coverage of our Class&#160;A common stock after the completion
    of this offering, and such lack of research coverage may
    adversely affect the market price of our Class&#160;A common
    stock. The price of our stock could decline if one or more
    equity research analysts downgrade our stock or if those
    analysts issue other unfavorable commentary or cease publishing
    reports about us or our business. If one or more equity research
    analysts ceases coverage of our company, we could lose
    visibility in the market, which in turn could cause our stock
    price to decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Purchasers
    of our Class&#160;A common stock could incur substantial
    losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our stock price is likely to be volatile. The stock market in
    general has experienced extreme volatility that has often been
    unrelated to the operating performance of particular companies.
    Investors may not be able to sell their Class&#160;A common
    stock at or above the initial public offering price. The market
    price for our Class&#160;A common stock may be influenced by
    many factors, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in health care coverage or reimbursement guidelines and
    amounts, including health care reimbursement reform and
    cost-containment measures implemented by government agencies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the structure of health care payment systems;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variations in deductible and coinsurance amounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    regulatory developments affecting the health care or diagnostic
    services industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our failure to comply with applicable regulations or increased
    investigative or enforcement initiatives by governmental and
    other third-party payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the payor mix or the mix or cost of our specialized
    diagnostic services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the timing and volume of patient orders and seasonality of our
    business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the timing and cost of our sales and marketing efforts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    litigation involving our company, our industry, or both;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the departure of key personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to continue to add new laboratories;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    future sales of our Class&#160;A common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variations in our financial results or those of companies that
    are perceived to be similar to us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in market valuations of companies similar to ours;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in recommendations by securities analysts and
    investors&#146; perceptions of us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in our capitalization, including future issuances of our
    Class&#160;A common stock or the incurrence of additional
    indebtedness;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general economic, industry and market conditions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shares
    eligible for future sale by existing stockholders may adversely
    affect our stock price.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales of a substantial number of shares of our Class&#160;A
    common stock in the public market could occur at any time,
    particularly after the expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described in the &#147;Underwriters&#148; section of
    this prospectus. These sales, or the perception in the market
    that the holders of a large number of shares intend to sell
    shares, could reduce the market price of our Class&#160;A common
    stock.
</DIV>
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    <BR>
    35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the closing of this offering, we will
    have&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    outstanding shares of our Class&#160;A common stock, after
    giving effect to the sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock offered by us and the selling
    stockholders in this offering at a purchase price equal to the
    assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, after deducting the estimated underwriting discount
    and commissions and offering expenses payable by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This also includes the shares that we are selling in this
    offering, which may be resold in the public market immediately.
    Of the remaining
    shares,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    are currently restricted as a result of securities laws or
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements but will be available for resale in the public market
    as described in the &#147;Shares&#160;Eligible for Future
    Sale&#148; section of this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Principal Equityholders own
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock or
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of our outstanding Class&#160;A common stock. If the Aurora
    Holdings Continuing Members exchanged all of their Aurora
    Holdings Units (and accompanying shares of our Class&#160;B
    common stock) for shares of our Class&#160;A common stock, the
    Aurora Holdings Continuing Members would hold an
    additional&#160;&#160;&#160;&#160;&#160;&#160;shares of our
    Class&#160;A common stock, or
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of our
    outstanding Class&#160;A common stock in the aggregate. All of
    the shares held by our Principal Equityholders may be sold
    without complying with the registration provisions of the
    Securities Act, as amended, or the Securities Act, upon
    satisfying the conditions of Rule&#160;144 of the Securities
    Act. The sale of shares by these Principal Equityholders under
    Rule&#160;144 may have an adverse affect on the market price of
    our Class&#160;A common stock and may inhibit our ability to
    manage subsequent equity or debt financing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a large number of shares of our Class&#160;A common stock or
    securities convertible into our Class&#160;A common stock are
    sold in the public market after they become eligible for sale,
    the sales could reduce the trading price of our Class&#160;A
    common stock and impede our ability to raise future capital.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    have not paid cash dividends and do not expect to pay dividends
    in the future, which means that you may not be able to realize
    the value of our shares except through sale.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although Aurora Holdings has made tax and other distributions to
    its members in accordance with the Aurora Holdings LLC
    Agreement, we have never declared or paid cash dividends. We
    currently expect to retain earnings for our business and do not
    anticipate paying dividends on our Class&#160;A common stock at
    any time in the foreseeable future. Our Board of Directors will
    decide whether to pay dividends on our Class&#160;A common stock
    from time to time in the exercise of its business judgment.
    Because we do not anticipate paying dividends in the future, the
    only opportunity to realize the value of our Class&#160;A common
    stock will likely be through an appreciation in value and a sale
    of those shares. There is no guarantee that shares of our
    Class&#160;A common stock will appreciate in value or even
    maintain the price at which our stockholders have purchased
    their shares.
</DIV>

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus includes forward-looking
    statements.&#160;&#160;All statements other than statements of
    historical facts contained in this prospectus, including
    statements regarding our future results of operations and
    financial position, business strategy and plans and objectives
    for future operations, are forward-looking statements. The words
    &#147;believe,&#148; &#147;may,&#148; &#147;might,&#148;
    &#147;will,&#148; &#147;estimate,&#148; &#147;continue,&#148;
    &#147;anticipate,&#148; &#147;intend,&#148; &#147;expect,&#148;
    &#147;plan,&#148; &#147;could,&#148; &#147;would&#148; and
    similar expressions are intended to identify forward-looking
    statements. We have based these forward-looking statements
    largely on our current expectations and projections about future
    events and financial trends that we believe may affect our
    financial condition, results of operations, business strategy,
    short-term and long-term business operations and objectives, and
    financial needs. We caution the forward-looking statements in
    this prospectus are subject to a number of known and unknown
    risks, uncertainties and assumptions that may cause our actual
    results, performance or achievements to be materially different
    from any future results, performances or achievements expressed
    or implied by the forward-looking statements. In addition to the
    risks described in &#147;Risk Factors,&#148; factors that could
    contribute to these differences include, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in medical treatment or reimbursement rates or
    utilization for our anatomic pathology markets;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competition for our diagnostic services, including the
    internalization of testing functions and technologies by our
    clients;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in payor regulations, policies or payor mix;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the anticipated benefits from acquisitions not being fully
    realized or not being realized within the expected time frames;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    disruptions or failures of our IT solutions or infrastructure;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    loss of key executives and technical personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure to maintain relationships with clients, including
    referring physicians and hospitals, and with payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    covenants in our debt agreements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our substantial amount of indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the protection of our intellectual property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general economic, business or regulatory conditions affecting
    the health care and diagnostic testing services industries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    federal or state health care reform initiatives;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    violation of, failure to comply with, or changes in federal and
    state laws and regulations related to, submission of claims for
    our services, fraud and abuse, patient privacy, and billing
    arrangements for our services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    attainment of licenses required to test patient specimens from
    certain states or the loss or suspension of licenses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    control by our Principal Equityholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments under the Tax Receivable Agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance with certain corporate governance requirements and
    costs incurred in connection with becoming a public company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to establish and maintain internal controls over
    financial reporting;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the other factors discussed under the heading &#147;Risk
    Factors&#148; and elsewhere in this prospectus.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, we operate in a very competitive and rapidly changing
    environment, and new risks emerge from
    <FONT style="white-space: nowrap">time-to-time.</FONT>
    It is not possible for our management to predict all risks, nor
    can we assess the impact of all factors on our business or the
    extent to which any factor, or combination of factors, may cause
    actual results to differ materially from those contained in any
    forward-looking statements we may make. In light of these risks,
    uncertainties and assumptions, the forward-looking events and
    circumstances discussed in this prospectus may not occur, and
    actual results could differ materially and adversely from those
    anticipated or implied in the forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should not rely upon forward-looking statements as
    predictions of future events. Although we believe that the
    expectations reflected in the forward-looking statements are
    reasonable, we cannot guarantee that the future results, levels
    of activity, performance or events and circumstances reflected
    in the forward-looking statements will be achieved or occur.
    Moreover, neither we nor any other person assumes responsibility
    for the accuracy and completeness of the forward-looking
    statements. We undertake no obligation to update publicly any
    forward-looking statements for any reason after the date of this
    prospectus to conform these statements to actual results or
    changes in our expectations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The forward-looking statements in this prospectus speak only as
    of the date of this prospectus. You should assume that the
    information appearing in this prospectus is accurate only as of
    the date on the front cover of this prospectus. Our business,
    financial condition, results of operations, or prospects may
    have changed since that date. Neither the delivery of this
    prospectus nor the sale of the common shares means that
    information contained in this
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    prospectus is correct after the date of this prospectus. Except
    as otherwise required by applicable laws, we undertake no
    obligation to publicly update or revise any forward-looking
    statements, the risk factors or other information described in
    this prospectus, whether as a result of new information, future
    events, changed circumstances or any other reason after the date
    of this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Private Securities Litigation Reform Act of 1995 and
    Section&#160;27A of the Securities Act do not protect any
    statements we make in connection with this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus also contains market data related to our
    business and industry. These market data include projections
    that are based on a number of assumptions. While we believe
    these assumptions to be reasonable and sound as of the date of
    this prospectus, if these assumptions turn out to be incorrect,
    actual results may differ from the projections based on these
    assumptions. As a result, our markets may not grow at the rates
    projected by these data, or at all. The failure of these markets
    to grow at these projected rates may have a material adverse
    effect on our business, results of operations, financial
    condition and the market price of our Class&#160;A common stock.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ORGANIZATIONAL
    STRUCTURE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Structure
    Prior to the Reorganization Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated in Delaware on April&#160;23, 2010. We are
    a holding company, and our principal asset after the completion
    of this offering will be our indirect equity interest in Aurora
    Holdings. We have not engaged in any business or other
    activities except for activities in contemplation of this
    offering. We currently expect that our only business or other
    activities will be our indirect investment in Aurora Holdings
    and our participation in the Reorganization Transactions. Aurora
    Holdings and its subsidiaries have historically conducted the
    business described in this prospectus. Following the completion
    of this offering and the Reorganization Transactions, we expect
    to conduct our business through Aurora Holdings and its
    subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Holdings was organized in 2006 as a limited liability
    company to act as a holding company for Aurora Diagnostics, LLC
    and our other operating subsidiaries. Aurora Holdings was
    initially capitalized by affiliates of Summit Partners,
    affiliates of GSO Capital Partners and members of our senior
    management team. In June 2009, GSO Capital Partners&#146; equity
    interest in Aurora Holdings was purchased by an affiliate of KRG
    Capital Partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are authorized to issue two classes of common stock:
    Class&#160;A common stock and Class&#160;B common stock. Each
    share of the Class&#160;A common stock and Class&#160;B common
    stock provides the holder with one vote on all matters submitted
    to a vote of stockholders; however, the holders of Class&#160;B
    common stock do not have any of the economic rights (including
    rights to dividends and distributions upon liquidation, but
    excluding the return of the par value on liquidation) provided
    to holders of Class&#160;A common stock. All shares of our
    common stock generally vote together, as a single class, on all
    matters submitted to a vote of stockholders. Prior to giving
    effect to the Reorganization Transactions, all of our
    outstanding common stock is and will be held by James C. New,
    our Chairman, Chief Executive Officer and President.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the Reorganization Transactions, Aurora Holdings had
    131,382 outstanding membership interests in eight classes,
    including 21,382
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    Units, 85,000 Class&#160;A Units, 10,000 Class&#160;B Units,
    5,000 Class&#160;C Units, 4,000
    <FONT style="white-space: nowrap">Class&#160;D-1</FONT>
    Units, 3,000
    <FONT style="white-space: nowrap">Class&#160;D-2</FONT>
    Units, 3,000
    <FONT style="white-space: nowrap">Class&#160;D-3</FONT>
    Units and Class&#160;X capital of $7.1&#160;million. Prior to
    giving effect to the Reorganization Transactions, the Aurora
    Holdings Units are owned as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Summit Partners Equityholders currently own 51&#160;percent
    of the economic interest in Aurora Holdings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the KRG Equityholders currently own 34&#160;percent of the
    economic interest in Aurora Holdings;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Management Equityholders currently own 15&#160;percent of
    the economic interest in Aurora Holdings.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to giving effect to the Reorganization Transactions, we
    will own no outstanding Aurora Holdings Units. We refer to the
    Summit Partners Equityholders, the KRG Equityholders and the
    Management Equityholders as our Principal Equityholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reorganization
    Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, we will enter into the
    Reorganization Transactions. As part of the Reorganization
    Transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will form&#160;ARDX Sub and certain entities organized and
    controlled, respectively, by the Summit Partners Equityholders
    and the KRG Equityholders will merge with and into ARDX Sub, and
    ARDX Sub will be the surviving entity in the merger and will
    hold all of the Aurora Holdings Units previously owned by those
    entities; the stockholders of each of those entities will
    receive in the merger an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock and TRA Rights;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    ARDX Sub will acquire additional Aurora Holdings Units from
    entities organized and controlled by the Summit Partners
    Equityholders in exchange for shares of our Class&#160;A common
    stock and TRA Rights;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Aurora Holdings will enter into the Second Amended and Restated
    Aurora Holdings LLC Agreement such that all of its outstanding
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    Units, Class&#160;A Units, Class&#160;B Units, Class&#160;C
    Units,
    <FONT style="white-space: nowrap">Class&#160;D-1</FONT>
    Units,
    <FONT style="white-space: nowrap">Class&#160;D-2</FONT>
    Units,
    <FONT style="white-space: nowrap">Class&#160;D-3</FONT>
    Units and Class&#160;X capital will be reclassified as Aurora
    Holdings Units (all of which will be of a single class), and the
    Aurora Holdings Continuing Members will also receive rights to
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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    <BR>
    39
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    distributions that are calculated in a manner that is similar to
    the TRA Rights under the Second Amended and Restated Aurora
    Holdings LLC Agreement;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    ARDX Sub will acquire all business and operational control of
    Aurora Holdings, and an immaterial amount of cash, from the
    Aurora Holdings Continuing Members in exchange for newly-issued
    shares of our Class&#160;B common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Certain of the Summit Partners Equityholders and the KRG
    Equityholders and all of the Management Equityholders will form
    the Tax Receivable Entity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Certain of the Summit Partners Equityholders and the KRG
    Equityholders and all of the Management Equityholders will
    contribute TRA Rights for interests in the Tax Receivable
    Entity, and we and ARDX Sub will enter into the Tax Receivable
    Agreement with the Tax Receivable Entity;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will use a portion of the net proceeds that we will receive
    from this offering to acquire, through ARDX Sub, a portion of
    the Aurora Holdings Units (and a corresponding number of shares
    of Class B common stock) held by the Aurora Holdings Continuing
    Members in exchange for cash and TRA Rights.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;&#151;&#160;Holding Company Structure and Tax
    Receivable Agreement&#148; and &#147;Certain Relationships and
    Related Party Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Effect of
    the Reorganization Transactions and this Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Reorganization Transactions are intended to create a
    corporate holding company that will facilitate public ownership
    of, and investment in, us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of this offering, the Summit Partners Equityholders and
    KRG Equityholders will
    sell&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock. We will not receive any of the
    proceeds from the sale of shares of our Class&#160;A common
    stock in this offering by the selling stockholders. Immediately
    following the completion of this offering, we will use a portion
    of the net proceeds that we will receive from this offering,
    along with TRA Rights, to
    purchase&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock and an equal number of Aurora
    Holdings Units from the Aurora Holdings Continuing Members. This
    will further reduce the interest of the Aurora Holdings
    Continuing Members in us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of the Reorganization Transactions, this
    offering and the application of the net proceeds that we will
    receive from this offering, our Class&#160;A common stock will
    be held as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our public stockholders will hold an aggregate
    of&#160;&#160;&#160;&#160;&#160;shares of our Class&#160;A
    common stock
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    if the underwriters exercise their over-allotment option in
    full), representing&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the combined voting power in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;percent if the
    underwriters exercise their over-allotment option in full)
    and&#160;&#160;&#160;&#160;&#160;&#160;percent of the economic
    interest in us (or&#160;&#160;&#160;&#160;&#160;&#160;percent if
    the underwriters exercise their over-allotment option in full);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Certain Summit Partners Equityholders will hold an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    if the underwriters exercise their over-allotment option in
    full),
    representing&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the combined voting power in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    if the underwriters exercise their over-allotment option in
    full) and&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    economic interest in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    if the underwriters exercise their over-allotment option in
    full);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The KRG Equityholders will hold an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    if the underwriters exercise their over-allotment option in
    full), representing&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the combined voting power in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;percent if the
    underwriters exercise their over-allotment option in full)
    and&#160;&#160;&#160;&#160;&#160;&#160;percent of the economic
    interest in us (or&#160;&#160;&#160;&#160;&#160;&#160;percent if
    the underwriters exercise their over-allotment option in
    full);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Management Equityholders will hold no shares of our
    Class&#160;A common stock.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of the Reorganization Transactions, this
    offering and the application of the net proceeds that we will
    receive from this offering, our Class&#160;B common stock will
    be held as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Certain of the Summit Partners Equityholders will hold an
    aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    if the underwriters exercise their over-allotment in full),
    representing&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    combined voting power in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;percent if the
    underwriters exercise their over-allotment in full) and none of
    the economic interest in us;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The KRG Equityholders will hold no shares of our Class&#160;B
    common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Management Equityholders will hold an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    if the underwriters exercise their over-allotment in full),
    representing&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    combined voting power in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;percent if the
    underwriters exercise their over-allotment in full) and none of
    the economic interest in us.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of the Reorganization Transactions, this
    offering and the application of the net proceeds that we will
    receive from this offering, the Aurora Holdings Units will be
    held as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We will indirectly, through ARDX Sub, be the sole managing
    member of Aurora Holdings, will have all business and
    operational control of Aurora Holdings, and will indirectly hold
    an aggregate of&#160;&#160;&#160;&#160;&#160;&#160;&#160; Aurora
    Holdings Units (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units if the Underwriters exercise their
    over-allotment in full),
    representing&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    combined voting power in Aurora Holdings
    and&#160;&#160;&#160;&#160;&#160; percent of the economic
    interest in Aurora Holdings (or&#160;&#160;&#160;&#160;&#160;
    percent if the Underwriters exercise their over-allotment in
    full). We will consolidate the financial results of Aurora
    Holdings, and our net income (loss) will be reduced by a
    noncontrolling interest expense to reflect the entitlement of
    the Aurora Holdings Continuing Members to a portion of Aurora
    Holdings&#146; net income (loss);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Certain of the Summit Partners Equityholders, will hold an
    aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units (or&#160;&#160;&#160;&#160;&#160;Aurora
    Holdings Units if the underwriters exercise their over-allotment
    in full),
    representing&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    combined voting power in Aurora Holdings
    and&#160;&#160;&#160;&#160;&#160;&#160;percent of the economic
    interest in Aurora Holdings (or&#160;&#160;&#160;&#160;&#160;
    percent if the underwriters exercise their over-allotment in
    full);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The KRG Equityholders will hold no Aurora Holdings
    Units;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Management Equityholders will hold an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units (or&#160;&#160;&#160;&#160;&#160;Aurora
    Holdings Units if the underwriters exercise their over-allotment
    in full),
    representing&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    combined voting power in Aurora Holdings
    and&#160;&#160;&#160;&#160;&#160;&#160;percent of the economic
    interest in Aurora Holdings (or&#160;&#160;&#160;&#160;&#160;
    percent if the underwriters exercise their over-allotment in
    full).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Holding
    Company Structure and Tax Receivable Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a holding company and, immediately after the consummation
    of the Reorganization Transactions and the completion of this
    offering, our principal asset will be our indirect interest in
    Aurora Holdings. We do not intend to list our Class&#160;B
    common stock on any stock exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Tax Receivable Entity will be formed with our Principal
    Equityholders holding its equity interests. Aurora Diagnostics,
    Inc. will enter into the Tax Receivable Agreement with ARDX Sub
    and the Tax Receivable Entity that will provide for the payment
    by Aurora Diagnostics, Inc. to the Tax Receivable Entity of
    85&#160;percent of certain cash tax savings, if any, in
    U.S.&#160;federal, state, local and foreign income tax realized
    by Aurora Diagnostics, Inc. after the completion of this
    offering as a result of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any <FONT style="white-space: nowrap">step-up</FONT>
    in tax basis in our share of Aurora Holdings&#146; assets
    resulting from:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="2%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class&#160;A common stock or cash,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments under the Tax Receivable Agreement to the Tax
    Receivable Entity;&#160;and
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are entering into the Tax Receivable Agreement because
    favorable tax attributes have been or will be made available to
    us as a result of transactions before and after the offering.
    Our Principal Equityholders believe that the value of these tax
    attributes should be considered in determining the value of
    their contribution to us. As it may be difficult to determine
    the present value of these tax attributes with a reasonable
    level of certainty, the Tax Receivable Agreement with the Tax
    Receivable Entity will obligate Aurora Diagnostics, Inc. to make
    payments to the Tax Receivable Entity of 85&#160;percent of
    certain cash tax savings, if any, in U.S.&#160;federal, state,
    local and foreign income tax realized by Aurora Diagnostics,
    Inc. as a result of these attributes. Aurora Diagnostics, Inc.
    will retain the benefit of the remaining 15&#160;percent of
    these certain cash tax savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, future exchanges of Aurora Holdings Units for
    shares of our Class&#160;A common stock or cash, as well as
    payments under the Tax Receivable Agreement, will produce
    additional favorable tax attributes to us, which would not be
    available in the absence of such exchanges. The Tax Receivable
    Agreement therefore will obligate Aurora Diagnostics, Inc. to
    make payments to the Tax Receivable Entity of 85&#160;percent of
    certain cash tax savings, if any, realized by Aurora
    Diagnostics, Inc. as a result of those additional tax
    attributes. Aurora Diagnostics, Inc. will also retain the
    benefit of the remaining 15&#160;percent of these additional
    certain cash tax savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although we do not believe that the IRS would challenge the tax
    basis increases or other benefits arising under the Tax
    Receivable Agreement, the Tax Receivable Entity will not
    reimburse or indemnify us for any payments previously made if
    such tax basis increases or other tax benefits are subsequently
    disallowed or for any other claims made by the IRS, except that
    excess payments made to the Tax Receivable Entity will be netted
    against payments otherwise to be made, if any, after our
    determination of such excess. As a result, in such
    circumstances, we could make payments to the Tax Receivable
    Entity under the Tax Receivable Agreement that are greater than
    our cash tax savings. See &#147;Certain Relationships and
    Related Party Transactions&#160;&#151; Tax Receivable
    Agreement.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a member of Aurora Holdings, ARDX Sub will incur
    U.S.&#160;federal, state, local and foreign income taxes on its
    allocable share of any net taxable income of Aurora Holdings. As
    will be authorized by the Second Amended and Restated Aurora
    Holdings LLC Agreement and to the extent permitted under our
    debt agreements, we intend for our subsidiary to cause Aurora
    Holdings to continue to distribute cash, generally, on a pro
    rata basis, to its members (which, after consummation of the
    Reorganization Transactions and the completion of this offering,
    will consist of ARDX Sub and the Aurora Holdings Continuing
    Members) at least to the extent necessary to provide sufficient
    funds to each member to pay its tax liabilities, if any, with
    respect to the taxable income of Aurora Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Certain Relationships and Related Party
    Transactions&#160;&#151; Second Amended and Restated Aurora
    Holdings Limited Liability Company Agreement&#148; and
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Liquidity and
    Capital Resources.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The obligations resulting from the Tax Receivable Agreement that
    will be entered into are expected to be more than offset by the
    tax benefits that we will receive in connection with the
    Reorganization Transactions and subsequent exchanges. Although
    not assured, we expect that the consideration that we will remit
    under the Tax Receivable Agreement will not exceed the tax
    liability that we otherwise would have been required to pay
    absent the transfers of tax attributes indirectly to us as a
    result of the Reorganization Transactions and subsequent
    exchanges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rights to receive payments under the Tax Receivable Agreement
    may be terminated by the Tax Receivable Entity if, as the result
    of an actual or proposed change in law, the existence of the
    agreement would cause recognition of ordinary income (instead of
    capital gain) in connection with future exchanges of Aurora
    Holdings Units for cash or shares of Class&#160;A common stock
    or would otherwise have material adverse tax consequences to the
    Tax Receivable Entity or its owners. There have been legislative
    proposals in the U.S. Congress that, if enacted, may result in
    such ordinary income recognition. Further, in the event of such
    a termination, the Tax Receivable Entity would have the right,
    subject to the delivery of an appropriate tax opinion, to
    require us to pay a lump sum amount in lieu of the payments
    otherwise provided under the agreement. That lump sum amount
    would be calculated by increasing the portion of the tax savings
    retained by us to 30 percent (from 15 percent) and by
    calculating a present value for the total amount that would
    otherwise be payable under the agreement, using a discount rate
    and assumptions as to income tax rates and as to our ability to
    utilize the tax benefits (including the assumption that we will
    have sufficient taxable income to fully utilize the tax
    benefits). If the assumptions used in this calculation turn
</DIV>
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    <BR>
    42
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    out not to be true, we may pay more or less than the specified
    percentage of our actual cash tax savings. This lump sum amount
    is subordinate to amounts payable under our senior credit
    agreements and may be paid in cash or be deferred until all
    amounts payable under our senior credit agreements in existence
    as of the date of termination of the Tax Receivable Agreement
    have been paid, and the deferred amount will bear interest at a
    rate of&#160;&#160;&#160;&#160;&#160; percent per annum. In view
    of the foregoing changes in the calculation of our obligations,
    we do not expect that the net impact of any such acceleration
    upon our overall financial condition would be materially adverse
    as compared to our obligations if laws do not change and the
    obligations are not accelerated. It is also possible that the
    net impact of such an acceleration would be beneficial to our
    overall financial condition. The ultimate impact of a decision
    to accelerate will depend on what the ongoing payments would
    have been under the Tax Receivable Agreement absent
    acceleration, which will depend on various factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have the right (with the consent of our independent
    directors) to terminate the Tax Receivable Agreement. If we
    exercise this right, then the Tax Receivable Entity would be
    entitled to a lump sum amount in lieu of the payments otherwise
    provided under the agreement. That lump sum amount would be
    calculated by determining a present value for the total amount
    that would otherwise be payable under the agreement, using a
    discount rate and assumptions as to income tax rates and as to
    our ability to utilize the tax benefits (including the
    assumption that we will have sufficient taxable income to fully
    utilize the tax benefits and the assumption that all exchanges
    that have not taken place will take place as of the date of the
    termination, which will increase the amount of the lump sum
    payment). If the assumptions used in this calculation turn out
    not to be true, we may pay more or less than the specified
    percentage of certain cash tax savings realized by us after the
    completion of this offering. This lump sum amount must be paid
    in cash. Any such acceleration can occur only at our election.
    Should we elect to terminate the Tax Receivable Agreement, we do
    not expect that the net impact of any such acceleration upon our
    overall financial condition would be materially adverse as
    compared to our existing obligations. The ultimate impact of a
    decision to accelerate will depend on what the ongoing payments
    would have been under the Tax Receivable Agreement absent
    acceleration, which will in turn depend on the various factors
    mentioned above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we default on any of our material obligations under the Tax
    Receivable Agreement, then, unless the Tax Receivable Entity
    seeks specific performance of the Tax Receivable Agreement, the
    Tax Receivable Entity has the option to accelerate payments due
    under the Tax Receivable Agreement and require us to make a lump
    sum payment representing all past due and future payments under
    the Tax Receivable Agreement, discounted to present value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Tax Receivable Agreement provides that, upon
    certain mergers, asset sales or other forms of business
    combination or certain other changes of control, our or our
    successor&#146;s obligations with respect to tax benefits would
    be based on certain assumptions, including that we or our
    successor would have sufficient taxable income to fully utilize
    the deductions arising from the increased tax deductions and tax
    basis and other benefits covered by the Tax Receivable
    Agreement. As a result, upon a change of control, we could be
    required to make payments under the Tax Receivable Agreement
    that are greater than or less than the specified percentage of
    our cash tax savings.
</DIV>
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    <BR>
    43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that the net proceeds that we will receive from the
    sale of the Class&#160;A common stock offered by us will be
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million,
    assuming an initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, and after deducting estimated underwriting discounts
    and commissions and estimated offering expenses payable by us
    and after giving effect to estimates of certain expenses that we
    expect to be reimbursed. We will not receive any proceeds from
    the sale of shares of Class&#160;A common stock by the selling
    stockholders, including any proceeds resulting from the
    underwriters&#146; exercise of their option to purchase
    additional shares from the selling stockholders. A $1.00
    increase (decrease) in the assumed initial public offering price
    of $&#160;&#160;&#160;&#160;&#160; per share would increase
    (decrease) the amount of proceeds that we will receive from this
    offering by $&#160;&#160;&#160;&#160;&#160;&#160;million,
    assuming the number of shares offered by us, which is set forth
    on the cover page of this prospectus, remains the same, and
    after deducting the estimated underwriting discounts and
    commissions and estimated offering expenses payable by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal purposes of this offering are to raise capital to
    acquire Aurora Holdings Units in connection with this offering
    and to increase our capitalization and financial flexibility,
    fund our growth, provide a public market for our Class&#160;A
    common stock and facilitate access to public capital markets. We
    intend to use the remainder of the net proceeds that we will
    receive from this offering for working capital and other general
    corporate purposes, which may include general and administrative
    expenditures, sales and marketing expenditures, developing new
    products and funding acquisitions and capital expenditures. We
    may use a portion of the net proceeds that we will receive from
    this offering to acquire businesses, products, services or
    technologies. However, we do not have commitments for any
    specific acquisitions at this time. Based on an assumed initial
    public offering price of $&#160;&#160;&#160;&#160;&#160; per
    share, which is the midpoint of the price range set forth on the
    cover page of this prospectus, we intend to use
    $&#160;&#160;&#160;&#160;&#160; of the proceeds from this
    offering to
    purchase&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units held by the Aurora Holdings Continuing
    Members or&#160;&#160;&#160;&#160;&#160; shares of Class&#160;B
    common stock (or $&#160;&#160;&#160;&#160;&#160;
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units  or&#160;&#160;&#160;&#160;&#160; shares
    of Class&#160;B common stock if the underwriters exercise their
    over-allotment option in full). As a result of this purchase,
    certain Aurora Holdings Continuing Members may be obligated to
    make filings under Section&#160;16(a) of the Securities Exchange
    Act of 1934, as amended, or the Exchange Act, reporting a change
    in beneficial ownership. We will have broad discretion in the
    way we use the net proceeds that we will receive from this
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amounts that we actually expend for these specified purposes
    may vary significantly depending on a number of factors,
    including changes in our growth strategy, the amount of our
    future revenues and expenses and our future cash flow. As a
    result, we will retain broad discretion in the allocation of the
    net proceeds that we will receive from this offering and may
    spend these proceeds for any purpose, including purposes not
    presently contemplated. You will not have an opportunity to
    evaluate the economic, financial or other information on which
    we base our decisions regarding the use of the net proceeds that
    we will receive from this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pending the uses described above, we may invest the net proceeds
    that we receive from this offering in short-term,
    interest-bearing, investment-grade securities.
</DIV>

<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although Aurora Holdings has made tax and other distributions to
    its members in accordance with the Aurora Holdings LLC
    Agreement, we have never declared or paid cash dividends on our
    common or preferred stock. We currently do not anticipate paying
    any cash dividends in the foreseeable future. We intend to
    retain any earnings to finance the development and expansion of
    our business. Any future determination to declare cash dividends
    will be made at the discretion of our Board of Directors,
    subject to applicable laws, and will depend on our financial
    condition, results of operations, contractual restrictions,
    capital requirements, general business conditions and other
    then-existing factors that our Board of Directors may deem
    relevant.
</DIV>
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    <BR>
    44
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our actual capitalization as of
    December&#160;31, 2009 and on a pro forma, as adjusted, basis to
    reflect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Reorganization Transactions described under &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock by us in this offering at an
    assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, after deducting the underwriters&#146; discounts and
    commissions and the estimated offering expenses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our new committed credit facilities, which we expect to close
    prior to the completion of this offering; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the application of the net proceeds that we will receive from
    this offering as described under &#147;Use of Proceeds.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information below is illustrative only and our cash, cash
    equivalents and short-term investments and capitalization
    following the completion of this offering will be based on the
    actual initial public offering price and other terms of this
    offering determined at pricing. You should read this table
    together with &#147;Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations&#148; and our
    consolidated financial statements and related notes included
    elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Actual<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">as
    Adjusted<SUP style="font-size: 85%; vertical-align: top">(3)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(unaudited) </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands except share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash, cash equivalents and short-term investments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     27,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current and long-term
    debt<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Aurora Holdings Members&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; Equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Class&#160;A common stock, $0.01 par value per
    share;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized
    (actual),&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    issued and outstanding (actual);
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized (pro forma as
    adjusted),&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    issued and outstanding (pro forma as adjusted)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Class&#160;B common stock, $0.01 par value per
    share;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized
    (actual),&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    issued
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    outstanding
    (actual);&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    authorized (pro forma as
    adjusted),&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    issued
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    outstanding (pro forma as adjusted)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accumulated other comprehensive (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total stockholders&#146; equity of Aurora Diagnostics, Inc.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    464,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The actual capitalization
    represents Aurora Holdings&#146; capitalization before giving
    effect to the Reorganization Transactions, the refinancing of
    our existing credit facility or the completion of this offering.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Actual as of December&#160;31,
    2009, includes the current and long term portions of our
    existing credit facilities and the fair value of contingent
    consideration.
    </FONT></TD>
</TR>



<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Each $1.00 increase (decrease) in
    the assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, after deducting the underwriters&#146; discounts and
    commissions and the estimated offering expenses, would increase
    (decrease) the amount of pro forma as adjusted cash, cash
    equivalents and short-term investments, additional paid-in
    capital, total stockholders&#146; equity, total capitalization
    and net proceeds that we will receive from this offering by
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million,
    assuming the number of shares offered by us, as set forth on the
    cover page of this prospectus, remains the same and after
    deducting the estimated underwriting discounts and commissions
    and estimated offering expenses that we must pay and after
    giving effect to estimates of certain expenses that we expect to
    be reimbursed.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The above share data excludes shares of our Class&#160;A common
    stock reserved for issuance upon the exchange of our
    Class&#160;B common stock into Class&#160;A common stock.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DILUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you invest in our Class&#160;A common stock, your investment
    will be diluted immediately to the extent of the difference
    between the public offering price per share of our Class&#160;A
    common stock and the pro forma net tangible book value per share
    of our Class&#160;A common stock after this offering. Our pro
    forma net tangible book value as of December&#160;31, 2009 was
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million, or
    $&#160;&#160;&#160;&#160;&#160; per share of Class&#160;A common
    stock. Pro forma net tangible book value per share represents
    the amount of stockholders&#146; equity less the net book value
    of intangible assets, divided by the number of shares of our
    Class&#160;A common stock outstanding at that date, after giving
    effect to the Reorganization Transactions described under
    &#147;Prospectus Summary&#160;&#151; Reorganization
    Transactions&#148; and &#147;Organizational
    Structure&#160;&#151; Reorganization Transactions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net tangible book value dilution per share to new investors
    represents the difference between the amount per share paid by
    purchasers of shares of Class&#160;A common stock in this
    offering and the pro forma net tangible book value per share of
    Class&#160;A common stock immediately after the completion of
    this offering. After giving effect to our sale of shares of
    Class&#160;A common stock in this offering at an assumed initial
    public offering price of $&#160;&#160;&#160;&#160;&#160; per
    share, which is the midpoint of the price range set forth on the
    cover of this prospectus, and after deducting the underwriting
    discounts and commissions and estimated offering expenses
    payable by us and after giving effect to estimates of certain
    expenses that we expect to be reimbursed, our pro forma as
    adjusted net tangible book value as of December&#160;31, 2009
    would have been $&#160;&#160;&#160;&#160;&#160;&#160;million, or
    $&#160;&#160;&#160;&#160;&#160; per share. This represents an
    immediate increase in net tangible book value of
    $&#160;&#160;&#160;&#160;&#160; per share to existing
    stockholders and an immediate dilution in net tangible book
    value of $&#160;&#160;&#160;&#160;&#160; per share to investors
    purchasing Class&#160;A common stock in this offering. Dilution
    per share to new investors is determined by subtracting pro
    forma net tangible book value per share after this offering from
    the assumed initial public offering price per share paid by a
    new investor. The following table illustrates the per share
    dilution:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="88%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assumed initial public offering price per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Pro forma net tangible book value (deficit) per share as of
    December&#160;31, 2009 before giving effect to the Tax
    Receivable Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Pro forma net tangible book value (deficit) per share before the
    change attributable to new investors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase in pro forma net tangible book value per share
    attributable to new investors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Pro Forma adjusted net tangible book value (deficit) per share
    after this offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dilution per share to new investors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A $1.00 increase or decrease in the assumed initial public
    offering price of $&#160;&#160;&#160;&#160;&#160; per share,
    which is the midpoint of the price range set forth on the cover
    page of this prospectus, would increase or decrease our pro
    forma as adjusted net tangible book value as of
    December&#160;31, 2009, by approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million, the pro forma as
    adjusted net tangible book value per share after this offering
    by $&#160;&#160;&#160;&#160;&#160; per share and the dilution in
    pro forma as adjusted net tangible book value per share to new
    investors in this offering by $&#160;&#160;&#160;&#160;&#160;
    per share, assuming the number of shares offered by us, as set
    forth on the cover page of this prospectus, remains the same and
    after deducting the estimated underwriting discounts and
    commissions and offering expenses payable by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock to be sold by the selling
    stockholders in this offering will reduce the number of shares
    held by our Principal Equityholders
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares,
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the total shares outstanding, and will increase the number of
    shares held by new investors participating in this offering
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares,
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the total shares outstanding. In addition, if the
    underwriters exercise their over-allotment option in full, the
    number of shares held by our Principal Equityholders will be
    further reduced
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares,
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the total shares outstanding after this offering, and the
    number of shares held by new investors participating in this
    offering will be further increased
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares,
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of the total shares outstanding after this offering.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    47
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes, on the same pro forma basis as
    of December&#160;31, 2009, the total number of shares of
    Class&#160;A common stock and Class&#160;B common stock
    purchased from us, the total consideration paid to us and the
    average price per share paid by the Principal Equityholders, and
    by new investors purchasing shares in this offering (amounts in
    thousands, except percentages and per share data), after giving
    effect to the sale by us and the selling stockholders
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock in this offering at an assumed
    initial public offering price of $&#160;&#160;&#160;&#160;&#160;
    per share, which is the midpoint of the price range set forth on
    the cover page of this prospectus, before deducting the
    estimated underwriting discounts and commissions and offering
    expenses payable by us:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Shares of Class A<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Common Stock and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Total Consideration<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class B Common Stock Purchased</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to Us</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Number</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Percent</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Amount</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Percent</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">per Share</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Principal Equityholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    New investors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA FINANCIAL INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The unaudited pro forma consolidated balance sheet at
    December&#160;31, 2009 and the unaudited pro forma consolidated
    statement of operations for the twelve months ended
    December&#160;31, 2009 give effect to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2009 acquisition of South Texas Dermatopathology Lab, P.A.,
    as if that acquisition had occurred January&#160;1, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory,&#160;P.C., as if those acquisitions
    had occurred as of January&#160;1, 2009; but not our 2010
    acquisition of Pathology Solutions, LLC;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consummation of the Reorganization Transactions as if they were
    effective as of December&#160;31, 2009;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    this offering and the use of the net proceeds that we will
    receive from this offering, as if effective on December&#160;31,
    2009 for the unaudited pro forma consolidated balance sheet and
    January&#160;1, 2009 for the unaudited pro forma consolidated
    statement of operations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The unaudited pro forma financial information has been prepared
    by our management and is based on our historical financial
    statements and the assumptions and adjustments described herein
    and in the notes to the unaudited pro forma financial
    information below. We believe the presentation of the unaudited
    pro forma financial information is prepared in conformity with
    Article&#160;11 of
    <FONT style="white-space: nowrap">Regulation&#160;S-X</FONT>
    of the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our historical financial information for the year ended
    December&#160;31, 2009 has been derived from our audited
    consolidated financial statements and accompanying notes
    included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We based the pro forma adjustments on available information and
    on assumptions that we believe are reasonable under the
    circumstances. See &#147;&#151;&#160;Notes to Unaudited Pro
    Forma Financial Information&#148; for a discussion of
    assumptions made. The unaudited pro forma financial information
    is presented for informational purposes and is based on
    management&#146;s preliminary estimates, including the
    preliminary application of our acquisition accounting. Our final
    estimates and related accounting may differ materially from the
    preliminary estimates. The unaudited pro forma consolidated
    statements of operations do not purport to represent what our
    results of operations actually would have been if the
    transactions set forth above had occurred on the dates indicated
    or what our results of operations will be for future periods.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Unaudited
    Pro Forma Consolidated Balance Sheet<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">December&#160;31,
    2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2010<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Acquisition<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Refinancing<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reorganization<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Historical<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquisition<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments<SUP style="font-size: 85%; vertical-align: top">(3)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquisitions</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,383
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (230,105
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    230,105
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,106
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,595
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Prepaid expenses and other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Prepaid income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,930
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    496
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Other Assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Deferred debt issue costs, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,950
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,932
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Deposits and other noncurrent assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,976
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    271,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    290,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Intangible assets, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,859
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    407,444
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    413,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    462,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,426
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    471,732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,518
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Liabilities and Members&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Current portion of long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,705
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,691
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Current portion of fair value of contingent consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,109
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (255
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    255
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Current portion of acquisition related liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Fair value of derivative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 24pt">
    Taxes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,686
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Tax receivable arrangement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Deferred tax liabilities, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,942
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Long-term debt, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    205,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    205,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,098
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    223,100
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (200,409
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Fair value of contingent consideration, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Commitments and contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Members&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,090
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,755
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(8</SUP>

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,098
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,932
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,300
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Common stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    462,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,426
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    471,732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,518
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    50
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts represent our historical
    balance sheet as of December&#160;31, 2009 which was derived
    from the audited financial statements contained elsewhere in the
    prospectus.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts represent the historical
    unaudited December&#160;31, 2009 balance sheets of the two
    acquisitions which were consummated January&#160;1, 2010, which
    we refer to as the 2010 Acquisitions. The 2010 Acquisitions do
    not include our acquisition of Pathology Solutions, LLC.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The pro forma acquisitions
    adjustments relate to the application of the acquisition method
    of accounting for the 2010 Acquisitions consummated
    January&#160;1, 2010. On December&#160;31, 2009, we prepaid
    $17.0&#160;million in cash to acquire 100&#160;percent of the
    equity of the 2010 Acquisitions and therefore the cash paid was
    included in deposits and other noncurrent assets in the
    historical financial statements as of December&#160;31, 2009. In
    addition, we agreed to pay additional consideration in future
    periods, based upon the attainment of stipulated levels of
    operating earnings by each of the acquired practices. We have
    made a preliminary estimate of the fair value of the contingent
    consideration related to the 2010 Acquisitions and recorded a
    $5.9&#160;million liability as a pro forma adjustment. The total
    aggregate purchase for the 2010 acquisitions, including cash and
    contingent consideration, was approximately $22.9&#160;million.
    The aggregate purchase price was allocated, on a preliminary
    basis, to the net assets acquired based on their estimated fair
    value. The estimated identifiable intangibles assets totaling
    $4.2&#160;million relate primarily to customer relationships.
    The allocation of the purchase price is preliminary while we
    continue to obtain the information to determine the fair value
    of the assets acquired and the liabilities assumed. We will
    complete the final acquisition accounting for the 2010
    Acquisitions in 2010. The following summarizes the pro forma
    adjustments and preliminary application of the acquisition
    method of accounting for the 2010 Acquisitions (dollars in
    thousands).
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Aggregate purchase price, including fair value of contingent
    consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,876
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Less :
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Net assets acquired of 2010 Acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,090
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Identified intangible assets acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,221
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Plus : Deferred tax liability recorded
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Estimated Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The $1.8&#160;million deferred tax
    liability recorded in connection with the 2010 Acquisitions
    represents deferred taxes on identified intangible assets which
    are not deductible for income tax purposes and any estimated
    deferred tax liability related to the change from cash to
    accrual basis for income tax purposes. For these estimates we
    utilized a 40&#160;percent effective tax rate.
    </FONT></TD>
</TR>

</TABLE>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">On March&#160;12, 2010, Aurora
    Holdings issued Class&#160;Z capital to its existing members for
    total consideration of $8.5&#160;million. These funds, along
    with operating cash and contingent consideration, were used to
    acquire 100&#160;percent of the membership interests of a
    pathology practice. This Class&#160;Z capital of Aurora
    Holdings, plus interest of 12&#160;percent, will be repaid prior
    to the completion of this offering in connection with our
    refinancing.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">These pro forma adjustments reflect
    the application of the net proceeds from our refinancing and the
    capitalization of the new deferred debt issue costs of
    $10.0&#160;million in accordance with the sources and uses below
    (dollars in thousands).
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="4" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Sources</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="4" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Uses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Revolver
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Repayment of existing term loan, long term portion
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    200,409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Term loan, long term portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Repayment of existing term loan, current portion
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Term loan, current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Repayment of Aurora Holdings Class Z capital
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,755
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Original issue discount - term loan (2)%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,600
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Estimated fees and expenses
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total Proceeds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    230,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Total Outflows
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    230,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The repayment of Class Z capital
    includes $255,000 of accrued dividends at a rate of 12 percent
    for a period of three months.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Our estimated fees and expenses are
    summarized as follows:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Commitment fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Expenses (legal, accounting, etc)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Total deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Prepayment penalty
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total estimated fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">In addition, in connection with our
    refinancing we wrote off prior deferred debt issues costs of
    $3.9&#160;million and unamortized original issue discount of
    $1.1&#160;million.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    51
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects the application of the
    primary proceeds of $&#160;&#160;&#160;million from this
    offering net of estimated fees and expenses of
    $&#160;&#160;&#160;million. The resulting net cash will be used
    to fund future operations, including acquisitions of additional
    pathology practices.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">A number of acquisitions by Aurora
    Holdings have resulted in an increase in the tax basis of
    intangible assets, primarily goodwill, which results in higher
    tax amortization expense compared to book amortization. In
    addition, the Reorganization Transactions and future exchanges
    of Aurora Holdings Units for our Class&#160;A common stock or
    cash will result in an increase in our tax basis of intangible
    assets. These tax attributes would not have been available to us
    in the absence of those transactions. Amortization from the
    increase in tax basis will be available, subject to limitations,
    to reduce the amount of tax we may be required to pay in the
    future. Under the Tax Receivable Agreement, Aurora Diagnostics,
    Inc. will agree to pay to the Tax Receivable Entity
    85&#160;percent of certain cash tax savings, if any, in U.S.
    federal, state, local and foreign income tax realized by Aurora
    Diagnostics, Inc. after the completion of this offering as a
    result of:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by
    previous acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any <FONT style="white-space: nowrap">step-up</FONT>
    in tax basis in our share of Aurora Holdings&#146; assets
    resulting from:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class&#160;A common stock or cash,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments under the Tax Receivable Agreement to the Tax
    Receivable Entity;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">On a pro forma basis we estimated
    the total realizable tax benefit, excluding future exchanges, as
    the result of existing step up in basis to
    be&#160;&#160;&#160;&#160;&#160;&#160;million. Therefore we have
    recorded a deferred tax asset
    of&#160;&#160;&#160;&#160;&#160;&#160;million and a liability
    related to the Tax Receivable Agreement
    of&#160;&#160;&#160;&#160;&#160;&#160;million representing our
    obligation to the Tax Receivable Entity. The remaining
    15&#160;percent, or&#160;&#160;&#160;&#160;&#160;&#160;million,
    has been recorded as an increase of additional paid-in capital,
    a component of common stockholders&#146; equity.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">In consideration of the
    Reorganization Transactions, the Tax Receivable Agreement
    further provides that Aurora Diagnostics, Inc. will pay to the
    Tax Receivable Entity 85&#160;percent of Aurora Diagnostics,
    Inc.&#146;s actual reduction in income taxes that we realize
    related to future exchanges for which we have not included a pro
    forma adjustment as we cannot predict the amounts and timing of
    such future exchanges, or if these exchanges will occur. In
    addition, future exchanges are not a part of the Reorganization
    Transactions or this offering.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects the reclassification of
    the remaining pro forma Aurora Holdings members&#146; equity to
    our common stockholders&#146; equity.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Following the Reorganization
    Transactions and the completion of this offering, we will record
    a noncontrolling interest relating to the economic interests of
    our Principal Equityholders in Aurora Holdings. This adjustment
    reflects our pro forma equity in the economic interest after
    giving effect to the noncontrolling interest of our Principal
    Equityholders. As discussed under &#147;Prospectus
    Summary&#151;&#160;Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions,&#148; we will have all of the business and
    operational control of Aurora Holdings.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(10)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">For purposes of supplemental
    disclosure, if 100&#160;percent of the noncontrolling interest
    of Aurora Holdings had been exchanged in connection with this
    offering, the Tax Receivable Agreement would have increased
    $&#160;&#160;&#160;&#160;&#160;&#160;million for a total of
    $&#160;&#160;&#160;&#160;&#160;.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    52
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Unaudited
    Pro Forma Consolidated Statement of Operations<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Year
    ended December&#160;31, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="27%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2010<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Acquisition<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Refinancing<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reorganization<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>As<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Historical<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquisitions<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquisitions<SUP style="font-size: 85%; vertical-align: top">(3)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments<SUP style="font-size: 85%; vertical-align: top">(2)(3)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acquisitions</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="30" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Net Revenues</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,857
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,658
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,481
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Provision for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Intangible asset amortization expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    880
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    258
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,036
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(11)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Impairment of goodwill and other intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Acquisition and business development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (607
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Equity based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,608
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    161,913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,036
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159,877
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    646
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,608
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,266
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,969
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (52
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,021
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,065
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17,956
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Write-off of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,330
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(10)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,330
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 34pt">
    <B>Total other expense, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,941
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (52
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,988
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,265
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,253
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 34pt">
    <B>Income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,608
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,265
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,243
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,506
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,389
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(12)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,820
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 34pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    595
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,759
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,353
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income available to non-controlling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income available to common stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income available to common stockholders per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Basic net income per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Diluted net income per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts represent our historical
    statement of operations for the year ended December&#160;31,
    2009 which were derived from the audited financial statements of
    Aurora Holdings contained elsewhere in the prospectus.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    53
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts represent the historical
    audited statement of operations of one acquisition completed
    November&#160;21, 2009, which we refer to as the 2009
    Acquisition, which was derived from the audited financial
    statements contained elsewhere in the prospectus.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts represent the historical
    unaudited statements of operations of the 2010 Acquisitions
    which were funded on December&#160;31, 2009 and were consummated
    January&#160;1, 2010. The 2010 Acquisitions do not include the
    most recent acquisition completed March&#160;12, 2010, as we
    continue to obtain the necessary financial information for the
    year ended December&#160;31, 2009 to complete our pro forma
    financial presentation.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The pro forma adjustment reflects
    the reduction in compensation expense of physicians and former
    owners of acquired practices, including salary, bonus and other
    compensation, to the amounts that will be paid to these
    physicians and former owners in accordance with their post
    acquisition employment agreements.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents the additional
    amortization expense for the identifiable intangible assets,
    based on our preliminary acquisition accounting, as if the 2009
    and 2010 Acquisitions had occurred on the January&#160;1, 2009.
    The identifiable intangible assets related to the 2009 and 2010
    Acquisitions total approximately $8.1&#160;million and are being
    amortized over periods ranging from 5 to 10&#160;years. The
    majority of the identifiable intangible assets relate to
    customer relationships. In determining the estimated
    amortization periods, we considered the operating history and
    customer stability of the acquired practice and industry
    information related to customary amortization periods.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects the management fees
    payable under a management services agreement with certain of
    our Principal Equityholders. In accordance with the management
    services agreement, these fees are calculated as 1&#160;percent
    of the net revenue of our 2009 and 2010 acquisitions.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents the elimination of the
    non-recurring acquisition costs.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents the tax effect of the
    pro forma adjustments at an effective tax rate of
    40&#160;percent.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents the difference in
    interest expense related to the rates and balances outstanding
    under the new committed term loan compared to our term loans
    outstanding during the year ended December&#160;31, 2009. For
    the new committed term loan we assumed the London Interbank
    Offering Rate, or LIBOR, floor of 2&#160;percent plus the credit
    spread of 4.25&#160;percent or a total interest rate of
    6.25&#160;percent on a $230&#160;million term loan balance. The
    adjustment also reflects the difference in the amortization of
    the deferred debt issue cost and original issue discount. The
    following summarizes the components of the interest expense
    adjustment.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Elimination of 2009 amortization of original issue discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Amortization of new original issue discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (767
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Elimination of 2009 amortization of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Amortization of new debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,033
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Elimination of 2009 term loan interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,853
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense related to the new committed term loan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Net reduction in interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,065
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(10)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents the write off of
    $1.1&#160;million and $3.9&#160;million of unamortized original
    issue discount and deferred debt issuance costs, respectively,
    originally incurred in connection with our current credit
    facilities, as well as $2.3&#160;million related to a prepayment
    penalty under the current credit agreement.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(11)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents the elimination of the
    management fees payable under a management services agreement
    with certain of our Principal Equityholders. The management
    services agreement will be terminated following the completion
    of this offering.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(12)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects the necessary adjustment
    to record our income tax provision at a 40&#160;percent rate due
    to our transition to being taxed as a corporation following
    completion of the Reorganization Transactions.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    54
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    CONSOLIDATED FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following selected consolidated financial data should be
    read in conjunction with the section titled
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#148; and the consolidated
    financial statements and the related notes included in this
    prospectus. The selected consolidated financial data included in
    this section are not intended to replace the consolidated
    financial statements and the related notes included in this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated statements of operations data for the fiscal
    years 2007, 2008 and 2009, and consolidated balance sheets data
    as of fiscal year end 2008 and 2009, were derived from Aurora
    Holdings&#146; audited consolidated financial statements that
    are included elsewhere in this prospectus. The consolidated
    statements of operations data for the period from our inception
    in June 2006 through December&#160;31, 2006, and consolidated
    balance sheet data as of December&#160;31, 2006 and
    December&#160;31, 2007, were derived from Aurora Holdings&#146;
    audited consolidated financial statements not included in this
    prospectus. The historical results presented below are not
    necessarily indicative of financial results to be achieved in
    future periods.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selected consolidated financial data does not give effect to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2009 acquisition of South Texas Dermatopathology Lab, P.A.;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory,&#160;P.C. or our most recent
    acquisition of Pathology Solutions, LLC;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consummation of the Reorganization Transactions;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    this offering and the use of the net proceeds that we will
    receive from this offering.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    55
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    <BR>
    Audited Selected Consolidated Statements of
    Operations<SUP style="font-size: 85%; vertical-align: top">(1)<BR>

    </SUP>Period from June 2006 (inception) to December&#160;31,
    2006<BR>
    Years ended December&#160;31, 2007, 2008 and 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;2006<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Inception) to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,451
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    157,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Provision for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Intangible asset amortization expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment of goodwill and other intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition and business development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Equity based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income (loss) from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,166
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (94
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,114
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,577
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,969
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Write-off of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,451
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total other expense, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (69
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,452
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,941
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income (loss) before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,236
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income
    taxes<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income (loss)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,236
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    56
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Audited
    Selected Consolidated Balance Sheet<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">December&#160;31,
    2006, 2007, 2008 and 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Consolidated Balance Sheets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    388,339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    415,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    462,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Working capital, excluding deferred tax items
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,081
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long term debt, including current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227,313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219,752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Members&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    161,176
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The summary consolidated financial
    data for the period from June 2006 (inception) to
    December&#160;31, 2006 and the years ended December&#160;31,
    2007, 2008 and 2009 is that of Aurora Holdings prior to the
    Reorganization Transactions described under &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">During 2008, we adopted the New
    Plan to replace our original equity incentive plan. This New
    Plan provides awards of membership interest units in Aurora
    Holdings. These interests are denominated as
    <FONT style="white-space: nowrap">Class&#160;D-1,</FONT>
    <FONT style="white-space: nowrap">Class&#160;D-2,</FONT>
    and
    <FONT style="white-space: nowrap">Class&#160;D-3&#160;units</FONT>
    in Aurora Holdings. During 2008, Aurora Holdings authorized and
    issued 4,000 D-1&#160;units, 3,000 D-2&#160;units and 3,000
    D-3&#160;units of Aurora Holdings. All membership interest units
    of Aurora Holdings issued in 2008 were fully vested as of
    December&#160;31, 2008. We recorded a compensation expense of
    $1.2&#160;million for these awards. There were no other grants
    under the New Plan. In connection with the Reorganization
    Transactions, the Class D Units of Aurora Holdings issued under
    the New Plan will either be exchanged for shares of our
    Class&#160;A common stock or cancelled without consideration.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">As of September&#160;30, 2009, we
    tested goodwill and intangible assets for potential impairment
    and recorded a non-cash impairment expense of $8.0&#160;million
    resulting from a write-down of $6.6&#160;million in the carrying
    value of goodwill and a write down of $1.4&#160;million in the
    carrying value of other intangible assets. The write-down of the
    goodwill and other intangible assets related to one reporting
    unit. Regarding this reporting unit, we believe events occurred
    and circumstances changed that more likely than not reduced the
    fair value of the intangible assets and goodwill below their
    carrying amounts. These events during 2009 consisted primarily
    of the loss of significant customers present at the acquisition
    date, which adversely affected the current year and expected
    future revenues and operating profit of the reporting unit.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">In December 2007, we refinanced our
    previous credit facilities. As a result, we wrote off
    $3.5&#160;million of unamortized deferred debt issue costs.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Aurora Holdings is a Delaware
    limited liability company taxed as a partnership for federal and
    state income tax purposes, in accordance with the applicable
    provisions of the Internal Revenue Code. Accordingly, Aurora
    Holdings was generally not subject to income taxes. The income
    attributable to Aurora Holdings was allocated to the members of
    Aurora Holdings in accordance with the terms of the Aurora
    Holdings LLC Agreement. However, certain of our subsidiaries are
    structured as corporations, file separate returns and are
    subject to federal and state income taxes. The historical
    provision for income taxes for these subsidiaries is reflected
    in our consolidated financial statements and includes federal
    and state taxes currently payable and changes in deferred tax
    assets and liabilities excluding the establishment of deferred
    tax assets and liabilities related to the acquisitions. The pro
    forma, as adjusted, provision for income taxes assumes a
    40&#160;percent effective tax rate, after giving effect to the
    Reorganization Transactions.
    </FONT></TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    57
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF<BR>
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The historical consolidated financial data discussed below
    reflect the historical results of operations and financial
    condition of our subsidiary Aurora Holdings.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should read the following discussion and analysis of our
    financial condition and results of operations together with our
    financial statements and related notes appearing in the back of
    this prospectus. Some of the information contained in this
    discussion and analysis or set forth elsewhere in this
    prospectus, including information with respect to plans and
    strategy for our business and related financing, includes
    forward-looking statements that involve risks and uncertainties.
    You should review the section entitled &#147;Risk Factors&#148;
    contained in this prospectus for a discussion of important
    factors that could cause actual results to differ materially
    from the results described in or implied by the forward-looking
    statements contained in the following discussion and
    analysis.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a specialized diagnostics company providing services that
    play a key role in the diagnosis of cancer and other diseases.
    Our experienced pathologists deliver comprehensive diagnostic
    reports of a patient&#146;s condition and consult frequently
    with referring physicians to help determine the appropriate
    treatment. Our diagnostic reports often enable the early
    detection of disease, allowing referring physicians to make
    informed and timely treatment decisions that improve their
    patients&#146; health in a cost-effective manner. Through our
    pathologist-operated laboratory practices, we provide
    physician-based general anatomic and clinical pathology,
    dermatopathology, molecular diagnostic services and other
    esoteric testing services to physicians, hospitals, clinical
    laboratories and surgery centers. Our operations consist of one
    reportable channel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;diagnostic testing industry had revenues of
    approximately $55&#160;billion in 2008 and, according to
    Washington G-2 Reports, grew at a rate of 7&#160;percent
    compounded annually from 2000 to 2008. According to Laboratory
    Economics, within the overall industry, the anatomic pathology
    market totaled approximately $13&#160;billion in revenues, or
    24&#160;percent of total industry revenues, in 2008. Anatomic
    pathology services involve the diagnosis of cancer and other
    medical conditions through the examination of tissues
    (histology) and the analysis of cells (cytology) and generally
    command higher reimbursement rates, on a per specimen basis,
    than clinical pathology services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    According to Washington G-2 Reports, the anatomic pathology
    market has expanded more rapidly than the overall industry, with
    revenues growing 4.8&#160;percent on a compound annual basis
    between 2006 and 2009, compared to 4.5&#160;percent for the rest
    of the industry. Excluding growth in esoteric testing, the
    remainder of the industry grew at a compound annual rate of only
    0.1&#160;percent over the same period. Substantially all of the
    revenues for anatomic pathology businesses consist of payments
    or reimbursements for specialized diagnostic services rendered
    to referring physicians, and these revenues are affected
    primarily by changes in case volume, which we refer to as
    accession volume, payor mix and reimbursement rates. Accessions
    are measured as the number of patient cases, and each accession
    may include multiple specimens. Accession volume varies from
    period to period based on the number of referring physicians and
    the frequency of their ordering, the relative mix of the
    referring physicians&#146; anatomic pathology specialties, and
    the type and number of tests ordered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The non-hospital outpatient channel is the largest component of
    the anatomic pathology market and has grown more rapidly than
    other channels. This channel accounted for $7.6&#160;billion, or
    57&#160;percent, of anatomic pathology revenues for the year
    ended December&#160;31, 2008, representing 10&#160;percent
    growth in 2008 according to Laboratory Economics. The remainder
    of the anatomic pathology market is comprised of the hospital
    inpatient channel, which accounted for $3.7&#160;billion or
    28&#160;percent, of anatomic pathology revenues, representing
    2&#160;percent growth in 2008, and the hospital outpatient
    channel, which accounted for $1.9&#160;billion, or
    15&#160;percent, of anatomic pathology revenues, representing
    4&#160;percent growth in 2008, according to Laboratory Economics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009 we processed
    approximately 1.6&#160;million accessions.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    History</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated in the State of Delaware on April&#160;23,
    2010 for purposes of this offering. As described under
    &#147;Prospectus Summary&#160;&#151; Reorganization
    Transactions&#148; and &#147;Organizational Structure,&#148; we
    are a holding company and our principal asset after completion
    of this offering will be our indirect equity interests in our
    subsidiary, Aurora Holdings. Our subsidiary was organized in the
    State of Delaware as a limited liability company on June&#160;2,
    2006 to develop and operate as a diagnostic services company. We
    have grown our business significantly over the last three years,
    driven largely by the acquisition of local and regional
    pathology laboratories throughout the United States and organic
    growth within these acquired operations. We have completed 17
    acquisitions of diagnostic services companies and opened
    two&#160;de novo laboratories, and our revenues have increased
    from $3.5&#160;million in 2006 to $171.6&#160;million in 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Statement
    of Operations Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Net
    Revenues</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Substantially all of our revenues consist of payments or
    reimbursements for specialized diagnostic services rendered to
    patients of our referring physicians. Net revenue per accession
    is impacted mainly by changes in reimbursement rates and test
    and payor mix. Accession volume varies from period to period
    based on the referral patterns of our referring physicians and
    the frequency of their ordering, the relative mix of the
    referring physicians&#146; anatomic pathology specialties, and
    the type and number of tests ordered. Accession volume is also
    affected by seasonal trends and generally declines during the
    summer and holiday periods. Furthermore, accession volume is
    also subject to declines due to weather conditions, such as
    severe snow storms and flooding or excessively hot or cold
    spells, which can deter patients from visiting our referring
    physicians. More recently, we believe the slowdown in the
    general economy and increase in unemployment has reduced the
    number of patients visiting our referring physician offices,
    resulting in a reduction of referrals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our billings for services reimbursed by third-party payors,
    including Medicare, and patients are based on a
    company-generated fee schedule that is generally set at higher
    rates than our anticipated reimbursement rates. Our billings to
    physicians, which are not reimbursed by third-party payors,
    represent less than 10&#160;percent of net revenues and are
    billed based on negotiated fee schedules that set forth what we
    charge for our services. Reimbursement under Medicare for
    specialized diagnostic services is subject to a Medicare
    physician fee schedule and, to a lesser degree, a clinical
    laboratory fee schedule, both of which are updated annually. Our
    billings to patients include co-insurance and deductibles as
    dictated by the patient&#146;s insurance coverage. Billings for
    services provided to uninsured patients are based on our
    company-generated fee schedule. Our revenues are recorded net of
    the estimated differences between the amount billed and the
    estimated payment to be received from third party payors,
    including Medicare. We do not have any capitated payment
    arrangements, which are arrangements under which we are paid a
    contracted per person rate regardless of the services we
    provide. We generally provide services on an
    <FONT style="white-space: nowrap">in-network</FONT>
    basis, where we perform services for persons within the networks
    of payors with which we have contracts. Services performed on an
    <FONT style="white-space: nowrap">out-of-network</FONT>
    basis, where we perform services for persons outside of the
    networks of payors with which we have contracts, comprised less
    than 15&#160;percent of our 2009 revenues. We may face
    continuing pressure on reimbursement rates as government payors
    and private insurers have taken steps and may continue to take
    steps to control the cost, use, and delivery of health care
    services, including diagnostic testing services. Changes in
    payor mix could lead to corresponding changes in revenues based
    on the differences in reimbursement rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Compliance with applicable laws and regulations, as well as
    internal policies and procedures, adds further complexity and
    costs to our operations. Furthermore, we are generally obligated
    to bill in the specific manner prescribed by each governmental
    payor and private insurer, who may each have different billing
    requirements. Reimbursements for anatomic pathology services are
    received from governmental payors, such as Medicare and
    Medicaid; private insurance, including managed care
    organizations and commercial payors; and private payors, such as
    physicians and individual patients. For the year ended
    December&#160;31, 2009, we derived approximately 61&#160;percent
    of revenues from private insurance, including managed care
    organizations and commercial payors; approximately
    25&#160;percent of revenues from Medicare and Medicaid; and
    approximately 14&#160;percent from physicians and individual
    patients.
</DIV>
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    <BR>
    59
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In most cases, we provide a global testing service which
    includes both the technical slide preparation and professional
    diagnosis. We also fulfill requests from physicians for only the
    technical component of our services, or TC, which principally
    includes technical slide preparation and the non-professional
    items associated with our diagnostic services, including
    equipment, supplies and technical personnel, or the professional
    component of our services, or PC, which principally includes
    review and diagnosis by a pathologist. If a physician requires
    only the TC services such as slide preparation, we prepare the
    slide and then return it to the referring physician for
    assessment and diagnosis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Services</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of services consists of physician costs, including
    compensation, benefits and medical malpractice insurance and
    other physician related costs. In addition, cost of services
    includes all the costs related to the technical preparation,
    transcription, depreciation and courier and distribution to
    fulfill the diagnostic service requirements of our referring
    physicians and their patients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of services generally increases with accession volume and
    reflects the additional staffing, equipment, supplies and
    systems needed to process the increased volume and maintain
    client service levels. A major component of cost of services is
    physician costs which, for the year ended December&#160;31,
    2009, represented 36&#160;percent of our total cost of services.
    In the future, we may experience increases in physician costs to
    retain existing physicians, to replace departing physicians or
    to hire new pathologists to support accession growth. Therefore,
    we expect our cost of revenues will continue to increase
    commensurate with revenue growth.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Selling,
    General and Administrative Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Selling, general and administrative expenses consist primarily
    of general lab and corporate overhead, billing, information
    technology, accounting, human resources, and sales and marketing
    expenses. We expect sales and marketing and IT expenses to
    increase faster than revenue as we hire additional personnel and
    invest in lab and billing information systems to support
    continued same store revenue growth and retain existing customer
    relationships. In addition, we expect accounting expenses, which
    includes audit and Sarbanes-Oxley Act of 2002 costs, to increase
    substantially as a result of our contemplated initial public
    offering. As our business matures and we attain a sufficient
    size and scope we expect selling, general and administrative
    expenses as a percent of revenue to reduce over time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Provision
    for Doubtful Accounts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision for doubtful accounts and the related allowance
    are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, accounts
    receivable aging and other relevant factors. The majority of our
    provision for doubtful accounts relates to our estimate of
    uncollectible amounts from patients who are uninsured or fail to
    pay their coinsurance or deductible obligations. Changes in
    these factors in future periods could result in increases or
    decreases in our provision for doubtful accounts and impact our
    results of operations, financial position and cash flows.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Developments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;12, 2010, we issued Class&#160;Z capital of Aurora
    Holdings to then-existing members of Aurora Holdings for total
    consideration of $8.5&#160;million. In the event that the Class
    Z capital is repaid within six months of that date, the holders
    of the Class&#160;Z capital of Aurora Holdings will receive a
    preferred return equal to the initial contribution of the
    members holding such membership interests, plus interest.
    Interest accrues on the Class&#160;Z capital of Aurora Holdings
    at an annual rate of 12&#160;percent for the first three months
    and 16&#160;percent for the next three months. In the event we
    do not redeem the Class Z capital within six months from the
    date it was issued, the Class&#160;Z capital of Aurora Holdings
    will convert to
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests of Aurora Holdings at the same valuation as
    the original
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests of Aurora Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After December&#160;31, 2009, we paid contingent consideration
    in connection with acquisitions completed prior to
    January&#160;1, 2009 totaling $6.3&#160;million. These
    contingent consideration payments resulted in increases to
    goodwill.
</DIV>
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    <BR>
    60
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2010, we acquired 100&#160;percent of the
    equity of two pathology practices for an aggregate cash purchase
    price of $17.0&#160;million. These acquisitions were consummated
    on January&#160;1, 2010 and therefore, the cash paid totaling
    $17.0&#160;million was included in deposits and other
    non-current assets as of December&#160;31, 2009. On
    March&#160;12, 2010, we acquired 100&#160;percent of the
    membership interests of a pathology practice for an aggregate
    cash purchase price of $22.5&#160;million. Each transaction
    included contingent consideration payable over three to five
    years based on the acquired practices&#146; future performance.
    The maximum amount of the deferred contingent cash consideration
    is $32.8&#160;million payable over three to five years. We
    funded the cash portion of the acquisitions using
    $31.0&#160;million cash primarily related to
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    member contributions and an additional $8.5&#160;million related
    to Class&#160;Z member contributions. We will estimate the fair
    value of the contingent consideration and record a related
    liability as of the date of each acquisition, once the estimated
    fair values of the assets acquired and liabilities assumed in
    connection with these acquisitions are finalized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;20, 2010, we entered into a commitment letter that
    provides for a committed $340.0&#160;million credit facility
    with Barclays Bank PLC and certain other lenders that we expect
    to close prior to the completion of this offering. This new
    committed financing includes a $230.0&#160;million senior
    secured first lien term loan facility with a maturity date of
    6&#160;years after the closing of the new financing. The new
    committed financing also includes a $110.0&#160;million senior
    secured first lien revolving credit facility (of which
    $50.0&#160;million will be available upon the closing of our new
    credit facility and $60.0&#160;million will be available upon
    the completion of this offering) that matures 4&#160;years after
    the closing of the new financing. Our new term loan facility
    will bear interest, at our option, at a rate initially equal to
    the prime rate plus 3.25 percent per annum or LIBOR plus 4.25
    percent per annum. We expect that we will record a non-cash
    write-off of any remaining unamortized original issue discount
    and debt issue costs related to our existing credit facilities
    during the quarter in which we complete our refinancing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2010, the U.S.&#160;Congress passed and the President signed
    into law the PPACA and HCEARA. Together, the PPACA and HCEARA
    comprise a broad health care reform initiative. While this
    legislation did not adversely affect reimbursement for our
    anatomic pathology services, this legislation provides for two
    separate reductions in the reimbursement rates for our clinical
    laboratory services: a &#147;productive adjustment&#148;
    (currently estimated to be between 1.1 and 1.4&#160;percent),
    and an additional 1.75&#160;percent reduction. Each of these
    would reduce the annual Consumer Price Index-based update that
    would otherwise determine our reimbursement for clinical
    laboratory services. Uncertainty also exists around the extent
    of coverage and reimbursement for new services. This legislation
    also provides for increases in the number of persons covered by
    public and private insurance programs in the U.S.&#160;For the
    year ended December&#160;31, 2009, revenues from clinical lab
    services were less than 10&#160;percent of our total revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, we will enter into the
    Reorganization Transactions described under &#147;Organizational
    Structure,&#148; including the creation or acquisition of
    amortizable tax assets in connection with this offering and the
    Reorganization Transactions and the creation of liabilities in
    connection with entering into the Tax Receivable Agreement,
    concurrent with the completion of this offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through March&#160;31, 2010, we have acquired 17 diagnostic
    services companies throughout the United States. Our most recent
    acquisition, described above under &#147;&#151;&#160;Recent
    Developments,&#148; was completed on March&#160;12, 2010. The
    following summarizes the acquisitions we completed in 2007, 2008
    and 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2007
    Acquisitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2007, we acquired substantially all of the assets of six
    pathology practices, and 100&#160;percent of the equity of two
    pathology practices for an aggregate purchase price (including
    acquisition costs) of $319.8&#160;million and additional
    consideration in the form of contingent notes. The aggregate
    purchase price included cash of $306.1&#160;million and
    subordinated unsecured contingent notes payable of
    $13.7&#160;million. The cash portion of the purchase price was
    funded primarily with proceeds from member contributions and
    drawings under our existing and former term loan facilities of
    $115.3&#160;million and $190.8&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with one acquisition in 2007, we agreed to assume
    up to $4.0&#160;million to be paid to four retired physicians.
    The obligation is to be paid over three to five years. As of
    December&#160;31, 2009, this acquisition related
</DIV>
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    <BR>
    61
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    liability had a remaining balance of approximately
    $0.6&#160;million. During 2008 and 2009, we paid
    $1.9&#160;million and $1.5&#160;million, respectively, related
    to this liability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2008
    Acquisitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2008, we acquired substantially all of the assets of one
    pathology practice, for an aggregate purchase price (including
    acquisition costs) of $27.3&#160;million and additional
    consideration in the form of contingent notes. The purchase
    price was funded primarily with proceeds from the issuance of
    Aurora Holdings&#146; Class&#160;A, C, and X membership
    interests of $7.3&#160;million and drawings under our existing
    term loan facility of $20.0&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2009
    Acquisitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;31, 2009, we paid cash totaling
    $17.0&#160;million to acquire 100&#160;percent of the equity of
    two pathology practices. These acquisitions were consummated on
    January&#160;1, 2010 and therefore, the cash paid totaling
    $17.0&#160;million was included in deposits and other
    non-current assets in our consolidated balance sheet as of
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2009, we acquired 100&#160;percent of the equity of
    one pathology practice for an aggregate cash purchase price of
    $15.3&#160;million. In addition, we issued contingent
    consideration, payable over three years based on the acquired
    practice&#146;s future performance. We have estimated the fair
    value of the contingent consideration and recorded a related
    liability as of December&#160;31, 2009 of $3.1&#160;million. The
    cash portion of the purchase price was funded primarily with
    proceeds from the issuance of
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests in June 2009. The estimated fair value of
    the assets acquired and liabilities assumed in connection with
    the 2009 acquisition are preliminary and are expected to be
    finalized in 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, we adopted a new accounting standard
    issued by the Financial Accounting Standards Board, or the FASB,
    related to accounting for business combinations using the
    acquisition method of accounting (previously referred to as the
    purchase method). In connection with this adoption, during 2009,
    we have expensed $0.6&#160;million of transaction costs
    associated with our completed acquisitions and business
    development costs as described in our results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the consideration paid for the
    acquisitions completed in 2007, 2008 and 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Subordinated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Cash Paid</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Notes Issued</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Consideration</FONT></B>
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007 Acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    306,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    319,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008 Acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009 Acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the significant number and size of the
    acquisitions completed over the last three years many of the
    changes in our consolidated results of operations and financial
    position discussed below relate to the acquisitions completed in
    2007, 2008 and 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    62
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table outlines, for the periods presented, our
    results of operations as a percentage of net revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Provision for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Intangible asset amortization expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment of goodwill and other intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition and business development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Equity-based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11.2
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13.7
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11.1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Write-off of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total other expense, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16.4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13.6
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11.1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our historical consolidated operating results do not reflect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Reorganization Transactions described under &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the results of operations of our 2009 acquisition prior to the
    effective date of that acquisition;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    this offering and the application of the net proceeds that we
    will receive from this offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result, our historical consolidated operating results may
    not be indicative of what our results of operations will be for
    future periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Comparison
    of the Years Ended December&#160;31, 2009 and 2008</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Net
    Revenues</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net revenues increased $13.7&#160;million or 8.7&#160;percent to
    $171.6&#160;million for the year ended December&#160;31, 2009
    from $157.9&#160;million for the year ended December&#160;31,
    2008. Organic revenues increased $11.5&#160;million or
    7.7&#160;percent from $150.2&#160;million to $161.8&#160;million
    and the remaining increase of $2.2&#160;million reflects the
    impact of the 2009 and 2008 acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our organic revenue growth of $11.5&#160;million resulted from a
    4.5&#160;percent increase in the volume of accessions and a
    3.0&#160;percent increase in the average revenue per accession.
    Organic accessions grew by approximately 64,000 to approximately
    1.5&#160;million accessions compared to approximately
    1.4&#160;million for the year ended December&#160;31,
</DIV>
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    63
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2008. The organic volume growth resulted from the expansion of
    our sales force in late 2008 and early 2009. The average revenue
    per accession increased 3.0&#160;percent from approximately $106
    to approximately $109 resulting from a combination of an
    increase in reimbursement (price) and the ordering of additional
    tests for accessions related to cervical screenings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While we anticipate continued organic growth in annual accession
    volumes of 5 to 10&#160;percent, we also expect the average
    revenue per accession of our organic business to decline as the
    result of a number of factors including a trend towards
    referring physicians performing technical
    <FONT style="white-space: nowrap">and/or</FONT>
    professional components of their diagnostic services in their
    offices which results in a lower average revenue per accession.
    In addition, our women&#146;s health pathology services,
    including clinical tests, tend to have lower revenue per
    accession and, therefore, as we expand in this market we expect
    our average revenue per accession to decline slightly. In
    addition, our growth rates and average revenue per accession may
    be positively or negatively impacted by the reimbursement
    market, service mix and average revenue per accession of
    acquisitions completed in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our diagnostic testing services accounted for substantially all
    of our 2009 and 2008 revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Cost of
    Services</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of services for the year ended December&#160;31, 2009
    increased $5.4&#160;million or 8.1&#160;percent to
    $71.8&#160;million from $66.4&#160;million for the year ended
    December&#160;31, 2008. Cost of services related to our organic
    revenue grew 7.2&#160;percent or $4.6&#160;million, primarily
    related to our organic growth in accessions of 4.5&#160;percent.
    The increase in our cost of services also included approximately
    $0.3&#160;million related to
    <FONT style="white-space: nowrap">start-up</FONT>
    costs of our clinical lab in North Carolina. The clinical lab
    became operational in March 2010 and will complement our
    existing anatomic pathology services, specifically for the
    women&#146;s health pathology market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The remaining increase in cost of services was $0.5&#160;million
    related to the 2009 and 2008 acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a percentage of revenues, cost of services for both periods
    was approximately 42.0&#160;percent resulting in a gross margin
    of approximately 58.0&#160;percent for both periods. We
    currently anticipate our gross margin to decline slightly due to
    a combination of lower average revenue per accession and
    increased costs related to pathologist retention and replacement
    and higher costs and lower gross margins in our women&#146;s
    health pathology services, including clinical tests. Cost of
    services and our related profit percentages may be positively or
    negatively impacted by the market, service mix and unit price
    dynamics of acquisitions completed in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Selling,
    general and administrative expenses</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Selling, general and administrative expenses increased
    $3.7&#160;million, or 11.0&#160;percent, to $36.9&#160;million
    for the year ended December&#160;31, 2009 from
    $33.2&#160;million for the year ended December&#160;31, 2008. Of
    the total increase, $0.4&#160;million related to the 2009 and
    2008 acquisitions and $3.3&#160;million related to our existing
    business. Of the total increase of $3.7&#160;million,
    approximately $1.8&#160;million, relates to sales and marketing
    initiatives including the increase in the number of sales
    representatives and our introduction of <B>doc2MD</B>. In
    addition, our billing costs increased $0.6&#160;million
    primarily related to the 2009 and 2008 acquisitions. For both
    periods billing costs were approximately 4.4&#160;percent of net
    revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Selling, general and administrative expenses, as a percent of
    net revenue, increased slightly to 21.5&#160;percent from
    21.0&#160;percent for the year ended December&#160;31, 2008. The
    primary reason for this increase was the expansion of sales and
    marketing activities in the year ended December&#160;31, 2009.
    We expect to make additional investments in selling, general and
    administrative expenses in 2010, including the addition of
    additional field sales representatives, marketing and IT
    personnel. In addition, we expect accounting, legal, compliance
    and other public company related costs to increase substantially
    following the completion of this offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Provision
    for doubtful accounts</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our provision for doubtful accounts increased $1.5&#160;million
    or 18.1&#160;percent to $9.5&#160;million from $8.0&#160;million
    for the year ended December&#160;31, 2008. Approximately
    $0.7&#160;million relates to the increase in the total net
    revenue of $13.7&#160;million. The remainder of the increase of
    $0.8&#160;million related to the increase in the overall
    provision as a percent of net revenue to 5.5&#160;percent from
    5.1&#160;percent for the year ended December&#160;31, 2008. A
    major factor
</DIV>
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    <BR>
    64
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    contributing to this increase was slower payment patterns in
    certain markets such as Michigan and an increase in our
    historical write-offs related to uncollectible accounts,
    primarily patient accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect our consolidated provision for doubtful accounts of
    our existing businesses to range between 5.5&#160;percent and
    6.0&#160;percent in future. The future provision for doubtful
    accounts could be positively or negatively impacted by the bad
    debt experience of future acquired laboratories.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Intangible
    asset amortization expense (Amortization)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amortization expense for the year ended December&#160;31, 2009
    increased to $14.6&#160;million from $14.3&#160;million for the
    year ended December&#160;31, 2008 related to increases in our
    amortizable intangible assets associated with the 2009 and 2008
    acquisitions. We amortize our intangible assets over a weighted
    average lives ranging from 4 to 18&#160;years.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Management
    fees</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management fees increased $0.2&#160;million to $1.8&#160;million
    for the year ended December&#160;31, 2009 compared to
    $1.6&#160;million for the year ended December&#160;31, 2008.
    Management fees are based on 1.0&#160;percent of net revenue
    plus expenses. The majority of the increase relates to the
    increase in our net revenues. Following the completion of this
    offering, we will not be obligated to pay management fees.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Impairment
    of goodwill and other intangible assets</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of testing goodwill for impairment, each of our
    acquired practices is considered a separate reporting unit. To
    estimate the fair value of the reporting units, we utilize a
    discounted cash flow model as the primary approach to value
    supported by a market approach guideline public company method,
    or the GPC Method, which is used as a reasonableness test. We
    believe that a discounted cash flow analysis is the most
    appropriate methodology to test the recorded value of long-term
    assets with a demonstrated long-lived value. The results of the
    discounted cash flow provide reasonable estimates of the fair
    value of the reporting units because this approach is based on
    each respective unit&#146;s actual results and reasonable
    estimates of future performance, and also takes into
    consideration a number of other factors deemed relevant by
    management, including but not limited to, expected future market
    revenue growth and operating profit margins. We have
    consistently used these approaches in determining the value of
    goodwill. We consider the GPC Method to be an adequate
    reasonableness test which utilizes market multiples of industry
    participants to corroborate the discounted cash flow analysis.
    We believe this methodology is consistent with the approach that
    any strategic market participant would utilize if they were to
    value one of our reporting units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following assumptions were made by management in determining
    the fair value of the reporting units and related intangibles as
    of September&#160;30, 2009: (a)&#160;the discount rates ranged
    between 13.0 percent and 15.0  percent, based on relative size
    and perceived risk of the reporting unit; (b)&#160;an average
    compound annual growth rate of 7.5 percent during the five year
    forecast period; and (c)&#160;earnings before interest, taxes,
    depreciation, and amortization with an average reporting unit
    level margin of 38.9 percent. These assumptions are based on:
    (a)&#160;the actual historical performance of the reporting
    units and (b)&#160;management&#146;s estimates of future
    performance of the reporting units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also consider the economic outlook for the healthcare
    services industry and various other factors during the testing
    process, including hospital and physician contract changes,
    local market developments, changes in third-party payor
    payments, and other publicly available information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;30, 2009, we tested goodwill and intangible
    assets for potential impairment and recorded a non-cash
    impairment charge of $8.0&#160;million resulting from a write
    down of $6.6&#160;million in the carrying value of goodwill and
    a write down of $1.4&#160;million in the carrying value of other
    intangible assets. The write down of the goodwill and intangible
    assets related to one reporting unit. Regarding this reporting
    unit, we believe events occurred and circumstances changed that
    more likely than not reduced the fair value of the intangible
    assets and goodwill below their carrying amounts. These events
    during 2009 consisted primarily of the loss of significant
    customers present at the acquisition date, which adversely
    affected the current year and expected future revenues and
    operating profit of the reporting unit.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had goodwill and net intangible
    assets of $386.4&#160;million. Many factors, including
    competition, general economic conditions, healthcare reform,
    third party payment patterns and industry consolidation, could
    have a negative impact on one or more of our reporting units
    used in evaluating for impairment. Therefore, we may experience
    additional impairment charges in future periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Acquisition
    and business development costs</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, we adopted a new accounting standard
    related to accounting for business combinations using the
    acquisition method of accounting (previously referred to as the
    purchase method). In connection with this adoption, during 2009,
    we expensed $0.6&#160;million of transaction costs associated
    with our completed acquisitions, which under the prior
    accounting would have been capitalized as part of the purchase
    price. In addition, we expensed $0.5&#160;million of business
    development costs related to our prospecting and unsuccessful
    acquisition activity. Prior year amounts related to unsuccessful
    acquisitions and business development activities were
    reclassified to acquisition and business development costs from
    selling, general and administrative expenses for comparative
    purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Equity
    based compensation expense</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There was no equity based compensation expense recorded for the
    year ended December&#160;31, 2009 because no equity awards were
    granted during 2009. The prior year amount of $1.2&#160;million
    related to equity incentive awards granted in July 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Interest
    Expense</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest expense for the year ended December&#160;31, 2009
    decreased to $19.0&#160;million from $21.6&#160;million for the
    year ended December&#160;31, 2008, partially due to lower
    outstanding borrowings under our term loan, as well as lower
    effective interest rates. During 2009, we paid down
    $8.2&#160;million of our existing term loan facility. In
    addition, $125.0&#160;million of the balance outstanding on the
    term loan facility had a fixed interest rate, through our
    interest rate swap, at an effective interest rate of
    9.9&#160;percent, while the remaining average balance of
    $88.2&#160;million had interest based on a floating LIBOR rate.
    For the year ended December&#160;31, 2009, the average
    30&#160;day LIBOR was 0.33&#160;percent compared to
    2.66&#160;percent for the year ended December&#160;31, 2008.
    Therefore, the majority of the reduction in interest expense
    related to the lower effective interest rate on our floating
    rate debt.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Other
    Income</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other income primarily consists of interest earned on our cash
    and cash equivalents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Provision
    for Income Taxes</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the completion of this offering, we were a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, we were generally not
    subject to income taxes and the income attributable to us was
    allocated to the members of Aurora Holdings in accordance with
    the terms of the Aurora Holdings LLC Agreement. We make tax
    distributions to the members in amounts designed to provide such
    members with sufficient cash to pay taxes on their allocated
    income. However, certain of our subsidiaries are structured as
    corporations, and therefore are subject to federal and state
    income taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering and the Restructuring
    Transactions, we expect our provision for income taxes to be
    more consistent with federal and state statutory rates, or
    40&#160;percent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Comparison
    of the Years Ended December&#160;31, 2008 and 2007</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Net
    Revenues</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net revenues increased $94.4&#160;million or 148.8&#160;percent
    to $157.9&#160;million for the year ended December&#160;31, 2008
    from $63.5&#160;million for the year ended December&#160;31,
    2007. Organic revenues increased $2.5&#160;million or
    11.3&#160;percent
</DIV>
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    66
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    from $22.4&#160;million to $25.0&#160;million and the remaining
    increase of $91.9&#160;million related to the 2008 and 2007
    acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our organic revenue growth of $2.5&#160;million resulted from a
    20.0&#160;percent increase in the volume of accessions and a
    7.2&#160;percent decrease in the average revenue per accession.
    Organic accessions grew approximately 46,000 to approximately
    274,000 accessions for the year ended December&#160;31, 2009
    compared to 228,000 for the year ended December&#160;31, 2007.
    The organic volume growth resulted from the expansion of our
    sales force in late 2007 and 2008. The average organic unit
    price per accession decreased from $98.00 to $91.00 resulting
    from certain referring physicians converting from global billing
    to professional only arrangements which have a lower average
    revenue per accession.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our diagnostic testing services accounted for substantially all
    of our 2008 and 2007 revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Cost of
    Services</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cost of services for the year ended December&#160;31, 2008
    increased $38.9&#160;million or 141.6&#160;percent to
    $66.4&#160;million from $27.5&#160;million for the year ended
    December&#160;31, 2007. Cost of services related to our organic
    revenue grew 22.1&#160;percent or $2.1&#160;million, primarily
    related to our organic accession growth of 20.0&#160;percent.
    Our pathologist costs accounted for $1.0&#160;million of the
    increase which resulted primarily from the addition of a
    pathologist to service increased accession volume in certain
    growing markets and the replacement of two retiring pathologists
    with higher-cost pathologists. The remaining increase in cost of
    services of $36.8&#160;million related to the 2008 and 2007
    acquisitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a percentage of revenues, cost of services was
    42.1&#160;percent for the year ended December&#160;31, 2008
    compared to 43.3&#160;percent for the year ended
    December&#160;31, 2007, resulting in an increase in gross margin
    from 57.0&#160;percent to 58.0&#160;percent between periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Selling,
    general and administrative expenses</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Selling, general and administrative expenses increased
    $18.0&#160;million, or 118.8&#160;percent, to $33.2&#160;million
    for the year ended December&#160;31, 2008 from
    $15.2&#160;million for the comparable period in 2007. Of the
    total increase, $16.7&#160;million related to the 2008 and 2007
    acquisitions and $1.3&#160;million related to our existing
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Of the total increase of $18.0&#160;million, approximately
    $4.0&#160;million, related to sales of sales and marketing
    initiatives including the increase in the number of sales
    representatives. In addition, our billing costs increased
    $4.4&#160;million as a result of higher revenues in 2008 and
    increased billing cost as a percentage of revenues. Billing
    costs were 4.4&#160;percent and 4.0&#160;percent of our net
    revenues for the year ended December&#160;31, 2008 and 2007,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a percent of net revenue, total selling, general and
    administrative expenses decreased to 21.0&#160;percent from
    23.9&#160;percent in 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Provision
    for doubtful accounts</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our provision for doubtful accounts increased $5.7&#160;million
    or 238.0&#160;percent to $8.0&#160;million from
    $2.4&#160;million for the year ended December&#160;31, 2007.
    Approximately $3.5&#160;million relates to the increase in the
    total net revenue of $94.4&#160;million. The remainder of the
    increase of $2.2&#160;million related to the increase in the
    overall provision as a percent of net revenue to
    5.0&#160;percent from 3.8&#160;percent for the year ended
    December&#160;31, 2007. A major factor contributing to this
    increase was the fact that the blended provision for doubtful
    accounts as a percent of revenue for the 2008 and 2007
    acquisitions was higher than the base business due to their mix
    of services and geographic location in which they operate. This
    increased our blended company average in 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Intangible
    asset amortization expense (Amortization)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amortization expense for the year ended December&#160;31, 2008
    increased to $14.3&#160;million from $5.7&#160;million for the
    year ended December&#160;31, 2007 related primarily to the
    amortization expense related to the identifiable intangible
    assets acquired in connection with the 2008 and 2007
    acquisitions.
</DIV>
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    <BR>
    67
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Management
    fees</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management fees increased $0.9&#160;million to $1.6&#160;million
    for the year ended December&#160;31, 2008 compared to
    $0.6&#160;million for the year ended December&#160;31, 2007. The
    majority of the increase relates to the increase in our net
    revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Acquisition
    and business development costs</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expensed $0.7&#160;million and $0.4&#160;million for 2008 and
    2007, respectively, of business development costs related to our
    prospecting and unsuccessful acquisition activity. Prior year
    amounts related to unsuccessful acquisitions and business
    development activities were reclassified to acquisition and
    business development costs from selling, general and
    administrative expenses for comparative purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Equity
    based compensation expense</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2008, we adopted the New Plan to replace our original
    equity incentive plan. The New Plan provides awards of Aurora
    Holdings membership interest units. These interest units are
    designated as
    <FONT style="white-space: nowrap">Class&#160;D-1,</FONT>
    <FONT style="white-space: nowrap">Class&#160;D-2</FONT>
    and
    <FONT style="white-space: nowrap">Class&#160;D-2</FONT>
    membership interest units of Aurora Holdings. During 2008, the
    Company authorized and issued 4,000 D-1 units, 3,000 D-2 units
    and 3,000 D-3 units. All membership interest units issued in
    2008 were fully vested as of December&#160;31, 2008.
    Compensation expense of $1.2&#160;million was recorded for these
    awards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value of each Aurora Holdings&#146; membership interest
    unit granted in 2008 was estimated using the following
    assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected life
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Volatility percentage
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Forfeiture rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There were no Aurora Holdings&#146; membership units granted in
    2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Interest
    Expense</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest expense for the year ended December&#160;31, 2008
    increased to $21.6&#160;million from $7.1&#160;million for the
    year ended December&#160;31, 2007, primarily due to higher
    outstanding balances under our term loan, resulting from
    borrowings related to our 2007 and 2008 acquisitions. During
    2008, we paid down $7.8&#160;million of our existing term loan
    facility. Our average outstanding interest bearing debt
    increased to $218.8&#160;million during 2008 from
    $70.4&#160;million in 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Other
    Income</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other income primarily consists of primarily of interest earned
    on cash and cash equivalents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Provision
    for Income Taxes</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the completion of this offering, we were a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, we were generally not
    subject to income taxes and the income attributable to us was
    allocated to the members of Aurora Holdings in accordance with
    the terms of the Aurora Holdings LLC Agreement. We make tax
    distributions to the members in amounts designed to provide such
    members with sufficient cash to pay taxes on their allocated
    income. However, certain of our subsidiaries are structured as
    corporations, and therefore are subject to federal and state
    income taxes.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering and the Restructuring
    Transactions, we expect our provision for income taxes to be
    more consistent with federal and state statutory rates, or
    40&#160;percent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a holding company with no material business operations.
    Our principal asset is the equity interests we own in Aurora
    Holdings. We conduct all of our business operations through the
    direct and indirect subsidiaries of Aurora Holdings.
    Accordingly, our only material sources of cash are dividends or
    other distributions or payments that are derived from earnings
    and cash flow generated by the subsidiaries of Aurora Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since inception, we have primarily financed operations through
    capital contributions from our Principal Equityholders, long
    term debt financings and cash flow from operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;20, 2010, we entered into a commitment letter that
    provides for a $340.0&#160;million credit facility with Barclays
    Bank PLC and certain other lenders that we expect to close prior
    to the completion of this offering. This new committed credit
    facility will include a $230.0&#160;million senior secured first
    lien term loan credit facility and a $110.0&#160;million senior
    secured first lien revolving credit facility, $50.0&#160;million
    of which will be available when we enter into definitive loan
    documents and an additional $60.0&#160;million of which will be
    available upon the closing of this offering. Our new committed
    credit facility will be used to refinance our existing credit
    facilities, to redeem Aurora Holdings&#146; Class&#160;Z capital
    and for acquisitions, working capital and general corporate
    purposes. We expect that we will recognize a write-off of
    unamortized original issue discount and debt issue costs in the
    quarter in which we complete the refinancing. In connection with
    our new credit facility, we will repay all amounts outstanding
    under the credit facility we entered in December 2007 with a
    syndicate of lenders. Our existing credit facilities provides
    for a loan commitment up to $255.0&#160;million and for our
    lenders to provide financing for us to repay the outstanding
    balance of our pre-existing term loan facilities, fund working
    capital and make acquisitions of certain businesses. Our
    existing credit facility, which we entered in December 2007,
    includes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a revolver loan, not in excess of $5.0&#160;million&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    term loans, with a first and second lien, not in excess of
    $165.0&#160;million and $85.0&#160;million, respectively.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For our existing credit facility, our lenders&#146; unfunded
    term loan commitment expired on April&#160;30, 2008. As of
    December&#160;31, 2009, we had $132.6&#160;million and
    $76.5&#160;million outstanding under the first lien and second
    lien term loans, respectively. The funded, first lien term loan
    was subject to quarterly principal payments beginning on
    September&#160;30, 2008 through September&#160;30, 2012. Total
    principal paid for the years ended December&#160;31, 2009 and
    2008 was $8.2 and $7.8&#160;million, respectively, including
    mandatory and voluntary payments. All loans under our existing
    term loan facilities mature in December 2012. Our existing term
    loan facilities are collateralized by substantially all of our
    assets and guaranteed by all of our subsidiaries. For the
    revolver and first lien term loan, interest is at the prime rate
    plus 3.25&#160;percent or LIBOR plus 4.25&#160;percent. For the
    second lien term loan, interest is at the prime rate plus
    6.75&#160;percent or LIBOR plus 7.75&#160;percent. As of
    December&#160;31, 2009, the effective interest rates were
    4.5&#160;percent and 8.0&#160;percent for the first lien and
    second lien, respectively. Other principal payments on the term
    loans may be due from time to time from annual excess cash flow
    and net cash proceeds from either the sale of assets or equity.
    The proceeds from our existing term loan facility were used to
    refinance our former term loan facility and acquire two
    businesses in December 2007 and one business in March 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;21, 2007 in conjunction with an acquisition
    transaction, we entered into a subordinated, unsecured
    contingent note with a prior owner of one of our acquired
    practices. The payment amount is determined by the
    practice&#146;s cumulative EBITDA over a three-year period, with
    a minimum payment not to be less than $1.0&#160;million and a
    maximum payment not to exceed $2.0&#160;million. Payment amounts
    include a 5.5&#160;percent interest rate factor, thus we have
    recorded the contingent note in the original purchase price at
    its minimum payment amount, discounted by the interest rate
    factor of 5.5&#160;percent. The original discount of
    $0.1&#160;million is being amortized into interest expense over
    the term of the contingent note using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;30, 2007 in conjunction with an acquisition
    transaction, we entered into a subordinated, unsecured
    contingent note with prior owners of one of our acquired
    practices. The payment amount is determined by the
    practice&#146;s cumulative EBITDA over a five-year period, with
    a minimum payment not to be less than $15.0&#160;million and a
    maximum payment not to exceed $30.0&#160;million. Payment
    amounts include a 5.5&#160;percent interest rate factor,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    69
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    thus we recorded the contingent note in the original purchase
    price at its minimum payment amount, discounted by the interest
    rate factor of 5.5&#160;percent. The original discount of
    $2.2&#160;million will be amortized into interest expense over
    the term of the contingent note using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;17, 2006, we entered into a subordinated,
    unsecured note payable with a prior owner of one of our acquired
    practices with the principal amount of $1.0&#160;million to
    assist in the financing of an acquisition. The note had a
    three-year term and principal payments were due in equal
    quarterly installments of $0.08&#160;million. Interest was paid
    quarterly at the prime rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Long-term debt consists of the following as of December&#160;31,
    2008 and 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loan, first
    lien<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    140,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    132,566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loan, second
    lien<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolver
    loan<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured contingent note, dated March&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured contingent note, dated April&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured contingent note, dated November&#160;17,
    2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Original issue discount, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,403
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,098
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,010
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,596
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    217,303
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    205,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects the credit facility we
    entered into during December 2007 with a syndicate of lenders
    which we will pay off with the credit facility with respect to
    which we have signed a commitment letter on April&#160;20, 2010.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, future maturities of long-term
    debt are as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Years ending December
    31,</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192,899
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    217,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the majority of our acquisitions, we have
    agreed to pay additional consideration in future periods, based
    upon the attainment of stipulated levels of operating earnings
    by each of the acquired entities, as defined in their respective
    agreements. Generally the contingent consideration is payable
    over periods ranging from 3 to 5&#160;years. For all
    acquisitions prior to January&#160;1, 2009, we do not accrue
    contingent consideration obligations prior to the attainment of
    the objectives and the amount owed becomes fixed and
    determinable. For the years ended December&#160;31, 2007, 2008
    and 2009, we paid contingent consideration related to
    acquisitions completed prior to 2009, of $1.9&#160;million,
    $12.5&#160;million and $12.7&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For acquisitions completed after January&#160;1, 2009, we
    estimate the fair value of the contingent consideration and
    record a related liability on our balance sheet. As of
    December&#160;31, 2009 we have recorded a $3.1&#160;million
</DIV>
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    <BR>
    70
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    liability related to the fair value of the contingent
    consideration related to the acquisition that was completed in
    November 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, assuming the practices, including
    the one acquired in November 2009, achieve the maximum level of
    stipulated operating earnings, as defined in the agreements; the
    maximum principal amount of contingent consideration payable
    over the next three to five years is approximately
    $101&#160;million. A lesser amount will be paid for earnings
    below the maximum level of stipulated earnings or no payments
    will be made if the practices do not achieve the minimum level
    of stipulated earnings as outlined in their respective
    agreements. Any such payments in the future for acquisitions
    completed prior to January&#160;1, 2009 would be accounted for
    as additional purchase price and increase goodwill. For
    acquisitions completed during 2009, future payments will be
    reflected in the change in the fair value of the contingent
    consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had $27.4&#160;million in cash
    and cash equivalents deposited at high quality financial
    institutions. Our primary uses of cash are to fund our
    operations, service debt, including contingent notes, and
    acquire property and equipment. Cash used to fund our operations
    excludes the impact of non-cash items, such as the allowance for
    doubtful accounts, depreciation, and non-cash stock-based
    compensation, and is impacted by the timing of our payments of
    accounts payable and accrued expenses and collections of
    accounts receivable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had working capital of
    $30.1&#160;million. We expect to continue to spend substantial
    amounts of capital to grow our business and acquire diagnostics
    businesses. We believe the net proceeds that we will receive
    from this offering, together with cash from operations and our
    current and future debt financings will be sufficient to fund
    our capital requirements through 2012.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Cash
    flows from operating activities</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by operating activities during the year ended
    December&#160;31, 2009 was $36.4&#160;million compared to
    $29.0&#160;million during the year ended December&#160;31, 2008.
    The increase related primarily to an increase in net income
    after giving effect to the non cash charge for the impairment of
    goodwill and intangible assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by operating activities during the year ended
    December&#160;31, 2008 was $29.0&#160;million compared to
    $9.8&#160;million during the year ended December&#160;31, 2007.
    The increase related primarily to an increase in net income,
    adjusted for depreciation and amortization related to our 2007
    and 2008 acquisitions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Cash flow
    used in investing activities</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in investing activities during the year ended
    December&#160;31, 2009 was $49.3&#160;million compared to
    $46.3&#160;million during the year ended December&#160;31, 2008.
    Net cash used in investing activities during the year ended
    December&#160;31, 2009 consisted of $3.0&#160;million of
    purchases of property and equipment, $16.9&#160;million for
    deposits (primarily for acquisitions completed January&#160;1,
    2010), $12.7&#160;million for the payment of contingent notes
    and $16.7&#160;million for acquisitions, net of cash acquired.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchases of equipment during 2009 primarily consist of
    $1.0&#160;million related to computer equipment and software,
    $1.3&#160;million related to laboratory equipment, and
    $0.7&#160;million related to automobiles, furniture and
    leasehold improvements. The computer equipment and software
    primarily consisted of servers, desktops, laptops, and related
    software in support of our headcount growth across all
    functional areas. The laboratory equipment primarily consisted
    of microscopes and other analysis equipment for our existing
    laboratories.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The increase in deposits relates to our payment on
    December&#160;31, 2009 of approximately $17.0&#160;million in
    cash to acquire 100&#160;percent of the equity of two pathology
    practices. These acquisitions were consummated on
    January&#160;1, 2010 and therefore included in deposits as of
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the acquisitions, we have agreed to pay
    additional consideration in future periods, based upon the
    attainment of stipulated levels of operating earnings by each of
    the acquired entities, as defined in their respective
    agreements. For all acquisitions prior to January&#160;1, 2009,
    we do not accrue contingent consideration obligations prior to
    the attainment of the objectives and the amount owed becomes
    fixed and determinable. For the year ended December&#160;31,
    2009, we paid contingent consideration of $12.7&#160;million.
</DIV>
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    <BR>
    71
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of the cash used for acquisitions for the year
    ended December&#160;31, 2009 related to our November 2009,
    acquisition of 100&#160;percent of the equity of one pathology
    practice for an aggregate cash purchase price of
    $15.3&#160;million. The cash portion of the purchase price was
    funded primarily with proceeds from the June 2009 issuance of
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in investing activities was $46.3&#160;million
    during the year ended December&#160;31, 2008 compared to
    $303.5&#160;million during the year ended December&#160;31,
    2007. Net cash used in investing activities during the year
    ended December&#160;31, 2008 consisted of $2.7&#160;million of
    purchases of property and equipment, $12.5&#160;million for the
    payment of contingent notes and $31.0&#160;million for
    acquisitions, net of cash acquired.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchases of equipment during 2008 primarily consist of
    $1.3&#160;million related to computer equipment and software,
    $0.5&#160;million related to laboratory equipment and
    $0.9&#160;million related to furniture and leasehold
    improvements. The computer equipment and software primarily
    consisted of servers, desktops, laptops, and related software in
    support of our headcount growth across all functional areas. The
    laboratory equipment primarily consisted of microscopes and
    other analysis equipment for our existing laboratories.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of the cash used for acquisitions for the year
    ended December&#160;31, 2008 related to our 2008 acquisition.
    During 2008, we acquired substantially all of the assets of one
    pathology practice, for an aggregate purchase price (including
    acquisition costs) of $27.3&#160;million and additional
    consideration in the form of contingent notes. The purchase
    price was funded primarily with proceeds from the issuance of
    Aurora Holdings&#146; Class&#160;A, C, and X membership
    interests of $7.3&#160;million and our existing term loan
    facility of $20.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of the cash used for acquisitions for the year
    ended December&#160;31, 2007 related to the acquisition of eight
    pathology practices for an aggregate cash purchase price of
    $306.1&#160;million. The cash portion of the purchase price was
    funded primarily with contributions from members of Aurora
    Holdings and borrowings under our existing term loan facility of
    $115.3&#160;million and $190.8&#160;million, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Cash
    flows from financing activities</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by financing activities for the year ended
    December&#160;31, 2009 was $33.0&#160;million compared to
    $16.0&#160;million for the year ended December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, we received proceeds
    of $50.3&#160;million in connection with the issuance of 21,382
    <FONT style="white-space: nowrap">A-1</FONT> class
    membership interests. In connection with the A -1 issuance, we
    incurred $3.1&#160;million of costs which were recorded as a
    reduction in members&#146; equity. In addition, during 2009 we
    made repayments of $8.2&#160;million and $3.0&#160;million under
    our existing term loan facilities and subordinated notes
    payable, respectively. Also during 2009, in accordance with the
    Aurora Holdings LLC Agreement, we made tax distributions to
    certain members totaling $2.8&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by financing activities for the year ended
    December&#160;31, 2008 was $16.0&#160;million compared to
    $300.5&#160;million for the year ended December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2008, we borrowed
    $22.1&#160;million under our existing term loan facility of
    which $20.0&#160;million, along with $7.3&#160;million of
    contributions members of Aurora Holdings, was used to complete
    the 2008 acquisition. In addition, during 2008 we made
    repayments of $7.8&#160;million and $2.9&#160;million under our
    existing term loan facilities and subordinated notes payable,
    respectively. Also during 2008, in accordance with the Aurora
    Holdings LLC Agreement, we made tax distributions to certain
    Aurora Holdings&#146; members totaling $0.4&#160;million. During
    2008, we paid $1.8&#160;million of costs related to Aurora
    Holdings&#146; original member investments.
</DIV>
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    <BR>
    72
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Contractual
    Obligations and Commitments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our long-term contractual
    obligations and commitments as of December&#160;31, 2009 (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Payments Due by Period</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Contractual
    obligations</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2010</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2011</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2012</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2013</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2014</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">After 2014</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Total</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolving loan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,406
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    190,003
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Estimated interest on term
    loans<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured continent notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,840
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real estate leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,974
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    265,039
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Estimated interest payments on our
    term loan facilities represent the majority of future interest
    payments, and have been calculated using the effective interest
    rates (three month LIBOR, plus credit spread) multiplied by the
    outstanding balances as of December&#160;31, 2009, less
    mandatory repayments, through their maturity dates.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the Reorganization Transactions and the completion of this
    offering, we will enter into the Tax Receivable Agreement which
    will obligate Aurora Diagnostics, Inc. to pay 85&#160;percent of
    certain cash tax savings, if any, in U.S. federal, state, local
    and foreign income tax realized by Aurora Diagnostics, Inc.
    from certain existing and future tax attributes. See
    &#147;Certain Relationships and Related Party
    Transactions&#160;&#151; Tax Receivable Agreement&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, we may enter into contracts with suppliers,
    manufacturers, and other third parties under which we may be
    required to make minimum payments. The table above does not
    reflect any future obligations that may arise due to the
    establishment of additional laboratory facilities, including
    facility leasing costs, tenant improvements, and other facility
    startup and infrastructure costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Off
    Balance Sheet Arrangements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Critical
    Accounting Policies and Estimates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our consolidated financial statements are prepared in accordance
    with GAAP, which requires us to make estimates and assumptions
    that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the dates of
    the financial statements and the reported amounts of revenues
    and expenses during the reported periods. We have provided a
    description of all our significant accounting policies in
    Note&#160;1 to our audited consolidated financial statements
    included in the back of this prospectus. We believe that of
    these significant accounting policies, the following may involve
    a higher degree of judgment or complexity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Net
    Revenue and Accounts Receivable</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Substantially all of our revenues consist of payments or
    reimbursements for specialized diagnostic services rendered to
    patients of our referring physicians. Our billings for services
    reimbursed by third-party payors, including Medicare, and
    patients are based on a company-generated fee schedule that is
    generally set at higher rates than our anticipated reimbursement
    rates. Our billings to physicians are billed based on negotiated
    fee schedules that set forth what we charge for our services.
    Reimbursement under Medicare for our services is subject to a
    Medicare physician fee schedule and, to a lesser degree, a
    clinical laboratory fee schedule, both of which are
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    updated annually. Our billings to patients include co-insurance
    and deductibles as dictated by the patient&#146;s insurance
    coverage. Billings for services provided to uninsured patients
    are based on our company-generated fee schedule. We do not have
    any capitated payment arrangements, which are arrangements under
    which we are paid a contracted per person rate regardless of the
    services we provide.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our net revenues are recorded net of contractual allowances
    which represent the estimated differences between the amount
    billed and the estimated payment to be received from third party
    payors, including Medicare. Adjustments to the estimated
    contractual allowances, based on actual receipts from
    third-party payors, including Medicare, are recorded upon
    settlement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The process for estimating the ultimate collection of accounts
    receivable associated with our services involves significant
    assumptions and judgment. The provision for doubtful accounts
    and the related allowance are adjusted periodically, based upon
    an evaluation of historical collection experience with specific
    payors for particular services, anticipated collection levels
    with specific payors for new services, industry reimbursement
    trends, accounts receivable aging and other relevant factors.
    The majority of our provision for doubtful accounts relates to
    our estimate of uncollectible amounts from patients who are
    uninsured and may fail to pay their coinsurance or deductible
    obligations. Changes in these factors in future periods could
    result in increases or decreases in our provision for doubtful
    accounts and impact our results of operations, financial
    position and cash flows.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Annual
    Impairment Testing of Goodwill and Intangibles</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Goodwill is our single largest asset. We evaluate the
    recoverability and measure the potential impairment of our
    goodwill annually. The annual impairment test is a two-step
    process that begins with the estimation of the fair value of the
    reporting unit. For purposes of testing goodwill for impairment,
    each of our acquired practices is considered a separate
    reporting unit. To estimate the fair value of the reporting
    units, we utilize a discounted cash flow model as the primary
    approach to value supported by a market approach guideline
    public company method, or the GPC Method, which is used as a
    reasonableness test. We believe that a discounted cash flow
    analysis is the most appropriate methodology to test the
    recorded value of long-term assets with a demonstrated
    long-lived value. The results of the discounted cash flow
    provide reasonable estimates of the fair value of the reporting
    units because this approach is based on each respective
    unit&#146;s actual results and reasonable estimates of future
    performance, and also takes into consideration a number of other
    factors deemed relevant by management, including but not limited
    to, expected future market revenue growth and operating profit
    margins. We have consistently used these approaches in
    determining the value of goodwill. We consider the GPC Method as
    an adequate reasonableness test which utilizes market multiples
    of industry participants to corroborate the discounted cash flow
    analysis. We believe this methodology is consistent with the
    approach that any strategic market participant would utilize if
    they were to value one of our reporting units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The first step of the goodwill impairment process screens for
    potential impairment and the second step measures the amount of
    the impairment, if any. Our estimate of fair value considers
    (i)&#160;the financial projections and future prospects of our
    business, including its growth opportunities and likely
    operational improvements, and (ii)&#160;comparable sales prices,
    if available. As part of the first step to assess potential
    impairment, we compare our estimate of fair value for the
    reporting unit to the book value of the reporting unit. If the
    book value is greater than our estimate of fair value, we would
    then proceed to the second step to measure the impairment, if
    any. The second step compares the implied fair value of goodwill
    with its carrying value. The implied fair value is determined by
    allocating the fair value of the reporting unit to all of the
    assets and liabilities of that unit as if the reporting unit had
    been acquired in a business combination and the fair value of
    the reporting unit was the purchase price paid to acquire the
    reporting unit. The excess of the fair value of the reporting
    unit over the amounts assigned to its assets and liabilities is
    the implied fair value of goodwill. If the carrying amount of
    the reporting unit&#146;s goodwill is greater than its implied
    fair value, an impairment loss will be recognized in the amount
    of the excess.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On a quarterly basis, we perform a review of our business to
    determine if events or changes in circumstances have occurred
    which could have a material adverse effect on our fair value and
    the fair value of our goodwill. If such events or changes in
    circumstances were deemed to have occurred, we would perform an
    impairment test of goodwill as of the end of the quarter,
    consistent with the annual impairment test performed on
    September&#160;30, and record any noted impairment loss.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following assumptions were made by management in determining
    the fair value of the reporting units and related intangibles as
    of September&#160;30, 2009: (a)&#160;the discount rates ranged
    between 13.0 percent and 15.0 percent, based on relative size
    and perceived risk of the reporting unit; (b)&#160;an average
    compound annual growth rate of 7.5 percent during the five year
    forecast period; and (c)&#160;earnings before interest, taxes,
    depreciation, and amortization, with an average reporting unit
    level margin of 38.9 percent. These assumptions are based on
    (a)&#160;the actual historical performance of the reporting
    units and (b)&#160;management&#146;s estimates of future
    performance of the reporting units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also consider the economic outlook for the healthcare
    services industry and various other factors during the testing
    process, including hospital and physician contract changes,
    local market developments, changes in third-party payor
    payments, and other publicly available information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Intangible assets, acquired as the result of a business
    combination, are recognized at fair value, as an asset apart
    from goodwill if the asset arises from contractual or other
    legal rights, or if it is separable. Intangible assets,
    principally representing the fair value of customer
    relationships, health care facility agreements and
    non-competition agreements acquired, are capitalized and
    amortized on the straight-line method over their expected useful
    life, which generally ranges from 4 to 18&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recognize impairment losses for intangible assets when events
    or changes in circumstances indicate the carrying amount may not
    be recoverable. We continually assesses whether an impairment in
    the carrying value of the intangible assets has occurred. If the
    undiscounted future cash flows over the remaining amortization
    period of an intangible asset indicate the value assigned to the
    intangible asset may not be recoverable, we reduce the carrying
    value of the intangible asset. We would determine the amount of
    any such impairment by comparing anticipated discounted future
    cash flows from acquired businesses with the carrying value of
    the related assets. In performing this analysis, we consider
    such factors as current results, trends and future prospects, in
    addition to other relevant factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;30, 2009, we tested goodwill and intangible
    assets for potential impairment and recorded a non-cash
    impairment expense of $8.0&#160;million resulting from a write
    down of $6.6&#160;million in the carrying value of goodwill and
    a write down of $1.4&#160;million in the carrying value of
    intangible assets. The write down of the goodwill and intangible
    assets related to one reporting unit. Regarding this reporting
    unit, we believe events occurred and circumstances changed that
    more likely than not reduced the fair value of the intangible
    assets and goodwill below their carrying amounts. These events
    during 2009 consisted primarily of the loss of significant
    customers present at the acquisition date, which adversely
    affected the current year and expected future revenues and
    operating profit of the reporting unit.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quantitative
    and Qualitative Disclosures about Market Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain our cash balances at high quality financial
    institutions. The balances in our accounts may periodically
    exceed amounts insured by the Federal Deposit Insurance
    Corporation, of up to $250,000 at December&#160;31, 2009 and
    2008. We do not believe we are exposed to any significant credit
    risk and have not experienced any losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our primary exposure to market risk is interest expense
    sensitivity due to changes in the underlying prime rate or LIBOR
    which determines the all in cost of our interest expense on our
    term loan facilities. As of December&#160;31, 2009, we had an
    interest rate swap agreement that expired January&#160;10, 2010.
    Therefore subsequent to that date the majority of our debt will
    be variable rate debt and our earnings could be impacted by
    changes in variable interest rates. We do not enter into
    interest rate swap agreements, or other derivative financial
    instruments, for trading or speculative purposes. We plan to
    periodically review our exposure to interest rate fluctuations
    and access strategies to manage our exposure.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Accounting Pronouncements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, we adopted a new accounting standard
    issued by the FASB related to accounting for business
    combinations using the acquisition method of accounting
    (previously referred to as the purchase method). Among the
    significant changes, this standard requires a redefining of the
    measurement date of a business combination, expensing direct
    transaction costs as incurred, capitalizing in-process research
    and development costs as an intangible asset and
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    recording a liability for contingent consideration at the
    measurement date with subsequent re-measurements recorded in the
    results of operations. This standard also requires costs for
    business restructuring and exit activities related to the
    acquired company to be included in the post-combination
    financial results of operations and also provides new guidance
    for the recognition and measurement of contingent assets and
    liabilities in a business combination. In addition, this
    standard requires several new disclosures, including the reasons
    for the business combination, the factors that contribute to the
    recognition of goodwill, the amount of acquisition related
    third-party expenses incurred, the nature and amount of
    contingent consideration, and a discussion of pre-existing
    relationships between the parties. The application of this
    standard was material for business combinations completed in
    2009. The standard is likely to have a significant effect on the
    way we allocate the purchase price of certain future business
    combinations, including the recognition and measurement of
    assets acquired and liabilities assumed and the expensing of
    direct transaction costs and costs to integrate the acquired
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, we adopted a new accounting standard
    issued by the FASB related to the disclosure of derivative
    instruments and hedging activities. This standard expanded the
    disclosure requirements about an entity&#146;s derivative
    financial instruments and hedging activities, including
    qualitative disclosures about objectives and strategies for
    using derivatives, quantitative disclosures about fair value
    amounts of and gains and losses on derivative instruments, and
    disclosures about credit-risk-related contingent features in
    derivative instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective June&#160;30, 2009, we adopted a newly issued
    accounting standard related to accounting for and disclosure of
    subsequent events in our consolidated financial statements. This
    standard provides the authoritative guidance for subsequent
    events that was previously addressed only in United States
    auditing standards. This standard establishes general accounting
    for and disclosure of events that occur after the balance sheet
    date but before financial statements are issued or are available
    to be issued and requires us to disclose that we have evaluated
    subsequent events through the date of the filing or issue date.
    This standard does not apply to subsequent events or
    transactions that are within the scope of other applicable GAAP
    that provide different guidance on the accounting treatment for
    subsequent events or transactions. The adoption of this standard
    did not have a material impact on our consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued the FASB Accounting Standards
    Codification, or ASC. The ASC has become the single source of
    non-governmental accounting principles generally accepted in the
    United States of America, or GAAP, recognized by the FASB in the
    preparation of financial statements. We adopted the ASC as of
    July&#160;1, 2009. The ASC does not change GAAP and did not have
    an effect on our financial position, results of operations or
    cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued new accounting guidance on when an
    entity should be included in consolidated financial statements.
    The new guidance amends the evaluation criteria to identify the
    primary beneficiary of a variable interest entity, or VIE, and
    requires ongoing reassessment of whether an enterprise is the
    primary beneficiary of the VIE. The new guidance significantly
    changes the consolidation rules for VIEs including the
    consolidation of common structures, such as joint ventures,
    equity-method investments, and collaboration arrangements. The
    guidance is applicable to all new and existing VIEs. This
    standard is effective for us as of January&#160;1, 2010 and we
    do not expect the impact of its adoption to be material to our
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2010, the FASB issued an amendment to the accounting
    standards related to the disclosures about an entity&#146;s use
    of fair value measurements. Among these amendments, entities
    will be required to provide enhanced disclosures about transfers
    into and out of the Level&#160;1(fair value determined based on
    quoted prices in active markets for identical assets and
    liabilities) and Level&#160;2 (fair value determined based on
    significant other observable inputs) classifications, provide
    separate disclosures about purchases, sales, issuances and
    settlements relating to the tabular reconciliation of beginning
    and ending balances of the Level&#160;3 (fair value determined
    based on significant unobservable inputs) classification and
    provide greater disaggregation for each class of assets and
    liabilities that use fair value measurements. Except for the
    detailed Level&#160;3 roll-forward disclosures, the new standard
    is effective for us for interim and annual reporting periods
    beginning after December&#160;31, 2009. The requirement to
    provide detailed disclosures about the purchases, sales,
    issuances and settlements in the roll-forward activity for
    Level&#160;3 fair value measurements is effective for us for
    interim and annual reporting periods beginning after
    December&#160;31, 2010. We do not expect that the adoption of
    this new standard will have a material impact on our
    consolidated financial statements.
</DIV>
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<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">INDUSTRY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Market</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;diagnostic testing industry had revenues of
    approximately $55&#160;billion in 2008 and grew at a rate of
    7&#160;percent compounded annually from 2000 to 2008, according
    to Washington G-2 Reports.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Testing
    Markets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The markets within the broader diagnostic testing industry are
    defined as anatomic pathology, clinical pathology, and gene
    based and other esoteric testing. Anatomic pathology represents
    our core focus and, in 2009, we derived approximately
    94&#160;percent of our revenues from anatomic pathology
    services, approximately 5&#160;percent of our revenues from
    clinical pathology services and approximately 1&#160;percent of
    our revenues from gene based and other esoteric testing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Anatomic Pathology.</I>&#160;&#160;Anatomic pathology
    services involve the diagnosis of cancer and other medical
    conditions through the examination of tissues (histology) and
    the analysis of cells (cytology). Volume is measured by the
    number of accessions, or the number of patient cases, where each
    accession may then include multiple specimens. Generally, the
    anatomic pathology process involves the preparation of slides by
    trained histotechnologists or cytotechnologists and the review
    of those slides by anatomic pathologists. Although anatomic
    pathologists do not treat patients, they establish a definitive
    diagnosis and may also consult with the referring physician. The
    anatomic pathology market was $13&#160;billion, or
    24&#160;percent, of 2008 total diagnostic testing industry
    revenues according to Laboratory Economics, with
    $7.6&#160;billion derived from the outpatient anatomic pathology
    channel. Generally, anatomic pathology services command higher
    reimbursement rates, on a per specimen basis, than clinical
    pathology services. According to the Washington
    <FONT style="white-space: nowrap">G-2</FONT> Reports,
    the anatomic pathology market has expanded more rapidly than the
    overall industry, with revenues growing 4.8&#160;percent on a
    compound annual basis between 2006 and 2009, compared to
    4.5&#160;percent for the rest of the industry. Excluding growth
    in esoteric testing, the remainder of the industry grew at a
    compound annual rate of only 0.1&#160;percent over the same
    period.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Clinical Pathology.</I>&#160;&#160;Clinical pathology
    services generally involve chemical testing and analysis of body
    fluids using standardized laboratory tests. These tests usually
    do not require the expertise of a pathologist and are frequently
    routine, automated and performed by large national or regional
    clinical laboratory companies and hospital laboratories. This is
    the largest diagnostic testing market representing
    $34&#160;billion, or 62&#160;percent, of 2008 total industry
    revenues according to Laboratory Economics. The clinical
    pathology market grew at a rate of 0.2&#160;percent compounded
    annually from 2006 to 2008, according to Washington G-2 Reports.
    Quest Diagnostics Incorporated and Laboratory Corporation of
    America are the largest providers to the clinical laboratory
    market.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Gene-Based and Other Esoteric
    Testing.</I>&#160;&#160;Esoteric testing services typically
    involve unique and complex genetic and molecular diagnostics
    performed by skilled personnel using sophisticated instruments.
    As a result, the esoteric testing market is dominated by a
    limited number of commercial laboratories. Compound annual
    growth rate for the total esoteric testing market was
    19.5&#160;percent from 2006 to 2008, according to Washington G-2
    Reports. We believe the esoteric testing market will continue to
    demonstrate the fastest growth of any market in the
    U.S.&#160;diagnostic testing industry.
</TD>
</TR>

</TABLE>
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    <BR>
    77
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following chart depicts the relative and total size of the
    U.S.&#160;laboratory testing markets in 2008:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2008 U.S.
    Laboratory Testing Markets</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265805.gif" alt="(PIE CHART)"><B> </B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">Source: Laboratory Industry
    Strategic Outlook: Market Trends &#038; Analysis
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">(Washington G-2 Reports)
    </FONT>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Patient
    Channels</FONT></I></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The anatomic pathology market on which we focus includes both
    inpatient and outpatient channels. We are primarily focused on
    the non-hospital outpatient channel of the anatomic pathology
    market.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Outpatient Channel.</I>&#160;&#160;The outpatient channel of
    the anatomic pathology market involves diagnostic testing
    performed on tissues and cells of patients who do not reside in
    a medical facility during their diagnosis and treatment. The
    outpatient channel is divided into the hospital outpatient
    channel, which involves patients diagnosed and treated at
    hospitals on an outpatient basis, and the non-hospital
    outpatient channel, which involves patients diagnosed and
    treated at medical facilities other than hospitals on an
    outpatient basis. The non-hospital outpatient channel is the
    largest component of the anatomic pathology market and has grown
    more rapidly than other channels. This channel accounted for
    $7.6&#160;billion, or 57&#160;percent, of anatomic pathology
    revenues for the year ended December&#160;31, 2008, representing
    10&#160;percent growth according to Laboratory Economics, and is
    expected to grow at a higher rate than the overall industry from
    2008 to 2012. The hospital outpatient channel accounted for
    $1.9&#160;billion, or 15&#160;percent, of anatomic pathology
    revenues, representing 4&#160;percent growth in 2008.
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Inpatient Channel.</I>&#160;&#160;The inpatient channel of
    the anatomic pathology market involves diagnostic testing
    performed on tissues and cells of patients who reside in a
    hospital during their diagnosis and treatment. Typically, the
    hospital operates its own clinical and histology laboratories,
    but contracts on an exclusive basis with an independent
    pathology group. In 2008, according to Laboratory Economics, the
    hospital inpatient channel accounted for $3.7&#160;billion, or
    28&#160;percent, of the anatomic pathology revenues.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following chart depicts the relative and total size of the
    outpatient and inpatient channels in 2008:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2008
    Anatomic Pathology Laboratory Testing by Channel</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    <B><FONT style="font-size: 8pt">Total: $13 billion</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265806.gif" alt="(PIE CHART)"><B><FONT style="font-size: 8pt">
    </FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">Source: The U.S. Anatomic Pathology
    Market: Forecast &#038; Trends 2010
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">(Laboratory Economics LLC)
    </FONT>
</DIV>
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    <BR>
    78
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Anatomic
    Pathology Subspecialties</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The non-hospital outpatient channel of the anatomic pathology
    market also includes a number of subspecialties, including
    primarily women&#146;s health pathology, urologic pathology and
    dermatopathology. All three of these subspecialty testing areas
    are among our core competencies, and we derived approximately
    80&#160;percent of our revenues, in aggregate, from these three
    subspecialties in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Women&#146;s Health Pathology.</I>&#160;&#160;The
    women&#146;s health pathology subspecialty, which includes
    gynecological pathology and cytopathology, principally involves
    diagnostic tests performed on samples such as Pap smears and
    cervical biopsies that are primarily provided by referring
    physicians in the obstetrics and gynecology areas. In 2008,
    according to Laboratory Economics, the women&#146;s health
    pathology subspecialty accounted for $2.6&#160;billion, or
    34&#160;percent, of the broader non-hospital outpatient channel.
    In particular, the cervical cancer screening market in the
    U.S.&#160;has tripled over the past 10&#160;years to
    $2&#160;billion in 2008, driven by the adoption of more
    expensive monolayer liquid-based testing technologies, favorable
    changes in Medicare reimbursement and the introduction of
    DNA-based human papillomavirus testing for indeterminate Pap
    tests. From 1998 to 2007, monolayer technology grew from
    10&#160;percent to 92&#160;percent of the women&#146;s health
    pathology subspecialty, according to Washington G-2 Reports.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Urologic Pathology.</I>&#160;&#160;The urologic pathology
    subspecialty involves diagnostic tests performed on tissue
    specimens such as prostate biopsies that are provided by
    referring physicians in the urology area. In particular, the
    prostate cancer screening market is large and growing and in
    2008, according to Laboratory Economics, represented
    $1.7&#160;billion, or 22&#160;percent, of the broader
    non-hospital outpatient channel.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Dermatopathology.</I>&#160;&#160;The dermatopathology
    subspecialty primarily involves diagnostic tests performed on
    samples such as skin biopsies that are primarily provided by
    referring physicians in the dermatology or plastic surgery
    areas. In 2008, according to Laboratory Economics,
    dermatopathology accounted for $1&#160;billion, or
    13&#160;percent, of the broader non-hospital outpatient channel,
    and the number of new skin cancer cases grew 15&#160;percent
    between 2007 and 2009, according to Laboratory Economics.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Other.</I>&#160;&#160;The non-hospital outpatient channel
    includes other subspecialty areas such as gastrointestinal
    pathology, which involves diagnostic tests performed on samples
    such as endoscopic biopsies that are primarily provided by
    gastroenterologists, and hematopathology, which involves
    diagnostic tests performed on samples such as blood, bone marrow
    and lymph node biopsies that are primarily provided by referring
    physicians in the hematology and oncology areas. In 2008,
    according to Laboratory Economics, these other subspecialties
    accounted for $2.3&#160;billion, or 30&#160;percent, in
    aggregate, of the broader non-hospital outpatient channel.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following chart depicts the relative and total size of the
    U.S.&#160;non-hospital outpatient anatomic pathology
    subspecialty testing markets in 2008:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anatomic
    Pathology Outpatient Subspecialties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265809.gif" alt="(PIE CHART)"><B> </B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">Source: The U.S. Anatomic Pathology
    Market: Forecast&#160;&#038; Trends 2010<BR>
    (Laboratory Economics LLC)
    </FONT>
</DIV>
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    <BR>
    79
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Opportunity</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that demand for diagnostic services in the
    non-hospital outpatient channel of the anatomic pathology
    market, including those in the women&#146;s health pathology,
    urologic pathology and dermatopathology subspecialties, will
    continue to expand.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Aging
    of the U.S. population</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of individuals
    <FONT style="white-space: nowrap">65-years-old</FONT>
    and older will increase to 55&#160;million, or by
    36&#160;percent, over the next decade, a percentage rate that is
    nearly four times faster than that of the overall population,
    according to the U.S.&#160;Census Bureau. According to the
    American Cancer Society, the risk of being diagnosed with cancer
    increases as individuals age, with an estimated 52&#160;percent
    of all new cancer cases diagnosed in persons
    <FONT style="white-space: nowrap">65-years-old</FONT>
    and older in 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Increasing
    Incidence of Cancer</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of new cancer cases per year grew by 2&#160;percent
    between 2007 and 2009 to approximately 1.5&#160;million new
    cases according to the American Cancer Society. Within that
    total growth, new skin cancer cases per year grew by
    15&#160;percent between 2007 and 2009, representing the highest
    percentage increase among all diagnosed cancer types and the
    largest number of new cases per year of any type of cancer. With
    a high cure rate of greater than 99&#160;percent for certain
    types of skin cancer, according to American Academy of
    Dermatology, the benefits of preventive skin cancer screening
    are significant. Screening for cervical cancer within the
    women&#146;s health pathology subspecialty grew at a
    12&#160;percent compounded annual rate between 1998 and 2008,
    and we expect continued innovation in testing techniques to
    drive continued rapid growth. Cancers that can be prevented or
    detected earlier by screening account for approximately half of
    new cancer cases per year. In 2008, approximately
    $228&#160;billion was spent in the U.S.&#160;for the diagnosis
    and treatment of cancer, including $93&#160;billion for direct
    medical costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Expanding
    Demand for Non-Hospital Outpatient Services</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The non-hospital outpatient channel of the anatomic pathology
    market is expected to continue growing at a higher percentage
    rate than the overall industry, principally driven by patient
    preference and the cost-effectiveness of outpatient treatment
    settings like ambulatory surgery centers compared to inpatient
    hospital-based services. In the year ended December&#160;31,
    2008, the number of outpatient surgical procedures represented
    62&#160;percent of all surgical procedures performed in the
    U.S., as compared to 17&#160;percent in 1980, according to the
    American Hospital Association.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Medical
    Advancements Allowing for Earlier Diagnosis and Treatment of
    Disease</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Physicians are increasingly relying on diagnostic testing to
    help identify the  risk of disease, to detect the symptoms of
    disease earlier, to aid in the choice of therapeutic regimen, to
    monitor patient compliance and to evaluate treatment results. We
    believe physicians, patients and payors increasingly recognize
    the value of diagnostic testing as a means to improve health and
    reduce the overall cost of health care through early detection.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nursing
    Home and Home Health Markets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the aging of the U.S.&#160;population is a
    natural driver for the demand for long-term care facilities and
    home health and that clinical laboratory testing is a critical
    service offered by nursing homes. According to Washington G-2
    reports, this market has grown from $168.7&#160;billion in 2005
    to $198.5&#160;billion in 2008, and projected growth is
    estimated at 6.0&#160;percent.
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    80
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    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a specialized diagnostics company providing services that
    play a key role in the diagnosis of cancer and other diseases.
    Our experienced pathologists deliver comprehensive diagnostic
    reports of a patient&#146;s condition and consult frequently
    with referring physicians to help determine the appropriate
    treatment. Our diagnostic reports often enable the early
    detection of disease, allowing referring physicians to make
    informed and timely treatment decisions that improve their
    patients&#146; health in a cost-effective manner.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
     We are a leading specialized diagnostics company in terms of
    revenues, focused on the anatomic pathology market. We are
    well-positioned in the higher-growth subspecialties of anatomic
    pathology, with a leading market position in dermatopathology
    and in the women&#146;s health pathology subspecialty, and a
    growing market position in urologic pathology, hematopathology
    and general surgical pathology. Our strengths in anatomic
    pathology are complemented by our specialized clinical and
    molecular diagnostics offerings, which enable us to provide a
    broad selection of diagnostic services to our referring
    physicians, our primary clients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of our revenues in 2009 were derived from
    physicians providing diagnostic services in the non-hospital
    outpatient channel of the anatomic pathology market, which in
    2008 was one of the fastest-growing and largest channels of that
    market. We also maintain 36 exclusive contracts with hospitals
    under which we provide inpatient and outpatient professional
    anatomic pathology services. We also provide medical director
    services and, for some hospitals, technical slide preparation
    services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business model builds upon the expertise of our experienced
    pathologists to provide  seamless, reliable and comprehensive
    pathology and molecular diagnostics offerings to referring
    physicians. We typically have established, long-standing
    relationships with our referring physicians as a result of
    focused localized delivery of diagnostic services, personalized
    responses and frequent consultations, and flexible information
    technology, or IT, solutions that are customizable to our
    clients&#146; needs. Our IT and communications platform enables
    us to deliver diagnostic reports to our clients generally within
    24&#160;hours of specimen receipt, helping to improve patient
    care. In addition, our IT platform enables us to closely track
    and monitor volume trends from referring physicians.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The success of our business model and the value of our
    specialized diagnostic service offering are reflected in our
    significant growth allowing us to reach $171.6&#160;million in
    annual revenues in 2009. Through a combination of organic growth
    and strategic acquisitions, we have achieved a scale allowing us
    to provide diagnostic services to the patients of our
    approximately 10,000 referring physicians, generating
    approximately 1.6&#160;million accessions in 2009. With 19
    primary laboratories across the United States, we have achieved
    a national footprint and a leading presence in our local markets
    upon which we are continuing to build a more integrated and
    larger-scale diagnostics company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Competitive Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we are distinguished by the following
    competitive strengths:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Leading Market Position in Higher-Growth Subspecialties of
    Expanding Industry</I>.&#160;&#160;We are a leading specialized
    diagnostics company, focused on the faster-growing non-hospital
    outpatient channel within the anatomic pathology market with
    leading market positions in two of the three higher-growth
    subspecialties of the market: dermatopathology and women&#146;s
    health pathology.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Locally-Focused Business Model with National
    Scale.</I>&#160;&#160;Our business model centers on achieving
    significant local market share, which yields operating
    efficiencies and national scale when consolidated across all of
    our operations. The diagnostic services we provide are designed
    specifically to meet the needs of the local markets we serve.
    Our national infrastructure enables us to more efficiently
    manage our operations, improve productivity and deliver a more
    extensive menu of diagnostic services to our local clients. As a
    result of our strong local presence and high-quality diagnostic
    services, we have established significant loyalty with referring
    physicians and key payors in our local markets. In 2009, we
    derived more than 85&#160;percent of our revenues from
    locally-focused,
    <FONT style="white-space: nowrap">in-network</FONT>
    payor contracts.
</TD>
</TR>

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    <BR>
    81
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Experienced, Specialized Pathologists Focused on Client
    Service</I>.&#160;&#160;We believe our pathologists have
    long-standing client relationships and provide high-quality
    service within their respective local communities. Over
    one-third of our pathologists are specialized in
    dermatopathology, with the remainder focused on women&#146;s
    health pathology, urologic pathology, hematopathology and
    general surgical pathology. This alignment of our
    pathologists&#146; specialties with those of the referring
    physicians is critical to our ability to retain existing and
    attract new clients. Our clinical expertise and frequent
    interactions with clients on patient diagnoses enables us to
    establish effective consultative and long-term relationships
    with referring physicians.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Professional Sales, Marketing and Client Service
    Team.</I>&#160;&#160;We maintain a sales, marketing and client
    service team of over 100 professionals who are highly-trained
    and organized by subspecialty to better meet the needs of our
    referring physicians and their patients. Our sales
    representatives are incentivized through compensation plans to
    not only secure new physician clients, but also to maintain and
    enhance relationships with existing physician clients. As a
    result, they have enabled us to expand our geographic market
    presence to 30&#160;states and increase market penetration and
    market share in our local markets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Proprietary IT Solutions.</I>&#160;&#160;Delivery of clinical
    information is essential to our business and a critical aspect
    of the differentiated service that we provide to our clients. We
    have developed scalable IT solutions that maximize the
    flexibility,
    <FONT style="white-space: nowrap">ease-of-use</FONT>
    and speed of delivery of our diagnostic reports, which has
    enabled us to rapidly grow our accession volume and meet the
    increasing physician demand for our diagnostic services. We also
    monitor referral patterns on a daily basis using our IT
    infrastructure, which allows us to respond quickly to referring
    physicians through our sales and marketing teams. We achieved
    this through the development of a proprietary suite of IT
    solutions called <B>ConnectDX </B>that is compatible with most
    electronic medical record, or EMR, systems. <B>ConnectDX</B>
    incorporates customized interface solutions, low cost and
    efficient printer capabilities, compliant web portal capacities,
    and proprietary software, all resulting in efficient and
    reliable onsite client connections.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Proven Acquisition, Integration and Development
    Capabilities</I>.&#160;&#160;We have significant expertise and a
    proven track record of identifying, acquiring and integrating
    pathology practices into our diagnostic laboratory network. Our
    management team successfully expanded our operations through the
    acquisition of 16 anatomic pathology laboratories and one
    clinical laboratory and through the development of two&#160;de
    novo diagnostic laboratories. We have improved the performance
    of the laboratories we have acquired by applying our standard
    operating procedures, enhancing sales and marketing
    capabilities, implementing our IT platform and realizing
    efficiencies from our national operations and management. We
    believe our operational platform, expertise and value
    proposition enable us to capitalize on the considerable
    consolidation opportunities in the highly-fragmented anatomic
    pathology market, as reflected by our significant current
    pipeline of potential acquisition targets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Experienced Senior Leadership.</I>&#160;&#160;Our senior
    management team has approximately 80&#160;years of combined
    experience in the health care industry, including senior
    management positions with leading diagnostic companies including
    AmeriPath, DIANON Systems and Laboratory Corporation of America,
    and, collectively, have successfully completed over 65
    acquisitions and built a number of de novo specialized
    diagnostic laboratories. We believe that our management&#146;s
    strong reputation, extensive network of industry relationships
    and experience in building and growing successful companies in
    the industry help us to drive operating performance, hire and
    retain talented pathologists and other employees and attract
    acquisition candidates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Business Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to achieve growth by pursuing the following strategies:
</DIV>

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    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Continue to Drive Market Penetration through Sales and
    Marketing</I>.&#160;&#160;We plan to drive organic growth
    through our professional sales and marketing organization. Our
    <FONT style="white-space: nowrap">63-person</FONT>
    sales and marketing team provides us with broad coverage to
    augment and further penetrate existing physician relationships
    and to develop new referral relationships. We plan to
    strategically add sales professionals to laboratories in markets
    that will most benefit from enhanced outreach, increasing our
    presence in existing and new markets.
</TD>
</TR>

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    <BR>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Leverage our IT Platform to Increase Operating
    Efficiencies</I>.&#160;&#160;We believe our IT platform will
    allow us to gain market share in our existing subspecialties by
    improving productivity and reducing turnaround times. We have
    recently introduced an IT solution called <B>doc2MD</B>, a
    leading EMR system for dermatology practices for which we have
    an exclusive, long-term  license. We intend to continue to
    develop our internal IT operations into a better-integrated
    diagnostic platform, which will improve national coordination
    and provide real time visibility into key performance metrics.
    In addition, we plan to continue to introduce innovative IT
    solutions, interface capabilities and market-specific IT
    solutions that enhance our value proposition to referring
    physicians.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand through Targeted Acquisitions.</I>&#160;&#160;We plan
    to identify and acquire leading laboratories to augment our
    organic growth, broaden our geographic presence and enhance our
    service offering. We intend to continue to build our business
    and enhance our reputation as a preferred acquiror for
    independent laboratories. We believe that our recognizable
    identity and strong reputation make us a preferred partner for
    independent laboratories.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand Diagnostic Services Capabilities.</I>&#160;&#160;We
    intend to expand our services in the areas of clinical and
    molecular diagnostics to complement our existing anatomic
    pathology businesses. We believe we can leverage our depth of
    experience and physician relationships to sell these new
    diagnostic services in conjunction with our existing testing
    services as a comprehensive offering. As a &#147;one-stop&#148;
    diagnostic services provider, we would not only better serve our
    current clients, but also position ourselves to attract new
    business under a more diverse service model.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Develop De Novo Diagnostics Laboratories.</I>&#160;&#160;We
    plan to continue to selectively develop diagnostic laboratories
    on a de novo basis, as we have done in certain markets, to
    expand our market presence, broaden our service offering and
    leverage the capabilities of our existing laboratories and
    pathologists.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand Contracts with Hospitals in Target
    Markets.</I>&#160;&#160;We intend to continue to develop
    additional contracts with hospitals in target markets as part of
    a broader strategy to strengthen and grow our outpatient
    business and expand our local market share.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Further Expand into Growing Long-Term Care
    Market.</I>&#160;&#160;We have a growing presence providing
    clinical diagnostic services to the long-term care markets in
    Central and Northern Florida. We intend to expand this regional
    coverage into the large South Florida market and replicate our
    success in other states with growing long-term care markets. We
    believe that our IT solutions, and our ability to meet the rapid
    service requirements for the long term care market, provide us
    with a significant competitive advantage in these markets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Services</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Anatomic pathology typically requires a pathologist to make a
    specific diagnosis. Anatomic pathologists are medical doctors
    who specialize in the study of disease. Anatomic pathologists do
    not treat patients, but rather assist other physicians in
    determining the correct diagnosis of their patient&#146;s
    ailments. A pathologist&#146;s diagnosis represents a critical
    factor in determining a patient&#146;s future care. In addition,
    anatomic pathologists may consult with attending physicians
    regarding treatment plans. In these capacities, the anatomic
    pathologist often serves as the &#147;physician&#146;s
    physician,&#148; thereby creating long-term relationships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Anatomic pathologists perform their duties in laboratories,
    including independent free-standing local laboratories, hospital
    laboratories, regional and national laboratories, in ambulatory
    surgery centers and in a variety of other settings. Referring
    physicians take specimens from patients, and those specimens are
    transported to a laboratory by courier or an overnight delivery
    service. Once received at the laboratory, a specimen is
    processed and mounted onto a slide by laboratory technologists
    for examination by a pathologist. Once the pathologist examines
    a specimen, the pathologist typically records the results of
    testing performed in the form of a report to be transmitted to
    the referring physician. Since specimens are transportable and
    technology facilitates communication, samples can be diagnosed
    by a pathologist from a remote location. Therefore, pathologists
    are generally not needed
    <FONT style="white-space: nowrap">&#147;on-site&#148;</FONT>
    to make a diagnosis. This enhances utilization of available
    capacity in outpatient and inpatient laboratories and allows the
    practice to service a wider geographic area.
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An anatomic pathologist must have an understanding of a broad
    range of medicine. An anatomic pathologist may perform
    diagnostic testing services for a number of subspecialty testing
    markets such as dermatopathology, urologic pathology,
    women&#146;s health pathology, gastrointestinal pathology,
    hematopathology or surgical pathology. While physical
    examination or radiology procedures may suggest a diagnosis for
    many diseases, the definitive diagnosis is generally established
    by the anatomic pathologist.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales and
    Marketing; Client Service</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selection of a pathologist to perform diagnostic testing
    services is primarily made by individual referring physicians.
    We maintain a sales and marketing team of 63 professionals who
    are highly-trained and organized by subspecialty to better meet
    the needs of our referring physicians. We have designed our
    compensation structure to incentivize our sales representatives
    to not only secure new physician clients, but also to maintain
    and enhance relationships with existing physician clients. As a
    result, our sales and marketing team has enabled us to expand
    our geographic market presence to 30&#160;states by leveraging
    our extensive offering of diagnostic services across our markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently focus our marketing and sales efforts primarily on
    dermatologists, urologists and gynecologists, as well as
    gastroenterologists, hematologists and oncologists and their
    office staff. The physicians on which our marketing and sales
    efforts are focused include both non-hospital-based and
    hospital-based physicians. Our sales representatives concentrate
    on a geographic area based on the number of existing clients and
    client prospects, which we identify using several national
    physician databases that provide physician address information,
    patient demographic information and other data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the beginning of a new client relationship, one of our sales
    representatives visits a prospective physician client and
    describes in detail our differentiated service offerings,
    focusing on our experienced pathologists, local presence, rapid
    turn-around times, comprehensive diagnostic reports, client
    service and IT solutions. Our sales representatives focus on the
    specialties offered by their respective divisions, which allows
    them not only to discuss our specialized diagnostic services,
    but also to describe diagnostic developments and new products
    and technologies in their practice areas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also maintain a client service team of over 40 professionals
    who are highly-trained and organized by subspecialty. Our
    dedicated client service team provides ongoing support to our
    clients and, in particular, the office staff of our referring
    physicians. Our client service team enables us to augment the
    long-standing relationships between our pathologists and their
    clients to maintain a more stable base of referrals. These
    service teams provide our clients with a personal, knowledgeable
    and consistent point of contact within our company. Client
    service team members coordinate the provision of services,
    ensure testing supplies are replenished, answer administrative
    and billing questions, and resolve service issues. We believe
    these additional client contacts greatly enhance client
    satisfaction and strengthen overall client relationships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Once a client relationship is established, our sales
    representatives and client service team provide frequent
    <FONT style="white-space: nowrap">follow-up</FONT>
    sales and service calls to ensure we are continuing to meet
    physician needs and expectations and to explore other
    opportunities for the physician to use our diagnostic services.
    For example, once a client relationship is established, our
    sales representatives and client service team frequently contact
    the client to track testing volume and monitor satisfaction. In
    addition, our sales representatives and client service team
    frequently conduct client surveys, and our pathologists dialogue
    with clients to develop relationships and identify areas in
    which our relationships and service levels may be improved or
    expanded. We believe that the frequency of these sales calls
    allows our sales representatives and client service team to
    build and enhance strong relationships with our clients, helping
    us to better understand their needs and develop new service
    offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently focus our marketing and sales efforts by
    subspecialty. Our representatives are extensively trained in the
    specific subspecialty they service and they are knowledgeable
    about our test offerings and new diagnostic technologies
    available in the market by subspecialty. This provides
    additional value to our physician clients and staff, as our
    representatives become a resource to our client&#146;s practice.
    Our product offerings which have been developed to meet the
    unique needs of each subspecialty are branded under the
    following names:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    DermDX (dermatopathology services for the dermatology market);
</TD>
</TR>

</TABLE>
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    <BR>
    84
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    WomensDX (Womens Health Services for the OB/GYN market);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    UroDX (for the Urology market);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    GastroDX (for the gastroenterology market);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    HemaDX (for the Hematology and Oncology market);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    TreatmentDX (drug treatment market&#160;&#151; CHC
    focus);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    CareDX (long term and assisted care markets).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The offerings provide a comprehensive test menu so each
    physician specialist can order the best test available to make a
    accurate diagnosis and appropriate treatment decisions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The anatomic pathology market is highly competitive. Competition
    in our industry is based on several factors, including price,
    clinical expertise, quality of service, client relationships,
    breadth of testing menu, speed of turnaround of test results,
    reporting and IT systems, reputation in the medical community
    and ability to employ qualified personnel. Our competitors
    include local and regional pathology groups, national
    laboratories, hospital-based pathology groups and specialty
    physician groups.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Local and Regional Pathology Groups.</I>&#160;&#160;Local and
    regional pathology groups typically provide a relatively narrow
    menu of test services to community physicians and, in certain
    cases, to hospital-based pathologists.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>National Laboratory Companies.</I>&#160;&#160;National
    laboratories typically offer a full suite of tests for a variety
    of medical professionals, including general practitioners,
    hospitals and pathologists. National laboratories have
    identified anatomic pathology as a focus area for future growth
    and will continue to be a competitive challenge going forward.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Hospital Pathologists.</I>&#160;&#160;Pathologists working in
    hospitals typically provide most of the diagnostic services
    required for hospital in-patients and, sometimes, hospital
    outpatients. Hospital pathologists act as medical directors for
    the hospital&#146;s clinical and histology laboratories.
    Typically, hospital pathologists provide these services to
    hospitals under exclusive and long-term contractual arrangements.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Specialty Physician Groups.</I>&#160;&#160;An increasing
    number of specialty physician groups (urologists and
    gastroenterologists in particular) are building their own
    laboratories and in-sourcing pathology services. This trend
    represents a significant source of competition, and it could
    impact the anatomic pathology landscape in the future. According
    to Laboratory Economics, at least 500 specialty physician groups
    have set up laboratories between 2005 and 2009.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The anatomic pathology market remains highly-fragmented, with
    the two largest clinical laboratory companies accounting for
    only 14&#160;percent of annual revenues for the market in 2008.
    The remaining 86&#160;percent of annual revenues for the market
    was comprised of over 13,000 pathologists and numerous
    specialized testing companies that offer a relatively narrow
    menu of diagnostic services. In 2008, approximately
    70&#160;percent of pathologists licensed in the U.S.&#160;were
    in private practices according to Washington G-2 Reports. There
    is an evolving trend among pathologists to form larger practices
    to provide a broader range of outpatient and inpatient services
    and enhance the utilization of the practices&#146; pathologists.
    We believe this trend can be attributed to several factors,
    including cost containment pressures by governmental and other
    third-party payors, increased competition, managed care and the
    increased costs and complexities associated with operating a
    medical practice. Moreover, given the current trends of
    increasing outpatient services, outsourcing and the
    consolidation of hospitals, pathologists are seeking to align
    themselves with larger practices that can assist providers in
    the evolving health care environment. Larger practices can offer
    pathologists certain advantages, such as obtaining and
    negotiating contracts with hospitals and other providers,
    managed care providers and national clinical laboratories;
    marketing and selling of professional services; providing
    continuing education and career advancement opportunities;
    making available a broad range of specialists with whom to
    consult; providing access to capital and business and management
    experience; establishing and implementing more efficient and
    cost effective billing and collection procedures; and expanding
    the practice&#146;s geographic coverage area. Each of these
    factors support the pathologists in the efficient
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    management of the complex and time-consuming non-medical aspects
    of their practice. As a result, we believe that there are
    substantial consolidation opportunities in the anatomic
    pathology market as smaller pathology providers seek access to
    the resources of diagnostics companies with a more comprehensive
    selection of services for referring physicians.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Seasonality</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is affected by seasonal trends and generally
    declines during the winter months, the year-end holiday period
    and other major holidays. Adverse weather conditions can also
    influence our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quality
    Assurance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We consider the quality of our diagnostic services to be of
    critical importance, and we have established a comprehensive
    quality assurance program for our laboratories designed to drive
    accurate and timely test results and to ensure the consistent
    high quality of our testing services. In addition to the
    compulsory proficiency programs and external inspections
    required by the Centers for Medicare &#038; Medicaid Services,
    or CMS, and other regulatory agencies, we have developed a
    variety of internal systems and procedures to emphasize,
    monitor, and continuously improve the quality of our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also participate in numerous externally-administered quality
    surveillance programs, and our laboratories are accredited by
    the College of American Pathologists, or CAP. CAP is an
    independent, non-governmental organization of board-certified
    pathologists that accredits laboratories nationwide on a
    voluntary basis and that has been accredited by CMS to inspect
    laboratories to determine adherence to the CLIA standards. The
    CAP accreditation program involves both unannounced
    <FONT style="white-space: nowrap">on-site</FONT>
    inspections of our laboratories and our participation in
    CAP&#146;s ongoing proficiency testing program. A
    laboratory&#146;s receipt of accreditation by CAP satisfies the
    Medicare requirement for participation in proficiency testing
    programs administered by an external source, one of
    Medicare&#146;s primary requirements for reimbursement
    eligibility.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Systems</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are focused on implementing IT systems that streamline
    internal operations and provide customized IT solutions to meet
    the needs of our clients. We offer our IT solutions primarily
    through the proprietary system <B>ConnectDx </B>and increasingly
    through the <B>doc2MD </B>system for which we have an exclusive,
    long-term license.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We developed <B>ConnectDx</B>, a customizable application
    platform to provide a gateway for delivering and printing our
    reports and communicating with many of our clients. A number of
    our IT solutions provide an immediate impact to referring
    physicians and their offices. The most common connectivity tools
    include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Electronic interfaces;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Client EMR interfacing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Internet report delivery (web portal);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Printed reports;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Patient education document;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Auto fax;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Patient data from clients office system requisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Color remote printing hardware;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Secure remote printing software.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Electronic interfaces provide a means through which we and our
    clients can share data efficiently and accurately. These
    customized interfaces can transfer patient information like
    demographics, requisitions and diagnostic results between our IT
    system and the IT system of our referring physicians. It takes
    us an average of
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    eight weeks to build and implement a new interface tailored to
    the client, whereas it may take our competitors up to eight
    months to implement a standard interface.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Two key elements that we believe differentiate <B>ConnectDx
    </B>from our competitors&#146; electronic interfaces are the
    relative speed with which we can create and implement customized
    solutions for clients and the reduced overhead costs associated
    with doing so. Since <B>ConnectDx </B>was created to accommodate
    flexibility, customizations such as delivering reports to
    specified client system directories or printing multiple copies
    of reports at physician offices during particular times each day
    are easy to implement. This functional flexibility is achieved
    with relatively low cost to us as a result of our IT
    solution&#146;s layered and adaptable design. We expect the
    number of <B>ConnectDx </B>installations to grow and provide
    additional value to our customers. We plan to expand the
    products offered through <B>ConnectDx </B>to include utilization
    and patient education reports as well as practice-specific
    solutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recently acquired an exclusive, long-term license to
    <B>doc2MD</B>, an EMR and practice management software that was
    specifically designed for dermatology practices, and we have
    begun installing this software at select client locations. We
    believe that the <B>doc2MD </B>software is a simple,
    cost-effective program that allows dermatologists to quickly and
    accurately document patient encounters. During 2009, we
    conducted a market test for <B>doc2MD </B>with a number of our
    dermatology practices and received positive feedback. We believe
    that <B>doc2MD </B>will provide us with the platform to drive
    our organic growth in the dermatopathology space, further
    enabling us to maintain stable relationships with existing
    dermatology clients and build relationships with new dermatology
    clients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our IT solutions are implemented on a laboratory by
    laboratory basis in connection with our efforts to integrate
    acquired laboratories. We have developed, and will continue to
    develop, faster integration times of our laboratory information
    system, or LIS, offering. After an acquisition, we generally
    transition our acquired laboratories to a common accounting
    system and software package for financial processing and
    reporting within 60&#160;days of closing. Generally, the LIS and
    billing platforms of our acquired laboratories, as well as all
    their
    <FONT style="white-space: nowrap">day-to-day</FONT>
    laboratory operations, continue to operate as they did
    pre-acquisition. We bill for our services using the existing
    billing systems of the acquired laboratories or, in some
    locations, we use an outsourced vendor to provide billing
    services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A significant benefit for acquired laboratories is the linkage
    of data between our central database and our laboratories via a
    private network. Information feeds from our laboratory systems
    to our centralized backend database tally accession details,
    client delivery products, practice management interfacing and
    sales data. Daily sales volumes are monitored and can be
    categorized by channel including product line, or territory. The
    centralized client contact system&#146;s ability to alert sales
    representatives to changes in client trends within a single day
    further enables our sales and client service teams to monitor
    existing client retention and grow our client base.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Structure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derive our revenues from owned practices in which we either
    directly employ our pathologists through our wholly owned
    operating subsidiaries, or, in states with laws that restrict
    the direct employment of physicians by for-profit corporations,
    we contract with an affiliated practice entity that employs our
    pathologists. As a result of corporate practice of medicine
    restrictions, the affiliated physicians in such states retain
    ownership of a separate practice entity through which they
    practice medicine, but we enter into contractual arrangements
    that generally:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prohibit our affiliated physicians from transferring their
    ownership interests in the practice entity, except in very
    limited circumstances,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require the affiliated physicians to transfer their ownership
    interests in the practice entity to our designees upon the
    occurrence of specified events.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Through these contractual arrangements, we have controlling
    voting and financial interests in the separate practice entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, in Alabama, which restricts the corporate practice
    of medicine, our laboratory is party to a long-term services
    agreement with an unaffiliated physician group that provides
    services to the laboratory on an exclusive basis. While we do
    not have a controlling voting or financial interest in the
    physician group, we have the
</DIV>
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    <BR>
    87
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    right to consult with the physician group regarding business
    decisions and approve or disapprove the retention or discharge
    of all employees by the physician group.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The manner in which we acquire and operate a particular practice
    is determined primarily by the corporate practice of medicine
    restrictions of the state in which the practice is located and
    other applicable regulations. We exercise diligence and care in
    structuring our practices and arrangements with providers in an
    effort to comply with applicable federal and state laws and
    regulations, and we believe that our current practices and
    arrangements do comply in all material respects with applicable
    laws and regulations. However, due to uncertainties in the law,
    there can be no assurance that our practices and arrangements
    would be deemed to be in compliance with applicable laws and
    regulations, and any noncompliance could result in a material
    adverse effect on us. See &#147;&#151;&#160;Government
    Regulation.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Contracts
    and Relationships with Providers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We employ our pathologists, control the practice entities that
    employ our pathologists or contract with pathologists on an
    independent contractor basis to provide diagnostic services in
    our laboratories. While we exercise legal control over our
    practices, we do not exercise control over, or otherwise
    influence, the medical judgment or professional decisions of any
    pathologist associated with our practices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our pathologist employment agreements typically have terms of
    between 3 and 5&#160;years and generally can be terminated by
    either party without cause upon between 90 and 180&#160;days
    notice. Our pathologists generally receive a base compensation,
    health and welfare benefits generally available to our employees
    and, in some cases, annual performance bonuses. Our pathologists
    are required to hold a valid license to practice medicine in the
    jurisdiction in which they practice. We are responsible for
    billing patients, physicians and payors for services rendered by
    our pathologists. Most of our pathologist employment agreements
    contain restrictive covenants, including non-competition,
    non-solicitation and confidentiality covenants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is dependent on the recruitment and retention of
    pathologists, particularly those with subspecialties like
    dermatopathology. While we have generally been able to recruit
    and retain pathologists in the past, no assurance can be given
    that we will be able to continue to do so successfully or on
    terms similar to our current arrangements. The relationship
    between our pathologists and their respective local medical
    communities is important to the operation and continued
    profitability of our practices. In the event that a significant
    number of pathologists terminate their relationships with us or
    become unable or unwilling to continue their employment, our
    business could be materially harmed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We manage and control all of the non-medical functions of our
    practices. We are not licensed to practice medicine. The
    practice of medicine is conducted solely by the physicians in
    our practices.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Billing
    and Reimbursement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Billing</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billing for diagnostic services is generally highly complex.
    Laboratories must bill various payors, such as private insurance
    companies, managed care companies, governmental payors such as
    Medicare and Medicaid, physicians, hospitals and employer
    groups, each of which may have different billing requirements.
    Additionally, the audit requirements we must meet to ensure
    compliance with applicable laws and regulations, as well as our
    internal compliance policies and procedures, add further
    complexity to the billing process. Other factors that complicate
    billing include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variability in coverage and information requirements among
    various payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    missing, incomplete or inaccurate billing information provided
    by ordering physicians;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    billings to payors with whom we do not have contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    disputes with payors as to which party is responsible for
    payment;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    disputes with payors as to the appropriate level of
    reimbursement.
</TD>
</TR>

</TABLE>
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    <BR>
    88
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billing for diagnostic services in connection with governmental
    payor programs is subject to numerous federal and state
    regulations and other requirements, resulting in additional
    costs to us. These additional costs include those related to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variability in coverage and information requirements among
    various payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased complexity in our billing due to the additional
    procedures and processes required by governmental payor programs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    training and education of our employees and customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance and legal costs;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    costs related to, among other factors, medical necessity denials
    and the absence of advance beneficiary notices.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Reimbursement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depending on the billing arrangement and applicable law, the
    party that reimburses us for our services may be:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a third party who provides coverage to the patient, such as an
    insurance company, managed care organization or a governmental
    payor program;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the physician or other authorized party (such as a hospital or
    another laboratory) who ordered the testing service or otherwise
    referred the services to us;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the patient.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, we derived
    approximately 61&#160;percent of our revenues from private
    insurance, including managed care organizations and other
    healthcare insurance providers, 25&#160;percent from
    governmental payor programs and 14&#160;percent from other
    sources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009, approximately 22&#160;percent of our annual revenues
    were derived from the Medicare program, which is overseen by
    CMS. Because a large percentage of our revenues are derived from
    the Medicare program, the Medicare coverage and reimbursement
    rules are significant to our operations. Reimbursement under the
    Medicare program for the diagnostic services that we offer is
    subject to either the national Medicare clinical laboratory fee
    schedule or the national Medicare physician fee schedule, each
    of which is subject to geographic adjustments and is updated
    annually. The physician fee schedule is designed to set
    compensation rates for those medical services provided to
    Medicare beneficiaries that require a degree of physician
    supervision. Clinical diagnostic laboratory tests furnished to
    non-hospital patients are paid according to the clinical
    laboratory fee schedule.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of the services that we provide are anatomic pathology
    services, which are reimbursed separately under the Medicare
    physician fee schedule, and beneficiaries are responsible for
    applicable coinsurance and deductible amounts. The physician fee
    schedule is based on assigned relative value units for each
    procedure or service, and an annually determined conversion
    factor is applied to the relative value units to calculate the
    reimbursement. The Sustainable Growth Rate formula used to
    calculate the fee schedule conversion factor resulted in
    significant decreases in payment levels in recent years,
    including a decrease in physician fee schedule payments for 2010
    of approximately 21&#160;percent. On December&#160;19, 2009, the
    President signed into law a provision that delayed the cut for
    two months until March&#160;1, 2010. The reimbursement cut was
    again delayed until May&#160;31, 2010. It is not clear when, or
    if, the cut will be enacted and, if so, for how long the cut
    will be effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Future decreases in the Medicare physician fee schedule are
    possible unless the U.S.&#160;Congress acts to change the
    Sustainable Growth Rate formula used to calculate the fee
    schedule payment amounts or continues to mandate freezes or
    increases each year. Because the vast majority of our diagnostic
    services currently are reimbursed under the physician fee
    schedule, changes to the physician fee schedule could result in
    a greater impact on our revenues than changes to the Medicare
    clinical laboratory fee schedule.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The clinical laboratory fee schedule assigns amounts to specific
    procedure billing codes, and each Medicare contractor
    jurisdiction has a fee schedule that establishes the price for
    each specific laboratory billing code. In addition, Medicare
    also sets a cap on the amount that it will pay for any
    individual test. Currently, this cap, usually
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    referred to as the National Limitation Amount, or NLA, is set at
    a percentage of the median of all the contractor fee schedule
    amounts for each test code. In the past, the U.S.&#160;Congress
    has frequently lowered the percentage of the median used to
    calculate the NLA in order to achieve budget savings. Currently,
    the NLA ceiling is set at 74&#160;percent of the medians for
    established tests and 100&#160;percent of the median for certain
    new tests that were not previously reimbursed. In billing
    Medicare for clinical laboratory services, we are required to
    accept, as payment in full, the lowest of our actual charge, the
    fee schedule amount for the state or local geographical area, or
    the NLA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we must accept Medicare payment for clinical laboratory
    services as payment in full, Medicare beneficiaries have no
    coinsurance or deductible amount for clinical laboratory
    services, although they do for anatomic pathology services.
    However, on several occasions, in recent years, the
    U.S.&#160;Congress has considered also imposing a
    20&#160;percent coinsurance on clinical laboratory fees, which
    would require us to bill patients for their portion of these
    services. To date, the U.S.&#160;Congress has never enacted such
    a provision. However, because of the relatively low payment for
    many clinical laboratory tests, the cost of billing and
    collecting for these services would often exceed the amount
    actually received from the patient. Therefore, the imposition of
    such a requirement by the U.S.&#160;Congress would have the
    effect of increasing our costs of billing and collecting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The federal Social Security Act establishes that these clinical
    laboratory fee schedule amounts are to be increased annually
    based on the Consumer Price Index for All Urban Consumers, or
    the CPI-U, as of June 30 for the previous
    <FONT style="white-space: nowrap">12-month</FONT>
    period. The U.S.&#160;Congress has frequently legislated that
    the CPI-U increase not be implemented. For instance, the
    U.S.&#160;Congress eliminated the CPI-U update through 2008 in
    the Medicare Prescription Drug, Improvement and Modernization
    Act of 2003, or MMA. For 2009, the CPI-U update would have been
    5.0&#160;percent. However, the Medicare Improvements for
    Patients and Providers Act of 2008, or MIPPA, mandated a
    0.5&#160;percent cut to the CPI-U for years 2009 through 2013.
    Accordingly, the update for 2009 was reduced to
    4.5&#160;percent. Because of the falling CPI-U and the
    0.5&#160;percent mandatory reduction, the clinical laboratory
    fee schedule update for 2010 was -1.9&#160;percent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;Congress recently passed, and the President
    recently signed into law, comprehensive health care reform
    legislation that consisted of the PPACA and the HCEARA. This
    legislation imposed additional cuts on the Medicare
    reimbursement for clinical laboratories and repealed the
    0.5&#160;percent cut that was enacted by MIPPA and replaced it
    with a &#147;productivity adjustment&#148; that will reduce the
    update in payments for clinical laboratory tests by between 1.1
    and 1.4&#160;percent. In addition, this legislation includes a
    1.75&#160;percent reduction in reimbursement rates for clinical
    laboratories for the years 2011 through 2015.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The payment amounts under the Medicare clinical laboratory fee
    schedule are important not only for our reimbursement under
    Medicare, but also because the schedule often establishes the
    payment amounts set by other third party payors. For example,
    state Medicaid programs are prohibited from paying more than the
    Medicare fee schedule limit for clinical laboratory services
    furnished to Medicaid recipients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The MMA required CMS to conduct a competitive bidding
    demonstration project for clinical laboratory tests, with some
    exclusions, to determine whether competitive bidding could be
    used to provide laboratory services at reduced cost to Medicare,
    while continuing to maintain quality and access to care.
    Anatomic physician services were not, however, covered by the
    demonstration. The initial demonstration project in the
    San&#160;Diego&#160;&#151; Carlsbad&#160;&#151; San&#160;Marcos,
    California area was scheduled to begin on July&#160;1, 2008.
    However, the demonstration project was enjoined by an April 2008
    preliminary injunction in a lawsuit filed by laboratory
    plaintiffs against the Secretary HHS, and the demonstration was
    later repealed in July 2008 by the U.S.&#160;Congress under
    MIPPA. Currently, the court in the lawsuit is considering the
    request by laboratories that CMS either return the bid
    information or agree not to use it in any rate-setting
    activities. The court recently denied the government&#146;s
    request to dismiss the lawsuit as moot. Despite the repeal of
    the demonstration project, the HHS Secretary could retain the
    bid application information to set lower future payment rates
    for laboratory services if the court decides against the
    laboratory plaintiffs. In addition, the U.S.&#160;Congress could
    revisit competitive bidding for clinical laboratory services in
    light of the current Administration&#146;s efforts to reform the
    healthcare system and generate healthcare savings. If
    competitive bidding for clinical laboratory services is
    implemented at a future time, we could be precluded from billing
    the Medicare program for certain clinical laboratory services
    furnished to Medicare beneficiaries if we are not a winning
    bidder, or, as part of the competitive bidding process, we could
    be required to offer reduced payment amounts in order to
    participate in the arrangement.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When we provide clinical diagnostic laboratory services to
    patients who reside in skilled nursing facilities, we must
    comply with special billing rules for Medicare. For skilled
    nursing facilities patients who are covered by Part&#160;A of
    Medicare, which typically applies to patients who have been
    discharged from a hospital into the skilled nursing facility, we
    must bill, and be paid by, the skilled nursing facility itself.
    For other Medicare patients, covered by Part&#160;B, we must
    bill Medicare directly for the testing services requested.
    Because skilled nursing facilities sometimes move between
    Part&#160;A and Part&#160;B coverage, billing appropriately for
    these services may be complex and time-consuming.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Government
    Regulation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The services that we provide are heavily regulated by both
    federal and state governmental authorities. Failure to comply
    with the applicable regulations can subject us to significant
    civil and criminal penalties, loss of license, or the
    requirement that we repay amounts previously paid to us. The
    significant areas of regulation are set out below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Clinical
    Laboratory Improvement Amendments of 1988 and State
    Regulation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a diagnostic service provider, each of our laboratory
    entities is required to hold certain federal, state and local
    licenses, certifications and permits to conduct our business.
    Under the Clinical Laboratory Improvement Amendments of 1988, or
    CLIA, each laboratory is required to hold a certificate
    applicable to the type of work we perform at the laboratory and
    to comply with certain CLIA-imposed standards. CLIA regulates
    virtually all clinical laboratories by requiring they be
    certified by the federal government and comply with various
    operational, personnel, facilities administration, quality and
    proficiency requirements intended to ensure that their clinical
    laboratory testing services are accurate, reliable and timely.
    CLIA does not preempt state laws that are more stringent than
    federal law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of the renewal process, our laboratories are subject to
    survey and inspection every two years to assess compliance with
    program standards and may be subject to additional random
    inspections. Standards for testing under CLIA are based on the
    level of complexity of the tests performed by the laboratory.
    Laboratories performing high complexity testing are required to
    meet more stringent requirements than laboratories performing
    less complex tests. Each of our laboratories holds a CLIA
    certificate to perform high complexity testing. CLIA compliance
    and certification is also a prerequisite to be eligible to bill
    for services provided to governmental payor program
    beneficiaries. In addition, each laboratory must also enroll
    with an approved proficiency testing program by which it
    periodically tests specimens submitted from an outside
    proficiency testing organization and then submits its results
    back to the organization for grading. Failure to achieve a
    passing score on a proficiency test can result in the laboratory
    losing its right to perform the test at issue. Failure to comply
    with other proficiency testing regulations, such as referring a
    proficiency testing specimen to another laboratory for analysis,
    can result in the revocation of the laboratory&#146;s license
    and of the licenses of other laboratories owned by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to CLIA requirements, we are subject to various
    state laws. CLIA provides that a state may adopt laboratory
    regulations that are more stringent than those under federal
    law. In some cases, the state programs actually substitute for
    the federal CLIA program. In other instances the state&#146;s
    regulations may be in addition to the CLIA program. State laws
    may require that laboratory personnel meet certain
    qualifications, specify certain quality controls or prescribe
    record maintenance requirements. Our laboratories are licensed
    and accredited by the appropriate state agencies in the states
    in which they operate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Health
    Insurance Portability and Accountability Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the administrative simplification provisions of the Health
    Insurance Portability and Accountability Act, or HIPAA, HHS has
    issued regulations that establish uniform standards governing
    the conduct of certain electronic healthcare transactions and
    protecting the privacy and security of protected health
    information, referred to as PHI, used or disclosed by healthcare
    providers and other covered entities. Four principal regulations
    with which we are currently required to comply have been issued
    in final form under HIPAA: privacy regulations; security
    regulations; standards for electronic transactions; and the
    national provider identifier, or NPI, regulations. We must also
    comply with regulations that require covered entities and
    business associates to provide notification after a breach of
    unsecured PHI.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The privacy regulations cover the use and disclosure of PHI by
    healthcare providers. They also set forth certain rights that an
    individual has with respect to his or her PHI maintained by a
    healthcare provider, including the right to access or amend
    certain records containing PHI or to request restrictions on the
    use or disclosure of PHI. The HIPAA privacy regulations, among
    other things, restrict our ability to use or disclose PHI in the
    form of patient-identifiable laboratory data without written
    patient authorization for purposes other than payment,
    treatment, or healthcare operations, except for disclosures for
    various public policy purposes and other permitted purposes
    outlined in the privacy regulations. The privacy regulations
    provide for significant fines and other penalties for wrongful
    use or disclosure of PHI. In addition, the American Recovery and
    Reinvestment Act of 2009, or ARRA, increases the civil monetary
    penalty amounts for violations of the HIPAA regulations.
    Although the HIPAA statute and regulations do not expressly
    provide for a private right of damages, laws in certain states
    provide for damages to private parties for the wrongful use or
    disclosure of confidential health information or other private
    personal information. Moreover, ARRA has created a new right of
    action for state attorneys general to sue on behalf of
    individuals who are harmed under the HIPAA regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The security regulations establish requirements for safeguarding
    the confidentiality, integrity and availability of PHI which is
    electronically transmitted or electronically stored. The
    security regulations provide for sanctions and penalties for
    violations. In addition, ARRA increases the civil monetary
    penalty amounts for violations of the HIPAA regulations and
    creates a new right of action for state attorneys general. The
    HIPAA privacy and security regulations establish a uniform
    federal minimum standard and do not supersede state laws that
    are more stringent or provide individuals with greater rights
    with respect to the privacy or security of, and access to, their
    records containing PHI. As a result, we are required to comply
    with both HIPAA privacy and security regulations and varying
    state privacy and security laws. ARRA also applies the HIPAA
    privacy and security provisions and the civil and criminal
    penalties associated with violating these provisions to business
    associates in the same manner as they apply to covered entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, HIPAA imposes standards for electronic
    transactions, which establish standards for common healthcare
    transactions. In particular, we utilize these standard
    transaction sets where required by HIPAA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Finally, HIPAA also established a new NPI as the standard unique
    health identifier for healthcare providers to use in filing and
    processing healthcare claims and other transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of the HIPAA requirements, certain specified coding sets
    are established that must be used for all billing transactions.
    Currently, all healthcare providers use a system of diagnosis
    coding referred to as the International Classification of
    Diseases, 9th edition, or ICD-9. However, HHS, which oversees
    HIPAA, has recently established a new requirement that will
    require all healthcare entities, including ours, to move to a
    new system of diagnosis codes, ICD-10, by October&#160;1, 2013.
    ICD-10 utilizes more codes and is considered more complex than
    the current system. Because we must often rely on referring
    physicians to supply us with the appropriate diagnosis codes,
    the movement to the new system may increase billing difficulties
    if physicians or payors have difficulty in making the transition
    to the new codes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to PHI, the healthcare information of patients often
    includes social security numbers and other personal information
    that is not of an exclusively medical nature. The consumer
    protection laws of a majority of states now require
    organizations that maintain such personal information to notify
    each individual if their personal information is accessed by
    unauthorized persons or organizations so that the individuals
    can, among other things, take steps to protect themselves from
    identity theft. Penalties imposed by these state consumer
    protection laws vary from state to state but may include
    significant civil monetary penalties, private litigation and
    adverse publicity. In addition, the Federal Trade Commission, or
    FTC, has established new Red Flag Rules relating to identity
    theft prevention programs, which are considered applicable to
    healthcare companies. The compliance date for the Red Flag Rules
    has repeatedly been delayed and is currently June&#160;1, 2010.
    Under the Red Flag Rules, the FTC is authorized to bring
    enforcement actions in federal court for violations and could
    impose a $2,500 penalty for each violation of the Red Flag
    Rules. Noncompliance could also be penalized through state
    enforcement or other civil liability.
</DIV>
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    <B><I><FONT style="font-family: 'Times New Roman', Times">Federal
    and State Fraud and Abuse Laws</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are a variety of federal laws prohibiting fraud and abuse
    involving federal government payment programs, such as Medicare
    and Medicaid. These laws are enforced by the federal
    U.S.&#160;Attorneys and the HHS Office of the Inspector General,
    or OIG. In addition, the Medicare program increasingly uses a
    variety of contractors to review billings submitted by providers
    to the Medicare program. These contractors include Recovery
    Audit Contractors, or RACs, and Carrier Error Rate Test, or
    CERT, contractors. The RAC program began as a demonstration
    program in a limited number of states that was designed to
    detect improper Medicare payments to providers and suppliers. It
    was expanded to cover all 50&#160;states by Section&#160;302 of
    the Tax Relief and Health Care Act of 2006, which makes the RAC
    program permanent and requires the HHS Secretary to expand the
    program to all 50&#160;states by no later than 2010. In
    addition, CMS conducts CERT audits, which also monitor the
    accuracy of payments made by Medicare payment contractors. In
    either case, any overpayments found by the RAC or CERT
    contractors must be repaid to the Medicare program. In some
    cases, these overpayments can be used as the basis for an
    extrapolation, by which the error rate is applied to a larger
    universe of claims, which can result in even higher repayments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The federal healthcare Anti-Kickback Law prohibits, among other
    things, knowingly and willfully offering, paying, soliciting or
    receiving remuneration as an inducement for, or in return for,
    the purchase, lease or order of any healthcare item or service
    reimbursable under a governmental payor program. The definition
    of &#147;remuneration&#148; has been broadly interpreted to
    include anything of value, including, for example, gifts,
    discounts, the furnishing of supplies or equipment, credit
    arrangements, payments of cash, waivers of payments, ownership
    interests and providing anything at less than its fair market
    value. The Anti-Kickback Law is broad, and it prohibits many
    arrangements and practices that are lawful in businesses outside
    of the healthcare industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Recognizing that the Anti-Kickback Law is broad and may
    technically prohibit many innocuous or beneficial arrangements
    within the healthcare industry, HHS has issued a series of
    regulatory &#147;safe harbors.&#148; These safe harbor
    regulations set forth certain provisions which, if met, will
    assure healthcare providers and other parties that they will not
    be prosecuted under the federal Anti-Kickback Law. Although full
    compliance with these provisions ensures against prosecution
    under the federal Anti-Kickback Law, the failure of a
    transaction or arrangement to fit within a specific safe harbor
    does not necessarily mean that the transaction or arrangement is
    illegal or that prosecution under the federal Anti-Kickback Law
    will be pursued. Still, in the absence of an applicable safe
    harbor, a violation of the Anti-Kickback Law may occur even if
    only one purpose of an arrangement is to induce patient
    referrals or purchases or to induce the provision of a
    laboratory service reimbursable by a federal healthcare program.
    The penalties for violating the Anti-Kickback Law can be severe.
    These sanctions include criminal penalties and civil sanctions,
    including fines, imprisonment and possible exclusion from the
    Medicare and Medicaid programs. Many states have also adopted
    laws similar to the federal Anti-Kickback Law, some of which
    apply to the referral of patients for healthcare items or
    services reimbursed by any source, not only governmental payor
    programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, arrangements that would be considered suspect and
    possible violations under the Anti-Kickback Law include
    arrangements between a laboratory and a physician (or related
    organizations or individuals) in which the laboratory would:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide items or services to the physician or other referral
    source without charge or for amounts that are less than their
    fair market value;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pay the physician or other referral source amounts that are in
    excess of the fair market value of items or services that were
    provided;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into an arrangement with a physician or other entity
    because it is a current or potential referral source.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2006, the OIG adopted a new safe harbor (and an exception
    under the Physician Self-Referral Law, discussed below) that
    permitted health care entities, including laboratories, to
    provide electronic prescribing and electronic health records, or
    EHR, technology to referring physicians. Compliance with the
    provisions of these provisions allows us to donate EHR to
    physicians without being found to be in violation of either the
    Anti-Kickback Law or the Physician Self-Referral Law. Under
    these provisions, we are permitted to donate software,
    information technology and training services (but not hardware)
    that is necessary and used predominately to create, maintain,
    transmit or receive EHR, so long as the recipient of the
    donation meets certain established criteria. Such technology
</DIV>
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    must be considered &#147;interoperable&#148; and must have
    certain other capabilities established in the regulations. In
    addition, the recipient of the donation must pay at least
    15&#160;percent of the cost of the service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, the OIG issues alerts and other guidance on
    certain practices in the healthcare industry. In October 1994,
    the OIG issued a Special Fraud Alert on arrangements for the
    provision of laboratory services. The Fraud Alert set forth a
    number of practices allegedly engaged in by some laboratories
    and healthcare providers that raise issues under the
    Anti-Kickback Law. These practices include laboratories
    providing:
</DIV>

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    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
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    employees to furnish valuable services for physicians (other
    than collecting patient specimens for testing for the
    laboratory) that are typically the responsibility of the
    physicians&#146; staff;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    free testing to physicians&#146; managed care patients in
    situations where the referring physician benefits from the free
    laboratory tests;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    free <FONT style="white-space: nowrap">pick-up</FONT>
    and disposal of biohazardous waste for physicians for items
    unrelated to a laboratory&#146;s testing services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general-use facsimile machines or computers to physicians that
    are not exclusively used in connection with the laboratory
    services;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    free testing for healthcare providers, their families and their
    employees, known as professional courtesy testing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The OIG emphasized in the Special Fraud Alert that when one
    purpose of an arrangement is to induce referrals of
    program-reimbursed laboratory testing, both the laboratory and
    the healthcare provider or physician may be liable under the
    Anti-Kickback Law and may be subject to criminal prosecution and
    exclusion from participation in the Medicare and Medicaid
    programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The OIG has also expressed concern about the provision of
    discounts on laboratory services billed to customers in return
    for the referral of more lucrative federal healthcare program
    business. In a 1999 Advisory Opinion, the OIG concluded that a
    proposed arrangement whereby a laboratory would offer physicians
    significant discounts on non-federal healthcare program
    laboratory tests might violate the Anti-Kickback Law. The OIG
    reasoned that the laboratory could be viewed as providing such
    discounts to the physician in exchange for referrals by the
    physician of business to be billed by the laboratory to Medicare
    at non-discounted rates. The OIG indicated that the arrangement
    would not qualify for protection under the discount safe harbor
    because Medicare and Medicaid would not get the benefit of the
    discount. Subsequently, in 2000 correspondence, the OIG stated
    that the Anti-Kickback Law could be violated if there were
    linkage between the discount offered to the physician and the
    physician&#146;s referrals of tests covered under a federal
    healthcare program that would be billed by the laboratory
    directly. Where there was evidence of such linkage, the
    arrangement would be considered suspect if the charge to the
    physician was below the laboratory&#146;s &#147;average fully
    loaded costs&#148; of the test.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed above, discounts to referral sources raise issues
    under the Anti-Kickback Law. In addition, any discounted charge
    below the amount that Medicare or Medicaid would pay for a
    service also raises issues under Medicare&#146;s
    &#147;substantially in excess&#148; provision. The Medicare
    statute permits the government to exclude a laboratory from
    participation in federal healthcare programs if it charges
    Medicare or Medicaid substantially in excess of its usual
    charges in the absence of good cause. In 2000, the OIG stated in
    informal correspondence that the prohibition was violated only
    if the laboratory&#146;s charge to Medicare was substantially
    more than the &#147;median non-Medicare/-Medicaid charge.&#148;
    On September&#160;15, 2003, the OIG issued a notice of proposed
    rulemaking addressing the statutory prohibition. Under the
    proposed rule, a provider&#146;s charge to Medicare or Medicaid
    would be considered &#147;substantially in excess of [its] usual
    charges&#148; if it was more than 120&#160;percent of the
    provider&#146;s mean or median charge for the service. The
    proposed rule was withdrawn in June 2007. At that time, the OIG
    stated that it would continue to evaluate billing patterns of
    individuals and entities on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the administrative simplification regulations
    discussed above, HIPAA created two new federal crimes:
    healthcare fraud and false statements relating to healthcare
    matters. The healthcare fraud statute prohibits knowingly and
    willfully executing a scheme to defraud any healthcare benefit
    program, including private payors. A violation of this statute
    is a felony and may result in fines, imprisonment or exclusion
    from governmental payor programs such as the Medicare and
    Medicaid programs. The false statements statute prohibits
    knowingly and
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    willfully falsifying, concealing or covering up a material fact
    or making any materially false, fictitious or fraudulent
    statement in connection with the delivery of or payment for
    healthcare benefits, items or services. A violation of either of
    these two statutes is a felony and may result in fines or
    imprisonment or exclusion from governmental payor programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Finally, another development affecting the healthcare industry
    is the increased use of the False Claims Act and, in particular,
    actions brought pursuant to the False Claims Act&#146;s
    &#147;whistleblower&#148; or &#147;qui tam&#148; provisions. The
    False Claims Act imposes liability on any person or entity that,
    among other things, knowingly presents, or causes to be
    presented, a false or fraudulent claim for payment by a federal
    governmental payor program. Under the False Claims Act, a person
    acts knowingly if he has actual knowledge of the information,
    acts in deliberate ignorance of the truth or falsity of the
    information, or acts in reckless disregard of the truth or
    falsity of the information, A claim may be considered false if
    any information included on the claim is inaccurate, including
    the code reflecting the patient&#146;s diagnosis or the
    procedure performed. Similarly, if the service for which the
    claim was submitted does not reflect the service that was
    ordered and performed, the claim could be considered a false
    claim. The qui tam provisions of the False Claims Act allow a
    private individual to bring actions on behalf of the federal
    government, alleging that the defendant has defrauded the
    federal government by submitting a false claim to the federal
    government, and they permit such individuals to share in any
    amounts paid by the entity to the government in fines or
    settlement. In addition, various states have enacted false claim
    laws analogous to the federal False Claims Act, although many of
    these state laws apply where a claim is submitted to any third
    party payor and not merely a governmental payor program. When an
    entity is determined to have violated the False Claims Act, it
    may be required to pay up to three times the actual damages
    sustained by the government, plus civil penalties of between
    $5,500 and $11,000 for each separate false claim. Conduct that
    violates the False Claims Act may also lead to exclusion from
    the Medicare and Medicaid programs. Given the number of claims
    likely to be at issue in connection with any billing practice on
    which liability might be based, potential damages under the
    False Claims Act for even a single inappropriate billing
    arrangement could be significant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;20, 2009, the Federal Enforcement and Recovery Act
    of 2009, or FERA, became law, significantly amending the federal
    False Claims Act. FERA subjects entities to False Claims Act
    liability if they knowingly make a false statement in an attempt
    to obtain money or property that is to be spent or used on the
    government&#146;s behalf or to advance a government program or
    interest. Previously, the False Claims Act allowed entities to
    be held liable for making false statements only if such
    statements were made to &#147;get&#148; a false claim paid or
    approved &#147;by the Government.&#148; Because no guidance
    exists as to the meaning of the language contained in FERA, the
    full scope of this provision will likely be resolved in
    <FONT style="white-space: nowrap">case-by-case</FONT>
    litigation. The False Claims Act amendments under FERA also
    extend liability for the knowing retention of overpayments. The
    overpayment provision imposes liability if an entity
    &#147;knowingly and improperly avoids or decreases an obligation
    to pay or transmit money or property to the Government.&#148;
    This provision has been interpreted to require recipients of
    government funds to immediately determine whether they have
    received &#147;overpayments&#148; and whether the funds received
    should be retained or returned to the government. Under the
    False Claims Act amendments, recipients of government funds may
    also now face False Claims Act liability for failure to repay,
    or at least to reassess, historical overpayments of which they
    are currently aware. The enactment of FERA will likely result in
    heightened scrutiny and enforcement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Physician
    Referral Prohibitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under a federal law directed at &#147;self-referral,&#148;
    commonly known as the &#147;Stark Law,&#148; there are
    prohibitions, with certain exceptions, on Medicare and Medicaid
    payments for laboratory tests referred by physicians who
    personally, or through a family member, have an investment
    interest in, or a compensation arrangement with, the laboratory
    performing the tests. A person who engages in a scheme to
    circumvent the Stark Law&#146;s referral prohibition may be
    fined up to $100,000 for each such arrangement or scheme. In
    addition, any person who presents or causes to be presented a
    claim to the Medicare or Medicaid program in violation of the
    Stark Law is subject to civil monetary penalties of up to
    $15,000 per bill submission, an assessment of up to three times
    the amount claimed, and possible exclusion from participation in
    federal governmental payor programs. Bills submitted in
    violation of the Stark Law may not be paid by Medicare or
    Medicaid, and any person collecting any amounts with respect to
    any such prohibited bill is obligated to refund such amounts.
    Many states also have anti-&#147;self-referral&#148; and other
    laws that are not limited to Medicare and Medicaid referrals.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Stark Law prohibits a laboratory from obtaining payment for
    services resulting from a physician&#146;s referrals if there is
    any arrangement between the laboratory and the physician or the
    physicians&#146; practice that involves remuneration, unless the
    arrangement is protected by an exception to the Stark Law&#146;s
    self-referral prohibition or a provision of the Stark Law
    stating that the particular arrangement would not result in
    &#147;remuneration,&#148; as defined for purposes of the Stark
    Law. In addition, under the Stark Law&#146;s provisions, a
    request by a pathologist for laboratory and pathology testing
    services is not considered a &#147;referral&#148; covered by the
    Stark Law, so long as the request meets certain other
    requirements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Government Billing and Payment Policies</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many payors establish specific rules and requirements that
    affect how we bill for our services. The most significant of
    those payors is the federal Medicare program, because it
    accounts for a substantial percentage of our revenues.
    Therefore, we must closely follow the policies that are imposed
    by Medicare with regard to billing and payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Medicare has several ways in which it can limit how it pays for
    our services. For example, Medicare can impose either National
    Coverage Decisions (NCD) or Local Coverage Decisions
    (LCD)&#160;for the services that we provide. Under NCDs and
    LCDs, Medicare can impose imitations on when it will pay for
    certain services, such as requiring particular diagnosis codes
    to be submitted from the physician or limiting the number of
    units of any particular service. Recently, the Medicare
    Administrative Contractors, or MACs, which process and pay
    Medicare claims, have considered some LCDs that could limit how
    we bill for our services. For example, Palmetto GBA, which
    processes Medicare claims in several jurisdictions, has limited
    how it reimburses for flow cytometry services, which constitute
    a commonly performed pathology service. If that policy is
    implemented, or if other MACs adopt a similar policy, then it
    could limit the payment we receive for these services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Medicare has implemented a policy referred to as
    Medically Unbelievable Edits, which limit the number of units of
    a service that can be billed at any one time. Some Medically
    Unbelieveable Edits have already been established for the
    services that we offer, and Medicare is considering adding
    Medically Unbelievable Edits for some other services that we
    offer. Under these edits, Medicare will not pay us for any
    services, if we bill for more units of service than are
    permitted under the Medically Unbelievable Edits limit
    established by Medicare. This could affect the amount that we
    are paid for services that we bill to the Medicare Program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Medicare also regulates who we are permitted to bill for our
    services. In most instances, we must bill directly to, and are
    paid by, Medicare or its contractors for the services that we
    furnish to Medicare beneficiaries. However, because of recent
    interpretations by Medicare, ordering physicians are permitted
    to order diagnostic services, such as those that we provide,
    which the service provider then bills to the physician or his
    group practice. The ordering physician, in turn, then bills and
    is paid by the Medicare Program. In response to these
    arrangements, Medicare has enacted an &#147;anti-markup&#148;
    provision that requires physicians to bill Medicare at their
    acquisition price for the services, rather than at the higher
    Medicare fee schedule amount. However, even under the
    anti-markup provision, physicians are permitted to bill Medicare
    at the full fee schedule amount if the services were performed
    by a physician who &#147;shares a practice&#148; with the
    ordering physician. The services will be considered to have been
    done by a physician who shares a practice with the ordering
    physician, so long as they were done in the same building where
    the ordering physician maintains a practice. This interpretation
    of the anti-markup provision, as well as other provisions, may
    lead more physicians to decide to provide these services
    &#147;in house,&#148; which could affect our revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Medicare regulations, we are also sometimes required to
    bill other entities for the services that we provide. In 1999,
    Medicare announced a policy that applies to anatomic pathology
    specimens for hospital patients. This policy would require us to
    bill the technical component to the hospital and the
    professional component to Medicare for all anatomic pathology
    services that we provide to hospital patients. However, in 2000,
    the U.S.&#160;Congress prevented this policy from going into
    effect for all &#147;covered hospitals,&#148; which were those
    hospitals that had arrangements with independent laboratories in
    effect as of July&#160;22, 1999, the date that CMS had first
    announced the policy. That &#147;grandfather provision&#148; was
    originally scheduled to be effective for two years, but it has
    been extended repeatedly by the U.S.&#160;Congress and remains
    in effect. The &#147;grandfather provision&#148; is currently
    scheduled to expire on December&#160;31, 2010.
</DIV>
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    <B><I><FONT style="font-family: 'Times New Roman', Times">Education
    Requirements of the Deficit Reduction Act of 2005</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The federal Deficit Reduction Act of 2005, or DRA, contains,
    among other things, requirements concerning False Claims Act
    education that state Medicaid programs must impose on
    participating providers as well as other entities. The DRA
    requires organizations that make or receive Medicaid payments of
    at least $5&#160;million annually in a state to establish an
    education plan for their employees, managers, contractors and
    agents, which must include written policies and detailed
    guidance on the federal False Claims Act, state false claims
    laws, and the rights and protections afforded whistleblowers
    under the False Claims Act and its state counterparts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Food
    and Drug Administration Regulation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to its authority under the federal Food, Drug and
    Cosmetic Act, or FDCA, the Food and Drug Administration, or FDA,
    has regulatory responsibility over instruments, test kits,
    reagents and other devices used to perform diagnostic testing by
    laboratories such as ours. Specifically, the manufacturers and
    suppliers of reagents, which we obtain for use in diagnostic
    tests, are subject to regulation by the FDA and are required to,
    among other things, register their establishments with the FDA,
    to conform manufacturing operations to the FDA&#146;s quality
    system regulation, or QSR, and to comply with certain reporting
    and other record-keeping requirements. The FDA also regulates
    the sale or distribution, in interstate commerce, of products
    classified as medical devices under the FDCA, including
    in&#160;vitro diagnostic test kits. Such devices must undergo
    premarket review by the FDA prior to commercialization unless
    the device is of a type exempted from such review by statute or
    pursuant to the FDA&#146;s exercise of enforcement discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The FDA has not usually attempted to regulate standard
    laboratory diagnostic tests developed and validated by
    laboratories for their own use, known as laboratory-developed
    tests or LDTs; rather, it has stated it will exercise its
    enforcement discretion over such tests. However, more recently,
    the FDA has expressed some concern about the use of certain
    LDTs, including new, sophisticated molecular diagnostics or
    genetic testing, and has suggested greater FDA oversight of such
    tests may be appropriate. One of our laboratories uses some LDTs
    and, therefore, some of the tests that we offer could be subject
    to the FDA requirements if the FDA were to act in this area. The
    FDA regularly considers the application of additional regulatory
    controls over the development and use of LDTs by laboratories
    such as ours, and with the recent change in political
    administration at the FDA, more robust enforcement, (including
    inspections, warning letters, and other agency inquiries) of the
    applicable pre- and post-market requirements for LDTs is
    possible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The comprehensive health care reform legislation enacted in 2010
    contains a provision that creates a new 2.3&#160;percent excise
    tax applicable to the sale of medical devices. Because we
    purchase and utilize certain products in our laboratory that
    could be considered medical devices, it is possible that some of
    these products could be subject to this excise tax. Because this
    legislation is new and insufficient guidance exists as to its
    applicability, we are currently unable to determine the impact
    this provision will have on our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">State
    Requirements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Corporate
    Practice of Medicine</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Numerous states have enacted laws prohibiting business
    corporations, such as us, from practicing medicine and employing
    or engaging physicians to practice medicine. These laws are
    designed to prevent interference in the medical decision-making
    process by anyone who is not a licensed physician. This
    prohibition is generally referred to as the prohibition against
    the corporate practice of medicine. Violation of this
    prohibition may result in civil or criminal fines, as well as
    sanctions imposed against us
    <FONT style="white-space: nowrap">and/or</FONT> the
    professional through licensing proceedings. We do not employ
    physicians in any states where the prohibition against the
    corporate practice of medicine applies to our laboratories. Our
    arrangements with providers in corporate practice of medicine
    states are described above under &#147;&#151;&#160;Corporate
    Structure&#148; and &#147;&#151;&#160;Contracts and
    Relationships with Providers.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Direct
    Billing Laws</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While we often cannot bill physicians for our services when
    those services are covered under a government program, where
    permissible, we do in some cases bill referring physicians for
    services that are not covered under a
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    government program. Laws and regulations in several states
    currently preclude us from billing referring physicians, either
    by requiring us to bill directly the third-party payor or other
    person ultimately responsible for the service or by prohibiting
    or limiting the referring physician&#146;s or other
    purchaser&#146;s ability to &#147;markup&#148; its acquisition
    cost for that service. An increase in the number of states that
    impose similar restrictions could adversely affect us by
    encouraging physicians to furnish such services directly or by
    causing physicians to refer services to another laboratory for
    testing.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">State
    Laboratory Licensing</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to CLIA requirements, we are subject to various
    state laws regulating the operation of our laboratories, as well
    as the receipt by our laboratories of
    <FONT style="white-space: nowrap">out-of-state</FONT>
    specimens. If a laboratory is out of compliance with a
    state&#146;s statutory or regulatory standards, the applicable
    state agency may suspend, limit, revoke or annul the
    laboratory&#146;s license, censure the holder of the license or
    assess civil money penalties. In certain instances, statutory or
    regulatory noncompliance may also result in a laboratory&#146;s
    being found guilty of a misdemeanor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of Florida, New York, Alabama, New Hampshire, Nevada,
    Massachusetts and Georgia require in-state laboratories to be
    licensed under the laws and regulations of such states. Because
    New York State&#146;s regulation of laboratories is more
    stringent than the federal CLIA standards, New York State is
    exempt from CLIA. However, New York State maintains its own
    regulatory framework, which establishes standards for
    <FONT style="white-space: nowrap">day-to-day</FONT>
    operation of a clinical laboratory, physical facilities
    requirements, equipment and quality control. New York law also
    mandates proficiency testing for laboratories licensed under New
    York state law, regardless of whether or not such laboratories
    are located in New York. Each of our laboratories is licensed
    and accredited by the appropriate state agency in the state in
    which it operates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    States&#146; Laboratory Testing</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Florida, New York, Pennsylvania, California and Maryland each
    require
    <FONT style="white-space: nowrap">out-of-state</FONT>
    laboratories that accept specimens from those states to be
    licensed. We have obtained licenses in these states and believe
    we are in material compliance with applicable licensing laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may become aware from time to time of other states that
    require
    <FONT style="white-space: nowrap">out-of-state</FONT>
    laboratories to obtain licensure in order to accept specimens
    from the state, and it is possible that other states do have
    such requirements or will have such requirements in the future.
    If we identify any other state with such requirements or if we
    are contacted by any other state advising us of such
    requirements, we intend to follow instructions from the state
    regulators as to how we should comply with such requirements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Physician
    Licensing</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many of the states from which we solicit specimens require that
    a physician interpreting specimens from that state be licensed
    by that particular state, irrespective of where the services are
    provided. If our pathologists read specimens from states for
    which they are not properly licensed, our pathologists could be
    considered to be engaged in the unlicensed practice of medicine
    and could face fines or other penalties, which we could be
    required to pay on behalf of our pathologists. We are not aware
    of any states from which we do not have required pathologist
    licenses.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Regulatory Requirements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our laboratory is subject to federal, state and local
    regulations relating to the handling and disposal of regulated
    medical waste, hazardous waste and biohazardous waste, including
    chemical and biological agents and compounds, blood and bone
    marrow samples and other human tissue. Typically, we use outside
    vendors who are contractually obligated to comply with
    applicable laws and regulations to dispose of such waste. These
    vendors are licensed or otherwise qualified to handle and
    dispose of such waste. Historically, our costs associated with
    handling and disposal of such wastes have not been material.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Occupational Safety and Health Administration has
    established extensive requirements relating to workplace safety
    for healthcare employers, including requirements to develop and
    implement programs to protect workers from exposure to
    blood-borne pathogens by preventing or minimizing any exposure
    through
</DIV>
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    <BR>
    98
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    needle stick or similar penetrating injuries. We have instituted
    policies and procedures to comply with the OSHA requirements,
    and we regularly monitor the implementation of our safety
    programs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compliance
    Infrastructure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Compliance with government rules and regulations is a
    significant concern throughout our industry, in part due to
    evolving interpretations of these rules and regulations. We seek
    to conduct our business in compliance with all statutes and
    regulations applicable to our operations. To this end, we have
    created a Compliance Committee and have designated a Compliance
    Officer to assist with reviews of regulatory compliance
    procedures and policies throughout our business. Our executive
    management team is responsible for the oversight and operation
    of our compliance efforts. The Compliance Officer is responsible
    for administering and monitoring compliance with our Standards
    of Conduct. We provide periodic training programs to our
    personnel to promote the observance of our policies, which are
    designed to ensure compliance with the statutes and regulations
    applicable to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Intellectual
    Property</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our intellectual property consists primarily of trademarks and
    trade secrets. The marks AURORA DIAGNOSTICS and CONNECTDX THE
    INFORMATION GATEWAY and Design are our most recognizable
    trademarks. Those trademarks are registered with the
    U.S.&#160;Patent and Trademark Office, or USPTO, along with the
    mark CUNNINGHAM PATHOLOGY ASSOCIATES P.A. and Design. We have
    submitted applications to the USPTO for registration of the
    marks DERMDX, GASTRODX, TREATMENTDX, URODX and WOMEN&#146;SDX.
    We maintain a program to protect our trademarks and will
    institute legal action where necessary to prevent others from
    using or registering confusingly similar trademarks. Our
    intellectual property also includes the copyright in and to our
    Tiger TCPC software, which is registered with the
    U.S.&#160;Copyright Office.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Properties
    and Facilities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We lease our corporate headquarters at 11025 RCA Center Drive,
    Suite&#160;300, Palm Beach Gardens, FL 33410 (approximately
    8,500&#160;square feet), and we lease 32 other facilities: 12 in
    Florida, one in New York, two in Nevada, one in New Jersey, two
    in Arizona, four in Michigan, one in New Hampshire, one in
    Massachusetts, one in Minnesota, one in Texas, one in Georgia,
    four in Alabama and one in North Carolina. These facilities are
    used for laboratory operations, administrative, billing and
    collections operations and storage space. The 32 facilities have
    lease terms expiring from 2010 to 2019. We also own one
    commercial condominium in Florida, which is used as a draw
    station and satellite laboratory.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Insurance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain liability insurance for our services. As a general
    matter, providers of diagnostic services may be subject to
    lawsuits alleging medical malpractice or other similar legal
    claims. Some of these suits may involve claims for substantial
    damages, and the results may be material to our results of
    operations and cash flows in the period in which the impact of
    such claims is determined or the claims are paid. We believe our
    insurance coverage is sufficient to protect us from material
    liability for such claims, and we believe that we will be able
    to obtain adequate insurance coverage in the future at
    acceptable costs. However, we must renew our insurance policies
    annually, and we may not be able to maintain adequate liability
    insurance in the future on acceptable terms or with adequate
    coverage against potential liabilities or at all.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;31, 2010, we had 986&#160;employees. We employ
    73 pathologists, 764 laboratory technicians and staff, 30
    corporate office personnel and 103 sales, marketing and client
    service personnel. In addition to our 73 employed pathologists,
    we have contractual arrangements with a physician practice under
    which 16 pathologists exclusively practice medicine as
    independent contractors at our Alabama laboratory. None of our
    employees are subject to collective bargaining agreements. We
    consider our relationships with our employees to be good.
</DIV>
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    <BR>
    99
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are not currently a party to any material legal proceedings.
    We may be named in other various claims, disputes, legal actions
    and other proceedings involving malpractice, employment and
    other matters. A negative outcome in certain of the ongoing
    litigation could harm our business, financial condition,
    liquidity or results of operations. Further, prolonged
    litigation, regardless of which party prevails, could be costly,
    divert management&#146;s attention or result in increased costs
    of doing business.
</DIV>
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    <BR>
    100
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT
    AND BOARD OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the name, age and position of
    each of our executive officers and directors as of
    April&#160;23, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="36%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Age</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Position(s)</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James C. New
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    64
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chairman of our Board of Directors, Chief Executive Officer and
    President
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Martin J. Stefanelli
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    49
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Operating Officer, Vice President and Secretary
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory A. Marsh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    49
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Financial Officer, Vice President and Treasurer
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fred Ferrara
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    42
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Information Officer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael J. Null
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    40
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Vice President, Sales and Marketing
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas S.
    Roberts<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    46
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Christopher
    Dean<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    36
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peter J.
    Connolly<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    37
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mark M.
    King<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    49
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Christopher J.
    Bock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    40
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Blair
    Tikker<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    53
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Prior to the completion of this
    offering, we intend to elect a new, independent member of our
    Board of Directors that satisfies the requirements of the NASDAQ
    Global Market governance standards. Our newly-appointed director
    will become a member of our Audit Committee, Nominating and
    Corporate Governance Committee and Compensation Committee prior
    to the completion of this offering.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Will become a member of our
    Compensation Committee prior to the completion of this offering.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Will become a member of our
    Nominating and Corporate Governance Committee prior to the
    completion of this offering.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Will become a member of our Audit
    Committee prior to the completion of this offering.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
    <B>James C. New<BR>
    </B><I>Chairman,<BR>
    Chief Executive Officer<BR>
    and President</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. New has served as our Chairman, Chief Executive Officer and
    President since 2006.  Prior to joining us, Mr. New was a
    private investor from 2003 to 2006.  Mr. New served as the
    President, Chief Executive Officer and Chairman of AmeriPath, an
    anatomic pathology laboratory company, from January 1996 through
    2003.  Prior to joining AmeriPath, Mr. New served as the
    President, Chief Executive Officer, and a director of
    RehabClinics, an outpatient rehabilitation company.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Martin J. Stefanelli<BR>
    </B><I>Chief Operating<BR>
    Officer, Vice President and<BR>
    Secretary</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Stefanelli has served as our Chief Operating Officer, Vice
    President and Secretary since 2006. Prior to joining us, Mr.
    Stefanelli served as the President and Chief Operating Officer
    of Asterand, a tissue-based research services provider for the
    pharmaceutical and biotechnology industry, from 2004 to 2006.
    Mr. Stefanelli served as the Executive Vice President and Chief
    Operating Officer of AmeriPath, an anatomic pathology laboratory
    company, from June 2003 to November 2004, and prior to joining
    AmeriPath, Mr. Stefanelli was employed for thirteen years by
    DIANON Systems, an anatomic and clinical pathology laboratory
    company.
</TD>
</TR>
</TABLE>
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    <BR>
    101
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    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
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    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Gregory A. Marsh<BR>
    </B><I>Chief Financial<BR>
    Officer, Vice<BR>
    President and<BR>
    Treasurer</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Marsh has served as our Chief Financial Officer, Vice
    President and Treasurer since November 2007. Prior to joining
    us, Mr. Marsh served as an executive officer at CardioNet and
    PDSHeart, each a cardiovascular diagnostic healthcare provider.
    He served as the Chief Financial Officer of PDSHeart from 2003
    to 2005 and then Chief Operating Officer from 2005 until March
    2007, when the company was acquired by CardioNet.  Mr. Marsh
    then served as the Chief Financial Officer of CardioNet until
    November 2007. From 1996 until 2003, Mr. Marsh was employed by
    AmeriPath, an anatomic pathology laboratory company, serving as
    Vice President, Chief Financial Officer and Secretary from 2001
    to 2003 and Vice President, Corporate Controller from 1996 to
    2001.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Fred Ferrara<BR>
    </B><I>Chief Information<BR>
    Officer</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Ferrara has served as our Chief Information Officer since
    2006.  Mr. Ferrara served as the Director of Information
    Technology at LabCorp Inc., an anatomic pathology laboratory
    company, from 2003 until he joined Aurora in 2006. Mr. Ferrara
    joined LabCorp upon its acquisition of DIANON Systems, where Mr.
    Ferrara had been employed since 1997.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Michael J. Null<BR>
    </B><I>Vice President, Sales<BR>
    and Marketing</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Null has served as our Vice President, Sales &#038;
    Marketing since April 2007.  Prior to joining us, Mr. Null
    served as the Vice President of Sales and Marketing at Asterand,
    a tissue-based research services provider for the pharmaceutical
    and biotechnology industry, from 2001 to 2007. He served as a
    senior account manager and business development manager at
    Renaissance, a global IT consulting and staffing company, from
    1997 to 2002. Prior to joining Renaissance, Mr. Null was
    employed for five years by DIANON Systems, an anatomic and
    clinical pathology laboratory company.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Thomas S. Roberts<BR>
    </B><I>Director</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Roberts has served as one of our directors since 2006 and
    currently serves as a Managing Director of Summit Partners, a
    growth equity firm.  Mr. Roberts joined Summit Partners in
    1989.  Mr. Roberts also served in the past as the Chairman and
    Director of AmeriPath, an anatomic pathology laboratory company.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <B>Christopher Dean<BR>
    </B><I>Director</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Dean has served as one of our directors since 2006 and
    currently serves as a Managing Director of Summit Partners, a
    growth equity firm.  Mr. Dean joined Summit Partners in 2001.
</TD>
</TR>
</TABLE>
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    102
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Peter J. Connolly<BR>
    </B><I>Director</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Connolly has served as one of our directors since 2006 and
    currently serves as a Principal at Summit Partners, a growth
    equity firm.  Prior to joining Summit Partners in 2004, Mr.
    Connolly was employed by Goldman, Sachs &#038; Co., an
    investment banking firm and Deloitte LLP, an accounting and
    consulting firm.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Mark M. King<BR>
    </B><I>Director</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. King has served as one of our directors since June 2009 and
    is a Co-Founder and Managing Director of KRG Capital Partners, a
    private equity investment firm. Prior to forming KRG Capital
    Partners in 1996, Mr. King led many industry consolidating
    transactions and co-founded and was President and Vice Chairman
    of Industrial Services Technologies, Inc., a provider of
    maintenance services in the refinery, fertilizer and chemicals
    industries.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <B>Christopher J. Bock<BR>
    </B><I>Director</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Bock has served as one of our directors since June 2009 and
    is a Managing Director of KRG Capital Partners, a private equity
    investment firm. Mr.&#160;Bock joined KRG Capital Partners in
    1997.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <B>Blair Tikker<BR>
    </B><I>Director</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Mr. Tikker has served as one of our directors since June 2009
    and is a Managing Director of KRG Capital Partners, a private
    equity investment firm. Mr.&#160;Tikker joined KRG Capital
    Partners in 2007. Prior to joining KRG Capital Partners, Mr.
    Tikker was employed by a number of hospital systems, physician
    groups and managed care companies. Mr.&#160;Tikker served as the
    CEO of HMS Healthcare, a hospital information systems provider,
    from 2001 until 2005.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Composition and Election of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Board
    Composition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors is currently authorized to
    have&#160;&#160;&#160;&#160;&#160; members and is currently
    composed of 7 members, consisting of six non-employee members
    and our current Chairman, Chief Executive Officer and President,
    James C. New. We expect to elect a new independent director
    prior to completion of this offering, to elect one or more
    additional independent directors not more than 90&#160;days
    after the completion of this offering
    <FONT style="white-space: nowrap">and/or</FONT> to
    elect one or more additional independent directors not more than
    one year after the completion of this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the NASDAQ Global Market standards, a director will only
    qualify as an &#147;independent director&#148; if, in the
    opinion of our Board of Directors, that person does not have a
    relationship that would interfere with the exercise of
    independent judgment in carrying out the responsibilities of a
    director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors has not determined that any of our
    current directors is an &#147;independent director&#148; as
    defined under the NASDAQ Global Market standards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are no family relationships among any of our directors or
    executive officers.
</DIV>
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    103
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Election
    and Classification of Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with the terms of our certificate of incorporation
    and bylaws, our Board of Directors will be divided into three
    classes, Class&#160;I, Class&#160;II and Class&#160;III, with
    each class serving staggered three-year terms. Upon the closing
    of this offering, the members of the classes will be divided as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Class&#160;I directors will be Mr.&#160;King,
    Mr.&#160;Connolly and Mr.&#160;New, and their term will expire
    at the annual meeting of stockholders to be held in 2011;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Class&#160;II directors will be Mr.&#160;Tikker and
    Mr.&#160;Dean, and their term will expire at the annual meeting
    of stockholders to be held in 2012;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Class&#160;III directors will be Mr.&#160;Bock and
    Mr.&#160;Roberts, and their term will expire at the annual
    meeting of stockholders to be held in fiscal year 2013.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At each annual meeting of stockholders, or special meeting in
    lieu thereof, upon the expiration of the term of a class of
    directors, the successors to such directors will be elected to
    serve from the time of his or her election and qualification
    until the third annual meeting following his or her election or
    special meeting held in lieu thereof. The number of directors
    may be changed only by resolution of our Board of Directors or a
    66.67&#160;percent vote of the stockholders. Any additional
    directorships resulting from an increase in the number of
    directors will be distributed among the three classes so that,
    as nearly as possible, each class will consist of one-third of
    the directors. This classification of our Board of Directors may
    have the effect of delaying or preventing changes in control of
    management.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Committees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Committees
    of our Board of Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors will establish three committees prior to
    the effectiveness of our registration statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the audit committee;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the nominating and corporate governance committee;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the compensation committee.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the NASDAQ Global Market standards require that all
    members of our board committees and a majority our Board of
    Directors be independent, under special phase-in rules
    applicable to initial public offerings, we have twelve months
    from the date of listing to comply with these requirements. We
    currently expect to achieve compliance with the NASDAQ Global
    Market majority board independence and committee independence
    requirements by electing a new independent director prior to
    completion of this offering and adding additional independent
    directors to our Board of Directors before the expiration of the
    phase-in period and, for affected committees, replacing
    directors who are not independent with one or more of the new
    independent directors we expect to elect. If we do not comply
    with these requirements before the expiration of the phase-in
    period, we will be subject to disciplinary sanctions by the
    NASDAQ Global Market, which may include suspension of trading in
    the common stock or delisting of the common stock from the
    NASDAQ Global Market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our audit and compensation committees will meet
    the current requirements of the Sarbanes-Oxley Act of 2002 and
    the NASDAQ Global Market standards as they become applicable to
    us and that our nominating and corporate governance committee
    will meet the current requirements of the NASDAQ Global Market
    standards as they become applicable to us. The audit committee,
    compensation committee and nominating and corporate governance
    committee will adopt written charters that will be available on
    our website prior to completion of the offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Audit Committee.</I>&#160;&#160;Our audit committee&#146;s
    responsibilities include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    selecting and engaging our independent registered public
    accounting firm;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    evaluating the qualifications, independence and performance of
    our independent registered public accounting firm, including
    through the receipt and consideration of reports from such firm;
</TD>
</TR>

</TABLE>
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    <BR>
    104
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approving (or, as permitted, pre-approving) the audit and
    non-audit services to be performed by our independent registered
    public accounting firm;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    establishing policies regarding hiring employees from our
    independent registered public accounting firm and procedures for
    the receipt and retention of accounting related complaints and
    concerns;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    meeting independently with our independent registered public
    accounting firm and management;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing the design, implementation, adequacy and effectiveness
    of our internal controls over financial reporting, our
    disclosure controls and procedures and our critical accounting
    policies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and discussing with management and the independent
    registered public accounting firm the results of our annual
    audit and the review of our quarterly unaudited financial
    statements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing, overseeing and monitoring the integrity of our
    financial statements and our compliance with legal and
    regulatory requirements as they relate to financial statements
    or accounting matters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing with management and our auditors any earnings
    announcements and other public announcements regarding our
    results of operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preparing the audit committee report that the SEC requires in
    our annual proxy statement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and approving any related party transactions and
    reviewing and monitoring compliance with our code of business
    conduct and ethics;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and evaluating, at least annually, the performance of
    the audit committee and its members including compliance of the
    audit committee with its charter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The audit committee has the sole and direct responsibility for
    appointing, evaluating and retaining our independent auditors
    and for overseeing their work. All audit services and all
    non-audit services, other than de minimis non-audit services, to
    be provided to us by our independent auditors must be approved
    in advance by our audit committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering, our audit committee will
    be comprised of the director we will elect prior to the
    completion of this offering and Messrs.&#160;Connolly and Bock.
    Prior to the completion of this offering, our Board of Directors
    will have determined that the director we will elect is an
    independent director for audit committee service as defined in
    <FONT style="white-space: nowrap">Rule&#160;10A-3</FONT>
    under the Exchange Act. The director we will elect prior to the
    completion of this offering will be designated as the audit
    committee financial expert, as defined in Item&#160;407(d) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    under the Securities Act. Although the NASDAQ Global Market
    standards require that the audit committee be comprised solely
    of independent directors, under special phase-in rules
    applicable to initial public offerings, we have twelve months
    from the date of listing to comply with this requirement. As
    described more fully under &#147;Committees of our Board of
    Directors&#148; above, we expect to be in compliance before the
    expiration of the phase-in period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Compensation Committee.</I>&#160;&#160;Our compensation
    committee&#146;s responsibilities include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and recommending to our Board of Directors
    compensation and benefit plans for our executive officers and
    compensation policies for members of our Board of Directors and
    Board committees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing the terms of offer letters and employment agreements
    and arrangements with our officers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    setting performance goals for our officers and reviewing their
    performance against these goals and setting compensation based
    on such review;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    evaluating the competitiveness of our executive compensation
    plans and periodically reviewing executive succession plans;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    administering our benefit plans and the issuance of stock
    options and other awards under our equity incentive plans;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    preparing the compensation committee report that the SEC
    requires in our annual proxy statement;
</TD>
</TR>

</TABLE>
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    <BR>
    105
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and discussing annually with management our
    &#147;Compensation Discussion and Analysis&#148; disclosure
    required by SEC rules;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and evaluating, at least annually, the performance of
    the compensation committee and its members including compliance
    of the compensation committee with its charter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering, our compensation committee
    will be comprised of the director we will elect prior to the
    completion of this offering and Messrs.&#160;Roberts and
    Tikker.&#160;&#160;&#160;&#160;&#160; will serve as chairperson
    of the compensation committee. Although the NASDAQ Global Market
    standards require that the compensation committee be comprised
    solely of independent directors, under special phase-in rules
    applicable to initial public offerings, we have twelve months
    from the date of listing to comply with this requirement. As
    described more fully under &#147;Committees of our Board of
    Directors&#148; above, we expect to be in compliance before the
    expiration of the phase-in period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Nominating and Corporate Governance
    Committee.</I>&#160;&#160;Our nominating and corporate
    governance committee responsibilities include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    evaluating the composition, size and governance of our Board of
    Directors and its committees and making recommendations
    regarding future planning and the appointment of directors to
    our committees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    overseeing an annual evaluation of management succession
    planning;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    administering a policy for considering stockholder nominees for
    election to our Board of Directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    evaluating and recommending candidates for election to our Board
    of Directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    overseeing our Board of Directors&#146; performance and
    self-evaluation process;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing our corporate governance principles and providing
    recommendations to our Board of Directors regarding possible
    changes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reviewing and evaluating, at least annually, the performance of
    the nominating/corporate governance committee and its members
    including compliance of the nominating/corporate governance
    committee with its charter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The nominating and corporate governance committee is also
    responsible for reviewing developments in corporate governance
    practices, evaluating the adequacy of our corporate governance
    practices and reporting and making recommendations to our Board
    of Directors concerning corporate governance matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering, our nominating and
    corporate governance committee will be comprised of the director
    we will elect prior to the completion of this offering and
    Messrs.&#160;Dean and King.&#160;&#160;&#160;&#160;&#160; will
    serve as chairperson of the compensation committee. Although the
    NASDAQ Global Market standards require that the nominating and
    corporate governance committee be comprised solely of
    independent directors, under special phase-in rules applicable
    to initial public offerings, we have twelve months from the date
    of listing to comply with this requirement. As described more
    fully under &#147;Committees of our Board of Directors&#148;
    above, we expect to be in compliance before the expiration of
    the phase-in period.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee Interlocks and Insider Participation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2008 and 2009, we did not have a compensation committee.
    Following the completion of this offering, none of our
    compensation committee members will be an officer or employed by
    us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Code of
    Business Conduct and Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the completion of this offering, our Board of Directors
    will adopt procedures and policies to comply with the
    Sarbanes-Oxley Act of 2002 and the rules adopted by the SEC and
    the NASDAQ Global Market, including a code of business conduct
    and ethics applicable to our officers, directors and employees.
    Upon completion of this offering, our code of conduct and ethics
    will be available on our website.
</DIV>
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    <BR>
    106
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Officers and Directors and Limitation of Liability</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation and bylaws limit the liability
    of our directors for monetary damages for breach of their
    fiduciary duties, except for liability that cannot be eliminated
    under the Delaware General Corporation Law. Delaware law
    provides that directors of a corporation will not be personally
    liable to the corporation or its stockholders for monetary
    damages for breach of their fiduciary duties as directors,
    except liability for any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any breach of their duty of loyalty to the corporation or its
    stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acts or omissions not in good faith or that involve intentional
    misconduct or a knowing violation of law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    voting or assenting to unlawful payments of dividends or
    unlawful stock repurchases or redemptions as provided in
    Section&#160;174 of the Delaware General Corporation Law;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any transaction from which the director derived an improper
    personal benefit.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This limitation of liability does not apply to liabilities
    arising under the federal securities laws and does not affect
    the availability of equitable remedies such as injunctive relief
    or rescission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation and our bylaws provide that we
    shall indemnify our directors and executive officers and may
    indemnify our other officers and employees and other agents to
    the fullest extent permitted by law, as it now exists or may in
    the future be amended, against all expenses and liabilities
    reasonably incurred in connection with their service for or on
    behalf of us. We believe that indemnification under our bylaws
    covers at least negligence and gross negligence on the part of
    indemnified parties. If the Delaware General Corporation Law is
    amended to provide for further limitations on the personal
    liability of directors of corporations, then the personal
    liability of our directors will be further limited to the
    greatest extent permitted by the Delaware General Corporation
    Law. Any amendment to or repeal of the provisions of our bylaws
    or certificate of incorporation will not eliminate or reduce the
    effect of these provisions in respect of any act or failure to
    act, or any cause of action, suit or claim that would accrue or
    arise, prior to any amendment or repeal or adoption of an
    inconsistent provision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws also permit us to secure insurance on behalf of any
    officer, director, employee or other agent for any liability
    arising out of his or her actions in this capacity, regardless
    of whether our bylaws would permit indemnification. We maintain
    liability insurance that insures our directors and officers
    against losses and that insures us against our obligations to
    indemnify our directors and officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with this offering, we expect to enter into
    separate indemnification agreements with our directors and
    executive officers, in addition to indemnification provided for
    in our certificate of incorporation and bylaws. These
    agreements, among other things, will provide for indemnification
    of our directors and executive officers for expenses, judgments,
    fines and settlement amounts incurred by this person in any
    action or proceeding arising out of this person&#146;s services
    as a director or executive officer or at our request. We believe
    that these provisions and agreements are necessary to attract
    and retain qualified persons as directors and executive officers.
</DIV>
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    <BR>
    107
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    COMPENSATION<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPENSATION
    DISCUSSION AND ANALYSIS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the paragraphs that follow, we provide an overview and
    analysis of our compensation program and policies, the material
    compensation decisions we have made under those programs and
    policies with respect to our named executive officers, and the
    material factors that we considered in making those decisions.
    Following this Compensation Discussion and Analysis, you will
    find a series of tables containing specific data about the
    compensation earned or paid in fiscal year 2009 to the following
    individuals, whom we refer to as our named executive officers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    James C. New, Chairman of our Board of Directors, and our Chief
    Executive Officer and President;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Gregory A. Marsh, our Chief Financial Officer, Vice President
    and Treasurer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Fred Ferrara, our Chief Information Officer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Michael J. Null, our Vice President, Sales and
    Marketing;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Martin J. Stefanelli, our Chief Operating Officer, Vice
    President and Secretary.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Objectives
    of our Compensation Program; How We Set Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation objectives as a privately-held company were to
    recruit and retain a talented team of employees to grow and
    develop our business and to reward those employees for
    accomplishments related to our growth and development.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, we did not have a compensation
    committee. Historically, our Board of Directors determined the
    compensation for our Chief Executive Officer and, based on the
    recommendations of our Chief Executive Officer, the rest of our
    management team. In setting compensation, Mr.&#160;New and our
    Board of Directors did not seek to allocate long-term and
    current compensation, or cash and non-cash compensation, in any
    particular percentage. Instead, they reviewed each element of
    compensation independently and determined the appropriate amount
    for each element, as discussed below. Neither management nor our
    Board of Directors have engaged a compensation consultant during
    fiscal year 2009. Our historical compensation-setting processes
    have been effective for a privately-held company. As we
    transition to a public company, we intend to adjust some of our
    practices to further align the interests of our management team
    with our stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our initial public offering, we will
    establish a compensation committee comprised entirely of
    independent directors. The compensation committee, with input
    from our Chief Executive Officer, will set and determine the
    compensation of our executive officers in later years. In this
    regard, our compensation committee will, among other things,
    review and recommend to our Board of Directors compensation and
    benefit plans for our executive officers, review the terms of
    employment agreements and arrangements with our officers, set
    performance goals for our officers, review their performance
    against these goals and set compensation based on such review,
    evaluate the competitiveness of our executive compensation
    plans, periodically review executive succession plans, and
    administer our benefit plans and the issuance of stock options
    and other awards under our equity incentive plans. The
    compensation committee will have sole authority to evaluate our
    Chief Executive Officer&#146;s performance in light of corporate
    objectives and to set our Chief Executive Officer&#146;s
    compensation based on the achievement of corporate objectives.
    Each member of the compensation committee will be
    &#147;independent&#148; for purposes of the NASDAQ Global Market
    standards, a &#147;non-employee director&#148; for purposes of
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Exchange Act, and an &#147;outside director&#148; for
    purposes of Section&#160;162(m) of the Internal Revenue Code.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2009
    Elements of Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The key elements of compensation for our named executive
    officers in fiscal year 2009 were base salary and annual cash
    bonuses. We also are party to an employment agreement with each
    of Messrs.&#160;New, Marsh, Ferrara, Null and Stefanelli. These
    agreements provide the executive with certain benefits as
    described in greater detail below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Base Salaries.</I>&#160;&#160;We intend for base salaries to
    reward core competence in the executive role relative to skill,
    experience and contributions to us. We negotiated the base
    salaries individually with each executive, with a focus on
</DIV>
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    <BR>
    108
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<P><HR noshade><P>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the executive&#146;s experience in his respective field and
    expected contribution to us. In general, we adjust base salaries
    in connection with performance reviews
    <FONT style="white-space: nowrap">and/or</FONT>
    changes to the scope of a named executive officer&#146;s
    responsibilities. In 2009, none of our named executive officers
    received salary increases over 2008 levels. The 2009 annual base
    salaries for our named executive officers were as follows:
    Mr.&#160;New, $400,000; Mr.&#160;Marsh, $294,000;
    Mr.&#160;Ferrara, $222,600; Mr.&#160;Null, $225,750; and
    Mr.&#160;Stefanelli, $315,000. The named executive officers have
    not received base salary increases in 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Annual Cash Bonuses.</I>&#160;&#160;Annual bonuses reward our
    named executive officers for their contribution to our financial
    goals and focus our named executive officers on both short- and
    long-term objectives. Annual bonuses are earned based on the
    achievement of certain pre-determined performance goals. On an
    annual basis, or at the commencement of an executive
    officer&#146;s employment with us, our Board of Directors set a
    target level of bonus compensation that is structured as a
    percentage of such executive officer&#146;s annual base salary.
    The target bonuses for each of our executive officers are as
    follows, reflected as a percentage of base salary: Mr.&#160;New,
    100&#160;percent; Mr.&#160;Marsh; 50&#160;percent;
    Mr.&#160;Ferrara, 40&#160;percent; Mr.&#160;Null,
    35&#160;percent; and Mr.&#160;Stefanelli,75&#160;percent. Our
    Board of Directors set such target bonuses after negotiation
    with each individual and consideration of Mr.&#160;New&#146;s
    recommendation and the expected role of each of our executives.
    The actual amount of the bonus is based on the extent to which
    we and the executive meet or exceed predetermined goals under
    the performance metrics, which goals are set by our Board of
    Directors prior to the beginning of the performance year in
    connection with the annual budgetary process, as discussed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For 2009, annual cash incentive bonus opportunities for our
    named executive officers were based on achieving pre-established
    performance goals relating to net revenue, EBITDA, cash flow
    from operations, management of acquisition programs (measured by
    the achievement of acquisitions with a target EBITDA run rate),
    and management of bank covenants. Each of these performance
    metrics is an important driver of our business. We selected net
    revenue and EBITDA to focus the executive on supporting,
    improving and growing our business. Cash from operations is a
    direct measure of our profitability and financial performance.
    Acquisitions with a target EBITDA run rate focuses the executive
    on identifying acquisitions which meet our financial goals and
    positively affect our covenant position. In addition, the
    management and maintenance of our bank covenants is important
    from a compliance perspective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From the above list, our Board of Directors assigned certain
    objectives to each named executive officer based on his role
    with us, and assigned a weight to each metric, as reflected in
    the table below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    109
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Performance Objective and
    Weight</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. New
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Net revenue (15%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;EBITDA (50%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Acquisition Management (10%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Management of Bank Covenants (25%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Marsh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Net revenue (10%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Cash flow from Operations (60%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Acquisition Management (5%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Management of Bank Covenants (25%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Ferrara
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Net revenue (50%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;EBITDA (40%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Cash flow from Operations (10%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Null
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Net revenue (50%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;EBITDA (40%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Cash flow from Operations (10%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Stefanelli
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Net revenue (15%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;EBITDA (50%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Acquisition Management (10%)
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;Management of Bank Covenants (25%)
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides the targets (in millions) for each
    of the performance objectives and actual performance in fiscal
    year 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Objective</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Target Goal</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">FY 2009 Actual</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $173.8
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $170.9
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $57.2
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $55.8
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash flow from Operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $30.6
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $33.4
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisitions with Target EBITDA Run Rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Run rate of $4.0
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Run rate of $6.4
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Management of covenants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    N/A
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    100%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With the exception of the &#147;Management of Covenants&#148;
    objective, the achievement of which is either zero percent or
    ten percent, for each increment of one percent that actual
    performance falls below our target goal, the executive&#146;s
    target bonus would be reduced by ten percent. Likewise, for each
    increment of one percent that actual performance exceeds our
    target goal, the executive&#146;s target bonus would be
    increased by ten percent, with a maximum of 110&#160;percent.
    For example, if we had achieved 90&#160;percent of our target
    goal, then the executive would have received zero percent of his
    target bonus, and if we had achieved 110&#160;percent of our
    target goal, then the executive would have received two hundred
    percent of his target bonus. Linear interpolation is used to
    determine payouts between the ranges. The following table
    provides details regarding the awards earned by named executive
    officers in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="22%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Target Bonus<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Actual Bonus Earned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Actual Bonus Earned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Bonus&#160;($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">(% of Base Salary)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">(% of Base Salary)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. New
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    381,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Marsh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    147,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    233,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Ferrara
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    89,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Null
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    79,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Stefanelli
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    236,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    110
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the bonus described above, in June 2009,
    Mr.&#160;Marsh received a $10,000 cash bonus in recognition of
    his role in connection with KRG Capital Partners&#146;
    acquisition of GSO Capital Partners&#146; equity interest in
    Aurora Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Long-Term Equity Incentives.</I>&#160;&#160;In prior years
    (most recently 2008), our Board of Directors granted certain
    equity interests in Aurora Holdings to our named executive
    officers pursuant to our New Plan. The New Plan provided for
    grants of
    <FONT style="white-space: nowrap">Class&#160;D-1,</FONT>
    <FONT style="white-space: nowrap">Class&#160;D-2</FONT>
    and
    <FONT style="white-space: nowrap">Class&#160;D-3</FONT>
    Units, which we refer to collectively as the Class&#160;D Units,
    to our employees. The terms of the Class&#160;D Units were
    governed by the Aurora Holdings LLC Agreement, and, generally,
    the Class&#160;D Units represent the right of the holder to
    receive a portion of the proceeds in the event  of liquidation
    of Aurora Holdings. The Class&#160;D units generally vested over
    a period of time, subject to the named executive officer&#146;s
    continued employment with us. All of such units held by our
    named executive officers were fully-vested by December&#160;31,
    2008. None of our named executive officers received Class&#160;D
    units, or any other equity grants, in 2009. In connection with
    the Reorganization Transactions discussed elsewhere in this
    prospectus, the Class&#160;D Units held by our named executive
    officers will be exchanged for shares of our Class&#160;A common
    stock or cancelled without consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Other Benefits.</I>&#160;&#160;Our named executive officers
    participate in various health and welfare programs that are
    generally made available to all salaried employees. Our named
    executive officers also participate in our executive-level life
    insurance program. Mr.&#160;New receives reimbursements related
    to his country club memberships, as well as Company-paid
    premiums for an individual life insurance policy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Arrangements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain employment agreements with each of Messrs.&#160;New,
    Marsh, Ferrara, Null and Stefanelli. The employment agreements
    guarantee certain benefits, such as bonus and benefit plans, to
    the executives during their employment with us. In addition, the
    employment agreements provide certain benefits to the executives
    upon their termination of employment by us without cause, by the
    executive for good reason, or by reason of their death or
    disability. For a description of the employment agreements, see
    the narrative following the Summary Compensation table and
    &#147;Potential Payments upon Termination of Employment&#148;
    and &#147;Potential Payments upon Change in Control&#148; later
    in this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Treatment of our Compensation Program</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;162(m) of the Internal Revenue Code places a limit
    of $1&#160;million on the amount of compensation that public
    companies may deduct in any one year with respect to its named
    executive officers. In fiscal year 2009, as a privately-held
    company, Section&#160;162(m) of the Internal Revenue Code did
    not apply to us. To the extent that we compensate our named
    executive officers in excess of the $1&#160;million limit in the
    future, our compensation committee will consider whether we
    should design our compensation programs to meet the qualified
    performance-based requirements. To maintain flexibility in
    compensating our executives, we expect that the compensation
    committee will reserve the right to use its judgment to
    authorize compensation payments that may be subject to the limit
    when the compensation committee believes that such payments are
    appropriate.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    111
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the cash and other compensation
    that we paid to our named executive officers, or that was
    otherwise earned by our named executive officers, for their
    services in all capacities during the last fiscal year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name and Principal
    Position</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Year</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Salary&#160;($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Compensation
    ($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Compensation
    ($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Total&#160;($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>James C. New</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    381,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    826,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    Chairman of our Board of Directors, Chief Executive Officer and
    President
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Gregory A. Marsh</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    243,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    537,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    Chief Financial Officer, Vice&#160;President and Treasurer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Fred Ferrara</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    303,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    Chief Information Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Michael J. Null</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,915
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    381,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    Vice President, Sales and Marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Martin J. Stefanelli</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    315,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    540,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    Chief Operating Officer, Vice&#160;President and Secretary
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects the dollar amount of
    annual performance-based bonuses earned by our named executive
    officers in 2009. For Mr.&#160;Marsh, the dollar amount reported
    also includes the $10,000 bonus he received in recognition of
    his role in connection with KRG Capital Partners&#146;
    investment, including the acquisition of GSO Capital
    Partners&#146; equity interest in Aurora Holdings. For more
    information regarding the annual bonuses, see the
    &#147;&#151;&#160;2009 Elements of Compensation&#160;&#151;
    Annual Cash Bonuses.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects premiums paid in
    accordance with the executive-level life insurance plan. Also
    includes (i)&#160;for Mr.&#160;New, reimbursement of $19,087
    related to country club memberships and $23,295 in premiums paid
    for a separate life insurance policy; and (ii)&#160;for
    Mr.&#160;Null, $83,986 relating to our forgiveness of a note
    extended to him in connection with his relocation to Florida, as
    further described in &#147;Certain Relationships and Related
    Party Transactions&#160;&#151; Loans to Related Parties&#148;).
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2009
    Grants of Plan-Based Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth each plan-based award granted to
    our named executive officers during 2009. No equity awards were
    granted to our named executive officers during 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Estimated Future Payouts Under<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Non-Equity Incentive Plan
    Awards<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Threshold<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. New
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    800,00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Marsh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Ferrara
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    178,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Null
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mr. Stefanelli
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    236,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    112
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects potential payout
    opportunities under the annual bonus plan. The actual amount
    earned by each named executive officer is reflected in the
    &#147;Non-Equity Incentive Compensation&#148; column of the
    Summary Compensation table.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Employment Agreements.</I>&#160;&#160;We maintain employment
    agreements with each of Messrs.&#160;New, Marsh, Stefanelli,
    Ferrara and Null, the term of which will continue until
    terminated by the executive or us. Pursuant to the agreements,
    the initial annual base salaries are subject to increases from
    time to time in the sole discretion of our Board of Directors,
    and the executives have the opportunity to earn performance
    bonuses on an annual basis as determined by our Board of
    Directors. The executives are also entitled to participate in
    any employee benefit plans that we may from time to time have in
    effect for our executive-level personnel. In addition, the
    employment agreements provide certain benefits to the executives
    upon their termination of employment by us. For a description of
    such benefits, see &#147;&#151;&#160;Potential Payments Upon
    Termination of Employment,&#148; below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    Payments upon Termination of Employment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Payments Made Upon Any Termination of
    Employment.</I>&#160;&#160;Regardless of the manner in which a
    named executive officer&#146;s employment terminates, he is
    entitled to receive amounts earned during his term of employment
    including accrued but unpaid base salary through the date of
    termination, accrued but unpaid annual bonus, unreimbursed
    employment-related expenses owed to the executive officer under
    our policies and accrued but unpaid vacation pay. The executive
    is also entitled to all accrued benefits under any of our
    employee benefit programs (in accordance with the terms of such
    programs). These payments do not differ from payments made upon
    termination to all employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Payments Made Upon Termination Without Cause or Good
    Reason.</I>&#160;&#160;Each of the employment agreements
    provides that if the executive is terminated without Cause, or
    the executive terminates his employment with us for Good Reason,
    the executive will be entitled to receive:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    his base salary for a specified period (in the case of
    Mr.&#160;New, 24&#160;months, in the case of
    Messrs.&#160;Stefanelli, Ferrara and Null, 12&#160;months, and
    in the case of Mr.&#160;Marsh, 12&#160;months if his termination
    occurs prior to an Approved Sale (as defined below) or
    18&#160;months if his termination occurs within one year
    following an Approved Sale), payable in equal installments in
    accordance with our regular payroll practices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of Mr.&#160;New, an amount equal to two times the
    average of his previous three annual bonuses, payable in
    installments in accordance with our regular payroll practices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any unpaid bonus for the previous fiscal year and a pro rata
    portion of his bonus for the then current fiscal year;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of Mr.&#160;New, continued health care coverage for
    a period of 24&#160;months.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cause generally means the executive&#146;s (i)&#160;conviction
    or plea of no contest for or indictment on a felony or a crime
    involving moral turpitude or the commission of any other act or
    omission involving dishonesty or fraud, which involves a
    material matter, with respect to us or any of our customers or
    suppliers, (ii)&#160;substantial and repeated failure to perform
    his duties, (iii)&#160;gross negligence or willful misconduct
    that is harmful to us, (iv)&#160;conduct tending to bring us
    into substantial public disgrace or disrepute (not applicable to
    Mr.&#160;Null) and (v)&#160;breach of the restrictive covenants
    in the employment agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Good Reason generally means, without the executive&#146;s prior
    written consent, (i)&#160;a reduction in, or failure to pay when
    due, the executive&#146;s base salary, (ii)&#160;a material
    diminution in the executive&#146;s titles or duties inconsistent
    with his position, (iii)&#160;failure to pay any annual bonus
    when due and, in the case of Mr.&#160;New, any reduction in his
    annual bonus opportunity, (iv)&#160;a material reduction in the
    employee benefits offered to the executive that is not also
    applicable to our other executive employees and (v)&#160;a
    change in the executive&#146;s principal office to a location
    more than 50&#160;miles from Palm Beach Gardens, Florida.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Restrictive Covenants.</I>&#160;&#160;Each of the agreements
    contains confidentiality and customer and employee
    nonsolicitation covenants that apply during the executive&#146;s
    employment with us and for a certain period of time after his
    termination of employment (24&#160;months in the case of
    Mr.&#160;New, and 12&#160;months in the case of
    Messrs.&#160;Marsh, Stefanelli, Ferrara and Null).
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    113
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the approximate value of the
    termination payments and benefits that each of our named
    executive officers would receive if he had terminated employment
    at the close of business on December&#160;31, 2009. The table
    does not include certain amounts that the named executive
    officer would be entitled to receive under certain plans or
    arrangements that do not discriminate in scope, terms or
    operation, in favor of our executive officers and that are
    generally available to all salaried employees, such as our
    401(k) plan.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Termination Payments and Benefits</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="16%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="28%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>In Connection<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>with a<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Before Change<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>in Control<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Control<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Termination<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Termination<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>For Cause/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>w/o Cause or for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>w/o Cause or for <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Voluntary<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Benefit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Good Reason ($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Good Reason ($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Termination ($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Death ($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Disability ($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Mr. New
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continued Base
    Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    800,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    800,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continued Health and Dental
    Coverage<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    53,044
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    53,044
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2x Average
    Bonus<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    360,667
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    360,667
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Pro-Rated
    Bonus<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    381,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    381,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>1,594,711</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>1,594,711</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Mr. Marsh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continued Base
    Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    294,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    441,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Pro-Rated
    Bonus<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    233,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    233,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Approved Sale
    Payment<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    220,500
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>527,000</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>894,500</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Mr. Ferrara
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continued Base
    Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    222,600
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    222,600
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Pro-Rated
    Bonus<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    81,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    81,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>303,600</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>303,600</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Mr. Null
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continued Base
    Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    225,750
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    225,750
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Pro-Rated
    Bonus<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    72,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    72,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>297,750</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>297,750</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Mr. Stefanelli
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Continued Base
    Salary<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    315,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    315,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Pro-Rated
    Bonus<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    225,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    225,000
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>540,000</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <B>540,000</B>
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects an amount equal to the
    applicable multiple of the executive&#146;s then-current base
    salary, payable in installments over 24&#160;months, in the case
    of Mr.&#160;New, or 12&#160;months, in the case of
    Messrs.&#160;Marsh, Stefanelli, Ferrara and Null.
    Mr.&#160;Marsh&#146;s multiple of salary is 1x, in the event of
    his termination of employment prior to an Approved Sale, or
    1.5x, in the event of his termination of employment within one
    year following the effective date of an Approved Sale.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects Company-paid Consolidated
    Omnibus Budget Reconciliation Act of 1986, or COBRA, payments
    for medical and dental coverage based on 2009 rates for
    24&#160;months.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects an amount equal to two
    times the average of the bonuses Mr.&#160;New received in 2006
    (on an annualized basis), 2007 and 2008, payable in installments
    over 24&#160;months.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects a pro-rated bonus for the
    year in which the executive terminates employment. The
    pro-ration is based on the executive&#146;s and our performance
    relative to the pre-approved objectives.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Reflects 50&#160;percent of the sum
    of Mr.&#160;Marsh&#146;s current annual base salary plus his
    current target bonus, payable in a lump sum.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    Payments upon Change in Control</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with an Approved Sale, Mr.&#160;Marsh would be
    entitled to receive a lump sum payment equal to 50&#160;percent
    of the sum of his then-current annual base salary plus his
    then-current target bonus, regardless of whether his employment
    was terminated. If an Approved Sale had occurred on
    December&#160;31, 2009, his Approved Sale payment would have
    been $220,500. Approved Sale generally means either (i)&#160;the
    sale or other disposition of all or substantially all of our
    assets and the assets of our subsidiaries, taken as a whole, or
    (ii)&#160;a transaction or series of
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    114
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    related transactions the result of which is that the holders of
    our outstanding voting securities immediately prior to such
    transaction are (after giving effect to such transaction) no
    longer, in the aggregate, the &#147;beneficial owners&#148; (as
    such term is defined in
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    and
    <FONT style="white-space: nowrap">Rule&#160;13d-5</FONT>
    promulgated under the Exchange Act) of more than 50&#160;percent
    of the voting power of our outstanding voting securities, and
    Summit Partners and the KRG Capital Partners, in the aggregate,
    are no longer entitled to appoint a majority of the managers to
    the board of managers of Aurora Holdings (excluding a public
    offering and certain other issuances by us). This benefit will
    terminate immediately prior to this offering. None of our other
    named executive officers would have received any payments if a
    change in control had occurred on December&#160;31, 2009, absent
    their termination of employment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Equity
    Incentive Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain our New Plan, which provides for grants of
    Class&#160;D units of Aurora Holdings to our employees. The
    terms of the Class&#160;D units of Aurora Holdings were governed
    by the Aurora Holdings LLC Agreement and, generally, the
    Class&#160;D units of Aurora Holdings are entitled to
    distributions following distributions to which the Class&#160;A,
    <FONT style="white-space: nowrap">Class&#160;A-1,</FONT>
    Class&#160;B and Class&#160;C units of Aurora Holdings are
    entitled. Our Board of Directors administers the New Plan. The
    Class&#160;D units generally vest over a period of time, subject
    to the employee&#146;s continued employment with us. We will not
    grant any further awards under the New Plan. In connection with
    the Reorganization Transactions, the Class&#160;D units of
    Aurora Holdings held by our employees will either be exchanged
    for shares of our Class&#160;A common stock or cancelled without
    consideration. See &#147;Prospectus Summary&#160;&#151;
    Reorganization Transactions&#148; and &#147;Organizational
    Structure&#160;&#151; Reorganization Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The members of our Board of Directors did not receive any cash,
    equity or any other compensation for services rendered during
    2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risk
    Assessment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the commencement of this offering, we will conduct a
    risk assessment of our compensation policies and practices for
    all employees, including non-executive officers, to determine
    whether such policies and practices create risks that are
    reasonably likely to have a material adverse effect on us.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    115
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    AND SELLING STOCKHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding the
    beneficial ownership of our Class&#160;A common stock and
    Class&#160;B common stock, as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2010,
    after giving effect to the Reorganization Transactions but prior
    to this offering, by the following individuals or groups:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of our directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of our named executive officers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all of our directors and executive officers as a group;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each person, or group of affiliated persons, whom we know
    beneficially owns more than 5&#160;percent of our outstanding
    common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each selling stockholder.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Prospectus Summary&#160;&#151; Reorganization
    Transactions&#148; and &#147;Organizational
    Structure&#160;&#151; Reorganization Transactions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on an assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, we intend to use $&#160;&#160;&#160;&#160;&#160; of
    the proceeds from this offering, along with TRA Rights, to
    purchase&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock held by the Aurora Holdings
    Continuing Members (or $&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Aurora Holdings Units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock if the underwriters exercise
    their over-allotment option in full). The beneficial ownership
    after the completion of this offering reflects this application
    of proceeds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have determined beneficial ownership in accordance with the
    rules of the SEC. Except as indicated by the footnotes below, we
    believe, based on the information furnished to us, that the
    persons and entities named in the table below have sole voting
    and investment power with respect to all shares of Class&#160;A
    common stock and Class&#160;B common stock that they
    beneficially own, subject to applicable community property laws.
    We have based our calculation of the percentage of beneficial
    ownership
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock outstanding as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    which assumes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Reorganization Transactions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the application of the net proceeds we will receive from this
    offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table assumes the underwriters&#146;
    over-allotment option is not exercised:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
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    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
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    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
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    <TD width="1%">&nbsp;</TD>	<!-- colindex=13 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=13 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=13 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=13 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Percent of Combined<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class A Common
    Stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class B Common
    Stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Voting
    Power<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
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</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
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</TD>
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</TD>
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&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
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</TD>
<TD>
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</TD>
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
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</TD>
<TD>
&nbsp;
</TD>
<TD>
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
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</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering<BR>
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</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
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</TD>
<TD>
&nbsp;
</TD>
<TD>
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to this<BR>
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</TD>
<TD>
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</TD>
<TD>
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<TD>
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<TD>
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<TD>
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<TD colspan="2" nowrap align="center" valign="bottom">
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</TD>
<TD>
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<TD>
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</TD>
<TD>
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<TD>
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<TD>
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
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</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address of Beneficial
    Owner<SUP style="font-size: 85%; vertical-align: top">(3)(4)</SUP></B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
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</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
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</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Summit Ventures
    <FONT style="white-space: nowrap">VI-A,</FONT>
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Ventures
    <FONT style="white-space: nowrap">VI-B,</FONT>
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners VI (GP),
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit VI Entrepreneurs Fund,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit VI Advisors Fund,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Investors&#160;VI,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners Private Equity Fund
    <FONT style="white-space: nowrap">VII-A,</FONT>
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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&nbsp;
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</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners Private Equity Fund
    <FONT style="white-space: nowrap">VII-B,</FONT>
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
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    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=12 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=12 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=13 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=13 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=13 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=13 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Percent of Combined<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class A Common
    Stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class B Common
    Stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Voting
    Power<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
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<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address of Beneficial
    Owner<SUP style="font-size: 85%; vertical-align: top">(3)(4)</SUP></B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners PE VII,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
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</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
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</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund
    <FONT style="white-space: nowrap">IV-A,</FONT>
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV (PA),
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV (FF),
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
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&nbsp;
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&nbsp;
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<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Co-Investment,
    L.L.C.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
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</TD>
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&nbsp;
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<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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</TD>
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</TD>
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</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
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</TD>
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</TD>
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</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    <B>Directors and Executive Officers:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
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</TD>
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&nbsp;
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&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    James C. New
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD>
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Martin J. Stefanelli
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Fred Ferrara
</DIV>
</TD>
<TD>
&nbsp;
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Michael Null
</DIV>
</TD>
<TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Gregory A. Marsh
</DIV>
</TD>
<TD>
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    All Directors and Executive Officers as a group (5&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
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<TD nowrap align="left" valign="bottom">
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</TD>
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</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
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</TD>
<TD>
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</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
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</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
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</TD>
<TD nowrap align="right" valign="bottom">
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</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Less than 1 percent.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Summit Partners Equityholders
    and the Management Equityholders each hold Aurora Holdings Units
    and an equal number of shares of Class&#160;B common stock. Each
    of the Summit Partners Equityholders and the Management
    Equityholders has the right at any time to exchange any Aurora
    Holdings Units (and a corresponding number of shares of
    Class&#160;B common stock) for shares of Class&#160;A common
    stock on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis. See &#147;Description of Capital Stock.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Percentage of total voting power
    represents voting power with respect to all shares of our
    Class&#160;A common stock and Class&#160;B common stock, voting
    together as a single class. Our Class&#160;B common stock does
    not have any of the economic rights (including rights to
    dividends and distributions upon liquidation, but excluding the
    return of par value upon liquidation) associated with our
    Class&#160;A common stock. See &#147;Description of Capital
    Stock.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Unless otherwise specified, the
    address of each beneficial owner listed in the table below is
    <FONT style="white-space: nowrap">c/o&#160;Aurora</FONT>
    Diagnostics, Inc. 11025 RCA Center Drive, Suite&#160;300, Palm
    Beach Gardens, FL 33410.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Beneficial ownership is determined
    in accordance with
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    of the Exchange Act and generally includes voting and investment
    power with respect to securities, subject to community property
    laws, where applicable.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents
    (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit Ventures VI-A, L.P.;
    (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Ventures VI-B, L.P.;
    (c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Partners VI (GP),
    L.P.;
    (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit VI Entrepreneurs
    Fund, L.P.;
    (e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit VI Advisors Fund,
    L.P.;
    (f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit Investors VI, L.P.;
    (g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit Partners Private
    Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-A,</FONT>
    L.P.;
    (h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Partners Private
    Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-B,</FONT>
    L.P.; and
    (i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Partners PE VII,
    L.P. Summit Partners, L.P. is the managing member of Summit
    Partners VI (GP), LLC, which is the general partner of Summit
    Partners VI (GP), L.P., which is the general partner of each of
    Summit Ventures VI-A, L.P., Summit Ventures VI-B, L.P., Summit
    VI Advisors Fund, L.P., Summit VI Entrepreneurs Fund, L.P. and
    Summit Investors VI, L.P. Summit Partners, L.P. is also the
    managing member of Summit Partners PE VII, LLC, which is the
    general partner of Summit Partners PE VII, L.P., which is the
    general partner of each of Summit Partners Private Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-A,</FONT>
    L.P. and Summit Partners Private Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-B,</FONT>
    L.P. Summit Partners, L.P., through an investment committee
    currently composed of Bruce R. Evans and Martin J. Mannion, has
    voting and dispositive authority over the shares held by each of
    these entities and therefore beneficially owns such shares.
    Decisions of the investment committee are made by a majority
    vote of its members. Gregory M. Avis, John R. Carroll, Peter Y.
    Chung, Scott C. Collins, Christopher J. Dean, Bruce R. Evans,
    Charles J. Fitzgerald, Craig D. Frances, Walter G. Kortschak,
    Sotiris T.F. Lyritzis, Martin J. Mannion, Harrison B. Miller,
    Kevin P. Mohan, Thomas S. Roberts, E. Roe Stamps, Joseph F.
    Trustey and Stephen G. Woodsum are the members of Summit Master
    Company, LLC, which is the general partner of Summit Partners,
    L.P., and each disclaims beneficial ownership of the shares held
    by Summit Partners. The address of each of the Summit Partners
    entities is 222 Berkeley Street, 18th Floor, Boston, MA 02116.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents
    (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital Fund&#160;IV,
    L.P.;
    (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital
    <FONT style="white-space: nowrap">Fund&#160;IV-A,</FONT>
    L.P.;
    (c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital Fund&#160;IV
    (PA), L.P.;
    (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital Fund&#160;IV
    (FF), L.P.; and
    (e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Co-Investment, L.L.C.
    KRG Capital Management, L.P. is the general partner of each of
    KRG Capital Fund&#160;IV, L.P., KRG Capital
    </FONT></TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    117
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt"><FONT style="white-space: nowrap">Fund&#160;IV-A,</FONT>
    L.P., KRG Capital Fund&#160;IV (PA), L.P. and KRG Capital
    Fund&#160;IV (FF), L.P. KRG Capital Management, L.P., through an
    eleven (11)&#160;person investment committee with respect to the
    Class&#160;IV series of funds, including Mark M. King,
    Christopher J. Bock and Blair J. Tikker, has voting and
    dispositive authority over the shares held by each of KRG
    Capital Fund&#160;IV, L.P., KRG Capital
    <FONT style="white-space: nowrap">Fund&#160;IV-A,</FONT>
    L.P., KRG Capital Fund&#160;IV (PA), L.P., KRG Capital
    Fund&#160;IV (FF), L.P. and KRG Co-Investment L.L.C. and,
    therefore, beneficially owns such shares. Decisions of the
    investment committee are made by a vote of the majority of its
    members and no individual member of the investment committee has
    voting or dispositive authority over the shares. Mark M. King,
    Christopher J. Bock and Blair J. Tikker are members of KRG
    Capital, LLC with respect to the Class&#160;IV series of funds,
    which is the general partner of KRG Capital Management, L.P.,
    and each disclaims beneficial ownership of the shares held by
    KRG Capital Management, L.P. Affiliates of Mark M. King and
    Christopher J. Bock, individually, are members of KRG
    Co-Investment, LLC, and each disclaims beneficial ownership of
    the shares held by KRG Capital Management, L.P. The address of
    each of the KRG Capital Partners entities is 1515 Arapahoe
    Street, Tower 1, Suite&#160;1500, Denver, CO 80202.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table assumes the underwriters&#146;
    over-allotment option is exercised:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=12 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=12 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=13 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=13 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=13 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=13 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Percent of Combined<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class A Common
    Stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class B Common
    Stock<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Voting
    Power<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prior to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>this<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering<BR>
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</DIV>
</TD>
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</TD>
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</TD>
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<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
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</TD>
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<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
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</TD>
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</TD>
<TD>
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</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
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</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Summit Ventures VI-A,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Ventures VI-B,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
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</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners VI (GP),
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
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&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit VI Entrepreneurs Fund,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
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</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit VI Advisors Fund,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Investors VI,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
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<TD nowrap align="right" valign="bottom">
&nbsp;
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<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners Private Equity Fund VII-A,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners Private Equity Fund VII-B,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    Summit Partners PE VII,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
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&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
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</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV-A,
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
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&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV(PA),
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Capital Fund IV(FF),
    L.P.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
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&nbsp;
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</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    KRG Co-Investment,
    L.L.C.<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

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<DIV style="text-indent: -5pt; margin-left: 5pt">
    <B>Directors and Executive Officers:</B>
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    James C. New
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    Martin J. Stefanelli
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    Fred Ferrara
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    Michael Null
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<DIV style="text-indent: -5pt; margin-left: 5pt">
    Gregory A. Marsh
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</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -5pt; margin-left: 5pt">
    All Directors and Executive Officers as a group (5&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
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</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Less than 1 percent.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Summit Partners Equityholders
    and the Management Equityholders each hold Aurora Holdings Units
    and an equal number of shares of Class&#160;B common stock. Each
    of the Summit Partners Equityholders and the Management
    Equityholders has the right at any time to exchange any Aurora
    Holdings Units (and a corresponding number of shares of
    Class&#160;B common stock) for shares of Class&#160;A common
    stock on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis. See &#147;Description of Capital Stock.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Percentage of total voting power
    represents voting power with respect to all shares of our
    Class&#160;A common stock and Class&#160;B common stock, voting
    together as a single class. Our Class&#160;B common stock does
    not have any of the economic rights (including rights to
    dividends and distributions upon liquidation, but excluding the
    return of par value upon liquidation) associated with our
    Class&#160;A common stock. See &#147;Description of Capital
    Stock.&#148;
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Unless otherwise specified, the
    address of each beneficial owner listed in the table below is
    <FONT style="white-space: nowrap">c/o&#160;Aurora</FONT>
    Diagnostics, Inc. 11025 RCA Center Drive, Suite&#160;300, Palm
    Beach Gardens, FL 33410.
    </FONT></TD>
</TR>

</TABLE>
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    <BR>
    118
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Beneficial ownership is determined
    in accordance with
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    of the Exchange Act and generally includes voting and investment
    power with respect to securities, subject to community property
    laws, where applicable.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents
    (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit Ventures VI-A, L.P.;
    (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Ventures VI-B, L.P.;
    (c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Partners VI (GP),
    L.P.;
    (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit VI Entrepreneurs
    Fund, L.P.;
    (e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit VI Advisors Fund,
    L.P.;
    (f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit Investors VI, L.P.;
    (g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock held by Summit Partners Private
    Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-A,</FONT>
    L.P.;
    (h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Partners Private
    Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-B,</FONT>
    L.P.; and
    (i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by Summit Partners PE VII,
    L.P. Summit Partners, L.P. is the managing member of Summit
    Partners VI (GP), LLC, which is the general partner of Summit
    Partners VI (GP), L.P., which is the general partner of each of
    Summit Ventures VI-A, L.P., Summit Ventures VI-B, L.P., Summit
    VI Advisors Fund, L.P., Summit VI Entrepreneurs Fund, L.P. and
    Summit Investors VI, L.P. Summit Partners, L.P. is also the
    managing member of Summit Partners PE VII, LLC, which is the
    general partner of Summit Partners PE VII, L.P., which is the
    general partner of each of Summit Partners Private Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-A,</FONT>
    L.P. and Summit Partners Private Equity
    <FONT style="white-space: nowrap">Fund&#160;VII-B,</FONT>
    L.P. Summit Partners, L.P., through an investment committee
    currently composed of Bruce R. Evans and Martin J. Mannion, has
    voting and dispositive authority over the shares held by each of
    these entities and therefore beneficially owns such shares.
    Decisions of the investment committee are made by a majority
    vote of its members. Gregory M. Avis, John R. Carroll, Peter Y.
    Chung, Scott C. Collins, Christopher J. Dean, Bruce R. Evans,
    Charles J. Fitzgerald, Craig D. Frances, Walter G. Kortschak,
    Sotiris T.F. Lyritzis, Martin J. Mannion, Harrison B. Miller,
    Kevin P. Mohan, Thomas S. Roberts, E. Roe Stamps, Joseph F.
    Trustey and Stephen G. Woodsum are the members of Summit Master
    Company, LLC, which is the general partner of Summit Partners,
    L.P., and each disclaims beneficial ownership of the shares held
    by Summit Partners. The address of each of the Summit Partners
    entities is 222 Berkeley Street, 18th Floor, Boston, MA 02116.
    </FONT></TD>
</TR>




<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents
    (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital Fund&#160;IV,
    L.P.;
    (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital
    <FONT style="white-space: nowrap">Fund&#160;IV-A,</FONT>
    L.P.;
    (c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital Fund&#160;IV
    (PA), L.P.;
    (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Capital Fund&#160;IV
    (FF), L.P.; and
    (e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock held by KRG Co-Investment, L.L.C.
    KRG Capital Management, L.P. is the general partner of each of
    KRG Capital Fund&#160;IV, L.P., KRG Capital
    <FONT style="white-space: nowrap">Fund&#160;IV-A,</FONT>
    L.P., KRG Capital Fund&#160;IV (PA), L.P. and KRG Capital
    Fund&#160;IV (FF), L.P. KRG Capital Management, L.P., through an
    eleven (11)&#160;person investment committee with respect to the
    Class&#160;IV series of funds, including Mark M. King,
    Christopher J. Bock and Blair J. Tikker, has voting and
    dispositive authority over the shares held by each of KRG
    Capital Fund&#160;IV, L.P., KRG Capital
    <FONT style="white-space: nowrap">Fund&#160;IV-A,</FONT>
    L.P., KRG Capital Fund&#160;IV (PA), L.P., KRG Capital
    Fund&#160;IV (FF), L.P. and KRG Co-Investment L.L.C. and,
    therefore, beneficially owns such shares. Decisions of the
    investment committee are made by a vote of the majority of its
    members and no individual member of the investment committee has
    voting or dispositive authority over the shares. Mark M. King,
    Christopher J. Bock and Blair J. Tikker are members of KRG
    Capital, LLC with respect to the Class&#160;IV series of funds,
    which is the general partner of KRG Capital Management, L.P.,
    and each disclaims beneficial ownership of the shares held by
    KRG Capital Management, L.P. Affiliates of Mark M. King and
    Christopher J. Bock, individually, are members of KRG
    Co-Investment, LLC, and each disclaims beneficial ownership of
    the shares held by KRG Capital Management, L.P. The address of
    each of the KRG Capital Partners entities is 1515 Arapahoe
    Street, Tower 1, Suite&#160;1500, Denver, CO 80202.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Relationship
    with Selling Stockholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of the shares offered by the selling stockholders were
    issued to them in the Reorganization Transactions. For
    additional information with respect to the selling stockholders
    and their relationship with us please see &#147;Certain
    Relationships and Related Party Transactions,&#148;
    &#147;Prospectus Summary&#160;&#151; Reorganization
    Transactions&#148; and &#147;Organizational
    Structure&#160;&#151; Reorganization Transactions.&#148;
</DIV>
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    <BR>
    119
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the cash and equity compensation arrangements of
    our directors and executive officers discussed above under
    &#147;Executive Compensation&#160;&#151; Compensation Discussion
    and Analysis,&#148; the following is a description of
    transactions since January&#160;1, 2007, to which we have been a
    party in which the amount involved exceeded or will exceed
    $120,000 and in which any of our directors, executive officers,
    beneficial holders of more than 5&#160;percent of our capital
    stock, or entities affiliated with them, had or will have a
    direct or indirect material interest.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reorganization
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Reorganization Transactions, we and ARDX
    Sub will enter into a reorganization agreement with Aurora
    Holdings and our Principal Equityholders which governs the
    Reorganization Transactions. In addition, under the
    reorganization agreement, the Aurora Holdings Continuing Members
    will subscribe for a number of shares of our Class&#160;B common
    stock equal to the number of Aurora Holdings Units they own, at
    price equal to the par value per share of Class&#160;B common
    stock. For further information, see &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Second
    Amended and Restated Aurora Holdings Limited Liability Company
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Reorganization Transactions, the Aurora
    Holdings Continuing Members, ARDX Sub and Aurora Holdings will
    enter into the Second Amended and Restated Aurora Holdings LLC
    Agreement. In consideration for agreeing to enter into the
    Second Amended and Restated Aurora Holdings LLC Agreement, the
    Aurora Holdings Continuing Members will receive rights to
    distributions that are calculated in a manner that is similar to
    the TRA Rights. As a result of the Reorganization Transactions
    and in accordance with the terms of the Second Amended and
    Restated Aurora Holdings LLC Agreement, we will indirectly
    operate our business through Aurora Holdings and its
    subsidiaries. With ARDX Sub as the sole managing member of
    Aurora Holdings, we will indirectly have all business and
    operational control over Aurora Holdings. As such, we, through
    our officers and directors, will be responsible for all business
    and operational decisions of Aurora Holdings and the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management of Aurora Holdings&#146; and its subsidiaries&#146;
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of Aurora Holdings Units, including ARDX Sub, will
    generally incur U.S.&#160;federal, state, local and foreign
    income taxes on their proportionate share of any net taxable
    income of Aurora Holdings. Net profits and net losses of Aurora
    Holdings will generally be allocated to its members pro rata in
    accordance with the percentages of their respective Aurora
    Holdings Units, though certain non-pro rata adjustments will be
    made to reflect tax depreciation, amortization and other
    allocations. The Second Amended and Restated Aurora Holdings LLC
    Agreement will provide for cash distributions to Aurora
    Holdings&#146; members if the taxable income of Aurora Holdings
    will give rise to taxable income for any of its members.
    Generally, these tax distributions will be computed based on our
    estimate of the highest amount of net taxable income of Aurora
    Holdings allocable to any such holder of Aurora Holdings Units
    multiplied by an assumed tax rate equal to the highest effective
    marginal combined U.S.&#160;federal, state and local income tax
    rate prescribed for an individual or corporate resident in New
    York, New York (taking into account the non-deductibility of
    certain expenses and the character of our income), with a pro
    rata amount distributed to each holder of Aurora Holdings Units.
    These tax distributions indirectly received by us will be used
    to pay our taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, to the extent permitted under our debt agreements,
    Aurora Holdings may make distributions indirectly to us, without
    pro rata distributions to other Aurora Holdings members, in
    order to pay:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consideration, if any, for redemption, repurchase or other
    acquisition of Aurora Holdings Units to the extent such cash is
    used to redeem, repurchase or otherwise acquire our Class&#160;B
    common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    operating, administrative and other similar costs incurred by
    us, including payments on indebtedness and preferred stock
    issued by us, to the extent we use the proceeds from the
    issuance to pay expenses (in either case only to the extent
    economically equivalent indebtedness or preferred stock were not
    issued by Aurora Holdings to us);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments representing interest with respect to payments not made
    when due under the terms of the Tax Receivable
    Agreement;&#160;and
</TD>
</TR>

</TABLE>
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    <BR>
    120
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other payments related to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    legal, tax, accounting and other professional fees and expenses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    judgments, settlements, penalties, fines or other costs and
    expenses in respect of any claims involving us;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other fees and expenses related to the maintenance of our
    existence or any securities offering, investment or acquisition
    transaction authorized by our Board of Directors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Second Amended and Restated Aurora Holdings LLC Agreement
    will provide that, except as otherwise determined by us, and, at
    any time we issue a share of our Class&#160;A common stock or
    any other equity security, other than pursuant to an employee
    benefit plan or shareholder rights plan, the net proceeds
    received by us with respect to such issuance, if any, shall be
    concurrently invested indirectly in Aurora Holdings (unless such
    shares were issued by us solely to fund our ongoing operations
    or the purchase of Aurora Holdings Units or to pay our expenses
    or other obligations), and Aurora Holdings shall issue to ARDX
    Sub one Aurora Holdings Unit or other economically equivalent
    equity interest. Conversely, if at any time, any shares of our
    Class&#160;A common stock are redeemed, repurchased or otherwise
    acquired, Aurora Holdings shall redeem, repurchase or otherwise
    acquire an equal number of Aurora Holdings Units held by ARDX
    Sub, upon the same terms and for the same price, as the shares
    of our Class&#160;A common stock are redeemed, repurchased or
    otherwise acquired.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with the terms of the Second Amended and Restated
    Aurora Holdings  LLC Agreement, the Aurora Holdings Continuing
    Members will generally have the right to exchange their Aurora
    Holdings Units (and corresponding shares of our Class&#160;B
    common stock) with Aurora Holdings for shares of our
    Class&#160;A common stock on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis or, in certain circumstances, an equivalent amount of
    cash, subject to customary conversion rate adjustments for stock
    splits, stock dividends and reclassifications. As the Aurora
    Holdings Continuing Members exchange their Aurora Holdings
    Units, our membership interests in Aurora Holdings will be
    correspondingly increased. In connection with any proposed
    exchange by an Aurora Holdings Continuing Member, we may, in
    certain circumstances, elect to directly or indirectly through
    ARDX Sub purchase and acquire the applicable Aurora Holdings
    Units and corresponding Class&#160;B common stock by paying
    either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cash in an amount equal to the fair market value (determined by
    the volume weighted average price of the shares of Class&#160;A
    common stock on the date of purchase (ignoring the price paid in
    connection with any block trades of 100,000 or more shares) of
    the shares of Class&#160;A common stock the Aurora Holdings
    Continuing Member would have received in the proposed
    exchange;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of shares of Class&#160;A common stock the member
    would have received in the proposed exchange.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless we make such an election, we have no obligation to the
    exchanging member or Aurora Holdings with respect to the
    proposed exchange, other than to ensure Aurora Holdings has
    shares of our Class&#160;A common stock to deliver to the
    exchanging Aurora Holdings Continuing Member.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Second Amended and Restated Aurora Holdings LLC
    Agreement, the members have agreed that our Principal
    Equityholders
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more of their respective affiliates are permitted to engage
    in business activities or invest in or acquire businesses which
    may compete with our business or do business with any client of
    ours.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Second Amended and Restated Aurora Holdings LLC
    Agreement, Aurora Holdings will indemnify all of its members,
    including us, against any and all losses and expenses related
    thereto incurred by reason of the fact that such person was a
    member of Aurora Holdings. In the event that losses are incurred
    as a result of a member&#146;s fraud or willful misconduct, such
    member is not entitled to indemnification under the Second
    Amended and Restated Aurora Holdings LLC Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Holdings may be dissolved only upon the first to occur of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sale of substantially all of its assets,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the voluntary agreement of us and our Principal Equityholders.
</TD>
</TR>

</TABLE>
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    <BR>
    121
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon dissolution, Aurora Holdings will be liquidated and the
    proceeds from any liquidation will be applied and distributed in
    the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    first, to creditors (including to the extent permitted by law,
    creditors who are members) in satisfaction of the liabilities of
    Aurora Holdings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    second, to establish cash reserves for contingent or unforeseen
    liabilities;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    third, to the members in proportion of their interests in Aurora
    Holdings.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further information, see &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Receivable Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, we intend to complete the Reorganization
    Transactions described under &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148; Also, as described under &#147;Use of
    Proceeds,&#148; we intend to use a portion of the proceeds from
    this offering to purchase Aurora Holdings Units from certain of
    our Principal Equityholders. The purchases of these Aurora
    Holdings Units are likely to result in tax basis adjustments to
    the assets of Aurora Holdings, and these tax basis adjustments
    will be allocated to us. In addition, the Aurora Holdings Units
    held by the Aurora Holdings Continuing Members will be
    exchangeable in the future for cash or shares of our
    Class&#160;A common stock. These future exchanges are likely to
    result in tax basis adjustments to the assets of Aurora
    Holdings, which adjustments would also be allocated to us. Both
    the existing tax basis and the anticipated tax basis adjustments
    are expected to reduce the amount of tax that we would otherwise
    be required to pay in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics, Inc. will enter into the Tax Receivable
    Agreement with ARDX Sub and the Tax Receivable Entity. The Tax
    Receivable Agreement will generally provide for the annual
    payment by Aurora Diagnostics, Inc. to the Tax Receivable Entity
    of 85&#160;percent of certain cash tax savings, if any, in
    U.S.&#160;federal, state, local and foreign income tax realized
    by Aurora Diagnostics, Inc. after the completion of this
    offering as a result of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any <FONT style="white-space: nowrap">step-up</FONT>
    in tax basis in our share of Aurora Holdings&#146; assets
    resulting from:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class&#160;A common stock or cash,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    payments under the Tax Receivable Agreement to the Tax
    Receivable Entity;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual increase in tax basis, as well as the amount and
    timing of any payments under the Tax Receivable Agreement, will
    vary depending upon a number of factors, including the timing of
    exchanges by the Aurora Holdings Continuing Members, as
    applicable, the price of our Class&#160;A common stock at the
    time of the exchange, the extent to which such exchanges are
    taxable, the amount and timing of the taxable income we generate
    in the future and the tax rate then applicable, and our use of
    the portion of our payments under the Tax Receivable Agreement
    constituting imputed interest or amortizable tax basis. We
    expect that, as a result of the amount of the increases in the
    tax basis of the tangible and intangible assets of Aurora
    Holdings, assuming no material changes in the relevant tax law
    and that we earn sufficient taxable income to realize in full
    the potential tax benefit described above, future payments under
    the Tax Receivable Agreement in respect of tax attributes
    resulting from past acquisitions described above as well as from
    the Reorganization Transactions will aggregate
    $&#160;&#160;&#160;&#160;&#160;&#160;million and range from
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million to
    $&#160;&#160;&#160;&#160;&#160;&#160;million per year over the
    next&#160;&#160;&#160;&#160;&#160;years. These amounts reflect
    only certain cash tax savings attributable to current tax
    attributes resulting from past acquisitions described above as
    well as from the Reorganization Transactions. It is possible
    that future transactions or events could increase or decrease
    the actual tax benefits realized and the corresponding Tax
    Receivable Agreement payments from these tax attributes. Future
    payments under the Tax Receivable Agreement in respect of
    subsequent acquisitions of Aurora
</DIV>
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    <BR>
    122
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holdings Units would be in addition to these amounts and would,
    if such exchanges took place at the initial public offering
    price, be of comparable magnitude.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although we do not believe that the IRS would challenge the tax
    basis increases or other benefits arising under the Tax
    Receivable Agreement, the Tax Receivable Entity will not
    reimburse or indemnify us for any payments previously made if
    such tax basis increases or other tax benefits are subsequently
    disallowed or for any other claims made by the IRS, except that
    excess payments made to the Tax Receivable Entity will be netted
    against payments otherwise to be made, if any, after our
    determination of such excess. As a result, in such
    circumstances, we could make payments under the Tax Receivable
    Agreement that are greater than our actual cash tax savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we are a holding company with no operations of our own,
    our ability to make payments under the Tax Receivable Agreement
    is dependent on the ability of Aurora Holdings and its
    subsidiaries to make distributions to us. Our debt agreements
    will restrict the ability of our subsidiaries to make
    distributions to us, which could affect our ability to make
    payments under the Tax Receivable Agreement. To the extent that
    we are unable to make payments under the Tax Receivable
    Agreement because of such restrictions, such payments will be
    deferred and will accrue interest until paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rights to receive payments under the Tax Receivable Agreement
    may be terminated by the Tax Receivable Entity if, as the result
    of an actual or proposed change in law, the existence of the
    agreement would cause recognition of ordinary income (instead of
    capital gain) in connection with future exchanges of Aurora
    Holdings Units for cash or shares of Class&#160;A common stock
    or would otherwise have material adverse tax consequences to the
    Tax Receivable Entity or its owners. There have been legislative
    proposals in the U.S. Congress that, if enacted, may result in
    such ordinary income recognition. Further, in the event of such
    a termination, the Tax Receivable Entity would have the right,
    subject to the delivery of an appropriate tax opinion, to
    require us to pay a lump sum amount in lieu of the payments
    otherwise provided under the agreement. That lump sum amount
    would be calculated by increasing the portion of the tax savings
    retained by us to 30 percent (from 15 percent) and by
    calculating a present value for the total amount that would
    otherwise be payable under the agreement, using a discount rate
    and assumptions as to income tax rates and as to our ability to
    utilize the tax benefits (including the assumption that we will
    have sufficient taxable income to fully utilize the tax
    benefits). If the assumptions used in this calculation turn out
    not to be true, we may pay more or less than the specified
    percentage of our actual cash tax savings. This lump sum amount
    is subordinate to amounts payable under our senior credit
    agreements and may be paid in cash or be deferred until all
    amounts payable under our senior credit agreements in existence
    as of the date of termination of the Tax Receivable Agreement
    have been paid and the deferred amount will bear interest at a
    rate of&#160;&#160;&#160;&#160;&#160; per annum. In view of the
    foregoing changes in the calculation of our obligations, we do
    not expect that the net impact of any such acceleration upon our
    overall financial condition would be materially adverse as
    compared to our obligations if laws do not change and the
    obligations are not accelerated. It is also possible that the
    net impact of such an acceleration would be beneficial to our
    overall financial condition. The ultimate impact of a decision
    to accelerate will depend on what the ongoing payments would
    have been under the Tax Receivable Agreement absent
    acceleration, which will depend on various factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have the right (with the consent of our independent
    directors) to terminate the Tax Receivable Agreement. If we
    exercise this right, then the Tax Receivable Entity would be
    entitled to a lump sum amount in lieu of the payments otherwise
    provided under the agreement. That lump sum amount would be
    calculated by determining a present value for the total amount
    that would otherwise be payable under the agreement, using a
    discount rate and assumptions as to income tax rates and as to
    our ability to utilize the tax benefits (including the
    assumption that we will have sufficient taxable income to fully
    utilize the tax benefits and the assumption that all exchanges
    that have not taken place will take place as of the date of the
    termination, which will increase the amount of the lump sum
    payment). If the assumptions used in this calculation turn out
    not to be true, we may pay more or less than the specified
    percentage of certain cash tax savings realized by us after the
    completion of this offering. This lump sum amount must be paid
    in cash. Any such acceleration can occur only at our election.
    Should we elect to terminate the Tax Receivable Agreement, we do
    not expect that the net impact of any such acceleration upon our
    overall financial condition would be materially adverse as
    compared to our existing obligations. The ultimate impact of a
    decision to accelerate will depend on what the ongoing payments
    would have been under the Tax Receivable Agreement absent
    acceleration, which will in turn depend on the various factors
    mentioned above.
</DIV>
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    <BR>
    123
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we default on any of our material obligations under the Tax
    Receivable Agreement, then, unless the Tax Receivable Entity
    seeks specific performance of the Tax Receivable Agreement, the
    Tax Receivable Entity has the option to accelerate payments due
    under the Tax Receivable Agreement and require us to make a lump
    sum payment representing all past due and future payments under
    the Tax Receivable Agreement, discounted to present value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Tax Receivable Agreement provides that, upon
    certain mergers, asset sales or other forms of business
    combination or certain other changes of control, our or our
    successor&#146;s obligations with respect to tax benefits would
    be based on certain assumptions, including that we or our
    successor would have sufficient taxable income to fully utilize
    the deductions arising from the increased tax deductions and tax
    basis and other benefits covered by the Tax Receivable
    Agreement. As a result, upon a change of control, we could be
    required to make payments under the Tax Receivable Agreement
    that are greater than or less than the specified percentage of
    our cash tax savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further information, see &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purchase
    of Aurora Holdings Units and Class&#160;B Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Immediately following the completion of this offering, we will
    use approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;million
    of the net proceeds that we will receive from this offering to
    purchase&#160;&#160;&#160;&#160;&#160; Aurora Holdings Units
    (and a corresponding number of shares of Class&#160;B common
    stock) from certain of our Principal Equityholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For further information, see &#147;Prospectus
    Summary&#160;&#151; Reorganization Transactions&#148; and
    &#147;Organizational Structure&#160;&#151; Reorganization
    Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Loans to
    Related Parties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;17, 2006, we entered into master promissory
    notes with each of James C. New, our Chairman, Chief Executive
    Officer and President, Martin J. Stefanelli, our Chief Operating
    Officer, Vice President and Secretary, Michael Null, our Vice
    President-Sales and Marketing, and Fred Ferrara, our Chief
    Information Officer, under which these executive officers were
    obligated to repay us, as of March&#160;31, 2010, an amount in
    aggregate of approximately $1.9&#160;million plus accrued
    interest. These arrangements were entered into to facilitate the
    purchases of Class&#160;C Aurora Holdings Units by these
    executive officers and were secured by a pledge of such units,
    as evidenced by a pledge agreement between us and these
    executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;7, 2008, we entered into promissory notes with
    each of the same executive officers, under which these executive
    officers were obligated to repay us, as of March&#160;31, 2010,
    an amount in aggregate of approximately $350,000 plus accrued
    interest. These notes were secured by a pledge of Class&#160;X
    capital of Aurora Holdings then held by each these executive
    officers, which was evidenced by a pledge agreement between us
    and these executive officers. These arrangements were entered
    into to facilitate the purchases of Aurora Holdings&#146;
    Class&#160;X capital by these executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with the terms of these promissory notes, we
    required the prepayment of all amounts due thereunder from our
    executive officers in connection with or prior to this offering.
    All such amounts were prepaid by the executive officers on
    April&#160;28, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our employment of Michael Null, our Vice
    President-Sales and Marketing, we entered into a letter
    agreement with Mr.&#160;Null in May 2008 and a related
    promissory note issued by Mr.&#160;Null on October&#160;21,
    2008, in the aggregate amount of $100,000, to facilitate
    Mr.&#160;Null&#146;s relocation to our corporate headquarters.
    Pursuant to the letter agreement, a portion of the principal and
    interest under the note was forgiven each month, and
    Mr.&#160;Null was entitled to a
    <FONT style="white-space: nowrap">gross-up</FONT> for
    taxes accruing as a result thereof. The balance of the note and
    all accrued interest were forgiven on April&#160;28, 2010.
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are party to a Registration Agreement with certain of our
    Principal Equityholders. Under the Registration Agreement, our
    Principal Equityholders have certain registration rights with
    respect to our Class&#160;A common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Officers and Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation and bylaws provide that we will
    indemnify each of our directors and officers to the fullest
    extent permitted by the Delaware General Corporation Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further, in connection with this offering, we expect to enter
    into indemnification agreements with each of our directors and
    officers, and we have purchased a policy of directors&#146; and
    officers&#146; liability insurance that insures our directors
    and officers against the cost of defense, settlement or payment
    of a judgment under certain circumstances. For further
    information, see &#147;Management and Board of
    Directors&#160;&#151; Indemnification of Officers and Directors
    and Limitation of Liability.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the completion of this offering, entities affiliated
    with the Summit Partners Equityholders had the right to appoint
    three of our directors and the KRG Equityholders had the right
    to appoint three of our directors. These rights terminate upon
    the closing of this offering, and while the nominees of the
    Summit Partners Equityholders and the KRG Equityholder will
    remain on our Board of Directors following the completion of
    this offering, we will have no contractual obligation to retain
    them.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Person Transaction Review Procedures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors has adopted a written policy and
    procedures, effective upon completion of this offering, for
    review and approval or ratification of transactions involving us
    and &#147;related persons&#148; (our directors and executive
    officers and their immediate family members or our shareholders
    owning five percent or greater of our outstanding Class&#160;A
    common stock and their immediate family members). The policy
    covers any related person transaction that meets the minimum
    threshold for disclosure in a proxy statement under the
    SEC&#146;s rules. Upon completion of this offering, a copy of
    our procedures may be found on our Web site, www.auroradx.com.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Related person transactions must be approved in advance by our
    nominating and corporate governance committee whenever possible
    or ratified as promptly as possible thereafter. We will disclose
    in our proxy statement any transactions that are found to be
    directly or indirectly material to a related person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to entering into a transaction with us, a related person
    must provide the details of the transaction to our Chief
    Financial Officer, including the relationship of the person to
    us, the dollar amount involved, and whether the related person
    or his or her family member has or will have a direct or
    indirect interest in the transaction. Our Chief Financial
    Officer will evaluate the transaction to determine if we or the
    related person has a direct or indirect material interest in the
    transaction. If so, then our Chief Financial Officer will notify
    our Chief Executive Officer and submit the facts of the
    transaction to our nominating and corporate governance committee
    for its review. Our nominating and corporate governance
    committee may approve a transaction only if these review
    procedures have been followed and our nominating and corporate
    governance committee determines that the transaction is not
    detrimental to us and does not violate our policies.
</DIV>
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    <BR>
    125
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of our capital stock and provisions of
    our certificate of incorporation and bylaws are summaries.
    Because these are only summaries, they do not contain all the
    information that may be important to you. For a complete
    description, you should refer to our certificate of
    incorporation and bylaws, copies of which have been filed with
    the SEC as exhibits to our registration statement, as well as
    the relevant portions of the Delaware General Corporation Law.
    The description of our capital stock reflects changes to our
    capital structure that will occur upon the completion of this
    offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Capital
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our authorized capital stock consists
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;A common stock, par value $0.01 per
    share,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Class&#160;B common stock, par value $0.01 per share,
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of preferred stock, par value $0.01 per share. In connection
    with the Reorganization Transactions, we will amend our
    certificate of incorporation as part of the Reorganization
    Transactions so as to provide for the appropriate number of
    authorized shares of Class&#160;A common stock and Class&#160;B
    common stock to complete this offering and the Reorganization
    Transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Immediately following the Reorganization Transactions, we will
    have approximately&#160;&#160;&#160;&#160;&#160; holders of
    record of our Class&#160;A common stock
    and&#160;&#160;&#160;&#160;&#160; holders of record of our
    Class&#160;B common stock. Of the authorized shares of our
    capital stock,&#160;&#160;&#160;&#160;&#160;&#160;shares of our
    Class&#160;A common stock will be issued and
    outstanding,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock will be issued and outstanding
    and no shares of preferred stock will be issued and outstanding,
    based on an assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the completion of this offering and the application of the
    net proceeds that we will receive from this offering, we expect
    to
    have&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock
    outstanding,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;B common stock outstanding, and no shares of
    preferred stock outstanding, based on an assumed initial public
    offering price of $&#160;&#160;&#160;&#160;&#160; per share,
    which is the midpoint of the price range set forth on the cover
    page of this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Voting.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of our Class&#160;A common stock and Class&#160;B common
    stock are entitled to one vote on all matters submitted to
    stockholders for their vote or approval. The holders of our
    Class&#160;A common stock and Class&#160;B common stock vote
    together as a single class on all matters submitted to
    stockholders for their vote or approval, except with respect to
    the amendment of certain provisions of our certificate of
    incorporation that would alter or change the powers, preferences
    or special rights of the Class&#160;B common stock so as to
    affect them adversely, which amendments must be approved by a
    majority of the votes entitled to be cast by the holders of the
    shares affected by the amendment, voting as a separate class, or
    as otherwise required by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of this offering and the application of the net
    proceeds that we will receive from this offering, our Principal
    Equityholders will control
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of the
    combined voting power of our common stock. Accordingly, our
    Principal Equityholders can exercise significant influence over
    our business policies and affairs and can control any action
    requiring the general approval of our stockholders, including
    the adoption of amendments to our certificate of incorporation
    and bylaws and the approval of mergers or sales of substantially
    all of our assets. The concentration of ownership and voting
    power of our Principal Equityholders may also delay, defer or
    even prevent an acquisition by a third party or other change of
    control of our company and may make some transactions more
    difficult or impossible without the support of our Principal
    Equityholders, even if such events are in the best interests of
    noncontrolling stockholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Dividends.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of Class&#160;A common stock are entitled to receive
    dividends when, as, and if declared by our Board of Directors
    out of legally available funds. The holders of our Class&#160;B
    common stock will not have any right to
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    receive dividends other than dividends consisting of shares of
    our Class&#160;B common stock paid proportionally with respect
    to each outstanding share of our Class&#160;B common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Liquidation
    or Dissolution.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon our liquidation or dissolution, the holders of our
    Class&#160;A common stock will be entitled to share ratably in
    those of our assets that are legally available for distribution
    to stockholders after payment of liabilities and subject to the
    prior rights of any holders of preferred stock then outstanding.
    The holders of our Class&#160;B common stock will not have any
    right to receive a distribution upon a liquidation or
    dissolution of our company other than the par value of their
    Class&#160;B common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Transferability
    and Exchange.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the terms of the Second Amended and Restated Aurora
    Holdings LLC Agreement, the Aurora Holdings Continuing Members
    may exchange their Aurora Holdings Units (and corresponding
    shares of our Class&#160;B common stock) with Aurora Holdings
    for shares of our Class&#160;A common stock. Each such exchange
    will be on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis, subject to customary conversion rate adjustments for
    stock splits, stock dividends and reclassifications. In
    connection with any proposed exchange by an Aurora Holdings
    Continuing Member, we may, with the agreement of the exchanging
    Aurora Holdings Continuing Member, elect to acquire (or cause
    ARDX Sub to acquire) the applicable Aurora Holdings Units and
    corresponding Class&#160;B common stock by paying cash in an
    amount equal to the fair market value (determined by the volume
    weighted average price of the shares of Class&#160;A common
    stock on the date of the exchange) the member would have
    received in the proposed exchange.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Other
    Provisions.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of the Class&#160;A common stock or Class&#160;B common
    stock has any pre-emptive or other subscription rights. There
    will be no redemption or sinking fund provisions applicable to
    the Class&#160;A common stock or Class&#160;B common stock. Upon
    the completion of this offering, all outstanding shares of
    Class&#160;A common stock and Class&#160;B common stock will be
    validly issued, fully paid and non-assessable. When no Aurora
    Holdings Units remain exchangeable into shares of our
    Class&#160;A common stock, our Class&#160;B common stock will be
    cancelled.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are authorized to issue up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of preferred stock. Our Board of Directors is authorized,
    subject to limitations prescribed by Delaware law and our
    certificate of incorporation, to determine the terms and
    conditions of the preferred stock, including whether the shares
    of preferred stock will be issued in one or more series, the
    number of shares to be included in each series and the powers,
    designations, preferences and rights of the shares. Our Board of
    Directors is also authorized to designate any qualifications,
    limitations or restrictions on the shares without any further
    vote or action by the stockholders. The issuance of preferred
    stock may have the effect of delaying, deferring or preventing a
    change in control of our company and may adversely affect the
    voting and other rights of the holders of our Class&#160;A
    common stock and Class&#160;B common stock, which could have an
    adverse impact on the market price of our Class&#160;A common
    stock. We have no current plan to issue any shares of preferred
    stock following the completion of this offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Opportunity</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation provides that the doctrine of
    &#147;corporate opportunity&#148; will not apply against certain
    of our Principal Equityholders, or any of our directors who are
    employees of such Principal Equityholders, in a manner that
    would prohibit them from investing in competing businesses or
    doing business with our clients. In addition, under the Second
    Amended and Restated Aurora Holdings LLC Agreement, we have
    agreed that the Aurora Holdings Continuing Members
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more of their respective affiliates are permitted to engage
    in business activities or invest in or acquire businesses which
    may compete with our business or do business with any client of
    ours.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that any Principal Equityholder acquires knowledge
    of a potential transaction or matter which may be a corporate
    opportunity for itself and us, we do not have any expectancy in
    that corporate opportunity, and the
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principal Equityholder does not have any duty to communicate or
    offer that corporate opportunity to us and may pursue or acquire
    that corporate opportunity for itself or direct that opportunity
    to another person. In addition, if a director or officer of our
    company who is also a director, officer, member, manager or
    employee of any Principal Equityholder acquires knowledge of a
    potential transaction or matter which may be a corporate
    opportunity for us and a Principal Equityholder, we will not
    have any expectancy in that corporate opportunity unless that
    corporate opportunity is expressly offered to such person solely
    in his or her capacity as a director or officer of our company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In recognition that we may engage in material business
    transactions with the Principal Equityholders
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more of their respective affiliates from which we are
    expected to benefit, our amended and restated certificate of
    incorporation will provide that any of our directors or officers
    who are also directors, officers, stockholders, members,
    managers
    <FONT style="white-space: nowrap">and/or</FONT>
    employees of any Principal Equityholder will have fully
    satisfied and fulfilled his or her fiduciary duty to us and our
    stockholders with respect to such transaction, if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transaction was approved, after being made aware of the
    material facts of the relationship between us and the Principal
    Equityholder and the material terms and facts of the
    transaction, by (i)&#160;an affirmative vote of a majority of
    the members of our Board of Directors who do not have a material
    financial interest in the transaction (&#147;Interested
    Persons&#148;) or (ii)&#160;an affirmative vote of a majority of
    the members of a committee of our Board of Directors consisting
    of members who are not Interested Person;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transaction was fair to us at the time we entered into the
    transaction;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transaction was approved by an affirmative vote of the
    holders of a majority of shares of our common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Risk Factors&#160;&#151; We are controlled by our
    Principal Equityholders whose interest in our business may be
    different than yours, and certain statutory provisions afforded
    to stockholders are not applicable to us.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Takeover
    Effects of Provisions of our Certificate of Incorporation and
    Bylaws and Delaware Law</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Some provisions of Delaware law, our certificate of
    incorporation and our bylaws contain provisions that could make
    the following transactions more difficult: an acquisition of us
    by means of a tender offer; an acquisition of us by means of a
    proxy contest or otherwise; or the removal of our incumbent
    officers and directors. It is possible that these provisions
    could make it more difficult to accomplish, or could deter,
    transactions that stockholders may otherwise consider to be in
    their best interest or in our best interests, including
    transactions that might result in a premium over the market
    price for our shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These provisions, summarized below, are intended to discourage
    coercive takeover practices and inadequate takeover bids. These
    provisions are also designed to encourage persons seeking to
    acquire control of us to first negotiate with our Board of
    Directors. We believe that the benefits of the increased
    protection of our potential ability to negotiate with the
    proponent of an unfriendly or unsolicited proposal to acquire or
    restructure us outweigh the disadvantages of discouraging these
    proposals because negotiation of these proposals could result in
    an improvement of their terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Undesignated Preferred Stock.</I>&#160;&#160;Our Board of
    Directors has the ability to authorize undesignated shares of
    our preferred stock, which allows our Board of Directors to
    issue shares of our preferred stock with voting or other rights
    or preferences that could impede the success of any unsolicited
    attempt to change control of our company. This ability may have
    the effect of deferring hostile takeovers or delaying changes in
    control or management of our company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Stockholder Meetings.</I>&#160;&#160;Our bylaws provide that
    a special meeting of stockholders may be called only by our
    Chairman, Chief Executive Officer or President, or by a
    resolution adopted by a majority of our Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Requirements for Advance Notification of Stockholder
    Nominations and Proposals.</I>&#160;&#160;Our bylaws establish
    advance notice procedures with respect to stockholder proposals
    and the nomination of candidates for election as directors,
    other than nominations made by or at the direction of our Board
    of Directors or a committee of our Board of Directors.
</DIV>
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    <BR>
    128
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Elimination of Stockholder Action by Written
    Consent.</I>&#160;&#160;Our certificate of incorporation and
    bylaws eliminate the right of stockholders to act by written
    consent without a meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Election and Removal of Directors.</I>&#160;&#160;Our Board
    of Directors is divided into three classes. The directors in
    each class will serve for a three-year term, with one class
    being elected each year by our stockholders. Once elected,
    directors may be removed only for cause and only by the
    affirmative vote of at least 66.67&#160;percent of our
    outstanding common stock. For more information, see
    &#147;Management and Board of Directors&#160;&#151; Board
    Composition and Election of Directors.&#148; This system of
    electing and removing directors may discourage a third party
    from making a tender offer or otherwise attempting to obtain
    control of us because it generally makes it more difficult for
    stockholders to replace a majority of the directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Delaware Anti-Takeover Statute.</I>&#160;&#160;We have opted
    out of Section&#160;203 of the Delaware General Corporation Law,
    which prohibits persons deemed &#147;interested
    stockholders&#148; from engaging in a &#147;business
    combination&#148; with a Delaware corporation for three years
    following the date these persons become interested stockholders.
    Generally, an &#147;interested stockholder&#148; is a person
    who, together with affiliates and associates, owns, or within
    three years prior to the determination of interested stockholder
    status did own, 15&#160;percent or more of a corporation&#146;s
    voting stock. Generally, a &#147;business combination&#148;
    includes a merger, asset or stock sale, or other transaction
    resulting in a financial benefit to the interested stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Amendment of Certain Provisions in Our Organizational
    Documents.</I>&#160;&#160;The amendment of any of the above
    provisions, except for the provision relating to undesignated
    shares of our preferred stock, would require approval by holders
    of at least 66.67&#160;percent of our then outstanding common
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provisions of the Delaware General Corporation Law and our
    certificate of incorporation and bylaws could have the effect of
    discouraging others from attempting hostile takeovers and, as a
    consequence, they may also inhibit temporary fluctuations in the
    market price of our Class&#160;A common stock that often result
    from actual or rumored hostile takeover attempts. Such
    provisions may also have the effect of preventing changes in our
    management. It is possible that these provisions could make it
    more difficult to accomplish transactions that stockholders may
    otherwise deem to be in their best interests.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitations
    of Liability and Indemnification Matters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have adopted provisions in our certificate of incorporation
    and bylaws that limit the liability of our directors for
    monetary damages for breach of their fiduciary duties, except
    for liability that cannot be eliminated under the Delaware
    General Corporation Law. Delaware law provides that directors of
    a corporation will not be personally liable for monetary damages
    for breach of their fiduciary duties as directors, except
    liability for any of the following: any breach of their duty of
    loyalty to the corporation or the stockholders; acts or
    omissions not in good faith or that involve intentional
    misconduct or a knowing violation of law; unlawful payments of
    dividends or unlawful stock repurchases or redemptions as
    provided in Section&#160;174 of the Delaware General Corporation
    Law; or any transaction from which the director derived an
    improper personal benefit. This limitation of liability does not
    apply to liabilities arising under the federal securities laws
    and does not affect the availability of equitable remedies such
    as injunctive relief or rescission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation and bylaws also provide that we
    will indemnify our directors and executive officers, and that we
    may indemnify our other officers and employees and other agents,
    to the fullest extent permitted by law. We believe that
    indemnification under our bylaws covers at least negligence and
    gross negligence on the part of indemnified parties. Our bylaws
    also permit us to secure insurance on behalf of any officer,
    director, employee or other agent for any liability arising out
    of his or her actions in such capacity, regardless of whether
    our bylaws would permit indemnification. Upon completion of this
    offering, we expect that we will have entered into separate
    indemnification agreements with our directors and executive
    officers, in addition to the indemnification provided for in our
    charter documents. These agreements, among other things, provide
    for indemnification of our directors and executive officers for
    expenses, judgments, fines and settlement amounts incurred by
    any such person in any action or proceeding arising out of such
    person&#146;s services as a director or executive officer or at
    our request.
</DIV>
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    <BR>
    129
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent and registrar for our Class&#160;A common
    stock is&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NASDAQ
    Global Market</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to apply to have our Class&#160;A common stock the
    NASDAQ Global Market under the symbol &#145;&#145;ARDX.&#148;
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES&#160;ELIGIBLE
    FOR FUTURE SALE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no market for our
    Class&#160;A common stock, and we cannot assure you that a
    liquid trading market for our Class&#160;A common stock will
    develop or be sustained after this offering. Future sales of
    substantial amounts of our Class&#160;A common stock, in the
    public market after this offering, or the anticipation of those
    sales, could adversely affect market prices prevailing from time
    to time and could impair our ability to raise capital through
    sales of our equity securities. These factors could also make it
    more difficult to raise funds through future offerings of
    Class&#160;A common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales of
    Restricted Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of this offering, we will have outstanding
    an aggregate of
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock, based on an assumed initial
    public offering price of $&#160;&#160;&#160;&#160;&#160; per
    share, which is the midpoint of the price range set forth on the
    cover page of this prospectus. Of these
    shares,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock to be sold in this offering,
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    if the underwriters exercise their over-allotment option in
    full, will be freely tradable without restriction or further
    registration under the Securities Act, unless the shares are
    held by any of our affiliates, as that term is defined in
    Rule&#160;144 of the Securities Act. All remaining shares were
    issued and sold by us in private transactions and are eligible
    for public sale only if registered under the Securities Act or
    sold in accordance with Rule&#160;144 or Rule&#160;701, each of
    which is discussed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, upon the completion of this offering and the
    application of the net proceeds that we will receive from this
    offering, the Aurora Holdings Continuing Members will own an
    aggregate of&#160;&#160;&#160;&#160;&#160; Aurora Holdings Units
    and&#160;&#160;&#160;&#160;&#160;&#160;shares of our
    Class&#160;B common stock. Pursuant to the terms of the Second
    Amended and Restated Aurora Holdings LLC Agreement and our
    certificate of incorporation, the Aurora Holdings Continuing
    Members could from time to time exchange their Aurora Holdings
    Units (and corresponding shares of our Class&#160;B common
    stock) with Aurora Holdings for shares of our Class&#160;A
    common stock on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis. In connection with any proposed exchange by an Aurora
    Holdings Continuing Member, we may, in certain circumstances,
    elect to acquire (or cause ARDX Sub to acquire) the applicable
    Aurora Holdings Units and corresponding Class&#160;B common
    stock by paying either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cash in an amount equal to the fair market value on the date of
    the exchange (determined by the volume weighted average price of
    the shares of Class&#160;A common stock on the date of the
    exchange) of the shares of Class&#160;A common stock the member
    would have received in the proposed exchange;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of shares of Class&#160;A common stock the member
    would have received in the proposed exchange.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of our Class&#160;A common stock issuable to the Aurora
    Holdings Continuing Members upon an exchange of Aurora Holdings
    Units would be considered &#147;restricted securities,&#148; as
    that term is defined in Rule&#160;144.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except with respect to shares of our Class&#160;A common stock
    offered by our selling stockholders in this offering, and Aurora
    Holdings Units that we will purchase with the proceeds received
    by us in the offering, including shares of our Class&#160;A
    common stock to be sold by the selling stockholders and Aurora
    Holdings Units that we will purchase if the underwriters
    exercise their over-allotment option, all of our officers and
    directors and substantially all of our stockholders are subject
    to <FONT style="white-space: nowrap">lock-up</FONT>
    agreements under which they have agreed not to transfer or
    dispose of, directly or indirectly, any shares of our
    Class&#160;A common stock or any securities convertible into or
    exercisable or exchangeable for shares of our Class&#160;A
    common stock (including Aurora Holdings Units), for a period of
    180&#160;days after the date of this prospectus, which is
    subject to extension in some circumstances, as discussed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described below and the provisions of Rule&#160;144
    and Rule&#160;701 under the Securities Act, the shares of our
    Class&#160;A common stock (excluding the shares to be sold in
    this offering) will be available for sale in the public market
    as follows, based on an assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    will be eligible for sale on the date of this
    prospectus;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    will be eligible for sale as more particularly and except as
    described below, beginning after expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period pursuant to Rule 144 or Rule&#160;701.
</TD>
</TR>

</TABLE>
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    <BR>
    131
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect the
    remaining&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    to become eligible for future sale in the public market pursuant
    to Rule&#160;144 at varying times after 180&#160;days from the
    date of this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rule&#160;144</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, under Rule&#160;144, beginning 90&#160;days after
    the date of this prospectus, a person who is not our affiliate
    and has not been our affiliate for the previous three months,
    and who has beneficially owned shares of our Class&#160;A common
    stock for at least six months, may sell all such shares. An
    affiliate or a person who has been our affiliate within the
    previous 90&#160;days, and who has beneficially owned shares of
    our Class&#160;A common stock for at least six months, may sell
    within any three-month period a number of shares that does not
    exceed the greater of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    one&#160;percent of the number of shares of our Class&#160;A
    common stock then outstanding, which will equal
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    immediately after this offering;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the average weekly trading volume of our Class&#160;A common
    stock on the NASDAQ Global Market during the four calendar weeks
    preceding the filing of a notice on Form&#160;144 with respect
    to the sale.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All sales under Rule&#160;144 are subject to the availability of
    current public information about us. Sales under Rule&#160;144
    by affiliates or persons who have been affiliates within the
    previous 90&#160;days are also subject to manner of sale
    provisions and notice requirements. Upon completion of the
    <FONT style="white-space: nowrap">180-day</FONT>
    <FONT style="white-space: nowrap">lock-up</FONT>
    period, subject to any extension of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period under circumstances described below,
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    our outstanding restricted securities will be eligible for sale
    under Rule&#160;144.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rule&#160;701</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, under Rule&#160;701 of the Securities Act, any of
    our employees, consultants or advisors who purchased shares from
    us in connection with a qualified compensatory stock plan or
    other written agreement are eligible to resell those shares
    90&#160;days after the effective date of this offering in
    reliance on Rule&#160;144, but without compliance with the
    holding period contained in Rule&#160;144, and, in the case of
    non-affiliates, without the availability of current public
    information. Subject to the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period,
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of our Class&#160;A common stock will be eligible for sale in
    accordance with Rule&#160;701.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-up</FONT>
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, the selling stockholders, all of our directors and officers
    and the holders of
    approximately&#160;&#160;&#160;&#160;&#160;&#160;percent of our
    outstanding stock on a fully diluted basis immediately prior to
    this offering have agreed to enter into
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements as described below under &#147;Underwriters.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are party to a Registration Agreement with certain of our
    Principal Equityholders that grants registration rights to such
    Principal Equityholders. Under certain circumstances, these
    persons can require us to file registrations statements that
    permit them to re-sell their shares. See &#147;Certain
    Relationships and Related Party Transactions&#160;&#151;
    Registration Agreement.&#148;
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    132
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    U.S. FEDERAL INCOME AND ESTATE TAX CONSEQUENCES TO<BR>
    <FONT style="white-space: nowrap">NON-U.S.</FONT>
    HOLDERS OF COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a general discussion of certain material
    U.S.&#160;federal income and estate tax consequences of the
    ownership and disposition of our Class&#160;A common stock that
    may be relevant to you if you are a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    (as defined below) that acquires our Class&#160;A common stock
    pursuant to this offering. This discussion is limited to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    who hold our Class&#160;A common stock as a capital asset within
    the meaning of Section&#160;1221 of the Internal Revenue Code of
    1986, as amended, which we refer to as the Internal Revenue Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This discussion does not address all aspects of
    U.S.&#160;federal income and estate taxation that may be
    relevant to you in light of your particular circumstances, and
    does not address any foreign, state or local tax consequences.
    Furthermore, this discussion does not consider specific facts
    and circumstances that may be relevant to a particular
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    tax position, specific rules that may apply to certain
    <FONT style="white-space: nowrap">non-U.S.&#160;holders,</FONT>
    including banks, insurance companies, or other financial
    institutions, partnerships or other pass-through entities,
    holders of 10 percent or more of our common stock,
    U.S.&#160;expatriates, dealers and traders in securities, or
    special tax rules that may apply to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that holds our Class&#160;A common stock as part of a straddle,
    hedge or conversion transaction. This discussion is based on
    provisions of the Internal Revenue Code, Treasury regulations
    and administrative and judicial interpretations as of the date
    of this prospectus. All of these are subject to change, possibly
    with retroactive effect, or different interpretations. If you
    are considering buying our Class&#160;A common stock, you should
    consult your own tax advisor about current and possible future
    tax consequences of owning and disposing of our Class&#160;A
    common stock in your particular situation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this discussion, a
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;holder&#148;</FONT>
    is a beneficial owner of our Class&#160;A common stock if that
    person is any of the following for U.S.&#160;federal income tax
    purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a nonresident alien individual within the meaning of
    Section&#160;7701(b) of the Internal Revenue Code;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a foreign corporation within the meaning of Section&#160;7701(a)
    of the Internal Revenue Code or other foreign entity taxable as
    a foreign corporation under U.S.&#160;federal income tax
    law;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a foreign estate or trust within the meaning of
    Section&#160;7701(a) of the Internal Revenue Code.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an entity treated as a partnership for U.S.&#160;federal
    income tax purposes holds shares of our Class&#160;A common
    stock, the tax treatment of a partner generally will depend on
    the status of the partner and upon the activities of the
    partnership. If you are a partner of a partnership holding
    shares of our Class&#160;A common stock, we suggest you consult
    your own tax advisor.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If distributions are paid on the shares of our Class&#160;A
    common stock, these distributions generally will constitute
    dividends for U.S.&#160;federal income tax purposes to the
    extent paid from our current or accumulated earnings and
    profits, as determined under U.S.&#160;federal income tax
    principles, and then will constitute a return of capital that is
    applied against your tax basis in our Class&#160;A common stock
    to the extent these distributions exceed those earnings and
    profits. Distributions in excess of our current and accumulated
    earnings and profits and your tax basis in our Class&#160;A
    common stock (determined on a share by share basis) will be
    treated as a gain from the sale or exchange of our Class&#160;A
    common stock, the treatment of which is discussed below.
    Dividends paid to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that are not effectively connected with the conduct of a
    U.S.&#160;trade or business of the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will be subject to U.S.&#160;federal withholding tax at a
    30&#160;percent rate or, if an income tax treaty applies and
    certain information reporting requirements are satisfied, a
    lower rate specified by the treaty.
    <FONT style="white-space: nowrap">Non-U.S.&#160;holders</FONT>
    should consult their tax advisors regarding their entitlement to
    benefits under a relevant tax treaty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;federal withholding tax generally is imposed on
    the gross amount of a distribution, regardless of whether we
    have sufficient earnings and profits to cause the distribution
    to be a dividend for U.S.&#160;federal income tax purposes.
    However, we may elect to withhold on less than the gross amount
    of the distribution if we determine that the distribution is not
    paid out of our current or accumulated earnings and profits,
    based on our reasonable estimates.
</DIV>
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    <BR>
    133
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    eligible for a reduced rate of U.S.&#160;federal withholding tax
    under a tax treaty may establish entitlement to the benefit of a
    reduced rate of withholding under such tax treaty by timely
    filing a properly completed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or a successor form) with us prior to the payment of a
    dividend. A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    eligible for a reduced rate of U.S.&#160;federal withholding tax
    under a tax treaty may obtain a refund of any excess amounts
    withheld by filing an appropriate claim for a refund together
    with the required information with the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends that are effectively connected with a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    conduct of a trade or business within the United States and, if
    an applicable tax treaty so provides, are also attributable to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    U.S.&#160;permanent establishment, are exempt from
    U.S.&#160;federal withholding tax if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    furnishes to us or our paying agent a properly completed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    (or successor form) containing the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    taxpayer identification number. However, dividends exempt from
    U.S.&#160;federal withholding tax because they are
    &#147;effectively connected&#148; or attributable to a
    U.S.&#160;permanent establishment under an applicable tax treaty
    are subject to U.S.&#160;federal income tax on a net income
    basis at the regular graduated U.S.&#160;federal income tax
    rates. Any such effectively connected dividends received by a
    foreign corporation may, under certain circumstances, be subject
    to an additional &#147;branch profits tax&#148; at a
    30&#160;percent rate or a lower rate if specified by an
    applicable tax treaty.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Gain on
    Disposition of our Class&#160;A Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    generally will not be subject to U.S.&#160;federal income tax or
    withholding tax with respect to gain recognized on a sale or
    other disposition of our Class&#160;A common stock unless one of
    the following applies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The gain is effectively connected with a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    conduct of a trade or business within the United States and, if
    an applicable tax treaty so provides, the gain is also
    attributable to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    U.S.&#160;permanent establishment. In such a case, unless an
    applicable tax treaty provides otherwise, the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    generally will be taxed on its net gain derived from the sale at
    regular graduated U.S.&#160;federal income tax rates, and in the
    case of a foreign corporation, may also be subject to an
    additional branch profits tax as described in &#147;&#151;
    Distributions&#148; above.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    who is an individual holds our Class&#160;A common stock as a
    capital asset and is present in the United States for 183 or
    more days in the taxable year of the sale or other disposition,
    and certain other conditions are met. In such a case, the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will be subject to a flat 30&#160;percent tax on the gain
    derived from the sale, which may be offset by certain
    U.S.&#160;capital losses realized in the taxable year of the
    sale or other disposition.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    At any time during the shorter of the
    <FONT style="white-space: nowrap">5-year</FONT>
    period ending on the date of a sale or other disposition of our
    stock or the period that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    held our Class&#160;A common stock, our company is classified as
    a United States Real Property Holding Corporation and, if our
    Class&#160;A common stock is treated as &#147;regularly traded
    on an established securities market,&#148; only if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    owns or is treated as owning more than 5&#160;percent of our
    Class&#160;A common stock at any time within such period. A
    United States Real Property Holding Corporation is generally
    defined as a corporation, the fair market value of whose real
    property interests equals or exceeds 50&#160;percent of the fair
    market value of its U.S.&#160;real property interests, its
    interests in real property located outside the United States and
    any other of its assets used or held for use in a trade or
    business. Our company believes it is not and does not anticipate
    becoming a United States Real Property Holding Corporation for
    U.S.&#160;federal income tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding Tax</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We must report annually to the IRS and to each
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    the amount of dividends paid to that holder and the tax withheld
    with respect to those dividends. These information reporting
    requirements apply even if withholding was not required.
    Pursuant to an applicable tax treaty or other agreement, copies
    of the information returns reporting those dividends and
    withholding may also be made available to the tax authorities in
    the country in which the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    resides.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, Treasury regulations require
    information reporting and backup withholding (currently at a
    rate of 28&#160;percent), on certain payments on common stock. A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of our Class&#160;A common stock that fails to certify its
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    status in accordance with applicable Treasury regulations or
    otherwise
</DIV>
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    <BR>
    134
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    establish an exemption may be subject to information reporting
    and this backup withholding tax on payments of dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payment of the proceeds of a sale of our Class&#160;A common
    stock by or through a U.S.&#160;office of a broker is subject to
    both information reporting and backup withholding unless the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    certifies to the payor in the manner required as to its
    <FONT style="white-space: nowrap">non-U.S.&#160;status</FONT>
    under penalties of perjury or otherwise establishes an
    exemption. As a general matter, information reporting and backup
    withholding will not apply to a payment of the proceeds of a
    sale of our Class&#160;A common stock by or through a foreign
    office of a foreign broker effected outside the United States.
    However, information reporting requirements, but not backup
    withholding, will apply to payment of the proceeds of a sale of
    our Class&#160;A common stock by or through a foreign office of
    a broker effected outside the United States if that broker is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a U.S.&#160;person,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a foreign person that derives 50&#160;percent or more of its
    gross income for specified periods from the conduct of a trade
    or business in the United States,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;controlled foreign corporation&#148; as defined in the
    Internal Revenue Code,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a foreign partnership that at any time during its tax year
    either (1)&#160;has one or more U.S.&#160;persons that, in the
    aggregate, own more than 50&#160;percent of the income or
    capital interests in the partnership or (2)&#160;is engaged in
    the conduct of a trade or business in the United States.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information reporting requirements will not apply to the payment
    of the proceeds of a sale of our Class&#160;A common stock if
    the broker receives a statement from the owner, signed under
    penalty of perjury, certifying such owner&#146;s
    <FONT style="white-space: nowrap">non-U.S.&#160;status</FONT>
    or an exemption is otherwise established (generally, such
    certification is made on IRS Form W-8BEN).
    <FONT style="white-space: nowrap">Non-U.S.&#160;holders</FONT>
    should consult their own tax advisors regarding the application
    of the information reporting and backup withholding rules to
    them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amounts withheld under the backup withholding rules do not
    constitute a separate U.S.&#160;federal income tax. Rather, any
    amounts withheld under the backup withholding rules will be
    refunded or allowed as a credit against the holder&#146;s
    U.S.&#160;federal income tax liability, if any, provided the
    required information and appropriate claim for refund is timely
    filed with the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Recently-Enacted Federal Tax Legislation</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;18, 2010, President Obama signed the &#147;Hiring
    Incentives to Restore Employment (HIRE) Act,&#148; or the HIRE
    Act. The HIRE Act includes a revised version of a bill
    introduced in late October 2009 in both the House and the
    Senate, the &#147;Foreign Account Tax Compliance Act of
    2009&#148; or the FATCA Bill.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the HIRE Act, foreign financial institutions (which
    include hedge funds, private equity funds, mutual funds,
    securitization vehicles and any other investment vehicles
    regardless of their size) must comply with new information
    reporting rules with respect to their U.S. account holders and
    investors (which would include certain equity and debt holders
    of such institutions, as well as certain account holders that
    foreign entities with U.S. owners) or confront a new withholding
    tax on U.S.-source payments made to them. A foreign financial
    institution or other foreign entity that does not comply with
    the HIRE Act&#146;s reporting requirements generally will be
    subject to a new 30 percent withholding tax with respect to any
    &#147;withholdable payments&#148; made after December&#160;31,
    2012. For this purpose, withholdable payments are U.S.-source
    payments otherwise subject to nonresident withholding tax
    (including dividends paid on our Class&#160;A common stock) and
    also include the entire gross proceeds from the sale of any
    equity or debt instruments of U.S. issuers (including the gross
    proceeds from the disposition of our Class&#160;A common stock).
    The new HIRE Act&#146;s withholding tax will apply regardless of
    whether the payment would otherwise be exempt from U.S.
    nonresident withholding tax (e.g., under the portfolio interest
    exemption or as capital gain). The U.S. Treasury is authorized
    to provide rules for implementing the HIRE Act&#146;s
    withholding regime with the existing nonresident withholding tax
    rules. The HIRE Act also imposes new information reporting
    requirements and increases related penalties for U.S. persons.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Absent any applicable exception, this legislation also generally
    will impose a withholding tax of 30 percent on dividend income
    from our Class&#160;A common stock paid to a foreign entity that
    is not a foreign financial institution
</DIV>
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    <BR>
    135
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    unless such entity provides the withholding agent with a
    certification identifying the substantial U.S.&#160;owners of
    the entity, which generally includes any United States persons
    who directly or indirectly own more than 10 percent of the
    entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Withholding under the HIRE Act will not apply to withholdable
    payments made directly to foreign governments, international
    organizations, foreign central banks of issue and individuals,
    and the U.S. Treasury is authorized to provide additional
    exceptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As noted above, the new HIRE Act&#146;s withholding and
    information reporting requirements generally will apply to
    withholdable payments made after December&#160;31, 2012. You are
    urged to consult with your tax advisors regarding these new
    provisions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Federal Estate Tax</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Common stock owned or treated as owned by an individual who is
    not a citizen or resident, as defined for U.S.&#160;federal
    estate tax purposes, of the United States at the time of death
    will be included in that individual&#146;s gross estate for
    U.S.&#160;federal estate tax purposes and may be subject to
    U.S.&#160;federal estate tax, unless an applicable estate tax
    treaty provides otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The foregoing discussion is a summary of certain material
    U.S.&#160;federal income and estate tax consequences of the
    ownership and disposition of our Class&#160;A common stock by
    <FONT style="white-space: nowrap">non-U.S.&#160;holders.</FONT>
    You are urged to consult your own tax advisor with respect to
    the particular tax consequences to you of ownership and
    disposition of our Class&#160;A common stock, including the
    effect of any state, local,
    <FONT style="white-space: nowrap">non-U.S.&#160;or</FONT>
    other tax laws.</B>
</DIV>
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    <BR>
    136
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms and subject to the conditions contained in an
    underwriting agreement dated the date of this prospectus, the
    underwriters named below, for whom Morgan Stanley&#160;&#038;
    Co. Incorporated, UBS Securities LLC, and Barclays Capital Inc.
    are serving as the representatives and joint book-running
    managers, have severally agreed to purchase, and the selling
    stockholders have agreed to sell to them, severally, the number
    of shares indicated below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Underwriter</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Shares</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Morgan Stanley&#160;&#038; Co. Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    UBS Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Barclays Capital Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    RBC Capital Markets Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    BMO Capital Markets Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lazard Capital Markets LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters and the representatives are collectively
    referred to as the &#147;underwriters&#148; and the
    &#147;representatives,&#148; respectively. The underwriters are
    offering the shares of Class&#160;A common stock subject to
    their acceptance of the shares from us and the selling
    stockholders and subject to prior sale. The underwriting
    agreement provides that the obligations of the several
    underwriters to pay for and accept delivery of the shares of
    Class&#160;A common stock offered by this prospectus are subject
    to the approval of certain legal matters by their counsel and to
    certain other conditions. The underwriters are obligated to take
    and pay for all of the shares of Class&#160;A common stock
    offered by this prospectus if any such shares are taken.
    However, the underwriters are not required to take or pay for
    the shares covered by the underwriters&#146; over-allotment
    option described below. If an underwriter defaults, the
    underwriting agreement provides that the purchase commitments of
    the non-defaulting underwriters may be increased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters initially propose to offer part of the shares
    of Class&#160;A common stock directly to the public at the
    initial public offering price listed on the cover page of this
    prospectus and part to certain dealers at a price that
    represents a concession not in excess of
    $&#160;&#160;&#160;&#160;&#160; a share under the initial public
    offering price. Any underwriter may allow a concession not in
    excess of $&#160;&#160;&#160;&#160;&#160; a share to other
    underwriters or to certain dealers. After the initial offering
    of the shares of Class&#160;A common stock, the offering price
    and other selling terms may from time to time be varied by the
    representatives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and the selling stockholders have granted to the underwriters
    an option, exercisable for 30&#160;days from the date of this
    prospectus, to purchase up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    additional shares of our Class&#160;A common stock at the
    initial public offering price listed on the cover page of this
    prospectus, less underwriting discounts and commissions. The
    underwriters may exercise this option solely for the purpose of
    covering over-allotments, if any, made in connection with the
    offering of the shares of Class&#160;A common stock offered by
    this prospectus. To the extent the option is exercised, each
    underwriter will become obligated, subject to certain
    conditions, to purchase about the same percentage of the
    additional shares of Class&#160;A common stock as the number
    listed next to the underwriter&#146;s name in the preceding
    table bears to the total number of shares of Class&#160;A common
    stock listed next to the names of all underwriters in the
    preceding table. If the underwriters&#146; option is exercised
    in full, the total price to the public would be
    $&#160;&#160;&#160;&#160;&#160;, the total underwriters&#146;
    discounts and commissions paid by us would be
    $&#160;&#160;&#160;&#160;&#160;, and the total proceeds to us
    would be $&#160;&#160;&#160;&#160;&#160;.
</DIV>
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    <BR>
    137
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows the per share and total underwriting
    discounts and commissions that we and the selling stockholders
    are to pay to the underwriters in connection with this offering.
    These amounts are shown assuming both no exercise and full
    exercise of the underwriters&#146; option to purchase additional
    shares of our Class&#160;A common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>No<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Full<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>No<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Full<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discounts and commissions paid by us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discounts and commissions paid by the selling
    stockholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expenses of this offering payable by us, not including
    underwriting discounts and commissions, are estimated to be
    approximately $&#160;&#160;&#160;&#160;&#160;, which includes
    legal, accounting and printing costs and various other fees
    associated with the registration and listing of our Class&#160;A
    common stock, giving effect to the reimbursement of certain
    expenses by the selling stockholders and the underwriters. The
    underwriters and the selling stockholders have agreed to
    reimburse us for a portion of our expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters have informed us and the selling stockholders
    that they do not intend sales to discretionary accounts to
    exceed five percent of the total number of shares of
    Class&#160;A common stock offered by them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to apply to have our Class&#160;A common stock listed
    on the NASDAQ Global Market under the symbol &#147;ARDX.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, the selling stockholders, all of our directors and officers
    and the holders of
    approximately&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;percent
    of our outstanding Class&#160;A common stock and Aurora Holdings
    Units on a fully diluted basis immediately prior to this
    offering have agreed that, subject to certain exceptions,
    without the prior written consent of Morgan Stanley&#160;&#038;
    Co. Incorporated, UBS Securities LLC, and Barclays Capital Inc.
    on behalf of the underwriters, we and they will not, during the
    period ending 180&#160;days after the date of this prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    offer, pledge, sell, contract to sell, sell any option or
    contract to purchase, purchase any option or contract to sell,
    grant any option, right or warrant to purchase, lend, or
    otherwise transfer or dispose of, directly or indirectly, any
    shares of Class&#160;A common stock or any securities
    convertible into or exercisable or exchangeable for Class&#160;A
    common stock or any Aurora Holdings Units;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any swap or other arrangement that transfers to
    another, in whole or in part, any of the economic consequences
    of ownership of the Class&#160;A common stock or any securities
    convertible into or exercisable or exchangeable for the
    Class&#160;A common stock or any Aurora Holdings Units;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    file any registration statement with the SEC relating to the
    offering of any shares of Class&#160;A common stock or any
    securities convertible into or exercisable or exchangeable for
    Class&#160;A common stock or any Aurora Holdings Units;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    whether any such transaction described in the first two bullet
    points above is to be settled by delivery of Class&#160;A common
    stock, Aurora Holdings Units or such other securities, in cash
    or otherwise. In addition, we and each such person agrees that,
    without the prior written consent of Morgan Stanley&#160;&#038;
    Co. Incorporated, UBS Securities LLC, and Barclays Capital Inc.
    on behalf of the underwriters, we and they will not, during the
    period ending 180&#160;days after the date of this prospectus,
    make any demand for, or exercise any right with respect to, the
    registration of any shares of Class&#160;A common stock or any
    security convertible into or exercisable or exchangeable for
    Class&#160;A common stock.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    138
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain exceptions, the
    <FONT style="white-space: nowrap">lock-up</FONT>
    restrictions described in the immediately preceding paragraph do
    not apply to us or the holders referenced above, as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the sale of shares Class&#160;A common stock to the underwriters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the issuance by us of shares of Class&#160;A common stock upon
    the exercise of an option or warrant, or the conversion of a
    security outstanding on the date of this prospectus, of which
    the underwriters have been advised in writing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    transactions by such holders relating to shares of Class&#160;A
    common stock, Aurora Holdings Units or other securities acquired
    in open market transactions after the completion of the offering
    of the shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transfer of shares of Class&#160;A common stock or any
    security convertible into or exercisable or exchangeable for
    Class&#160;A common stock as a bona fide gift;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    distributions by such holders of shares of Class&#160;A common
    stock or any security convertible into Class&#160;A common stock
    to limited partners or stockholders of the transferor and
    transfers of shares of Class&#160;A common stock to an affiliate
    (as defined under the Securities Act);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transfer of shares of Class&#160;A common stock that occur
    pursuant to a will, other testamentary document or applicable
    laws of descent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    transfers of shares of Class&#160;A common stock pursuant to a
    qualified domestic order or in connection with a divorce
    settlement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the establishment of a trading plan pursuant to
    <FONT style="white-space: nowrap">Rule&#160;10b5-1</FONT>
    under the Exchange Act for the transfer of shares of our
    Class&#160;A common stock, provided that such plan does not
    provide for the transfer of Class&#160;A common stock during
    this <FONT style="white-space: nowrap">180-day</FONT>
    restricted period;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any issuance or transfer in connection with the Reorganization
    Transactions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any sale of Aurora Holdings Units (along with a corresponding
    number of shares of Class&#160;B common stock) to us for cash
    using the net proceeds we will receive in this offering;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any exchange of Aurora Holdings Units and a corresponding number
    of shares of Class&#160;B common stock for shares of
    Class&#160;A common stock, or exercise by us of our related
    purchase right;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provided that, in the case of each of the fourth, fifth, sixth,
    seventh and ninth types of transactions described above, each
    recipient or transferee agrees to be subject to the restrictions
    described in the preceding paragraph and that no filing under
    Section&#160;16(a) of the Exchange Act, reporting a change in
    beneficial ownership of shares of Class&#160;A common stock, is
    required or voluntarily made in connection with these
    transactions during this
    <FONT style="white-space: nowrap">180-day</FONT>
    restricted period. In addition, in the case of each of the third
    and eleventh types of transactions described above, no filing
    under Section&#160;16(a) of the Exchange Act is required or
    voluntarily made in connection with these transactions during
    this 180-restricted period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, in the event that any
    Class&#160;A common stock or Aurora Holdings Units held by
    either the Summit Partners Equityholders or the KRG
    Equityholders are released from such
    <FONT style="white-space: nowrap">lock-up</FONT>
    restrictions by the representatives, a pro rata portion of
    shares of the Class&#160;A common stock or Aurora Holdings Units
    held by the other of the Summit Partners Equityholders or the
    KRG Equityholders will be immediately and fully released from
    any remaining
    <FONT style="white-space: nowrap">lock-up</FONT>
    restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <FONT style="white-space: nowrap">180-day</FONT>
    restricted period described in the preceding paragraphs will be
    extended if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    during the last 17&#160;days of the
    <FONT style="white-space: nowrap">180-day</FONT>
    restricted period, we issue an earnings release or material news
    or a material event relating to our company occurs;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prior to the expiration of the
    <FONT style="white-space: nowrap">180-day</FONT>
    restricted period, we announce that we will release earnings
    results during the
    <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the
    <FONT style="white-space: nowrap">180-day</FONT>
    period;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    139
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in which case the restrictions described in the preceding
    paragraphs will continue to apply until the expiration of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the issuance of the earnings release or the
    occurrence of the material news or material event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to facilitate this offering of the Class&#160;A common
    stock, the underwriters may engage in transactions that
    stabilize, maintain or otherwise affect the price of the
    Class&#160;A common stock. Specifically, the underwriters may
    sell more shares than they are obligated to purchase under the
    underwriting agreement, creating a short position. A short sale
    is covered if the short position is no greater than the number
    of shares available for purchase by the underwriters under the
    over-allotment option. The underwriters can close out a covered
    short sale by exercising the over-allotment option or purchasing
    shares in the open market. In determining the source of shares
    to close out a covered short sale, the underwriters will
    consider, among other things, the open market price of shares
    compared to the price available under the over-allotment option.
    The underwriters may also sell shares in excess of the
    over-allotment option, creating a naked short position. The
    underwriters must close out any naked short position by
    purchasing shares in the open market. A naked short position is
    more likely to be created if the underwriters are concerned that
    there may be downward pressure on the price of the Class&#160;A
    common stock in the open market after pricing that could
    adversely affect investors who purchase in this offering. In
    addition, to stabilize the price of the Class&#160;A common
    stock, the underwriters may bid for, and purchase, shares of
    Class&#160;A common stock in the open market. Finally, the
    underwriting syndicate may reclaim selling concessions allowed
    to an underwriter or a dealer for distributing the Class&#160;A
    common stock in this offering if the syndicate repurchases
    previously distributed Class&#160;A common stock to cover
    syndicate short positions or to stabilize the price of the
    Class&#160;A common stock. These activities may raise or
    maintain the market price of the Class&#160;A common stock above
    independent market levels or prevent or retard a decline in the
    market price of the Class&#160;A common stock. The underwriters
    are not required to engage in these activities and may end any
    of these activities at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, the selling stockholders and the underwriters have agreed to
    indemnify each other against certain liabilities, including
    liabilities under the Securities Act, or to contribute to
    payments the underwriters may be required to make in connection
    with such liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A prospectus in electronic format may be made available on the
    websites maintained by one or more underwriters. The
    underwriters may agree to allocate a number of shares to
    underwriters for sale to their online brokerage account holders.
    Internet distributions will be allocated by Morgan
    Stanley&#160;&#038; Co. Incorporated to underwriters that may
    make Internet distributions on the same basis as other
    allocations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">European
    Economic Area</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In relation to each Member State of the European Economic Area
    which has implemented the Prospectus Directive, from and
    including the date on which the Prospectus Directive is
    implemented in that Member State, each representative and
    underwriter has not made and will not make an offer of our
    Class&#160;A common stock to the public in that Member State,
    except that it may, with effect from and including such date,
    make an offer of our Class&#160;A common stock to the public in
    that Member State:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at any time to legal entities which are authorized or regulated
    to operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at any time to any legal entity which has two or more of
    (1)&#160;an average of at least 250&#160;employees during the
    last financial year; (2)&#160;a total balance sheet of more than
    &#128;43,000,000 and (3)&#160;an annual net turnover of more
    than &#128;50,000,000, as shown in its last annual or
    consolidated accounts;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at any time in any other circumstances which do not require the
    publication by us of a prospectus pursuant to Article&#160;3 of
    the Prospectus Directive.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of the above, the expression an &#147;offer of
    our Class&#160;A common stock to the public&#148; in relation to
    any shares of Class&#160;A common stock in any Member State
    means the communication in any form and by any means of
    sufficient information on the terms of the offer and the
    Class&#160;A common stock to be offered so as to enable an
    investor to decide to purchase or subscribe shares of the
    Class&#160;A common stock, as the same may be varied in that
    Member State by any measure implementing the Prospectus
    Directive in that Member State, and the expression
</DIV>
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    <BR>
    140
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prospectus Directive means Directive 2003/71/EC and includes any
    relevant implementing measure in that Member State.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">United
    Kingdom</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each representative and underwriter has only communicated or
    caused to be communicated and will only communicate or cause to
    be communicated an invitation or inducement to engage in
    investment activity (within the meaning of Section&#160;21 of
    the Financial Services and Markets Act of 2000)&#160;in
    connection with the issue or sale of shares of the Class&#160;A
    common stock in circumstances in which Section&#160;21(1) of
    such Act does not apply to us, and it has complied and will
    comply with all applicable provisions of such Act with respect
    to anything done by it in relation to any shares of the
    Class&#160;A common stock in, from or otherwise involving the
    United Kingdom.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Relationships</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From time to time, certain of the underwriters
    <FONT style="white-space: nowrap">and/or</FONT> their
    respective affiliates have directly and indirectly engaged in
    various financial advisory, investment banking and commercial
    banking services for us and our affiliates, for which they
    received customary compensation, fees and expense reimbursement.
    In particular, affiliates of Morgan Stanley &#038; Co.
    Incorporated, UBS&#160;Securities LLC, Barclays Capital Inc.,
    RBC&#160;Capital Markets Corporation and BMO&#160;Capital
    Markets Corp., underwriters in this offering, have provided
    commitments to us to refinance our existing senior secured
    credit facility. Our senior secured credit facility was
    negotiated on an arms&#146; length basis and contains customary
    terms pursuant to which the lenders receive customary fees. In
    addition, from time to time, certain of the underwriters and
    their affiliates may effect transactions for their own account
    or the account of customers, and hold on behalf of themselves or
    their customers, long or short positions in our debt or equity
    securities or loans, and may do so in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Lazard Fr&#232;res&#160;&#038; Co. referred this transaction to
    Lazard Capital Markets LLC and will receive a referral fee from
    Lazard Capital Markets LLC in connection with this referral.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pricing
    of the Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no public market for our
    Class&#160;A common stock. The initial public offering price
    will be determined by negotiations among us, the selling
    stockholders and the representatives of the underwriters. Among
    the factors to be considered in determining the initial public
    offering price will be our future prospects and those of our
    industry in general, our sales, earnings and certain other
    financial and operating information in recent periods, and the
    price to earnings ratios, price to sales ratios and market
    prices of securities and certain financial and operating
    information of companies engaged in activities similar to ours.
    The estimated initial public offering price range set forth on
    the cover page of this preliminary prospectus is subject to
    change as a result of market conditions and other factors.
</DIV>

<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alston&#160;&#038; Bird LLP will pass upon the legality of the
    shares of our Class&#160;A common stock to be issued in this
    offering. Shearman&#160;&#038; Sterling LLP will pass upon legal
    matters in connection with this offering on behalf of the
    underwriters.
</DIV>

<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Aurora Holdings, at
    December&#160;31, 2008 and 2009 and for the three years ended
    December&#160;31, 2009, appearing in this prospectus and
    registration statement have been audited by
    McGladrey&#160;&#038; Pullen, LLP, independent registered public
    accounting firm, as set forth in their report thereon appearing
    elsewhere herein, and are included in reliance on their report
    given on their authority as experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of South Texas
    Dermatopathology Laboratory, P.A. and Subsidiaries at
    November&#160;20, 2009 and for the period from January&#160;1,
    2009 through November&#160;20, 2009 appearing in this
</DIV>
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    <BR>
    141
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    prospectus and registration statement have been audited by
    McGladrey&#160;&#038; Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements of Twin Cities Dermatopathology, P.A.
    at March&#160;7, 2008 and December&#160;31, 2007 and for the
    period from January&#160;1, 2008 through March&#160;7, 2008 and
    for the year ended December&#160;31, 2007 appearing in this
    prospectus and registration statement have been audited by
    McGladrey&#160;&#038; Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements of Laboratory Medicine Consultants,
    Ltd. at December&#160;10, 2007 and for the period from
    January&#160;1, 2007 through December&#160;10, 2007 appearing in
    this prospectus and registration statement have been audited by
    McGladrey&#160;&#038; Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Greensboro Pathology
    Associates, P.A. and Subsidiary at October&#160;4, 2007 and for
    the period from January&#160;1, 2007 through October&#160;4,
    2007 appearing in this prospectus and registration statement
    have been audited by McGladrey&#160;&#038; Pullen, LLP,
    independent accountants, as set forth in their report thereon
    appearing elsewhere herein, and are included in reliance on
    their report given on their authority as experts in accounting
    and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary at October&#160;11, 2007
    and for the period from January&#160;1, 2007 through
    October&#160;11, 2007 appearing in this prospectus and
    registration statement have been audited by
    McGladrey&#160;&#038; Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements of Cunningham Pathology, LLC at
    April&#160;30, 2007 and for the period from January&#160;1, 2007
    through April&#160;30, 2007 appearing in this prospectus and
    registration statement have been audited by
    McGladrey&#160;&#038; Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
</DIV>

<A name='124'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    under the Securities Act with respect to our Class&#160;A common
    stock offered hereby. This prospectus, which forms part of the
    registration statement, does not contain all of the information
    set forth in the registration statement and the exhibits and
    schedules to the registration statement. Some items are omitted
    in accordance with the rules and regulations of the SEC. For
    further information about us and our Class&#160;A common stock,
    we refer you to the registration statement and the exhibits and
    schedules to the registration statement filed as part of the
    registration statement. Statements contained in this prospectus
    as to the contents of any contract or other document filed as an
    exhibit are qualified in all respects by reference to the actual
    text of the exhibit. You may read and copy the registration
    statement, including the exhibits and schedules to the
    registration statement, at the SEC&#146;s Public Reference Room
    at 100&#160;F&#160;Street, N.E., Washington,&#160;D.C. 20549.
    You can obtain information on the operation of the Public
    Reference Room by calling the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    In addition, the SEC maintains an Internet site at
    <I>www.sec.gov </I>that contains reports, proxy and information
    statements and other information regarding issuers that file
    electronically with the SEC and from which you can
    electronically access the registration statement, including the
    exhibits and schedules to the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the offering, we will become subject to the full
    informational requirements of the Securities Exchange Act of
    1934, as amended. We will fulfill our obligations with respect
    to such requirements by filing periodic reports and other
    information with the SEC. We intend to furnish our stockholders
    with annual reports containing financial statements certified by
    an independent registered public accounting firm. We also
    maintain an Internet site at <I>www.auroradx.com. </I>Our
    internet site is not a part of this prospectus.
</DIV>
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    <BR>
    142
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='125'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INDEX TO
    FINANCIAL STATEMENTS</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    Consolidated Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>Report of Independent Registered Public
    Accounting Firm</A></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Consolidated Balance Sheets as of
    December&#160;31, 2008 and 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Consolidated Statements of Operations for the
    years ended December&#160;31, 2007, 2008, and 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Consolidated Statement of Members&#146; Equity
    and Comprehensive Income for the years ended December&#160;31,
    2007, 2008, and 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>Consolidated Statements of Cash Flows for the
    years ended December&#160;31, 2007, 2008, and 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#306'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-8
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology Laboratory, P.A. and Subsidiaries<BR>
    Consolidated Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#307'>Independent Auditor&#146;s Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-28
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#308'>Consolidated Balance Sheet as of
    November&#160;20, 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#309'>Consolidated Statement of Operations for the
    period from January&#160;1, 2009 through November&#160;20,
    2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-30
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#310'>Consolidated Statement of Stockholders&#146;
    Equity for the period from January&#160;1, 2009 through
    November&#160;20, 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#311'>Consolidated Statement of Cash Flows for the
    period from January&#160;1, 2009 through November&#160;20,
    2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#312'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-33
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#313'>Independent Auditor&#146;s Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#314'>Balance Sheets as of March&#160;7, 2008 and
    December&#160;31, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#315'>Statements of Operations for the period from
    January&#160;1, 2008 through March&#160;7, 2008 and for the year
    ended December&#160;31, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#316'>Statement of Stockholders&#146; Equity for the
    period from January&#160;1, 2008 through March&#160;7, 2008 and
    for the year ended December&#160;31, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#317'>Statement of Cash Flows for the period from
    January&#160;1, 2008 through March&#160;7, 2008 and for the year
    ended December&#160;31, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#318'>Notes to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-44
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD.<BR>
    Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#319'>Independent Auditor&#146;s Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#320'>Balance Sheet as of December&#160;10, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-49
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#321'>Statement of Operations for the period from
    January&#160;1, 2007 through December&#160;10, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-50
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#322'>Statement of Stockholders&#146; Deficit for the
    period from January&#160;1, 2007 through December&#160;10,
    2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-51
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#323'>Statement of Cash Flows for the period from
    January&#160;1, 2007 through December&#160;10, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#324'>Notes to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-53
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    Consolidated Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#325'>Independent Auditor&#146;s Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#326'>Consolidated Balance Sheet as of October&#160;4,
    2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-59
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#327'>Consolidated Statement of Operations for the
    period from January&#160;1, 2007 through October&#160;4, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#328'>Consolidated Statement of Stockholders&#146;
    Equity for the period from January&#160;1, 2007 through
    October&#160;4, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#329'>Consolidated Statement of Cash Flows for the
    period from January&#160;1, 2007 through October&#160;4, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-62
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#330'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-63
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary<BR>
    Consolidated Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#331'>Independent Auditor&#146;s Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#332'>Consolidated Balance Sheet as of October&#160;11,
    2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-69
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#333'>Consolidated Statement of Operations for the
    period from January&#160;1, 2007 through October&#160;11,
    2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-70
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#334'>Consolidated Statement of Stockholders&#146;
    Equity for the period from January&#160;1, 2007 through
    October&#160;11, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-71
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#335'>Consolidated Statement of Cash Flows for the
    period from January&#160;1, 2007 through October&#160;11,
    2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-72
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#336'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-73
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    Financial Statements</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#337'>Independent Auditor&#146;s Report</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-77
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#338'>Balance Sheet as of April&#160;30, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-78
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#339'>Statement of Operations and Members&#146; Equity
    for the period from January&#160;1, 2007 through April&#160;30,
    2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-79
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#340'>Statement of Cash Flows for the period from
    January&#160;1, 2007 through April&#160;30, 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-80
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#341'>Notes to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-81
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 22pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#370'>Schedule&#160;II&#160;&#151; Valuation and
    Qualifying Accounts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-85
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='301'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    Independent Registered Public Accounting Firm</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members<BR>
    Aurora Diagnostic Holdings, LLC
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheets of
    Aurora Diagnostic Holdings, LLC as of December&#160;31, 2009 and
    2008, and the related consolidated statements of operations,
    members&#146; equity and comprehensive income, and cash flows
    for each of the three years in the period ended
    December&#160;31, 2009. Our audits also included the financial
    statement schedule of Aurora Diagnostic Holdings, LLC. These
    financial statements and financial statement schedule are the
    responsibility of the Company&#146;s management. Our
    responsibility is to express an opinion on these financial
    statements based on our audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Aurora Diagnostic Holdings, LLC as of
    December&#160;31, 2009 and 2008 and the results of its
    operations and its cash flows for each of the three years in the
    period ended December&#160;31, 2009, in conformity with
    U.S.&#160;generally accepted accounting principles. Also, in our
    opinion, the related financial statement schedule, when
    considered in relation to the basic consolidated financial
    statements taken as a whole, presents fairly in all material
    respects the information set forth therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed in Note&#160;2 of the consolidated financial
    statements, Aurora Diagnostics Holding, LLC changed its method
    of accounting for business combinations during the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ McGladrey &#038; Pullen, LLP
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ft.&#160;Lauderdale, Florida
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    March&#160;26, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,bs --><A name='302'>Consolidated
    Balance Sheets</FONT></B></A>
</DIV>
</A>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,106
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Prepaid expenses and other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Prepaid income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,527
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other Assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred debt issue costs, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,022
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deposits and other noncurrent assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    271,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Intangible assets, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126,710
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    382,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    407,444
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    415,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    462,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Members&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of fair value of contingent consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of acquisition related liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Fair value of derivative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income taxes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,303
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    205,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition related liability, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    656
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax liabilities, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,375
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fair value of contingent consideration, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fair value of derivative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Members&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    161,176
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    415,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    462,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,op --><A name='303'>Consolidated
    Statements of Operations</A><BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Years
    Ended December&#160;31, 2007, 2008 and 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,451
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    157,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Provision for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Intangible asset amortization expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,559
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Impairment of goodwill and other intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition and business development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Equity based compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,114
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,577
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,969
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Write-off of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total other expense, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,452
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,941
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,in --><A name='304'>Consolidated
    Statement of Members&#146; Equity and Comprehensive
    Income</A><BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Years
    Ended December&#160;31, 2007, 2008 and 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Member<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Member<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Contributions<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Comprehensive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Transaction<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Deficit)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Members&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Units</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">(Distributions)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Income (Loss)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Costs</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Earnings</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,230
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Equity transaction costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member notes receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (751
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Adjustment to equity transaction costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Equity compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Fair value of derivative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,573
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,573
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member notes receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (379
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (379
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Tax distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    155,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,573
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,750
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,919
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    161,176
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Contributions from members
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Equity transaction costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,075
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,075
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Fair value of derivative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Tax distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,809
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,809
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (4,825
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,921
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    217,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,in -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,cf --><A name='305'>Consolidated
    Statements of Cash Flows</A><BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Years
    Ended December&#160;31, 2007, 2008 and 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Amortization of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Amortization of original issue discount on debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (885
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,094
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Equity based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Write-off of deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,451
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Impairment of goodwill and other intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Changes in assets and liabilities, net of working capital
    acquired in business combinations:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    (Increase) decrease in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (113
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,048
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (287
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Prepaid expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,110
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (256
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Increase (decrease) in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,481
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,815
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (485
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Accrued interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (395
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Taxes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,267
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (298
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 54pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,827
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,135
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,746
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,961
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Increase in deposits and other noncurrent assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (60
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,934
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Payment of contingent notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,929
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,531
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,668
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Businesses acquired, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (299,357
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (31,026
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,698
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 54pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (303,481
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,272
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (49,261
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Borrowings under former term loan facility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,835
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Repayments under former term loan facility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (135,385
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Repayments of subordinated notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (327
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,916
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,045
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net borrowings under revolver
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Borrowings under new term loan facilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    201,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Repayments under new term loan facilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,800
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,200
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Equity transaction costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,750
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,075
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Payment of deferred debt issuance and public offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,244
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (176
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (148
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Contributions from members, net of tax distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,588
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 54pt">
    <B>Net cash provided by financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,022
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,044
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 54pt">
    <B>Net increase (decrease) in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,814
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,280
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,146
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash and cash equivalents, beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash and cash equivalents, ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Supplemental Disclosures of Cash Flow Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cash interest payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,736
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,857
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cash tax payments, including member tax distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    163
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Supplemental Schedule of Noncash Investing and Financing
    Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Notes receivable for membership interests
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,NS -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

    <A name='306'><B>Notes to Consolidated Financial
    Statements</B></A>
</DIV>
<!-- XBRL,N -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,BODY -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;Aurora Diagnostics
    Holdings, LLC and subsidiaries (the &#147;Company&#148;) was
    organized in the State of Delaware as a limited liability
    company on June&#160;2, 2006 to operate as a diagnostic services
    company. The practices provide physician-based general anatomic
    and clinical pathology, dermapathology, molecular diagnostic
    services and other esoteric testing services to physicians,
    hospitals, clinical laboratories and surgery centers. The
    Company&#146;s operations consist of one reportable segment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Summary
    of Significant Accounting Policies</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Principles of Consolidation</U>:</I>&#160;&#160;The
    accompanying consolidated financial statements of the Company
    include the accounts of Aurora Diagnostics Holdings, LLC, and
    its wholly-owned subsidiaries. All accounts and transactions
    between the entities have been eliminated in consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair Value of Financial Instruments</U>:</I>&#160;&#160;On
    January&#160;1, 2008, the Company adopted a new standard related
    to the accounting for financial assets and liabilities and items
    that are recognized or disclosed at fair value in the financial
    statements on a recurring basis, at least annually.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, the Company adopted authoritative
    guidance for its nonfinancial assets and liabilities that are
    measured at fair value on a nonrecurring basis. The adoption of
    the guidance did impact the Company&#146;s disclosure
    requirements related to the Company&#146;s 2009 acquisition as
    described in Note&#160;2 and the impairment of the
    Company&#146;s intangible assets and goodwill described in
    Note&#160;5.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009, the Financial Accounting Standards Board
    (&#147;FASB&#148;) issued an amendment to the accounting
    standards related to the measurement of liabilities that are
    recognized or disclosed at fair value. This standard clarifies
    how a company should measure the fair value of liabilities and
    that restrictions preventing the transfer of a liability should
    not be considered as a factor in the measurement of liabilities
    within the scope of this standard. This standard became
    effective October&#160;1, 2009. The adoption of this standard
    did not have a material impact on the Company&#146;s
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value accounting standards clarify the definition of
    fair value, prescribes methods for measuring fair value,
    establishes a fair value hierarchy based on the inputs used to
    measure fair value, and expands disclosures about fair value
    measurements. The three-tier fair value hierarchy, which
    prioritizes the inputs used in the valuation methodologies, is
    described below with Level&#160;1 having the highest priority
    and Level&#160;3 having the lowest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Level&#160;1:</I>&#160;&#160;Quoted prices in active markets
    for identical assets or liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Level&#160;2:</I>&#160;&#160;Quoted prices for similar assets
    or liabilities in active markets, quoted prices for identical or
    similar instruments in markets that are not active, and
    model-derived valuations in which all significant inputs are
    observable in active markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Level&#160;3:</I>&#160;&#160;Valuations derived from
    valuation techniques in which one or more significant inputs are
    unobservable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    services are rendered and adjusted in future periods as final
    settlements are determined. The provision for doubtful accounts
    and the related allowance are adjusted periodically, based upon
    an evaluation of historical collection experience with specific
    payors for particular services, anticipated collection levels
    with specific payors for new services, industry reimbursement
    trends, and other relevant factors. Changes in these factors in
    future periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations, financial position and cash flows. In
    2007, 2008 and 2009, approximately 28%, 28% and 25%,
    respectively, of the Company&#146;s consolidated net revenues
    were generated by Medicare and Medicaid programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Segment Reporting</U>:</I>&#160;&#160;The Company operates
    throughout the United States in one reportable segment, the
    medical laboratory industry. Medical laboratories offer a broad
    range of testing services to the medical profession. The
    Company&#146;s testing services are categorized based upon the
    nature of the test: general anatomic pathology,
    dermatopathology, molecular diagnostic services and other
    esoteric testing services to physicians, hospitals, clinical
    laboratories and surgery centers. Our revenues consist of
    payments or reimbursements for these services. Revenues from
    private insurance, including managed care organizations and
    commercial payors, Medicare and Medicaid and physicians and
    individual patients represented approximately 61%, 25%, and 14%,
    respectively, of revenue for the year ended December&#160;31,
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash and Cash Equivalents</U>:</I>&#160;&#160;The Company
    considers deposits and investments that have original maturities
    of less than three months, when purchased, to be cash
    equivalents. The Company maintains its cash balances at high
    quality financial institutions. The Company&#146;s balances in
    its accounts may periodically exceed amounts insured by the
    Federal Deposit Insurance Corporation, of up to $250,000 at
    December&#160;31, 2008 and 2009. The Company does not believe it
    is exposed to any significant credit risk and has not
    experienced any losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 15&#160;years.
    Leasehold improvements are amortized over the shorter of the
    term of the related lease, or the useful life of the asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Goodwill</U>:</I>&#160;&#160;Goodwill represents the
    excess of cost over the fair value of net tangible and
    identifiable intangible assets acquired. The Company reviews
    goodwill for impairment at the reporting unit level annually or,
    when events or circumstances dictate, more frequently. The
    impairment review for goodwill consists of a two- step process
    of first determining the fair value of the reporting unit and
    comparing it to the carrying value of the net assets allocated
    to the reporting unit. If the fair value of the reporting unit
    exceeds the carrying value, no further analysis or write-down of
    goodwill is required. If the fair value of the reporting unit is
    less than the carrying value of the net assets, the implied fair
    value of the reporting unit is allocated to all the underlying
    assets and liabilities, including both recognized and
    unrecognized tangible and intangible assets, based on their fair
    value. If necessary, goodwill is then written down to its
    implied fair value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Intangible Assets</U>:</I>&#160;&#160;Intangible assets,
    acquired as the result of a business combination, are recognized
    at fair value, as an asset apart from goodwill if the asset
    arises from contractual or other legal rights, or if it is
    separable. Intangible assets, principally representing the fair
    value of customer relationships, health care facility agreements
    and non-competition agreements acquired, are capitalized and
    amortized on the straight-line method over their expected useful
    life, which generally ranges from 4 to 18&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Long-Lived Assets</U>:</I>&#160;&#160;The Company
    recognizes impairment losses for long-lived assets when events
    or changes in circumstances indicate the carrying amount of an
    asset may not be recoverable. The Company continually assesses
    whether an impairment in the carrying value of the intangible
    assets has occurred. If the undiscounted future cash flows over
    the remaining amortization period of an intangible asset
    indicate the value assigned to the intangible asset may not be
    recoverable, the Company reduces the carrying value of the
    intangible asset. The Company would determine the amount of any
    such impairment by comparing anticipated discounted future cash
    flows from acquired businesses with the carrying value of the
    related assets. In performing this analysis,
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Company considers such factors as current results, trends
    and future prospects, in addition to other relevant factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Distributions to Members and Allocation of Profits and
    Losses</U>:</I>&#160;&#160;Profits and losses are allocated to
    the members in accordance with certain provisions contained in
    the Company&#146;s Amended and Restated Limited Liability
    Company Agreement, dated June&#160;12, 2009 (the &#147;LLC
    Agreement&#148;). Distributions are also made in accordance with
    the terms of the LLC Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Equity-Based Compensation</U>:</I>&#160;&#160;During 2008,
    the Company adopted a new Equity Incentive Plan (the &#147;New
    Plan&#148;) to replace the Company&#146;s original Equity
    Incentive Plan. The original Equity Incentive Plan for the grant
    of membership options to key employees, directors and
    consultants to purchase Class&#160;A membership interests was
    cancelled upon adoption of the New Plan. No options had been
    issued under the original plan. This New Plan provides awards of
    membership interest units in the Company. These interests are
    denominated as
    <FONT style="white-space: nowrap">Class&#160;D-1,</FONT>
    <FONT style="white-space: nowrap">Class&#160;D-2,</FONT>
    and
    <FONT style="white-space: nowrap">Class&#160;D-3&#160;units.</FONT>
    During 2008, the Company authorized and issued 4,000
    D-1&#160;units; 3,000 D-2&#160;units; and 3,000 D-3&#160;units.
    Compensation expense for awards and related tax effects are
    recognized as they vest. All membership interest units issued in
    2008 were fully vested as of December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value of each membership interest unit granted is
    valued using a Black-Scholes-Merton pricing model at the time
    the units are granted. That amount is fully amortized at the
    time the units vest. The valuation technique incorporates
    assumptions for the expected volatility of the unit price, the
    expected term of the unit, expected dividends, forfeitures and
    risk-free interest rate for the expected term of the unit.
    Expected volatility is based on historical volatility of an
    appropriate industry sector index. An appropriate industry
    sector index is one that is representative of the industry
    sector in which the nonpublic entity operates. The expected term
    of the unit is based on historical experience and represents the
    time periods units actually remain outstanding. The risk-free
    interest rate takes into account the time-value of money. The
    risk-free rate for periods within the contractual life of the
    option is based on the U.S.&#160;Treasury yield curve in effect
    at time of grant. The Company estimated forfeitures based on
    historical experience and shall revise this estimate in
    subsequent periods if actual forfeitures differ from those
    estimated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value of each membership interest unit granted in 2008
    was estimated using the following assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected life
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Volatility percentage
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.2%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.1%
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Forfeiture rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There were no membership interest units granted or forfeited
    during the year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Deferred Debt Issue Costs</U>:</I>&#160;&#160;During 2007,
    the Company incurred approximately $2.9&#160;million of debt
    issue costs associated with the former term loan facility and
    $0.4&#160;million in costs paid to the former lender in
    connection with the new term loan facility. In December 2007,
    the Company obtained a new term loan facility and used a portion
    of the proceeds to pay off and terminate the former term loan
    facilities. As a result, the Company wrote off $3.5&#160;million
    of unamortized deferred debt issue costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2007 and 2008, the Company incurred approximately
    $5.9&#160;million and $0.2&#160;million, respectively, of debt
    issue costs in connection with its new term loan facilities.
    These deferred debt issue costs are being amortized to interest
    expense using the effective interest method. Amortization
    expense was $0.2&#160;million, $1.0&#160;million and
    $1.1&#160;million for the years ended December&#160;31, 2007,
    2008 and 2009, respectively.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Deferred debt issue costs as of December&#160;31, 2008 and 2009
    consist of the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred debt issue costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,058
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,148
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred debt issue costs, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,022
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;The Company is a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes, the income attributable to the limited
    liability company is distributed to the members in accordance
    with the terms of the operating agreement. In addition, tax
    distributions related to the income allocated to each member are
    paid out quarterly. However, certain of the Company&#146;s
    subsidiaries are structured as corporations, file separate
    returns, and therefore are subject to federal and state income
    taxes. The provision for income taxes, for these subsidiaries,
    is reflected in the Company&#146;s consolidated financial
    statements and includes federal and state taxes currently
    payable and changes in deferred tax assets and liabilities
    excluding the establishment of deferred tax assets and
    liabilities related to the acquisitions. Deferred income taxes
    represent the estimated future tax effects resulting from
    temporary difference between financial statements carrying
    values and the tax reporting basis of the related assets and
    liabilities. The Company does not recognize a tax benefit,
    unless the Company concludes that it is more likely than not
    that the benefit will be sustained on audit by the taxing
    authority based solely on the technical merits of the associated
    tax position. If the recognition threshold is met, the Company
    recognizes a tax benefit measured at the largest amount of the
    tax benefit that the Company believes is greater than 50% likely
    to be realized. The Company records interest and penalties in
    income tax expense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Derivative Financial Instruments</U>:</I>&#160;&#160;The
    Company uses derivative financial instruments to manage its
    interest rate risk. The Company records derivatives as either an
    asset or liability measured at its fair value. The fair value is
    based upon quoted market prices obtained from third-party
    institutions. Changes in fair value of derivatives are recorded
    each period in current earnings or other comprehensive income,
    depending on whether a derivative is designated as part of a
    hedge transaction and, if it is, the type of hedge transaction
    based on the specific qualifying conditions as prescribed by the
    FASB standards on accounting for derivative instruments and
    hedging activities. If it is determined the derivative ceases to
    be a highly effective hedge, the Company discontinues hedge
    accounting and any deferred gains or losses are recorded in the
    consolidated statements of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    The Company&#146;s policy is to place cash in highly-rated
    financial institutions. Concentration of credit risk with
    respect to accounts receivable is mitigated by the diversity of
    the Company&#146;s payers and their dispersion across many
    different geographic regions. While the Company has receivables
    due from federal and state governmental agencies, the Company
    does not believe such receivables represent a credit risk since
    the related healthcare programs are funded by federal and state
    governments, and payment is primarily dependent on submitting
    appropriate documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Reclassifications</U>:</I>&#160;&#160;Certain prior year
    amounts have been reclassified to conform to the 2009
    presentation. The results of these reclassifications had no
    effect on consolidated members&#146; equity or net income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>New Accounting Standards</U>:</I>&#160;&#160;On
    January&#160;1, 2009, the Company adopted a new accounting
    standard issued by the FASB related to accounting for business
    combinations using the acquisition method of accounting
    (previously referred to as the purchase method). Among the
    significant changes, this standard requires a redefining of the
    measurement date of a business combination, expensing direct
    transaction costs as incurred, capitalizing in-process research
    and development costs as an intangible asset and recording a
    liability for contingent consideration at the measurement date
    with subsequent re-measurements recorded in the results of
    operations. This standard also requires costs for business
    restructuring and exit activities related to the acquired
    company to be included in the post-combination financial results
    of operations and also provides new guidance for the recognition
    and
</DIV>
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    <BR>
    F-11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    measurement of contingent assets and liabilities in a business
    combination. In addition, this standard requires several new
    disclosures, including the reasons for the business combination,
    the factors that contribute to the recognition of goodwill, the
    amount of acquisition related third-party expenses incurred, the
    nature and amount of contingent consideration, and a discussion
    of pre-existing relationships between the parties. The
    application of this standard was material for business
    combinations completed in 2009, as further described in
    Note&#160;2. The standard is likely to have a significant effect
    on the way the Company allocates the purchase price of certain
    future business combinations, including the recognition and
    measurement of assets acquired and liabilities assumed and the
    expensing of direct transaction costs and costs to integrate the
    acquired business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, the Company adopted a new accounting
    standard issued by the FASB related to the disclosure of
    derivative instruments and hedging activities. This standard
    expanded the disclosure requirements about an entity&#146;s
    derivative financial instruments and hedging activities,
    including qualitative disclosures about objectives and
    strategies for using derivatives, quantitative disclosures about
    fair value amounts of and gains and losses on derivative
    instruments, and disclosures about credit-risk-related
    contingent features in derivative instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective June&#160;30, 2009, the Company adopted a newly issued
    accounting standard related to accounting for and disclosure of
    subsequent events in its consolidated financial statements. This
    standard provides the authoritative guidance for subsequent
    events that was previously addressed only in United States
    auditing standards. This standard establishes general accounting
    for and disclosure of events that occur after the balance sheet
    date but before financial statements are issued or are available
    to be issued and requires the Company to disclose that it has
    evaluated subsequent events through the date of the filing or
    issue date. This standard does not apply to subsequent events or
    transactions that are within the scope of other applicable GAAP
    that provide different guidance on the accounting treatment for
    subsequent events or transactions. The adoption of this standard
    did not have a material impact on the Company&#146;s
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued the FASB Accounting Standards
    Codification (the &#147;ASC&#148;). The ASC has become the
    single source of non-governmental accounting principles
    generally accepted in the United States of America
    (&#147;GAAP&#148;) recognized by the FASB in the preparation of
    financial statements. The Company adopted the ASC as of
    July&#160;1, 2009. The ASC does not change GAAP and did not have
    an effect on the Company&#146;s financial position, results of
    operations or cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued new accounting guidance on when an
    entity should be included in consolidated financial statements.
    The new guidance amends the evaluation criteria to identify the
    primary beneficiary of a variable interest entity, or
    &#147;VIE&#148;, and requires ongoing reassessment of whether an
    enterprise is the primary beneficiary of the VIE. The new
    guidance significantly changes the consolidation rules for VIEs
    including the consolidation of common structures, such as joint
    ventures, equity-method investments, and collaboration
    arrangements. The guidance is applicable to all new and existing
    VIEs. This standard is effective for the Company as of
    January&#160;1, 2010 and the Company does not expect the impact
    of its adoption to be material to its consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2010, the FASB issued an amendment to the accounting
    standards related to the disclosures about an entity&#146;s use
    of fair value measurements. Among these amendments, entities
    will be required to provide enhanced disclosures about transfers
    into and out of the Level&#160;1(fair value determined based on
    quoted prices in active markets for identical assets and
    liabilities) and Level&#160;2 (fair value determined based on
    significant other observable inputs) classifications, provide
    separate disclosures about purchases, sales, issuances and
    settlements relating to the tabular reconciliation of beginning
    and ending balances of the Level&#160;3 (fair value determined
    based on significant unobservable inputs) classification and
    provide greater disaggregation for each class of assets and
    liabilities that use fair value measurements. Except for the
    detailed Level&#160;3 roll-forward disclosures, the new standard
    is effective for the Company for interim and annual reporting
    periods beginning after December&#160;31, 2009. The requirement
    to provide detailed disclosures about the purchases, sales,
    issuances and settlements in the roll-forward activity for
    Level&#160;3 fair value measurements is effective for the
    Company for interim and annual reporting periods beginning
</DIV>
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    <BR>
    F-12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    after December&#160;31, 2010. The Company does not expect that
    the adoption of this new standard will have a material impact on
    its consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Subsequent Events</U>:</I>&#160;&#160;The Company has
    evaluated all subsequent events through the date of issuance of
    the consolidated financial statements.
</DIV>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">2007
    Acquisitions</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2007, the Company acquired substantially all of the
    assets of six pathology practices, and 100% of the equity of two
    pathology practices for an aggregate purchase price (including
    acquisition costs) of $319.8&#160;million and additional
    consideration in the form of contingent notes. The aggregate
    purchase price included cash of $306.1&#160;million and
    subordinated unsecured notes payable of $13.7&#160;million. The
    cash portion of the purchase price was funded primarily with
    proceeds from member contributions and the Company&#146;s
    current and former term loan facilities of $115.3&#160;million
    and $190.8&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with one acquisition in 2007, the Company agreed
    to assume up to $4.0&#160;million to be paid to four retired
    physicians. The obligation is to be paid over three to five
    years. As of December&#160;31, 2009, this acquisition related
    liability has a remaining balance of approximately
    $0.6&#160;million. During 2008 and 2009, the Company paid
    $1.9&#160;million and $1.5&#160;million, respectively, related
    to this liability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">2008
    Acquisitions</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2008, the Company acquired substantially all of the
    assets of one pathology practice, for an aggregate purchase
    price (including acquisition costs) of $27.3&#160;million and
    additional consideration in the form of contingent notes. The
    purchase price was funded primarily with proceeds from the
    issuance of Class&#160;A, C, and X membership interests of
    $7.3&#160;million and the Company&#146;s new term loan facility
    of $20.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2008, the Company finalized its allocation of the
    purchase price for the 2008 acquisition and 2007 acquisitions
    resulting in an adjustment to goodwill of approximately
    $1.1&#160;million related to professional fees and other
    acquisition costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">2009
    Acquisitions</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;31, 2009, the Company paid cash totaling
    $17.0&#160;million to acquire 100% of the equity of two
    pathology practices. These acquisitions were consummated on
    January&#160;1, 2010 and therefore, the cash paid totaling
    $17.0&#160;million was included in Deposits and other
    non-current assets in the accompanying consolidated balance
    sheet as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2009, the Company acquired 100% of the equity of one
    pathology practice for an aggregate cash purchase price of
    $15.3&#160;million. In addition, the Company issued contingent
    consideration, payable over three years based on the
    acquiree&#146;s future performance. The Company has estimated
    the fair value of the contingent consideration and recorded a
    related liability in the accompanying consolidated balance
    sheets as of December&#160;31, 2009 of $3.1&#160;million. The
    cash portion of the purchase price was funded primarily with
    proceeds from the issuance of
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests. The estimated fair value of the assets
    acquired and liabilities assumed in connection with the 2009
    acquisition are preliminary and are expected to be finalized in
    2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, the Company adopted a new accounting
    standard issued by the FASB related to accounting for business
    combinations using the acquisition method of accounting
    (previously referred to as the purchase method). In connection
    with this adoption, during 2009, the Company has expensed
    $0.6&#160;million of transaction costs associated with its
    completed acquisitions and business development costs in the
    accompanying consolidated statements of operations.
</DIV>
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    <BR>
    F-13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the consideration for the
    acquisitions made in 2007, 2008 and 2009. Total consideration
    for 2009 acquisitions excludes contingent consideration payable,
    with a fair value of approximately $3.1&#160;million (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Date<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Cash<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subordinated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Location</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Acquired</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Paid</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Notes Issued</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Consideration</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michigan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    February 2, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Georgia
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    March 21, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    897
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,822
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alabama
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    April 30, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,081
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michigan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    May 30, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    North Carolina
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    October 4, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144,663
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144,663
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Florida
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    October 11, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,704
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,704
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Nevada
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    December 10, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Florida
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    December 10, 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Total 2007 Acquisitions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    306,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    319,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Minnesota
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    March 7, 2008
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Total 2008 Acquisitions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Texas
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    November 20, 2009
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Total 2009 Acquisitions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">Contingent
    Consideration</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the acquisitions, the Company has agreed to
    pay additional consideration in future periods, based upon the
    attainment of stipulated levels of operating earnings by each of
    the acquired entities, as defined in their respective
    agreements. For all acquisitions prior to January&#160;1, 2009,
    the Company does not accrue contingent consideration obligations
    prior to the attainment of the objectives and the amount owed
    becomes fixed and determinable. For the years ended
    December&#160;31, 2007, 2008 and 2009, the Company paid
    consideration under contingent notes of $1.9&#160;million,
    $12.5&#160;million and $12.7&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, assuming the practices, including
    the one acquired in November 2009, achieve the maximum level of
    stipulated operating earnings, the maximum principal amount of
    contingent consideration payable, over the next three to five
    years is approximately $101&#160;million. A lesser amount will
    be paid for earnings below the maximum level of stipulated
    earnings or no payments will be made if the practices do not
    achieve the minimum level of stipulated earnings as outlined in
    their respective agreements. Any such payments in the future for
    acquisitions completed prior to January&#160;1, 2009 would be
    accounted for as additional purchase price and increase
    goodwill. For acquisitions completed during 2009, future
    payments will be reflected in the change in the fair value of
    the contingent consideration.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables summarize the estimated aggregate fair
    value of the assets acquired and liabilities assumed in
    connection with the acquisitions in 2008 and 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    162
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,610
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    254
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fair value of contingent consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liabilities assumed
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net assets acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net assets acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (531
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (162
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash paid for acquisitions, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,770
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition costs and acquisition-related liability paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total businesses acquired and related costs, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">Pro-Forma
    Information (Unaudited)</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying consolidated financial statements include the
    results of operations of the acquisitions from the date acquired
    through December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following unaudited pro forma information presents the
    consolidated results of the Company&#146;s operations and the
    results of the 2009 acquisition for the years ended
    December&#160;31, 2008 and 2009, after giving effect to
    amortization, depreciation, interest, income tax, and the
    reduced level of certain specific operating expenses (primarily
    compensation and related expenses attributable to former owners)
    as if the acquisition had been consummated on January&#160;1,
    2008. Such unaudited pro forma information is based on
    historical unaudited financial information with respect to the
    2009 acquisition and does not include operational or other
    changes which might have been effected by the Company. The
    unaudited pro forma information for the years ended
    December&#160;31, 2008
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and 2009 presented below is for illustrative purposes only and
    is not necessarily indicative of results which would have been
    achieved or results which may be achieved in the future (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    165,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    178,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following unaudited pro forma information presents the
    consolidated results of the Company&#146;s operations and the
    results of the 2008 acquisition for the years ended
    December&#160;31, 2007 and 2008, after giving effect to
    amortization, depreciation, interest, income tax, and the
    reduced level of certain specific operating expenses (primarily
    compensation and related expenses attributable to former owners)
    as if the acquisition had been consummated on January&#160;1,
    2007. Such unaudited pro forma information is based on
    historical unaudited financial information with respect to the
    2008 acquisition and does not include operational or other
    changes which might have been effected by the Company. The
    unaudited pro forma information for the years ended
    December&#160;31, 2007 and 2008 presented below is for
    illustrative purposes only and is not necessarily indicative of
    results which would have been achieved or results which may be
    achieved in the future (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    159,252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment as of December&#160;31, 2008 and 2009
    consists of the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,524
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Building and leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5 &#150; 15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,626
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,506
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,993
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Construction in progress
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was $0.7&#160;million, $1.8&#160;million
    and $2.5&#160;million for the years ended December&#160;31,
    2007, 2008 and 2009, respectively.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable consist of the following as of
    December&#160;31, 2008 and 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,659
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: Allowance for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,197
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,106
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Goodwill
    and Intangible Assets</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents adjustments to goodwill during 2008
    and 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill, beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    219,429
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    250,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisitions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contingent notes*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,610
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other acquisition costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goodwill, end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    250,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    271,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">&#160;*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Related to acquisitions completed
    prior to January&#160;1, 2009.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Intangible assets as of December&#160;31, 2008 and 2009 and the
    related accumulated amortization are set forth in the table
    below (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amortization<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Range<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">(Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">(Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Cost</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Amortization</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Amortizing intangible assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    7 &#150; 10
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    102,810
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (14,796
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,014
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Health care facility agreements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    4 &#150; 18
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,642
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,728
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Noncompete agreements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,062
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,968
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total intangible assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    147,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (20,500
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    126,710
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amortization<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Range<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">(Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">(Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Cost</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Amortization</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Amortizing intangible assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    7 &#150; 10
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    103,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (23,414
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    79,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Health care facility agreements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    4 &#150; 18
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,951
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Noncompete agreements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    4 &#150; 5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,554
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total intangible assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    147,557
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (32,919
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    114,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amortization expense related to intangible assets was
    $5.7&#160;million, $14.3&#160;million and $14.6&#160;million for
    the years ended December&#160;31, 2007, 2008 and 2009,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of testing goodwill for impairment each of the
    Company&#146;s acquired practices is considered a separate
    reporting unit. To estimate the fair value of the reporting
    units, the Company utilizes a discounted cash flow model as the
    primary approach to value supported by a market approach
    guideline public company method (the &#147;GPC Method&#148;)
    which is used as a reasonableness test. The Company believes
    that a discounted cash flow analysis is the most appropriate
    methodology to test the recorded value of long-term assets with
    a demonstrated long-lived value. The results of the discounted
    cash flow provide reasonable estimates of the fair value of the
    reporting units because this approach is based on each
    respective unit&#146;s actual results and reasonable estimates
    of future performance, and also takes into consideration a
    number of other factors deemed relevant by management, including
    but not limited to, expected future market revenue growth and
    operating profit margins. The Company has consistently used
    these approaches in determining the value of goodwill. The
    Company considers the GPC Method as an adequate reasonableness
    test which utilizes market multiples of industry participants to
    corroborate the discounted cash flow analysis. The Company
    believes this methodology is consistent with the approach that
    any strategic market participant would utilize if they were to
    value one of the Company&#146;s reporting units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following assumptions were made by management in determining
    the fair value of the reporting units and related intangibles as
    of September&#160;30, 2009: (a)&#160;the discount rates ranged
    between 13.0% and 15.0%, based on relative size and perceived
    risk of the reporting unit (b)&#160;an average compound annual
    growth rate (&#147;CAGR&#148;) of 7.5% during the five year
    forecast period; and (c)&#160;earnings before interest, taxes,
    depreciation, and amortization (&#147;EBITDA&#148;), with an
    average reporting unit level margin of 38.9%. These assumptions
    are based on: (a)&#160;the actual historical performance of the
    reporting units and (b)&#160;management&#146;s estimates of
    future performance of the reporting units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company also considers the economic outlook for the
    healthcare services industry and various other factors during
    the testing process, including hospital and physician contract
    changes, local market developments, changes in third-party payor
    payments, and other publicly available information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;30, 2009, the Company tested goodwill and
    intangible assets for potential impairment and recorded a
    non-cash impairment expense of $8.0&#160;million resulting from
    a write down of $6.6&#160;million in the carrying value of
    goodwill and a write down of $1.4&#160;million in the carrying
    value of intangible assets. The write down of the goodwill and
    intangible assets related to one reporting unit. Regarding this
    reporting unit, the Company believes events occurred and
    circumstances changed that more likely than not reduced the fair
    value of the intangible assets and goodwill below their carrying
    amounts. These events during 2009 consisted primarily of the
    loss of significant customers present at the acquisition date,
    which adversely affected the current year and expected future
    revenues and operating profit of the reporting unit.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    F-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, estimated future amortization
    expense is as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 10pt">Year Ending<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>December 31,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,683
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    114,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Payable and Accrued Expenses</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts payable and accrued expenses as of December&#160;31,
    2008 and 2009 consist of the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
&nbsp;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,945
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,645
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,850
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Debt</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2006, the Company entered into its former term loan facility
    with a related party (the &#147;Former Lender&#148;) with total
    available borrowings up to $145.0&#160;million. The agreement
    was executed on June&#160;2, 2006, and had a maturity date of
    June&#160;2, 2013. The agreement called for the Former Lender to
    provide financing in connection with the operations and certain
    business acquisitions by the Company. The Former Lender extended
    credit in the form of: (a)&#160;term loans in aggregate
    principal amounts not in excess of $140.0&#160;million, and
    (b)&#160;revolving loans, in aggregate principal amounts not in
    excess of $5.0&#160;million. The agreement was collateralized by
    substantially all of the Company&#146;s assets and guaranteed by
    all of the Company&#146;s subsidiaries. Interest was paid in
    arrears at LIBOR plus 3.75%. The interest rate was determined at
    the date of funding the term notes and was fixed for a period of
    three to six months at the option of the Company. After this
    initial interest rate period, the loan converted to a variable
    rate note at the greater of prime rate or the Federal
    funds&#146; effective rate plus 0.50% plus a factor of 2.75%.
    Principal payments on the loans were due as net cash proceeds
    from either the sale of assets or the sale of equity was
    available. During 2007, the Company borrowed an additional
    $128.8&#160;million under this facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the Company entered into a new term loan
    facility with a syndicate of lenders (the &#147;Lenders&#148;)
    providing for a loan commitment up to $255.0&#160;million. The
    agreement called for the Lenders to provide financing to repay
    the outstanding balance of the former term loan facility, fund
    working capital and make acquisitions of certain businesses. The
    Lenders&#146; commitment includes: (a)&#160;a revolver loan, not
    in excess of $5.0&#160;million and (b)&#160;a term loan, with a
    first and second lien, not in excess of $165.0&#160;million and
    $85.0&#160;million, respectively. The Lenders&#146; unfunded
    term loan commitment expired on April&#160;30, 2008. As of
    December&#160;31, 2009, the Company has $132.6&#160;million and
    $76.5&#160;million outstanding under the first lien and second
    lien, respectively. The funded, first lien term loan, balance as
    of April&#160;30, 2008 was subject to quarterly principal
    payments beginning
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    on September&#160;30, 2008 through September&#160;30, 2012.
    Total principal paid for the years ended December&#160;31, 2008
    and 2009 was $7.8 and $8.2&#160;million, respectively, including
    mandatory and voluntary payments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All loans under the new term loan facility mature in December
    2012. The new term loan facility is collateralized by
    substantially all of the Company&#146;s assets and guaranteed by
    all of the Company&#146;s subsidiaries. For the revolver and
    first lien term loan, interest is at the prime rate plus 3.25%
    or LIBOR plus 4.25%. For the second lien term loan, interest is
    at the prime rate plus 6.75% or LIBOR plus 7.75%. As of
    December&#160;31, 2009, the effective interest rates were 4.5%
    and 8.0% for the first lien and second lien, respectively. Other
    principal payments on the term loans may be due from time to
    time from annual excess cash flow and net cash proceeds from
    either the sale of assets or equity. The proceeds from this term
    loan facility were used to refinance the Company&#146;s former
    term loan facility and acquire two businesses in December 2007
    and one business in March 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The new term loan facility was issued with an original issue
    discount of $1.7&#160;million. The original issue discount is
    being amortized into loan interest expense using the effective
    interest method. For the years ended December&#160;31, 2008 and
    2009, the Company recorded $0.3&#160;million and
    $0.3&#160;million, respectively, of amortization as interest
    expense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The new term loan facility requires the Company to comply on a
    quarterly basis with certain financial covenants, including a
    fixed charge coverage ratio calculation, a maximum total
    leverage ratio calculation, a maximum senior debt leverage ratio
    calculation and minimum level of earnings before interest,
    taxes, depreciation and amortization, (&#147;EBITDA&#148;) which
    become more restrictive over time. In addition, the new term
    loan facility includes negative covenants restricting or
    limiting the Company&#146;s ability to, without prior approval
    of the lenders, among other things, incur, assume or permit to
    exist additional indebtedness or guarantees; incur liens and
    engage in sale leaseback transactions; make loans and
    investments; declare dividends, make payments or redeem or
    repurchase capital stock; engage in mergers, acquisitions and
    other business combinations; prepay, redeem or purchase certain
    indebtedness; amend or otherwise alter terms of our
    indebtedness; sell assets; transaction with affiliates and alter
    the business it conducts. As of December&#160;31, 2009, the
    Company is in compliance with all loan covenants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;21, 2007 in conjunction with an acquisition
    transaction, the Company entered into a subordinated, unsecured
    contingent note with a prior owner of one of the Company&#146;s
    acquired practices. The payment amount is determined by the
    practice&#146;s cumulative EBITDA over a three-year period, with
    a minimum payment not to be less than $1.0&#160;million and a
    maximum payment not to exceed $2.0&#160;million. Payment amounts
    include a 5.5% interest rate factor, thus the Company has
    recorded the contingent note in the original purchase price at
    its minimum payment amount, discounted by the interest rate
    factor of 5.5%. The original discount of $0.1&#160;million is
    being amortized into interest expense over the term of the
    contingent note using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;30, 2007 in conjunction with an acquisition
    transaction, the Company entered into a subordinated, unsecured
    contingent note with prior owners of one of the Company&#146;s
    acquired practices. The payment amount is determined by the
    practice&#146;s cumulative EBITDA over a five-year period, with
    a minimum payment not to be less than $15.0&#160;million and a
    maximum payment not to exceed $30.0&#160;million. Payment
    amounts include a 5.5% interest rate factor, thus the Company
    recorded the contingent note in the original purchase price at
    its minimum payment amount, discounted by the interest rate
    factor of 5.5%. The original discount of $2.2&#160;million will
    be amortized into interest expense over the term of the
    contingent note using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;17, 2006, the Company entered into a
    subordinated, unsecured note payable with a prior owner of one
    of the Company&#146;s acquired practices with the principal
    amount of $1.0&#160;million to assist in the financing of an
    acquisition. The note had a three-year term and principal
    payments were due in equal quarterly installments of
    $0.08&#160;million. Interest was paid quarterly at the prime
    rate.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Long-term debt consists of the following as of December&#160;31,
    2008 and 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loan, first lien
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    140,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    132,566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term loan, second lien
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolver loan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured contingent note dated March&#160;21, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured contingent note dated April&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated unsecured note payable dated November&#160;17, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Original issue discount, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,403
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,098
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,010
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,596
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt, net of current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    217,303
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    205,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, future maturities of long-term
    debt are as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 10pt">Year Ending<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>December 31,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192,899
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    217,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: 'Times New Roman', Times">Interest
    Rate
    Derivative</FONT></U></I></B><FONT style="font-family: 'Times New Roman', Times">:
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2008, the Company entered into a
    <FONT style="white-space: nowrap">2-year</FONT>
    interest rate swap transaction which involves the exchange of
    floating for fixed rate interest payments without the exchange
    of the underlying principal amount. The interest rate swap has a
    notional amount of $125.0&#160;million and a fixed rate of
    interest of 3.57%. The swap resets every 90&#160;days and ended
    on January&#160;10, 2010. The Company receives interest on the
    notional amount if the LIBOR rate exceeds 3.57% and pays
    interest if the LIBOR rate is below 3.57%. For the years ended
    December&#160;31, 2008 and 2009, the interest settlement amount
    was $0.09&#160;million and $3.3&#160;million, respectively,
    which is reflected in interest expense in the consolidated
    statement of operations. The change in fair value of the
    derivative instrument of $2.6&#160;million and
    $2.4&#160;million, for the years ended December&#160;31, 2008
    and 2009, respectively, is recognized in other comprehensive
    income. Accrued interest includes a swap receivable of
    $0.3&#160;million and a swap payable of $0.9&#160;million as of
    December&#160;31, 2008 and 2009, respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Acquisition Target Consulting
    Agreement</U>:</I>&#160;&#160;On June&#160;2, 2006, and as
    subsequently amended on August&#160;1, 2009, the Company and an
    entity owned by two members of the Company entered into a
    professional services agreement to provide certain acquisition
    target identification consulting services to the Company. In
    exchange for
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    these services, the entity will be paid a monthly retainer of
    $0.02&#160;million, plus reimbursable expenses. The entity also
    earns a success fee of $0.05&#160;million for each identified
    acquisition consummated by the Company. During the years ended
    December&#160;31, 2007, 2008 and 2009, a total of approximately
    $0.5&#160;million, $0.3&#160;million and $0.3&#160;million
    respectively, was paid to the entity. There was a remaining
    payable of $0.02&#160;million as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Management and Financial Advisory
    Agreement</U>:</I>&#160;&#160;On June&#160;2, 2006, the Company,
    through its wholly-owned subsidiary, and two members of the
    Company entered into a management services agreement (the
    &#147;Agreement&#148;). On June&#160;12, 2009 the Agreement was
    amended to substitute a new member for one of the original
    members. The Agreement calls for the members and their
    affiliates to provide certain financial and management advisory
    services in connection with the general business planning and
    forecasting and acquisition and divestiture strategies of the
    Company. In exchange for the services, the Company will pay an
    annual fee equal to 1.0% of revenues, plus expenses to the
    members (&#147;Management Fees&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008 and 2009, $0.6&#160;million and
    $0.4&#160;million, respectively, of these Management Fees are
    reflected in accounts payable and accrued expenses in the
    accompanying consolidated balance sheets. The consolidated
    statement of operations includes Management Fees of
    $0.6&#160;million, $1.6&#160;million and $1.8&#160;million for
    the respective years ended December&#160;31, 2007, 2008 and
    2009. During 2007, 2008 and 2009, the Company paid management
    fees totaling $0.4&#160;million, $1.3&#160;million and
    $1.9&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Facilities Lease Agreements</U>:</I>&#160;&#160;The
    Company leases five of its facilities from entities owned by
    physician employees or affiliated physicians who are also former
    owners of the acquired practices. The leases provide for monthly
    aggregate payments of $0.07&#160;million and expire in August
    and September 2011, March 2012, December 2013, and April 2017.
    Rent expense incurred and paid to the related entities was
    $0.3&#160;million, $0.6&#160;million and $0.7&#160;million for
    the years ended December&#160;31, 2007, 2008 and 2009,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Former Term Loan Facility</U>:</I>&#160;&#160;The
    Company&#146;s former term loan facility, as described in
    Note&#160;7, was with a financial entity owned by a member of
    the Company. The rates and terms of the former term loan
    facility were comparable with arms&#146; length third party
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Unsecured Promissory Note</U>:</I>&#160;&#160;On
    October&#160;21, 2008, the Company entered into an unsecured
    promissory note with an officer and member of the Company. The
    note is a two-year note and accrues interest at 3.2%. The
    remaining balance of the note receivable at December&#160;31,
    2009 was $0.04&#160;million.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Members&#146;
    Equity</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has multiple classes of membership interests,
    including A,
    <FONT style="white-space: nowrap">A-1,</FONT> B, C,
    X, D-1, D-2 and D-3&#160;units. Profits and losses are generally
    allocated among the members in accordance with the methodology
    for computing capital accounts as described in the
    Company&#146;s LLC Agreement. Proceeds distributable to the
    members in connection with the liquidation, or payable in
    connection with a sale, of the Company are distributed or paid
    based on the number and class of units and interests held by
    each member. The various interests and units share in the
    proceeds for a liquidation
    <FONT style="white-space: nowrap">and/or</FONT> sale
    in different relative amounts based on the aggregate amount of
    the distributions
    <FONT style="white-space: nowrap">and/or</FONT>
    payments. The Class&#160;A,
    <FONT style="white-space: nowrap">A-1,</FONT> C and X
    interests receive priority distributions
    <FONT style="white-space: nowrap">and/or</FONT>
    payments equal to the amount of their original contributed
    capital. Following these priority distributions, any amounts
    that are distributed or payable to the various membership
    interests is based on the allocations set forth in the LLC
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, the Company has authorized 85,000
    Class&#160;A membership units, all of which are issued and
    outstanding; 10,000 Class&#160;B membership units, all issued
    and outstanding; and 5,000 Class&#160;C membership units, all
    issued and outstanding. In connection with the acquisition
    during 2008, the Company issued Class&#160;X capital for total
    consideration of $7.1&#160;million. As discussed in
    Note&#160;13, during 2008, the Company issued 10,000 equity
    incentive interests in the classes of D-1, D-2, and D-3. During
    2009, the Company issued 21,382
    <FONT style="white-space: nowrap">A-1</FONT> class
    membership interests for total consideration of
    $50.3&#160;million. In connection with the A -1 issuance the
    Company incurred $3.1&#160;million of costs which were recorded
    as a reduction in members&#146; equity.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to subscription agreements with certain executives of
    the Company, 5,000 Class&#160;C membership units were issued
    during 2006 at $6.8376 per unit, for a total initial capital
    contribution of $0.03&#160;million. During 2007, the executives
    made total capital contributions of $2.9&#160;million, of which
    $1.4&#160;million was paid in cash, with the remaining balances
    to be paid under promissory notes from the executives. These
    notes receivable for membership interests bear interest at 5%,
    are collateralized by the membership units and have a due date
    of June&#160;2, 2011. During 2008, the executives made total
    capital contributions of $0.8&#160;million, of which
    $0.4&#160;million was paid in cash, with the remaining balances
    to be paid under promissory notes from the executives. These
    notes receivable for membership interests bear interest at 5%,
    are collateralized by the membership units and have a due date
    of March&#160;7, 2013. Interest of $0.05&#160;million,
    $0.1&#160;million, and $0.1&#160;million on the executive notes
    receivable was credited to contributed capital as earned during
    the years ended December&#160;31, 2007, 2008 and 2009,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2007, the Company accrued $2.0&#160;million of equity
    transaction costs in connection with the member contributions
    for the A membership interests. During 2008, the Company
    renegotiated and paid $1.75&#160;million to settle this
    liability. The $0.25&#160;million revision of the original
    estimate was recorded as an increase to members&#146; equity
    during 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a table detailing the changes in members&#146;
    equity by type of membership interest for the years ended
    December&#160;31, 2007, 2008 and 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Class A</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Class A-1</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Class B</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Class C</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Class D-1</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Class X</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Members&#146; Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,162
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    402
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member notes receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,441
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145,985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,843
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,060
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Member notes receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (352
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (379
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Tax distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,870
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    155,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Contributions from members
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Tax distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (40
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,921
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (848
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,809
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance, December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    146,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,333
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,870
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company has become
    and may in the future become subject to pending and threatened
    legal actions and proceedings. The Company may have liability
    with respect to its employees and its pathologists. Medical
    malpractice claims are generally covered by insurance. While the
    Company believes the outcome of any such pending legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company&#146;s medical malpractice
    insurance coverage will be adequate to cover any such liability.
    The Company may also, from time to time, be involved with legal
    actions related to the acquisition of and affiliation with
    physician practices, the prior conduct of such practices, or the
    employment (and restriction on competition of ) physicians.
    There can be no assurance any costs or liabilities for which the
    Company becomes responsible in connection with such claims or
    actions will not be material or will not exceed the limitations
    of any applicable indemnification provisions or the financial
    resources of the indemnifying parties. During 2009, the Company
    received a claim for a refund in the amount of $0.2&#160;million
    related to payments received for services provided. The Company
    believes that the claim is without merit and intends to
    vigorously defend its position. The ultimate outcome of this
    claim cannot presently be determined, however in
    Management&#146;s opinion, the likelihood of a material adverse
    outcome is remote.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accordingly, adjustments, if any, that might result from the
    resolution of this matter have not been reflected in the
    consolidated financial statements as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Employment Agreements</U>:</I>&#160;&#160;The Company has
    employment agreements with its executive officers and certain
    physician employees, the terms of which expire at various times
    through December 2014. Such agreements provide for minimum
    salary levels that may be adjusted annually for
    <FONT style="white-space: nowrap">cost-of-living</FONT>
    changes, and may contain incentive bonuses that are payable if
    specified management goals are attained. Under certain of the
    agreements, in the event employment is terminated (other than
    voluntarily by the employee or the Company for cause or upon the
    death of the employee), the Company is committed to pay certain
    benefits, including specified monthly severance for periods from
    six months to two years from the date of termination. Certain
    employment agreements were modified in 2008 for the equity
    incentive awards described in Note&#160;13.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Self-Insured Health Benefits</U>:</I>&#160;&#160;Effective
    June&#160;1, 2009, the Company began providing health care
    benefits to the majority of its employees through a partially
    self-insured plan. The Company records its estimate of the
    ultimate cost of, and reserves for, health care benefits based
    on computations using the Company&#146;s loss history as well as
    industry statistics. In determining its reserves, the Company
    includes reserves for estimated claims incurred but not
    reported. The amount reserved for estimated claims was
    $0.8&#160;million as of December&#160;31, 2009. The ultimate
    cost of health care benefits will depend on actual costs
    incurred to settle the claims and may differ from the amounts
    reserved by the Company for those claims.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Operating Leases</U>:</I>&#160;&#160;The Company leases
    various office and medical laboratory facilities and equipment
    under non-cancelable lease agreements with terms ranging from
    two to ten years and expiring through April 2017. The terms of
    some of the facility leases call for the Company to pay for
    certain taxes or common utility charges. Rent expense including
    these taxes and common utility charges was $1.1&#160;million,
    $2.5&#160;million, and $2.7&#160;million for the years ended
    December&#160;31, 2007, 2008, and 2009, respectively. Rent
    expense associated with operating leases that include scheduled
    rent increases and tenant incentives are recorded on a
    straight-line basis over the term of the lease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate future minimum annual rentals under the lease
    agreements as of December&#160;31, 2009 are as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 10pt">Year Ending<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>December 31,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,974
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Fair
    Value of Financial Instruments</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Recurring
    Fair Value Measurements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value of the Company&#146;s interest rate swap
    agreements was recorded as a liability of approximately
    $2.6&#160;million and $0.1&#160;million, as of December&#160;31,
    2008 and 2009, respectively. The interest rate swap is the only
    derivative financial instrument. The fair value of the
    derivative instrument was estimated by obtaining quotations from
    the financial institution that is a counter party to the
    instrument. The LIBOR swap rate is observable at commonly quoted
    intervals for the full term of the swap and therefore is
    considered a Level&#160;2 item. The fair value is an estimate of
    the net amount that the Company would have to pay on
    December&#160;31, if the agreements were canceled or transferred
    to other parties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Non-Recurring
    Fair Value Measurements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain assets that are measured at fair value on a
    non-recurring basis, including property and equipment and
    intangible assets, are adjusted to fair value only when the
    carrying values are greater than their fair values. As described
    in Note&#160;5, Goodwill and Intangible Assets, the Company
    completed its annual impairment evaluation and recorded a write
    off of goodwill and intangibles related to one reporting unit to
    reflect its current estimated fair value. The fair value was
    derived with fair value models utilizing unobservable inputs
    that therefore is considered a Level&#160;3 item.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2008 and 2009 the carrying amounts of
    cash, accounts receivable, accounts payable, accrued interest
    and accrued expenses approximate fair value based on the short
    maturity of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt (including current portion of long-term debt)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    228,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    217,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company uses quoted market prices and yields for the same or
    similar types of borrowings in active markets when available to
    determine the fair value of the Company&#146;s debt. The fair
    values of all other debt were estimated using the present value
    of expected future cash flows which incorporates the
    Company&#146;s risk profile. These fair values are considered
    Level&#160;2 items.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;12.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision for income taxes for certain of the Company&#146;s
    subsidiaries structured as corporations for the years ended
    December&#160;31, 2007, 2008 and 2009 consist of the following
    (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,496
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    359
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    539
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current provision</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,647
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,613
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (885
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,053
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,458
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (41
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (110
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total deferred benefit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (885
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,094
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,568
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total provision for income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A reconciliation of the provision for income taxes with amounts
    determined by applying the statutory U.S.&#160;federal income
    tax rate to income before income taxes for four of the
    Company&#146;s subsidiaries structured as corporations consists
    primarily of state income taxes and permanent differences.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the Company&#146;s deferred tax
    assets and liabilities as of December&#160;31, 2008 and 2009,
    respectively (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued wages
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowance for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Acquisition related liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Current deferred tax assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Noncurrent deferred tax assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition related liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    223
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Noncurrent deferred tax liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (163
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (225
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Change from cash to accrual basis of accounting by the
    businesses acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (783
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (517
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Intangible assets acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,652
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,457
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Noncurrent deferred tax liabilities, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,190
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total deferred tax liabilities, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,276
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,164
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;13.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Equity
    Based Compensation</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2008, the Company issued equity incentive units
    (&#147;Units&#148;) in accordance with the new Equity Incentive
    Plan. The units represent the right of the holder to receive a
    portion of proceeds in the event of liquidation of the company
    as defined in the LLC Agreement. The 10,000&#160;units issued in
    July 2008 were fully vested as of December&#160;31, 2008. The
    units have no exercise price and no expiration. Compensation
    cost of $1.2&#160;million has been recognized in the results of
    operations as of December&#160;31, 2008. The weighted average
    value is $120 per unit. During 2009, no equity incentive units
    were issued or forfeited.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;14.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Defined
    Contribution Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective March&#160;1, 2007, the Company established a salary
    deferral plan under Section&#160;401(k) of the Internal Revenue
    Code. The plan allows eligible employees to defer up to 100% of
    their compensation in accordance with IRS guidelines. Such
    deferrals accumulate on a tax deferred basis until the employee
    withdraws the funds. The Company is required to match a portion
    of the employees&#146; contribution. For 2007, 2008 and 2009,
    the rate of Company match was 25%, up to $1,000 per
    participating employee. Total expense recorded for the
    Company&#146;s match was $0.06&#160;million for 2007,
    $0.1&#160;million for 2008 and $0.1&#160;million for 2009. Also,
    in connection with certain acquisitions, the Company assumed the
    responsibility under certain defined contribution plans. Total
    expense recorded for the Company&#146;s match to these plans was
    $0.4&#160;million for 2007, $0.06&#160;million for 2008 and
    $0.08&#160;million for 2009.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;15.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;12, 2010, the Company issued Class&#160;Z capital
    to existing members for total consideration of
    $8.5&#160;million. In the event the Company completes a
    qualifying capital raise or debt refinancing within six months,
    the Class&#160;Z interests will receive a preferred return equal
    to the members&#146; initial contribution plus interest.
    Interest
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Notes to Consolidated Financial Statements&#160;&#151;
    (Continued)</B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    accrues at an annual rate of 12% for the first three months and
    16% for the next three months and is payable upon a qualifying
    capital raise or debt refinancing. In the event the Company does
    not complete a qualifying capital raise or debt refinancing
    within six months, the Class&#160;Z membership interests will
    convert to
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests at the same valuation as the original
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    membership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsequent to year end, the Company paid contingent note amounts
    of $6.3&#160;million related to acquisitions completed prior to
    January&#160;1, 2009. These contingent note payments resulted in
    increases to goodwill.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2010, the Company acquired 100% of the equity
    of two pathology practices for an aggregate cash purchase price
    of $17.0&#160;million. These acquisitions were consummated on
    January&#160;1, 2010 and therefore, the cash paid totaling
    $17.0&#160;million was included in Deposits and other
    non-current assets as of December&#160;31, 2009. On
    March&#160;12, 2010 the Company acquired 100% of the membership
    interests of a pathology practice for an aggregate cash purchase
    price of $22.5&#160;million. In each transaction, the Company
    issued contingent consideration payable over three to five years
    based on the acquirees&#146; future performance. The maximum
    amount of the deferred contingent cash consideration is
    $32.8&#160;million payable over three to five years. The Company
    funded the cash portion of the acquisitions using
    $31.0&#160;million cash primarily related to
    <FONT style="white-space: nowrap">Class&#160;A-1</FONT>
    member contributions and an additional $8.5&#160;million related
    to Class&#160;Z member contributions. The Company will estimate
    the fair value of the contingent consideration and record a
    related liability as of the date of each acquisition, once the
    estimated fair values of the assets acquired and liabilities
    assumed in connection with these acquisitions are finalized.
</DIV>
<!-- /XBRL,NS -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='307'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Auditor&#146;s Report</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics Holdings, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Palm Beach Gardens, Florida
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheet of
    South Texas Dermatopathology Laboratory, P.A. and Subsidiaries
    as of November&#160;20, 2009, and the related consolidated
    statement of operations, stockholders&#146; equity and cash
    flows for the period from January&#160;1, 2009 to
    November&#160;20, 2009. These financial statements are the
    responsibility of the Company&#146;s management. Our
    responsibility is to express an opinion on these financial
    statements based on our audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of South Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries as of November&#160;20, 2009, and the results of
    their consolidated operations and their cash flows for the
    period from January&#160;1, 2009 to November&#160;20, 2009 in
    conformity with accounting principles generally accepted in the
    United States of America.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265801.gif" alt="-S- Signature">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    West Palm Beach, Florida
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;9, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries</FONT></B>
</DIV>

<A name='308'>
<!-- XBRL,bs -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Balance Sheet<BR>
    <!-- XBRL,body -->November&#160;20, 2009</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>162</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>563</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash surrender value of life insurance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>195</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>67</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>987</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,034</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,021</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Stockholders&#146; Equity</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>967</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>14</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>205</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income tax payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>139</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred tax liabilities, current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>143</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,468</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred Income Taxes, less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>321</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common Shares, $1&#160;par value per share, 100,000&#160;shares
    authorized and 1,000&#160;shares issued and outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>228</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total stockholders&#146; equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>232</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,021</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries</FONT></B>
</DIV>

<A name='309'>
<!-- XBRL,op -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Operations</A><BR>
    <!-- XBRL,body -->For the Period From January&#160;1, 2009
    through November&#160;20, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7,328</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5,127</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,482</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>73 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>6,682</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>646</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(52</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>594</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>215</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>379</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries</FONT></B>
</DIV>

<A name='310'>
<!-- XBRL,se -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Stockholders&#146; Equity</A><BR>
    <!-- XBRL,body -->For the Period From January&#160;1, 2009
    through November&#160;20, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Par<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-In<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shareholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Value</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Capital</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Earnings</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
    <B>($ in thousands, except shares)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (151
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (147
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>379</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>379</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, November&#160;20, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,000</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>228</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>232</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and
    Subsidiaries</FONT></B>
</DIV>

<A name='311'>
<!-- XBRL,cf -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Cash Flows<BR>
    </A> <!-- XBRL,body -->For the period from January&#160;1, 2009
    through November&#160;20, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>379</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>73</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>66</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Changes in assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(81</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(46</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Income tax payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>139</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>14</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>22 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>566</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(54</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(54</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Repayment of debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(412</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(412</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net increase in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>100</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>62</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>162</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental Disclosures of Cash Flow Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash interest payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>52</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash tax payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>10</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,ns -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='312'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Consolidated Financial Statements</FONT></B></A>
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;South Texas
    Dermatopathology Laboratory, P.A. (the &#147;Company&#148;) was
    organized in the State of Texas as a professional business
    corporation in 1983, to operate as a pathology laboratory
    company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company engages in the business of providing anatomic
    pathology and cytology services to physicians.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s significant accounting policies
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Principles of Consolidation</U>:</I>&#160;&#160;The
    accompanying consolidated financial statements of the Company
    include the accounts of South Texas Dermatopathology Laboratory,
    P.A., S&#038;D Texas Holdings, LLC, and STD Capital, L.P. All
    accounts and transactions between the entities have been
    eliminated in consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    S&#160;&#038; D Texas Holdings, LLC (&#147;S&#160;&#038;
    D&#148;) has been consolidated based on S&#160;&#038; D being a
    variable interest entity (&#147;VIE&#148;) and the Company being
    the primary beneficiary. S&#160;&#038; D owns commercial real
    estate in Texas which is held for lease. Accounting principles
    generally accepted in the United States of America requires an
    entity to consolidate a VIE under certain conditions having to
    do with the VIE&#146;s activities, related risks and rewards,
    and the equity investment of its owners. Management of the
    Company has determined that the conditions requiring
    consolidation of a VIE have been met. As of November&#160;20,
    2009, total assets and total liabilities of S&#160;&#038; D were
    approximately $925,000 and approximately $1,057,000,
    respectively. The Company will reconsider its determination of
    whether an entity is a VIE and who the primary beneficiary is if
    certain events occur that are likely to cause a change in the
    original determinations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair value of Financial Instruments</U>:</I>&#160;&#160;On
    January&#160;1, 2008, the Company adopted a new standard related
    to the accounting for financial assets and liabilities and items
    that are recognized or disclosed at fair value in the financial
    statements on a recurring basis, at least annually.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;1, 2009, the Company adopted authoritative
    guidance for its nonfinancial assets and liabilities that are
    measured at fair value on a nonrecurring basis. The adoption of
    the guidance did not materially impact the Company&#146;s
    disclosure requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009, the Financial Accounting Standards Board
    (&#147;FASB&#148;) issued an amendment to the accounting
    standards related to the measurement of liabilities that are
    recognized or disclosed at fair value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This standard clarifies how a company should measure the fair
    value of liabilities and that restrictions preventing the
    transfer of a liability should not be considered as a factor in
    the measurement of liabilities within the scope of this
    standard. This standard became effective October&#160;1, 2009.
    The adoption of this standard did not have a material impact on
    the Company&#146;s consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The fair value accounting standards clarify the definition of
    fair value, prescribes methods for measuring fair value,
    establishes a fair value hierarchy based on the inputs used to
    measure fair value, and expands disclosures about fair value
    measurements. The three-tier fair value hierarchy, which
    prioritizes the inputs used in the valuation methodologies, is
    described below with Level&#160;1 having the highest priority
    and Level&#160;3 having the lowest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Level&#160;1:</I>&#160;&#160;Quoted prices in active markets
    for identical assets or liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Level&#160;2:</I>&#160;&#160;Quoted prices for similar assets
    or liabilities in active markets, quoted prices for identical or
    similar instruments in markets that are not active, and
    model-derived valuations in which all significant inputs are
    observable in active markets.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Level&#160;3:</I>&#160;&#160;Valuations derived from
    valuation techniques in which one or more significant inputs are
    unobservable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ended November&#160;20, 2009, Medicare and BlueCross/Blue Shield
    provided approximately 45% and 18% of the Company&#146;s net
    revenues, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash</U>:</I>&#160;&#160;The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation&#146;s (&#147;FDIC&#148;). These amounts
    are guaranteed by the FDIC up to $250,000 as of
    November&#160;20, 2009. The Company has not experienced any
    losses on such accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 39&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;Deferred taxes are
    provided on the liability method whereby deferred tax assets are
    recognized for deductive temporary differences, and deferred tax
    liabilities are recognized for taxable temporary differences.
    Temporary differences are the differences between the reported
    amounts of assets and liabilities and their tax bases. Deferred
    tax assets are reduced by a valuation allowance when, in the
    opinion of management, it is more likely than not that some
    portion of all of the deferred tax assets will be realized.
    Deferred tax assets and liabilities are adjusted for the effects
    of changes in taxes laws and rates on the date of enactment. The
    Company does not recognize a tax benefit, unless the Company
    concludes that it is more likely than not that the benefit will
    be sustained on audit by the taxing authority based solely on
    the technical merits of the associated tax position. If the
    recognition threshold is met, the Company recognizes a tax
    benefit measured at the largest amount of the tax benefit that
    the Company believes is greater than 50% likely to be realized.
    The Company records interest and penalties in income tax expense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company&#146;s payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>New Accounting Standards</U>:</I>&#160;&#160;Effective
    June&#160;30, 2009, the Company adopted a newly issued
    accounting standard related to accounting for and disclosure of
    subsequent events in its consolidated financial statements. This
    standard provides the authoritative guidance for subsequent
    events that was previously addressed only in United States
    auditing standards. This standard establishes general accounting
    for and disclosure of events that occur after the balance sheet
    date but before financial statements are issued or are available
    to be issued and requires the Company to disclose that it has
    evaluated subsequent events through the date of the filing or
    issue date. This standard does not apply to subsequent events or
    transactions that are within the scope of other applicable GAAP
    that
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provide different guidance on the accounting treatment for
    subsequent events or transactions. The adoption of this standard
    did not have a material impact on the Company&#146;s
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued the FASB Accounting Standards
    Codification (the &#147;ASC&#148;). The ASC has become the
    single source of non-governmental accounting principles
    generally accepted in the United States of America
    (&#147;GAAP&#148;) recognized by the FASB in the preparation of
    financial statements. The Company adopted the ASC as of
    July&#160;1, 2009. The ASC does not change GAAP and did not have
    an effect on the Company&#146;s consolidated financial position,
    results of operations or cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued new accounting guidance on when an
    entity should be included in consolidated financial statements.
    The new guidance amends the evaluation criteria to identify the
    primary beneficiary of a variable interest entity, or
    &#147;VIE,&#148; and requires ongoing reassessment of whether an
    enterprise is the primary beneficiary of the VIE. The new
    guidance significantly changes the consolidation rules for VIEs
    including the consolidation of common structures, such as joint
    ventures, equity-method investments, and collaboration
    arrangements. The guidance is applicable to all new and existing
    VIEs. This standard is effective for the Company as of
    January&#160;1, 2010 and the Company does not expect the impact
    of its adoption to be material to its consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Subsequent Events</U>:</I>&#160;&#160;The Company has
    evaluated all subsequent events through April&#160;9, 2010, the
    date of issuance of the consolidated financial statements.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable consist of the following as of
    November&#160;20, 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable and unbilled receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>843</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(280</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>563</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment as of November&#160;20, 2009 consist of
    the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="74%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Buildings and improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    5 &#150; 39
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>954</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    5 &#150; 7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>31</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>158</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    3 &#150; 5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>631</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>47</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,821</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(984</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>837</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Land
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>197</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,034</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was approximately $73,000 for the period
    from January&#160;1, 2009 to November&#160;20, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Notes
    Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;25, 2005, the Company entered into a mortgage note
    for the purchase of its building and land. The agreement was
    collateralized by substantially all of the Company&#146;s assets
    and guaranteed by owners of the Company. Interest was paid in
    arrears at 5.5%, and the note&#146;s original maturity date was
    April&#160;25, 2020. In December 2009, the physician employee
    stockholders paid off the mortgage note in full.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has employment agreements with certain of its
    stockholders who are physician employees which expire at various
    times. Bonuses are discretionary and are based upon the
    reasonable value of the physicians&#146; contribution. Under
    certain of the agreements, in the event employment is terminated
    due to death, retirement or disability, the employee will
    receive an additional compensation for up to 60&#160;days. For
    the period from January&#160;1, 2009 through November&#160;20,
    2009, the Company paid salaries and bonuses to stockholders who
    are physician employees of approximately $1.24&#160;million and
    $2.16&#160;million, respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company&#146;s medical malpractice
    insurance coverage will be adequate to cover any such liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Fair
    Value of Financial Instruments</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain assets that are measured at fair value on a
    non-recurring basis, including property and equipment are
    adjusted to fair value only when the carrying values are greater
    than their fair values.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of November&#160;20, 2009 the carrying amounts of cash,
    accounts receivable, accounts payable, and accrued compensation
    approximate their fair value based on the short maturity of
    these instruments.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision for income taxes for the period ended
    November&#160;20, 2009 consists of the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>139</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>10</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current provision</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>149</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>65</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total deferred benefit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>66</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total provision for income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>215</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Temporary differences between the financial statement carrying
    amounts and tax basis of assets and liabilities that give rise
    to significant portions of the deferred tax assets and
    liabilities are summarized below as of November&#160;20, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued wages
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>72</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowance for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(197</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(18</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Current deferred tax liabilities, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(143</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non current deferred tax liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(321</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Noncurrent deferred tax liabilities, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(321</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total deferred tax liabilities, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(464</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a profit sharing 401(k) Plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. Contributions are based on the sole discretion
    of the Company. During the year ended November&#160;20, 2009,
    the Company contributed approximately $4,500 to the plan on
    behalf of its employees.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Cash
    Surrender Value Life Insurance</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company purchased insurance on the lives of its two
    physician stockholders. As beneficiary, the Company receives the
    cash surrender value if the policy is terminated and, upon death
    of the insured, receives all of the benefits payable. The cash
    value of the life insurance policies was approximately $195,000
    as of November&#160;20, 2009. Subsequent to November 2009, the
    policies were terminated and the cash surrender value was
    distributed to the physician employee stockholders.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Event</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;20, 2009, the Company was acquired from its
    stockholders by Aurora Diagnostics Holdings, LLC.
</DIV>
<!-- /XBRL,NS -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='313'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Auditor&#146;s Report</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics Holdings, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Palm Beach Gardens, Florida
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying balance sheets of Twin Cities
    Dermatopathology, P.A. as of March&#160;7, 2008 and
    December&#160;31, 2007, and the related statements of
    operations, stockholder&#146;s equity, and cash flows for the
    period from January&#160;1, 2008 through March&#160;7, 2008 and
    for the year ended December&#160;31, 2007. These financial
    statements are the responsibility of the Company&#146;s
    management. Our responsibility is to express an opinion on these
    financial statements based on our audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of Twin Cities Dermatopathology, P.A. as of March&#160;7, 2008
    and December&#160;31, 2007 and, the results of its operations
    and its cash flows for the period January&#160;1, 2008 through
    March&#160;7, 2008 and for the year then ended December&#160;31,
    2007 in conformity with accounting principles generally accepted
    in the United States of America.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265801.gif" alt="-S- Signature">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    West Palm Beach, Florida<BR>
    April&#160;9, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,bs --><A name='314'>Balance
    Sheets</FONT></B></A>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="64%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">March&#160;7, 2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">December&#160;31,
    2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>892</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>620</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Prepaid expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>9</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,521</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>106</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>,1,627</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,082
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Stockholder&#146;s Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>81</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>249</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>330</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholder&#146;s Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common Shares, $ .01&#160;par value per share, 5,000&#160;shares
    authorized and 500&#160;shares issued and outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,297</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total stockholder&#146;s equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,297</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,627</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,082
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    <BR>
    <A name='315'> <!-- XBRL,op -->Statements of Operations</A><BR>
    Period from January&#160;1, 2008 through March&#160;7, 2008<BR>
    and For the Year Ended December&#160;31, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1, 2008<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Through<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">March&#160;7, 2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">December&#160;31,
    2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,293</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>562</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,633
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>98</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>667</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>626</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>629</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-41
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    <BR>
    <A name='316'> <!-- XBRL,se -->Statement of Stockholder&#146;s
    Equity</A><BR>
    For the period from January&#160;1, 2008 through March&#160;7,
    2008<BR>
    and For the Year Ended December&#160;31, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Par<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stockholder&#146;s<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Value</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Earnings</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>($ in thousands, except shares)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,049
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,049
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,133</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,133</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>629</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>629</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, March&#160;7, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>500</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,297</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,297</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-42
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    <BR>
    <A name='317'> <!-- XBRL,cf -->Statements of Cash Flows</A><BR>
    For the period from January&#160;1, 2008 through March&#160;7,
    2008<BR>
    and For the Year Ended December&#160;31, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1, 2008<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Through<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">March&#160;7, 2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">December&#160;31,
    2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>629</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>67</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Changes in assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    (Increase) Decrease in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(122</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Prepaid expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>28</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>630</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(18</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (42
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(18</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (42
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,133</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,049
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,133</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,049
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net increase (decrease) in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(521</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    362
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash, beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,413</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash, ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>892</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-43
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,NS -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='318'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Financial Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;Twin Cities
    Dermatopathology, P.A. (the &#147;Company&#148;) was organized
    in the State of Minnesota as a professional business corporation
    in January 1990 to operate as a pathology laboratory.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company engages in the business of providing anatomic
    pathology and cytology services to physicians in the state of
    Minnesota.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s significant accounting policies
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair value of Financial
    Instruments</U>:</I>&#160;&#160;The Company&#146;s financial
    instruments consist mainly of cash, accounts receivable, and
    accounts payable. The carrying amounts of the Company&#146;s
    cash, accounts receivable, and accounts payable approximate fair
    value due to the short-term nature of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ended March&#160;7, 2008 and year ended December&#160;31, 2007,
    Medicare provided 15% and 20% of net revenues, respectively, and
    Blue Cross/Blue Shield, provided 15% of net revenues in each
    period, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash</U>:</I>&#160;&#160;The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest-bearing accounts with a
    financial institution that guaranteed by the Federal Deposit
    Insurance Corporation&#146;s (&#147;FDIC&#148;) up to $100,000
    as of March&#160;7, 2008. The Company has not experienced any
    losses on such accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 10&#160;years.
    Leasehold improvements are amortized over the shorter of the
    term of the related lease, or the useful life of the asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;The Company is a
    subchapter S&#160;Corporation for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes. The income attributable to the Company
    is distributed to the stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company&#146;s payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-44
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Recent Accounting Pronouncements</U>:</I>&#160;&#160;In
    July 2006, the FASB issued Interpretation No.&#160;48,
    <I>Accounting for Uncertainty in Income Taxes&#160;&#151; an
    interpretation of FASB Statement 109 </I>(&#147;FIN 48&#148;).
    FIN&#160;48 clarifies the accounting for uncertainty in income
    taxes recognized in an enterprise&#146;s financial statements in
    accordance with SFAS&#160;109, <I>Accounting for Income
    Taxes</I>. FIN&#160;48 prescribes a comprehensive model for
    recognizing, measuring, presenting and disclosing in the
    financial statements tax positions taken or expected to be taken
    on a tax return. If there are changes in net assets as a result
    of application of FIN&#160;48, these will be accounted for as an
    adjustment to the opening balance of retained earnings.
    Additional disclosures about the amounts of such liabilities
    will also be required. In October 2008, the FASB delayed the
    effective date of FIN&#160;48 for certain nonpublic enterprises
    to annual financial statements for fiscal years beginning after
    December&#160;15, 2008. The Company was not required to adopt
    FIN&#160;48 for these financial statements. The Company does not
    expect the adoption of this statement will materially impact its
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2006, Statement of Financial Accounting Standards
    No.&#160;157, <I>Fair Value Measurements</I>
    (&#147;SFAS&#160;157&#148;) applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS&#160;157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position (&#147;FSP&#148;)
    <FONT style="white-space: nowrap">No.&#160;157-2,</FONT>
    <I>Effective Date of FASB Statement No.&#160;157</I>, which
    deferred the effective date of SFAS&#160;157 for one year for
    non-financial assets and non-financial liabilities, except for
    items recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November&#160;15, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SFAS&#160;157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a.&#160;<I>Level&#160;1:</I>&#160;&#160;Quoted market prices in
    active markets for identical assets or liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    b.&#160;<I>Level&#160;2:</I>&#160;&#160;Observable market based
    inputs or unobservable inputs corroborated by market data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    c.&#160;<I>Level&#160;3:</I>&#160;&#160;Unobservable inputs not
    corroborated by market data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable consist of the following as of (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="64%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">March&#160;7, 2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">December&#160;31,
    2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable and unbilled receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>818</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: allowance for bad debts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(198</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (131
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>620</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-45
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment consist of the following as of (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="56%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;7,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>686</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>34</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>70</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>181</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>971</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    953
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(865</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (858
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>106</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was approximately $7,000 for the period
    from January&#160;1, 2008 to March&#160;7, 2008 and $88,000 for
    the year ended December&#160;31, 2007.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has an employment agreement with its sole
    stockholder, who is also a physician employee, the terms of
    which renew automatically for consecutive twelve-month periods.
    The agreement provides for a minimum salary level, adjusted
    annually for
    <FONT style="white-space: nowrap">cost-of-living</FONT>
    changes. For the period from January&#160;1, 2008 through
    March&#160;7, 2008 and year ended December&#160;31, 2007, the
    Company paid salaries of approximately $67,000 and $373,000,
    respectively, under this agreement.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company&#146;s medical malpractice
    insurance coverage will be adequate to cover any such liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Operating Leases</U>:</I>&#160;&#160;The Company leases
    office and medical laboratory facilities and equipment under
    non-cancelable lease agreements with terms ranging from two to
    ten years and expiring through 2011. The terms of some of the
    facility leases call for the Company to pay for certain taxes or
    common utility charges. Rent expense including these taxes and
    common utility charges was approximately $9,200 for the period
    from January&#160;1, 2008 through March&#160;7, 2008 and $55,000
    for the year ended December&#160;31, 2007. Rent expense
    associated with operating leases that include scheduled rent
    increases and tenant incentives is recorded on a straight-line
    basis over the term of the lease.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-46
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Twin
    Cities Dermatopathology, P.A.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate future minimum annual rentals under the lease
    agreements are as of March&#160;7, 2008 are as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a defined contribution plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The Company may elect to make a matching contribution based on a
    percentage determined by the Company of the employee&#146;s
    annual elective contributions or a percentage of the
    employee&#146;s annual compensation. The Company contributed
    approximately $1,200 and $114,000 for the period from
    January&#160;1, 2008 to March&#160;7, 2008 and for the year
    ended December&#160;31, 2007, respectively, to the plan.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;7, 2008, the Company was acquired from its
    stockholder by Aurora Diagnostics Holdings, LLC.
</DIV>
<!-- /XBRL,NS -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-47
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='319'><B><FONT style="font-family: 'Times New Roman', Times">Independent
    Auditor&#146;s Report</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics Holdings, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Palm Beach Gardens, Florida
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying balance sheet of Laboratory
    Medicine Consultants, LTD. (the &#147;Company&#148;) as of
    December&#160;10, 2007, and the related statement of operations
    and stockholders&#146; deficit and cash flows for the period
    from January&#160;1, 2007 to December&#160;10, 2007. These
    financial statements are the responsibility of the
    Company&#146;s management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of Laboratory Medicine Consultants, LTD. as of December&#160;10,
    2007, and the results of its operations and its cash flows for
    the period from January&#160;1, 2007 to December&#160;10, 2007
    in conformity with accounting principles generally accepted in
    the United States of America.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265801.gif" alt="-S- Signature">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    West Palm Beach, Florida <BR>
    April 9, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-48
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD.</FONT></B>
</DIV>

<A name='320'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Balance
    Sheet<BR>
    December&#160;10, 2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,bs -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>56</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,258 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,314</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>490</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred Tax Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,308 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>6,112 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Members&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>309</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Post employment obligation, current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,888</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>150</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Income taxes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>51</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>951</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,349 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Post employment obligation, less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5,146 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; Deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common Shares, $10.00&#160;par value, 3,225&#160;shares
    authorized;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>25</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    2,500&#160;shares issued and outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2,408</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <B>Total stockholders&#146; deficit</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2,383</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>6,112 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-49
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD.</FONT></B>
</DIV>

<A name='321'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Statement
    of Operations<BR>
    For the period from January&#160;1, 2007 through
    December&#160;10, 2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,op -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,562
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,272
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,314
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income before income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision for income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-50
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD.</FONT></B>
</DIV>

<A name='322'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Statement
    of Stockholders&#146; Deficit<BR>
    For the period from January&#160;1, 2007 through
    December&#160;10, 2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,se -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Par<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Stockholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Value</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Deficit</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Deficit</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom">
    <B>($ in thousands, except shares)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,529
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,504
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;10, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,500</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B> 25</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2,408</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2,383</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-51
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD.</FONT></B>
</DIV>

<A name='323'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Statement
    of Cash Flows<BR>
    For the period from January&#160;1, 2007 through
    December&#160;10, 2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,cf -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,121</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Adjustments to reconcile net income to net cash provided by
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>191</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>599</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Changes in assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>411</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase (decrease) in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(636</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Post employment obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(687</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(123</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Income taxes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>51 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>927 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(99</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(99</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Repayment of notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(908</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(908</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net decrease in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(80</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>136 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>56 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental Disclosures of Cash Flow Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash interest payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>14 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash tax payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-52
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,NS -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD. <BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='324'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Financial Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;The Company is an
    independent multi-specialty anatomic and clinical pathology
    laboratory located in Las Vegas, Nevada. As an independent
    laboratory, in operation since 1969, the Company serves
    independent physicians and hospitals throughout Nevada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is organized under Nevada law as a C corporation for
    tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s significant accounting policies
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair Value of Financial
    Instruments</U>:</I>&#160;&#160;The Company&#146;s financial
    instruments consist mainly of cash, accounts receivable and
    accounts payable. The carrying amounts of the Company&#146;s
    cash, accounts receivable and accounts payable approximate fair
    value due to the short-term nature of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending December&#160;10, 2007, Medicare and Cigna provided 15%
    and 12% of the Company&#146;s net revenues, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash</U>:</I>&#160;&#160;The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation&#146;s (&#147;FDIC&#148;). These amounts
    are guaranteed by the FDIC up to $100,000 as of
    December&#160;10, 2007. The Company has not experienced any
    losses on such accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 5 to 8&#160;years. Leasehold
    improvements are amortized over the shorter of the term of the
    related lease, or the useful life of the asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;Deferred taxes are
    provided on the liability method whereby deferred tax assets are
    recognized for deductive temporary differences, and deferred tax
    liabilities are recognized for taxable temporary differences.
    Temporary differences are the differences between the reported
    amounts of assets and liabilities and their tax bases. Deferred
    tax assets are reduced by a valuation allowance when, in the
    opinion of management, it is more likely than not that some
    portion of all of the deferred tax assets will be realized.
    Deferred tax assets and liabilities are adjusted for the effects
    of changes in taxes laws and rates on the date of enactment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company&#146;s payors.
    While the Company has receivables due from federal and state
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-53
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD. <BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Recent Pending Accounting
    Pronouncements</U>:</I>&#160;&#160;In July 2006, the FASB issued
    Interpretation No.&#160;48, <I>Accounting for Uncertainty in
    Income Taxes&#160;&#151; an interpretation of FASB Statement 109
    </I>(&#147;FIN&#160;48&#148;). FIN&#160;48 clarifies the
    accounting for uncertainty in income taxes recognized in an
    enterprise&#146;s financial statements in accordance with
    SFAS&#160;109, <I>Accounting for Income Taxes</I>. FIN&#160;48
    prescribes a comprehensive model for recognizing, measuring,
    presenting and disclosing in the financial statements tax
    positions taken or expected to be taken on a tax return. If
    there are changes in net assets as a result of application of
    FIN&#160;48, these will be accounted for as an adjustment to the
    opening balance of retained earnings. Additional disclosures
    about the amounts of such liabilities will also be required. In
    October 2008, the FASB delayed the effective date of FIN&#160;48
    for certain nonpublic enterprises to annual financial statements
    for fiscal years beginning after December&#160;15, 2008. The
    Company was not required to adopt FIN&#160;48 for these
    financial statements. The Company does not expect the adoption
    of this statement will have a material impact on its financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2006, the Statement of Financial Accounting
    Standards No.&#160;157, <I>Fair Value Measurements
    </I>(&#147;SFAS&#160;157&#148;), applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS&#160;157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position (&#147;FSP&#148;)
    <FONT style="white-space: nowrap">No.&#160;157-2,</FONT>
    <I>Effective Date of FASB Statement No.&#160;157</I>, which
    defers the effective date of SFAS&#160;157 for one year for
    non-financial assets and non-financial liabilities, except for
    items recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November&#160;15, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SFAS&#160;157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;<I>&#160;</I>
</TD>
    <TD align="left">
    <I>Level&#160;1:</I>&#160;&#160;Quoted market prices in active
    markets for identical assets or liabilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;2:</I>&#160;&#160;Observable market based inputs
    or unobservable inputs corroborated by market data.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;3:</I>&#160;&#160;Unobservable inputs not
    corroborated by market data.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable as of December&#160;10, 2007 consists of the
    following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable and unbilled receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4,863</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: allowance for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,605</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,258 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-54
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD. <BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment as of December&#160;10, 2007 consists of
    the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5-7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,041
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was approximately $191,000 for the period
    ended December&#160;10, 2007.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Post
    Employment Obligation</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;10, 2007, the Company has a salary
    continuation program with its four retired former stockholders
    and remaining active stockholders. Under the terms of the
    Company&#146;s Amended and Restated Stockholders Agreement, the
    stockholders, upon retirement, death or other specified events,
    are entitled to 25% of a full stockholder salary and
    distribution, 1.75% of the Company&#146;s adjusted gross annual
    revenues, health insurance, and malpractice &#147;tail&#148;
    insurance coverage for four years following retirement. The
    equity stockholders are eligible for the benefit after
    completing their sixth year as a stockholder and are fully
    vested after the tenth year. The Company calculates the present
    value of these future payments based on average stockholder
    salary and distribution levels, longevity and a discount rate
    (7.35% as of December&#160;10, 2007). The Company accrued an
    aggregate of $7&#160;million related to this post employment
    benefit as of December&#160;10, 2007, of which $1.9&#160;million
    is payable within one year.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Notes
    Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the period ended December&#160;10, 2007, the Company paid
    in full and terminated a $700,000 line of credit with a bank and
    a $207,872 commercial term loan. Total interest expense for the
    period ended December&#160;10, 2007 was approximately $24,000.
    These debt agreements were secured by substantially all of the
    Company&#146;s assets.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a defined contribution plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. The qualified matching contribution is the
    lesser of a percentage determined by the Company of the
    participant&#146;s elective contributions for that plan year or
    a percentage of the employee&#146;s compensation for that plan
    year. For the period ended December&#160;10, 2007, the Company
    did not make any contributions towards the defined contribution
    plan.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company has become
    and may in the future become subject to pending and threatened
    legal actions and proceedings. The Company may have liability
    with respect to its employees and its pathologists. Medical
    malpractice claims are generally covered by insurance. While the
    Company believes the outcome of any such pending legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-55
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD. <BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Company is ultimately found liable under any medical malpractice
    claims, there can be no assurance the Company&#146;s medical
    malpractice insurance coverage will be adequate to cover any
    such liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Employment Agreements</U>:</I>&#160;&#160;The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels including various benefits, as well as for
    discretionary bonus compensations. Under certain of the
    agreements, in the event employment is terminated, the employee
    is entitled to receive only the compensation accrued but unpaid
    as of the date of termination. The Company paid bonuses of
    approximately $61,000 to its employees for the period ended
    December&#160;10, 2007, under the agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Self-Insured Health Benefits</U>:</I>&#160;&#160;During
    2007, the Company provided health care benefits to the majority
    of its employees through a partially self-insured plan. The
    Company records its estimate of the ultimate cost of, and
    reserves for, health care benefits based on computations using
    the Company&#146;s loss history as well as industry statistics.
    In determining its reserves, the Company includes reserves for
    estimated claims incurred but not reported. The amount reserved
    for estimated claims was $69,583 as of December&#160;10, 2007
    which is included in accounts payable in the accompanying
    balance sheet. The ultimate cost of health care benefits will
    depend on actual costs incurred to settle the claims and may
    differ from the amounts reserved by the Company for those claims.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Operating Leases</U>:</I>&#160;&#160;The Company leases
    its laboratory and business office from an unrelated entity
    under a 20&#160;year lease that began in October 2000 and ends
    on May&#160;31, 2020. Rent expense including taxes and common
    utility charges was approximately $220,000 for the period ended
    December&#160;10, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate future minimum annual rentals under the lease
    agreements as of December&#160;10, 2007 are as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 10pt">Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>December&#160;10,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,617
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,627
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-56
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Laboratory
    Medicine Consultants, LTD. <BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision for income taxes for the period ended
    December&#160;10, 2007 consists of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>51</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current provision</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>51 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>599</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total deferred provision</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>599 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total provision for income taxes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>650 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Temporary differences between the financial statement carrying
    amounts and tax basis of assets and liabilities that give rise
    to significant portions of the deferred tax assets and
    liabilities are summarized below as of December&#160;10, 2007:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Allowance for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,108</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued wages
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>75</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>82 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Current deferred tax liabilities, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(951</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(84</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Post-employment obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,392 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Noncurrent deferred tax assets, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,308 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Total deferred tax assets, net</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,357 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;10, 2007, the Company was acquired from its
    stockholders by Aurora Diagnostics Holdings, LLC. In conjunction
    with the sale to Aurora Diagnostics Holdings, LLC, the portion
    of the Company&#146;s post employment benefit program for active
    (non-retired) stockholders, and its related obligation of
    $3.3&#160;million, was terminated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsequent to December&#160;10, 2007, the Company was notified
    of claims made by certain retired stockholders relating to the
    Company&#146;s post-employment benefit program and the sale of
    the Company to Aurora Diagnostics Holdings, LLC. The Company
    intends to vigorously defend its position. The ultimate outcome
    of this litigation cannot presently be determined. Accordingly,
    adjustments, if any, that might result from the resolution of
    this matter have not been reflected in the accompanying
    financial statements.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-57
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='325'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Auditor&#146;s Report</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics Holdings, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Palm Beach Gardens, Florida
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheet of
    Greensboro Pathology Associates, P.A. and Subsidiary as of
    October&#160;4, 2007, and the related consolidated statement of
    operations, stockholders&#146; equity and cash flows for the
    period from January&#160;1, 2007 to October&#160;4, 2007. These
    financial statements are the responsibility of the
    Company&#146;s management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Greensboro Pathology Associates, P.A. and Subsidiary
    as of October&#160;4, 2007, and the results of their operations
    and their cash flows for the period from January&#160;1, 2007 to
    October&#160;4, 2007 in conformity with accounting principles
    generally accepted In the United States of America.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265801.gif" alt="-S- Signature">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    West Palm Beach, Florida
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;9, 2010
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-58
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='326'><B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Balance Sheet</A><BR>
    October&#160;4, 2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,bs -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,386</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4,069</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>73 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>6,528 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,163 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>8,691 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Stockholders&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Note payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,566</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>460</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,913 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4,939 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common Shares, $10.00&#160;par value per share,
    10,000&#160;shares authorized; 80&#160;shares issued and
    outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,744 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total stockholders&#146; equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,752 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>8,691 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-59
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='327'><B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Operations</A><BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">For the
    Period From January&#160;1, 2007 through October&#160;4,
    2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,op -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>25,968</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of service
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>19,478</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,185</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>422</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>22,085</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,883</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(139</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,744</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-60
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='328'><B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Stockholders&#146; Equity</A><BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">For the
    Period From January&#160;1, 2007 through October&#160;4,
    2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,se -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-In<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stockholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Par Value</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Capital</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Earnings</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>($ in thousands, except shares)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(3,240</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(3,240</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,744</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,744 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, October&#160;4, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>80</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,744</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,752 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-61
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='329'><B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Cash Flows.</A><BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">For the
    period from January&#160;1, 2007 through October&#160;4,
    2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,cf -->
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,744</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>422</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,213</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Changes in assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase (decrease) in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(893</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>23</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase (decrease) in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(283</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,141 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5,367 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(188</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(188</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Repayment of debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(367</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(3,240</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(3,607</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net increase in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,572</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>814 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,386 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental Disclosures of Cash Flow Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash interest payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>137 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-62
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,NS -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='330'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Consolidated Financial Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;Greensboro
    Pathology Associates, P.A. and Subsidiary (the
    &#147;Company&#148;) was organized in the State of North
    Carolina as a professional business corporation during February
    1998 to operate as a pathology laboratory. During 2004, the
    Company elected to be treated as an S-Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company engages in the business of providing anatomic
    pathology and cytology services to physicians in the State of
    North Carolina.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s significant accounting policies
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Principles of Consolidation</U>:</I>&#160;&#160;The
    accompanying consolidated financial statements of the Company
    include the accounts of Greensboro Pathology Associates, P.A.
    and its wholly-owned subsidiary. All accounts and transactions
    between the entities have been eliminated in consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair Value of Financial
    Instruments</U>:</I>&#160;&#160;The Company&#146;s financial
    instruments consist mainly of cash, accounts receivable,
    accounts payable and note payable. The carrying amounts of the
    Company&#146;s cash, accounts receivable and accounts payable
    approximate fair value due to the short-term nature of these
    instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At October&#160;4, 2007, approximately $2.6&#160;million of the
    Company&#146;s note payable bears interest at a variable market
    rate, and thus, the carrying amounts approximate fair value. As
    of October&#160;4, 2007, $2.1&#160;million of the note payable
    outstanding was subjected to an interest rate swap agreement
    (derivative) which is reflected at fair value in the financial
    statements of approximately $19,000 included in other assets on
    the accompanying consolidated balance sheet as of
    October&#160;4, 2007. The interest rate swap agreement was
    terminated subsequent to October&#160;4, 2007, in conjunction
    with the repayment of the note payable as further discussed in
    Notes&#160;4 and 8.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending October&#160;4, 2007, Medicare and BlueCross/Blue Shield
    provided 19% and 28% of the Company&#146;s net revenues,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash</U>:</I>&#160;&#160;The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation&#146;s (&#147;FDIC&#148;). These amounts
    are guaranteed by the FDIC up to $100,000 as of October&#160;4,
    2007. The Company has not experienced any losses on such
    accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-63
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    on a straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 11&#160;years.
    Leasehold improvements are amortized over the shorter of the
    term of the related lease, or the useful life of the asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;The Company is a
    subchapter S&#160;Corporation for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes. The income attributable to the Company
    is distributed to the stockholders in accordance with their
    proportionate share of earnings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Derivative Financial Instruments</U>:</I>&#160;&#160;The
    Company utilizes FASB Statement No.&#160;133, <I>Accounting for
    Derivative Instruments and Hedging Activities. </I>This
    Statement requires that an entity recognize all derivatives as
    either assets or liabilities in the balance sheet and measure
    those instruments at fair value. During 2007, the Company
    entered into an interest rate swap agreement with the bank to
    eliminate the impact of changes in interest rates on its debt.
    The Company has recorded the fair value of the swap agreement in
    other assets on the accompanying consolidated balance sheet as
    of October&#160;4, 2007, and as additional financing expense
    related to the changes in the carrying amount of the swap
    agreement in the accompanying consolidated statement of income
    for the period from January&#160;1, 2007 through October&#160;4,
    2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provided that the Company does not default on its financing
    arrangements, continues its schedule of debt service payments
    through the loan maturity dates and does not settle the interest
    rate swap agreement, there will be no future cash outlay or
    recovery for the fair value of the swap agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company&#146;s payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Recent Accounting Pronouncements</U>:</I>&#160;&#160;In
    July 2006, the FASB issued Interpretation No. 48, <I>Accounting
    for Uncertainty in Income Taxes&#160;&#151; an interpretation of
    FASB Statement 109</I> (&#147;FIN&#160;48&#148;). FIN&#160;48
    clarifies the accounting for uncertainty in income taxes
    recognized in an enterprise&#146;s financial statements in
    accordance with SFAS&#160;109, Accounting for Income Taxes.
    FIN&#160;48 prescribes a comprehensive model for recognizing,
    measuring, presenting and disclosing in the financial statements
    tax positions taken or expected to be taken on a tax return. If
    there are changes in net assets as a result of application of
    FIN&#160;48, these will be accounted for as an adjustment to the
    opening balance of retained earnings. Additional disclosures
    about the amounts of such liabilities will also be required. In
    October 2008, the FASB delayed the effective date of FIN&#160;48
    for certain nonpublic enterprises to annual financial statements
    for fiscal years beginning after December&#160;15, 2008. The
    Company was not required to adopt FIN&#160;48 for these
    consolidated financial statements. The Company does not expect
    the adoption of this statement will impact its financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2006, Statement of Financial Accounting Standards
    No.&#160;157, <I>Fair Value Measurements
    </I>(&#147;SFAS&#160;157&#148;) applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS&#160;157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position (&#147;FSP&#148;)
    <FONT style="white-space: nowrap">No.&#160;157-2,</FONT>
    Effective Date of FASB Statement No.&#160;157, which defers the
    effective date of SFAS&#160;157 for one year for non-financial
    assets and non-financial liabilities, except for items
    recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November&#160;15, 2008.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-64
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SFAS&#160;157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;1:</I>&#160;&#160;Quoted market prices in active
    markets for identical assets or liabilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;2:</I>&#160;&#160;Observable market based inputs
    or unobservable inputs corroborated by market data.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;3:</I>&#160;&#160;Unobservable inputs not
    corroborated by market data.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable consists of the following as of
    October&#160;4, 2007 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable and unbilled receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7,932</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     <B>(3,863</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4,069</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment as of October&#160;4, 2007 consists of
    the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    11
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,646</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,934</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    3 &#150; 5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,217</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>320 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7,117</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(4,954</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>) </B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,163 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was approximately $422,000 for the period
    from January&#160;1, 2007 to October&#160;4, 2007.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note
    Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2002, the Company entered into a note payable with a
    financial institution. The note was secured by all tangible
    assets of the Company and accrued interest at LIBOR plus 2%. In
    July 2004, the Company entered into an interest rate swap
    agreement with a fixed effective rate of 6.42%. Principal and
    fixed rate interest were paid monthly. The note was paid in full
    with proceeds from the sale of the Company to Aurora Diagnostics
    Holdings, LLC as further discussed in Note&#160;8.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has employment agreements with certain of its
    stockholders&#146; who are physician employees which expire at
    various times. Bonuses are discretionary and may be paid to make
    total annual compensation equal to the reasonable value of the
    physicians&#146; contribution. Under certain of the agreements,
    in the event employment is terminated due to death, retirement
    or disability, the employee will receive an additional
    compensation for up to one
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-65
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    year. For the period from January&#160;1, 2007 through
    October&#160;4, 2007, the Company paid salaries and bonuses of
    approximately $2.4&#160;million and $6.2&#160;million,
    respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company&#146;s medical malpractice
    insurance coverage will be adequate to cover any such liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Operating Leases</U>:</I>&#160;&#160;The Company leases an
    office and medical laboratory facility under a non-cancelable
    lease agreement maturing December&#160;31, 2012. The terms of
    the facility lease calls for the Company to pay for certain
    taxes or common utility charges. Rent expense including these
    taxes and common utility charges was approximately $454,000 for
    the period ended October&#160;4, 2007. Rent expense associated
    with operating leases that include scheduled rent increases and
    tenant incentives is recorded on a straight-line basis over the
    term of the lease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate future minimum annual rentals under the lease
    agreements as of October&#160;4, 2007 are as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 10pt">Year Ending<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>October 4,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Employment Agreements</U>:</I>&#160;&#160;The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels determined by the board of directors.
    Bonuses are discretionary and may be paid to make total annual
    compensation equal to the reasonable value of the
    physicians&#146; contribution. Under certain of the agreements,
    in the event employment is terminated due to death, retirement
    or disability, the employee will receive an additional
    compensation for up to one year.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a profit sharing 401(K) Plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. The
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-66
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Greensboro
    Pathology Associates, P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Company guarantees 3% of compensation to each employee under the
    401(K) Plan. The profit sharing contribution is discretionary by
    the Company. For the period from January&#160;1, 2007 to
    October&#160;4, 2007, the Company contributed approximately
    $651,000 towards the profit sharing 401 (K).
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Event</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;4, 2007, the Company was acquired from its
    stockholders&#146; by Aurora Diagnostics Holdings, LLC.
</DIV>
<!-- /XBRL,NS -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-67
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='331'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Auditor&#146;s Report</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics Holdings, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Palm Beach Gardens, Florida
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheet of
    Mark&#160;&#038; Kambour,&#160;M.D., P.A. and Subsidiary as of
    October&#160;11, 2007, and the related consolidated statement of
    operations, stockholders&#146; equity and cash flows for the
    period from January&#160;1, 2007 to October&#160;11, 2007. These
    financial statements are the responsibility of the
    Company&#146;s management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Mark&#160;&#038; Kambour, M. D., P.A. and Subsidiary
    as of October&#160;11, 2007, and the results of their operations
    and their cash flows for the period from January&#160;1, 2007 to
    October&#160;11, 2007 in conformity with accounting principles
    generally accepted in the United States of America.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265801.gif" alt="-S- Signature">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    West Palm Beach, Florida
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;9, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-68
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary</FONT></B>
</DIV>

<A name='332'>
<!-- XBRL,bs -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Balance Sheet<BR>
    <!-- XBRL,body -->October&#160;11, 2007</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>992</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,754</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>72</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,818</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>23</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>321</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,162 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Stockholders&#146; Equity</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="center" valign="bottom">
    <B>&#151;</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>214</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>204</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>418</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stockholders&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common shares, $1.00&#160;par value per share, 1,000&#160;shares
    authorized; 1,000&#160;shares issued and outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>14</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Retained earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,729</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <B>Total stockholders&#146; equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,744</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,162 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-69
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary</FONT></B>
</DIV>

<!-- XBRL,op -->
<A name='333'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Operations</A><BR>
    For the Period From January&#160;1, 2007 through
    October&#160;11, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>8,284</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4,596</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>523</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>76 </B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5,195</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,089</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>10</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,079</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-70
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary</FONT></B>
</DIV>

<!-- XBRL,se -->
<A name='334'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Stockholders&#146; Equity</A><BR>
    For the Period From January&#160;1, 2007 through
    October&#160;11, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Par<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-In<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shareholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Value</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Capital</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Earnings</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
    <B>($ in thousands, except shares)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,424</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,424</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,079</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,079</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance, October&#160;11, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,000</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>14</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,729</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,744</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-71
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary</FONT></B>
</DIV>

<A name='335'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidated
    Statement of Cash Flows<BR>
    </A> <!-- XBRL,cf -->For the period from January&#160;1, 2007
    through October&#160;11, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">($ in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,079</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>76</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>152</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Changes in assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(843</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(34</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(20</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>120</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>127</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,657</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(67</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(67</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Repayment of note payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(224</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,424</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net cash used in financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,648</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 60pt">
    <B>Net increase in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>942</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>50</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>992</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental Disclosures of Cash Flow Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash interest payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>10</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,cf -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Consolidated Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-72
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,NS -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='336'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Consolidated Financial Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary (the
    &#147;Company&#148;) was organized in the State of Florida as a
    <FONT style="white-space: nowrap">sub-chapter&#160;S&#160;corporation</FONT>
    during May 1989 to operate as a pathology laboratory company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company engages in the business of providing anatomic
    pathology services to physicians in the State of Florida.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s significant accounting policies
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Principles of Consolidation</U>:</I>&#160;&#160;The
    accompanying consolidated financial statements of the Company
    include the accounts of Mark&#160;&#038; Kambour M.D., P.A., and
    its wholly-owned subsidiary, MA Courier Services, Inc. All
    accounts and transactions between the entities have been
    eliminated in consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair Value of Financial
    Instruments</U>:</I>&#160;&#160;The Company&#146;s financial
    instruments consist mainly of cash, accounts receivable and
    accounts payable. The carrying amounts of the Company&#146;s
    cash, accounts receivable and accounts payable approximate fair
    value due to the short-term nature of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending October&#160;11, 2007, Medicare and BlueCross/Blue Shield
    provided 22% and 13% of the Company&#146;s net revenues,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash</U>:</I>&#160;&#160;The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation&#146;s (&#147;FDIC&#148;). These amounts
    are guaranteed by the FDIC up to $100,000 as of October&#160;11,
    2007. The Company has not experienced any losses on such
    accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 7&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;The Company is a
    subchapter S&#160;Corporation for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes. The income attributable to the Company
    is distributed to the stockholders in accordance with their
    proportionate share of earnings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company&#146;s payors.
    While the Company has receivables due from federal and state
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-73
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    government agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Recent Accounting Pronouncements</U>:</I>&#160;&#160;In
    July 2006, the FASB issued Interpretation No. 48, <I>Accounting
    for Uncertainty in Income Taxes&#160;&#151; an interpretation of
    FASB Statement 109</I> (&#147;FIN&#160;48&#148;). FIN&#160;48
    clarifies the accounting for uncertainty in income taxes
    recognized in an enterprise&#146;s financial statements in
    accordance with SFAS&#160;109, Accounting for Income Taxes.
    FIN&#160;48 prescribes a comprehensive model for recognizing,
    measuring, presenting and disclosing in the financial statements
    tax positions taken or expected to be taken on a tax return. If
    there are changes in net assets as a result of application of
    FIN&#160;48, these will be accounted for as an adjustment to the
    opening balance of retained earnings. Additional disclosures
    about the amounts of such liabilities will also be required. In
    October 2008, the FASB delayed the effective date of FIN&#160;48
    for certain nonpublic enterprises to annual financial statements
    for fiscal years beginning after December&#160;15, 2008. The
    Company was not required to adopt FIN&#160;48 for these
    consolidated financial statements. The Company does not expect
    the adoption of this statement will impact its financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2006, Statement of Financial Accounting Standards
    No.&#160;157, <I>Fair Value Measurements
    </I>(&#147;SFAS&#160;157&#148;) applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS&#160;157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position (&#147;FSP&#148;)
    <FONT style="white-space: nowrap">No.&#160;157-2,</FONT>
    Effective Date of FASB Statement No.&#160;157, which defers the
    effective date of SFAS&#160;157 for one year for non-financial
    assets and non-financial liabilities, except for items
    recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November&#160;15, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SFAS&#160;157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;1:</I>&#160;&#160;Quoted market prices in active
    markets for identical assets or liabilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;2:</I>&#160;&#160;Observable market based inputs
    or unobservable inputs corroborated by market data.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;3:</I>&#160;&#160;Unobservable inputs not
    corroborated by market data.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable as of October&#160;11, 2007 consist of the
    following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="93%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable and unbilled receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: Allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-74
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment as of October&#160;11, 2007 consist of
    the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="74%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5&#160;&#150; 7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (348
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was approximately $76,000 for the period
    from January&#160;1, 2007 to October&#160;11, 2007.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note
    Payable</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the period ended October&#160;11, 2007, the Company paid
    in full a commercial term loan with outstanding balance of
    $224,016. Interest expense for the period ended October&#160;11,
    2007 was approximately $9,700. The note payable was secured by
    substantially all the Company&#146;s assets.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transaction</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has employment agreements with certain of its
    stockholders&#146; who are physician employees of which expire
    at various times. Bonuses are discretionary and may be paid
    based upon the reasonable value of the physicians&#146;
    contribution. For the period from January&#160;1, 2007 through
    October&#160;11, 2007, the Company paid salaries and bonuses to
    these physicians of approximately $475,000.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company&#146;s medical malpractice
    insurance coverage will be adequate to cover any such liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Employment Agreements</U>:</I>&#160;&#160;The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels determined by the board of directors.
    Bonuses are discretionary and may be paid based upon the
    reasonable value of the physicians&#146; contribution. Under
    certain of the agreements, in the event employment is terminated
    due to death, retirement or disability, the employee will
    receive additional compensation for up to one year.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-75
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mark&#160;&#038;
    Kambour,&#160;M.D., P.A. and Subsidiary<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Operating Leases</U>:</I>&#160;&#160;As of
    October&#160;11, 2007, the Company leases an office and medical
    laboratory facility under a
    <FONT style="white-space: nowrap">month-to-month</FONT>
    agreement until a new facility is completed. On May&#160;29,
    2007, the Company entered into a construction agreement with a
    contractor for a new leased facility in Coral Gables, FL. Total
    costs are expected to be approximately $425,000. Through
    October&#160;11, 2007, no payments have been made by the Company
    under the agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2007, the Company executed a non-cancelable lease to
    begin September&#160;21, 2007, maturing September&#160;30, 2012
    for the new facility. The terms of the facility lease call for
    the Company to pay for certain taxes or common utility charges.
    Rent expense including these taxes and common utility charges
    was approximately $48,000 for the period ended October&#160;11,
    2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate future minimum annual rentals under the lease
    agreements as of October&#160;11, 2007 are as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 10pt">Year Ending<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>October 11,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Event</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;11, 2007, the Company was acquired from its
    stockholders&#146; by Aurora Diagnostics Holdings, LLC.
</DIV>
<!-- /XBRL,NS -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-76
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='337'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Independent
    Auditor&#146;s Report</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Members
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aurora Diagnostics Holdings, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Palm Beach Gardens, Florida
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying balance sheet of Cunningham
    Pathology, LLC as of April&#160;30, 2007, and the related
    statement of operations and members&#146; equity and cash flows
    for the period from January&#160;1, 2007 to April&#160;30, 2007.
    These financial statements are the responsibility of the
    Company&#146;s management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has excluded the financial statements of the
    Cunningham Investment Group, LLC from these financial statements
    as discussed in Note&#160;1. Accounting principles generally
    accepted in the United States of America require the
    consolidation of the financial statements of a variable interest
    entity (&#147;VIE&#148;) with the financial statements of its
    primary beneficiary. The effects on the accompanying financial
    statements of not consolidating the financial statements of
    Cunningham Investment Group, LLC have not been determined.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, except for the effects on the financial
    statements of not consolidating the variable interest entity as
    discussed in the preceding paragraph, the financial statements
    referred to above present fairly, in all material respects, the
    financial position of Cunningham Pathology, LLC as of
    April&#160;30, 2007, and the results of its operations and its
    cash flows for the period from January&#160;1, 2007 through
    April&#160;30, 2007 in conformity with accounting principles
    generally accepted in the United States of America.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265801.gif" alt="-S- Signature">
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    West Palm Beach, Florida
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;9, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-77
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    <!-- XBRL,bs --> <BR>
    <A name='338'>Balance Sheet<BR>
    April&#160;30, 2007</FONT></B>
</DIV>
</A>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>642</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,558</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Prepaid expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>93</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,293</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and Equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,004</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>18</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,315</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and Members&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>252</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>272</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Line of credit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total current liabilities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>524</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Members&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,791</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,315</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,bs -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-78
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    <!-- XBRL,op --> <BR>
    <A name='339'>Statement of Operations and Members&#146;
    Equity<BR>
    </A> <!-- XBRL,body -->For the period from January&#160;1, 2007
    through April&#160;30, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>7,520</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4,806</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>703</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>166</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total operating costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5,675</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Income from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,845</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(7</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total other expense</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Net income</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,843</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Members&#146; Equity, Beginning of Year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,164</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,216</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Members&#146; Equity, End of Year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,791</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,op -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-79
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    <!-- XBRL,cf --> <BR>
    <A name='340'>Statement of Cash Flows</A><BR>
    <!-- XBRL,body -->For the period from January&#160;1, 2007
    through April&#160;30, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>($ in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Operating Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,843</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>166</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Allowance for bad debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>13</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Changes in assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    (Increase) decrease in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(332</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Prepaid expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>247</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    Increase in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>35</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    Accrued compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>129</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <B>Net cash provided by operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,101</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Investing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(45</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <B>Net cash used in investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(45</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Flows From Financing Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Repayment of line of credit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(205</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,210</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <B>Net cash used in financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(1,415</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <B>Net increase in cash</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>641</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Beginning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Ending
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>642</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental Schedule of Noncash Investing and Financing
    Activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Member distribution of property
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>6</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>9</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See Notes to Financial Statements.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-80
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='341'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Financial Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Business and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Nature of Business</U>:</I>&#160;&#160;Cunningham
    Pathology, LLC (the &#147;Company&#148;) was organized in the
    State of Delaware as a limited liability company on
    December&#160;10, 1998 to operate as a pathology laboratory
    company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company engages in the business of providing anatomic
    pathology and cytology services to physicians in the state of
    Alabama.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A summary of the Company&#146;s significant accounting policies
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Variable Interest Entity and Departure from Generally
    Accepted Accounting Principles</U>:</I>&#160;&#160;Accounting
    principles generally accepted in the United States of America
    require the consolidation of the financial statements of a
    variable interest entity (&#147;VIE&#148;) with the financial
    statements of its primary beneficiary. These consolidation
    requirements apply to the Company; however, management of the
    Company has elected not to adopt the guidance . This accounting
    policy is not in accordance with accounting principles generally
    accepted in the United States of America. An entity is
    considered a VIE when equity investors in the entity do not have
    the characteristics of a controlling financial interest or when
    the equity at risk is not sufficient for the entity to finance
    its activities without additional subordinated financial
    support. The primary beneficiary of a VIE is the entity that is
    subject to a majority of the risk of loss or entitled to receive
    a majority of the VIE&#146;s residual returns, or both. In
    determining whether it is the primary beneficiary of a VIE, a
    company with a variable interest must also treat a variable
    interest held by a related party the same as its own interest.
    The Company has not consolidated the financial statements of
    Cunningham Investment Group, LLC, the entity from which the
    Company leases certain of its facilities, in the accompanying
    financial statements as required by this guidance based on the
    Company being the primary beneficiary. The effects on the
    accompanying financial statements of not consolidating the
    financial statements of Cunningham Investment Group, LLC have
    not been determined.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Accounting Estimates</U>:</I>&#160;&#160;The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Fair Value of Financial
    Instruments</U>:</I>&#160;&#160;The Company&#146;s financial
    instruments consist mainly of cash, accounts receivable and
    accounts payable. The carrying amounts of the Company&#146;s
    cash, accounts receivable and accounts payable approximate fair
    value due to the short-term nature of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Revenue Recognition and Accounts
    Receivable</U>:</I>&#160;&#160;The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company&#146;s provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending April&#160;30, 2007, Medicare and BlueCross/Blue Shield
    provided 19% and 57% of the Company&#146;s net revenues,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Cash</U>:</I>&#160;&#160;The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in non-interest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation (&#147;FDIC&#148;). These amounts are
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-81
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    guaranteed by the FDIC up to $100,000 as of April&#160;30, 2007.
    The Company has not experienced any losses on such accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Property and Equipment</U>:</I>&#160;&#160;Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 7&#160;years. Leasehold
    improvements are amortized over the shorter of the term of the
    related lease, or the useful life of the asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Income Taxes</U>:</I>&#160;&#160;The Company is a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes, the income attributable to the limited
    liability company is distributed to the members in accordance
    with the terms of the operating agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Concentration of Credit Risk</U>:</I>&#160;&#160;Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company&#146;s payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Recent Accounting Pronouncements</U>:</I>&#160;&#160;In
    July 2006, the FASB issued Interpretation No.&#160;48,
    <I>Accounting for Uncertainty in Income Taxes&#160;&#151; an
    interpretation of FASB Statement 109 </I>(&#147;FIN 48&#148;).
    FIN&#160;48 clarifies the accounting for uncertainty in income
    taxes recognized in an enterprise&#146;s financial statements in
    accordance with SFAS&#160;109, <I>Accounting for Income
    Taxes</I>. FIN 48 prescribes a comprehensive model for
    recognizing, measuring, presenting and disclosing in the
    financial statements tax positions taken or expected to be taken
    on a tax return. If there are changes in net assets as a result
    of application of FIN&#160;48, these will be accounted for as an
    adjustment to the opening balance of retained earnings.
    Additional disclosures about the amounts of such liabilities
    will also be required. In October 2008, the FASB delayed the
    effective date of FIN&#160;48 for certain nonpublic enterprises
    to annual financial statements for fiscal years beginning after
    December&#160;15, 2008. The Company was not required to adopt
    FIN&#160;48 for these financial statements. The Company does not
    expect the adoption of this statement will have a material
    impact on its financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2006, the Statement of Financial Accounting
    Standards No.&#160;157, <I>Fair Value Measurements
    </I>(&#147;SFAS&#160;157&#148;), applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS&#160;157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position (&#147;FSP&#148;)
    <FONT style="white-space: nowrap">No.&#160;157-2,</FONT>
    <I>Effective Date of FASB Statement No.&#160;157</I>, which
    defers the effective date of SFAS&#160;157 for one year for
    non-financial assets and non-financial liabilities, except for
    items recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November&#160;15, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SFAS&#160;157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;1:</I>&#160;&#160;Quoted market prices in active
    markets for identical assets or liabilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;2:</I>&#160;&#160;Observable market based inputs
    or unobservable inputs corroborated by market data.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Level&#160;3:</I>&#160;&#160;Unobservable inputs not
    corroborated by market data.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-82
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
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<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Accounts
    Receivable</FONT></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accounts receivable as of April&#160;30, 2007 consist of the
    following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable and unbilled receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,938</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: allowance for doubtful accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2,380</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,558</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property
    and Equipment</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property and equipment as of April&#160;30, 2007 consists of the
    following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Estimated Useful<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">Life (Years)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Laboratory, office and data processing equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5&#150;7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2,869</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    8
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>293</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>188</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Software
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>230</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    5
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>194</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>3,774</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(2,770</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1,004</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depreciation expense was approximately $166,000 for the
    four-month period ended April&#160;30, 2007.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Line of
    Credit</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During June 2006, the Company entered into a $1&#160;million
    line of credit with a bank with interest at LIBOR plus 2%. On
    March&#160;15, 2007, the outstanding balance of approximately
    $205,000 under the line of credit was paid in full and the line
    was terminated.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Benefit Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a defined contribution plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. The qualified matching contribution is the
    lesser of a percentage determined by the Company of the
    participant&#146;s elective contributions for that plan year or
    a percentage of the employee&#146;s compensation for that plan
    year. For the period ended April&#160;30, 2007, the Company
    contributed approximately $536,000 toward the defined
    contribution plan.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company leases office space from Cunningham Investment Group
    LLC, which is owned by the physician employees. The lease
    provides for monthly aggregate minimum payments of approximately
    $18,000 and will expire in April 2009. Rent expense incurred and
    paid to the related entity was approximately $72,000 for the
    period ending April&#160;30, 2007.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-83
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cunningham
    Pathology, LLC<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Financial Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingencies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company&#146;s financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company&#146;s medical malpractice
    insurance coverage will be adequate to cover any such liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Healthcare Regulatory Environment</U>:</I>&#160;&#160;The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company&#146;s
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company&#146;s services under these programs could have
    a material adverse effect on the Company&#146;s financial
    position and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Employment Agreements</U>:</I>&#160;&#160;The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels including various benefits, as well as for
    discretionary bonus compensations. Under certain of the
    agreements, in the event employment is terminated (other than
    voluntarily by the employee or the Company for cause or upon the
    death of the employee), the Company is committed to pay a full
    monthly salary for a period of three months. The Company paid
    bonuses of approximately $275,000 to its physician employees for
    the period ended April&#160;30, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><U>Operating Leases</U>:</I>&#160;&#160;The Company leases
    various office and medical laboratory facilities and equipment
    under non-cancelable lease agreements with terms ranging from
    two to ten years and expiring through 2010. The terms of the
    facility leases call for the Company to pay for certain taxes or
    common utility charges. Rent expense including these taxes and
    common utility charges was approximately $119,000 for the period
    ended April&#160;30, 2007. Rent expense associated with
    operating leases that include scheduled rent increases and
    tenant incentives is recorded on a straight-line basis over the
    term of the lease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate future minimum annual rentals under the lease
    agreements as of April&#160;30, 2007 are as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Year Ended
    April&#160;30,</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;30, 2007, the Company was acquired from its
    members by Aurora Diagnostics Holdings, LLC. Payments in excess
    of the guaranteed minimum under the promissory notes are
    contingent on the performance of the Company.
</DIV>
<!-- /XBRL,NS -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-84
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='370'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Aurora
    Diagnostics Holdings, LLC</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Schedule&#160;II&#160;&#151; Valuation and Qualifying
    Accounts</B>
</DIV>
</A>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Years Ended December&#160;31, 2007, 2008 and 2009</B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(in thousands)</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Charged to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Net<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beginning<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Statement of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Write Offs and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ending<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Description</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Balance</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Operations</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Increases(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Other Adjustments</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Balance</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Allowance for Doubtful Accounts:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Year ended December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,256
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Year ended December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (6,207
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,197
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Year ended December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,197
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,372
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,553
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the Allowance for Doubtful Accounts recorded in
    connection with the application of acquisition accounting for
    the 2007, 2008 and 2009 acquisitions.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-85
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 16pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shares
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="g22658g2265807.gif" alt="(AURORA LOGO)"><FONT style="font-size: 16pt">
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Class&#160;A Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Prospectus<BR>
    , 2010</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt">Joint Book-Running Managers
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Morgan Stanley</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">UBS Investment Bank</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Barclays Capital</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt">Co-Managers
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">RBC Capital Markets</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">BMO Capital Markets</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Lazard Capital
    Markets</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 all dealers that buy, sell or trade the common stock may be
    required to deliver a prospectus, regardless of whether they are
    participating in this offering. This is in addition to the
    dealers&#146; obligation to deliver a prospectus when acting as
    underwriters and with respect to their unsold allotments or
    subscriptions.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Expenses of Issuance and Distribution.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Estimated expenses payable in connection with the sale of the
    common stock in this offering are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FINRA filing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Listing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing and engraving expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer agent and registrar fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Blue Sky fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">To be filed by Amendment.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will bear all of the expenses shown above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are incorporated under the laws of the State of Delaware.
    Section&#160;145 of the Delaware General Corporation Law
    provides that a Delaware corporation may indemnify any persons
    who are, or are threatened to be made, parties to any
    threatened, pending or completed action, suit or proceeding,
    whether civil, criminal, administrative or investigative (other
    than an action by or in the right of such corporation), by
    reason of the fact that such person was an officer, director,
    employee or agent of such corporation, or is or was serving at
    the request of such person as an officer, director, employee or
    agent of another corporation or enterprise. The indemnity may
    include expenses (including attorneys&#146; fees), judgments,
    fines and amounts paid in settlement actually and reasonably
    incurred by such person in connection with such action, suit or
    proceeding, provided that such person acted in good faith and in
    a manner he or she reasonably believed to be in or not opposed
    to the corporation&#146;s best interests and, with respect to
    any criminal action or proceeding, had no reasonable cause to
    believe that his or her conduct was illegal. A Delaware
    corporation may indemnify any persons who are, or are threatened
    to be made, a party to any threatened, pending or completed
    action or suit by or in the right of the corporation by reason
    of the fact that such person was a director, officer, employee
    or agent of such corporation, or is or was serving at the
    request of such corporation as a director, officer, employee or
    agent of another corporation or enterprise. The indemnity may
    include expenses (including attorneys&#146; fees) actually and
    reasonably incurred by such person in connection with the
    defense or settlement of such action or suit provided such
    person acted in good faith and in a manner he or she reasonably
    believed to be in or not opposed to the corporation&#146;s best
    interests except that no indemnification is permitted without
    judicial approval if the officer or director is adjudged to be
    liable to the corporation. Where an officer or director is
    successful on the merits or otherwise in the defense of any
    action referred to above, the corporation must indemnify him or
    her against the expenses which such officer or director has
    actually and reasonably incurred. Our certificate of
    incorporation and bylaws provide for the indemnification of our
    directors and officers to the fullest extent permitted under the
    Delaware General Corporation Law. We currently maintain a
    directors&#146; and officers&#146; liability insurance policy.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;102(b)(7) of the Delaware General Corporation Law
    permits a corporation to provide in its certificate of
    incorporation that a director of the corporation shall not be
    personally liable to the corporation or its stockholders for
    monetary damages for breach of fiduciary duties as a director,
    except for liability for any:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    transaction from which the director derives an improper personal
    benefit;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    act or omission not in good faith or that involves intentional
    misconduct or a knowing violation of law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unlawful payment of dividends or redemption of shares;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    breach of a director&#146;s duty of loyalty to the corporation
    or its stockholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our certificate of incorporation and bylaws include such a
    provision. Expenses incurred by any officer or director in
    defending any such action, suit or proceeding in advance of its
    final disposition shall be paid by us upon delivery to us of an
    undertaking, by or on behalf of such director or officer, to
    repay all amounts so advanced if it shall ultimately be
    determined that such director or officer is not entitled to be
    indemnified by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;174 of the Delaware General Corporation Law
    provides, among other things, that a director, who willfully or
    negligently approves of an unlawful payment of dividends or an
    unlawful stock purchase or redemption, may be held liable for
    such actions. A director who was either absent when the unlawful
    actions were approved, or dissented at the time, may avoid
    liability by causing his or her dissent to such actions to be
    entered in the books containing minutes of the meetings of the
    Board of Directors at the time such action occurred or
    immediately after such absent director receives notice of the
    unlawful acts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As permitted by the Delaware General Corporation Law, we expect
    to enter into indemnity agreements with each of our directors
    and executive officers, that require us to indemnify such
    persons against any and all expenses (including attorneys&#146;
    fees), witness fees, damages, judgments, fines, settlements and
    other amounts incurred (including expenses of a derivative
    action) in connection with any action, suit or proceeding,
    whether actual or threatened, to which any such person may be
    made a party by reason of the fact that such person is or was a
    director, an officer or an employee of our company or any of its
    affiliated enterprises. Under these agreements, we would not be
    required to provide indemnification for matters including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    indemnification for any proceeding with respect to the unlawful
    payment of remuneration to the director or officer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    indemnification for proceedings involving a final judgment that
    the director or officer is required to disgorge profits from the
    purchase or sale of our securities or a final judgment that the
    director&#146;s or officer&#146;s conduct was in bad faith,
    knowingly fraudulent or deliberately dishonest or constituted
    willful misconduct or a breach of his or her duty of loyalty;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    indemnification for proceedings or claims brought by an officer
    or director against us or any of our directors, officers,
    employees or agents, except for claims to establish a right of
    indemnification or proceedings or claims approved by our Board
    of Directors or required by law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    indemnification for settlements the director or officer enters
    into without our written consent;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    indemnification in violation of any undertaking required by the
    Securities Act or in any registration statement that we file.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indemnification agreements also set forth procedures that
    will apply in the event of a claim for indemnification
    thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At present, there is no pending litigation or proceeding
    involving any of our directors or executive officers as to which
    indemnification is required or permitted, and we are not aware
    of any threatened litigation or proceeding that may result in a
    claim for indemnification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have an insurance policy covering our officers and directors
    with respect to liabilities, including liabilities arising under
    the Securities Act or otherwise.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We plan to enter into an underwriting agreement which provides
    that the underwriters are obligated, under some circumstances,
    to indemnify our directors, officers and controlling persons
    against specified liabilities, including liabilities under the
    Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reference is made to the following documents filed as exhibits
    to this registration statement regarding relevant
    indemnification provisions described above and elsewhere in this
    prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Form of Certificate of Incorporation of Aurora Diagnostics,
    Inc.;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Form of By-laws of Aurora Diagnostics, Inc.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Recent
    Sales of Unregistered Securities.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below is information regarding shares of common stock
    issued by us within the past three years. Also included is the
    consideration, if any, received by us for such shares and
    information relating to the section of the Securities Act, or
    rule of the SEC, under which we claimed an exemption from
    registration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Issuances of Capital Stock</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;23, 2010, we issued 100&#160;shares of our common
    stock to James C. New, our Chairman, Chief Executive Officer and
    President, for nominal consideration. No underwriters were
    involved in the foregoing sale of securities. The securities
    described in this paragraph of Item&#160;15 were issued to a
    U.S.&#160;investor in reliance upon the exemption from the
    registration requirements of the Securities Act, as set forth in
    Section&#160;4(2) under the Securities Act and Rule&#160;506 of
    Regulation&#160;D promulgated thereunder relating to sales by an
    issuer not involving any public offering, to the extent an
    exemption from such registration was required. The purchaser of
    shares of our common stock described above represented to us in
    connection with their purchase that he was an accredited
    investor and was acquiring the shares for investment and not
    distribution, that he could bear the risks of the investment and
    could hold the securities for an indefinite period of time. The
    purchaser received written disclosures that the securities had
    not been registered under the Securities Act and that any resale
    must be made pursuant to a registration or an available
    exemption from such registration.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits
    and Financial Statement Schedules.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I>Exhibits:</I>&#160;&#160;The list of exhibits is set
    forth immediately following the signature pages to this
    Registration Statement and is incorporated herein by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I>Financial Statements
    Schedules:</I>&#160;&#160;Schedule II&#151;Valuation and
    Qualifying Accounts on
    <FONT style="white-space: nowrap">page&#160;F-85</FONT>
    is incorporated herein by reference.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    * (f)&#160;The undersigned registrant hereby undertakes to
    provide to the underwriters at the closing specified in the
    underwriting agreement, certificates in such denominations and
    registered in such names as required by the underwriters to
    permit prompt delivery to each purchaser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    * (h)&#160;Insofar as indemnification for liabilities arising
    under the Securities Act of 1933&#160;may be permitted to
    directors, officers and controlling persons of the registrant
    pursuant to the foregoing provisions, or otherwise, the
    registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    * (i)&#160;The undersigned registrant hereby undertakes that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    For purposes of determining any liability under the Securities
    Act of 1933, the information omitted from the form of prospectus
    filed as part of this registration statement in reliance upon
    Rule&#160;430A and contained in a form of prospectus filed by
    the registrant pursuant to Rule&#160;424(b)(1) or (4)&#160;or
    497(h) under the Securities Act shall be deemed to be part of
    this registration statement as of the time it was declared
    effective.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized in the City of Palm Beach Gardens, State of Florida
    on April&#160;29, 2010.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AURORA DIAGNOSTICS, INC.
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Gregory
    A. Marsh</FONT></DIV>
</DIV>

<DIV style="font-size: 2pt; margin-left: 49%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By: Gregory A. Marsh, its Chief Financial Officer
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES
    AND POWER OF ATTORNEY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, the undersigned officers and directors of Aurora
    Diagnostics, Inc., hereby severally constitute and appoint
    Gregory A. Marsh and James C. New (with full power to act
    alone), our true and lawful attorney-in-fact and agent, with
    full power of substitution and resubstitution for him and in his
    name, place and stead, and in any and all capacities, to sign
    any and all amendments (including post-effective amendments) to
    this Registration Statement, and any other registration
    statement for the same offering pursuant to Rule&#160;462(b)
    under the Securities Act of 1933, and to file the same, with all
    exhibits thereto and other documents in connection therewith,
    with the Securities and Exchange Commission, granting unto said
    attorney-in-fact and agent full power and authority to do and
    perform each and every act and thing requisite or necessary to
    be done in and about the premises, as full to all intents and
    purposes as he might or could do in person, hereby ratifying and
    confirming all that said attorney-in-fact and agent, or his
    substitute or substitutes, may lawfully do or cause to be done
    by virtue hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed below by
    the following persons in the capacities and on the dates
    indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Title</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Date</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">James
    C. New</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>James
    C. New
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Executive Officer and<BR>
    Director (principal executive officer)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Gregory
    A. Marsh</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Gregory
    A. Marsh
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chief Financial Officer<BR>
    (principal financial and accounting officer)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Thomas
    S. Roberts</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Thomas
    S. Roberts
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April 29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Christopher
    Dean</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Christopher
    Dean
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    April&#160;29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Peter
    J. Connolly</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Peter
    J. Connolly
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    April&#160;29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Mark
    M. King</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Mark
    M. King
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April&#160;29, 2010
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="39%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Title</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 10pt">Date</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Christopher
    J. Bock</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Christopher
    J. Bock
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    April&#160;29, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Blair
    Tikker</FONT></DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Blair
    Tikker
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    April&#160;29, 2010
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="9%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="86%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 10pt">Exhibit<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#160;1.1*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#160;3.1*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Incorporation of Aurora Diagnostics, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#160;3.2*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Bylaws of Aurora Diagnostics, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#160;4.1*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Specimen Stock Certificate of Aurora Diagnostics, Inc.&#146;s
    Class A Common Stock, par value $0.01 per share
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    &#160;5.1*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Alston &#038; Bird LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    10.1*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Registration Agreement of Aurora Diagnostics, Inc., by
    and among Aurora Diagnostics, Inc. and the other parties named
    therein
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    10.2*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Tax Receivable Agreement, among Aurora Diagnostics,
    Inc., ARDX Sub, Inc. and the other parties named therein
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    10.3*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Second Amended and Restated Limited Liability Company
    Agreement of Aurora Diagnostics Holdings, LLC, by and among
    Aurora Diagnostics Holdings, LLC and the other parties named
    therein
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    10.4*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Reorganization Agreement, by and among Aurora
    Diagnostics Holdings, LLC, Aurora Diagnostics, Inc. and the
    other parties named therein
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    21*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of subsidiaries of Registrant
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    23.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of McGladrey &#038; Pullen, LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    23.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of McGladrey &#038; Pullen, LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    24.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (included in Part&#160;II of this registration
    statement)
</TD>
</TR>
</TABLE>

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    </FONT></TD>
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    <FONT style="font-size: 8pt">To be filed by amendment.
    </FONT></TD>
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sv1
Table of Contents
As filed with the Securities and Exchange Commission on
    April 29, 2010.
Registration
No. 333-
SECURITIES AND EXCHANGE
    COMMISSION
Washington, D.C.
    20549
Form S-1
REGISTRATION
    STATEMENT
UNDER
THE SECURITIES ACT OF
    1933
AURORA DIAGNOSTICS,
    INC.
(Exact Name of Registrant as
    Specified in its Charter)
Delaware
(State or Other Jurisdiction
    of
Incorporation or Organization)
8071
(Primary Standard
    Industrial
Classification Code Number)
27-2416884
(I.R.S. Employer
Identification Number)
11025 RCA
    Center Drive, Suite 300
Palm Beach Gardens, FL 33410
(866) 420-5512
(Address, including zip code,
    and telephone number, including area code, of registrant's
    principal executive offices)
Gregory
    A. Marsh
Chief Financial Officer
11025 RCA Center Drive, Suite 300
Palm Beach Gardens, FL 33410
(866) 420-5512
(Name, address, including zip
    code, and telephone number, including area code, of agent for
    service)
Copies to:
J. Mark Ray
Alston & Bird LLP
1201 West Peachtree Street
Atlanta, GA
30309-3424
(404) 881-7000
Michael Benjamin
Shearman & Sterling LLP
599 Lexington Avenue
New York, NY 10022
(212) 848-4000
Approximate date of commencement of proposed sale to the
    public:
As soon as practicable after this
    Registration Statement becomes effective.
If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule 415 under the Securities Act, check the following
    box.
o
If this Form is filed to register additional securities for an
    offering pursuant to Rule 462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in Rule
12b-2
of the
    Exchange Act. (Check one):
Large
    accelerated
    filer
o
Accelerated
    filer
o
Non-accelerated
filer
þ
Smaller reporting
    company
o
(Do not check if a smaller
    reporting company)
CALCULATION
    OF REGISTRATION FEE
Proposed Maximum
Title of Each Class of
Aggregate
Amount of
Securities to be Registered
Offering
    Price
(1)(2)
Registration
    Fee
(3)
Class A common stock, par value $0.01 per share
$150,000,000
$10,695
(1)
Estimated solely for the purpose of
    computing the amount of the registration fee pursuant to
    Rule 457(o) under the Securities Act of 1933, as amended.
(2)
Includes shares the underwriters
    have the option to purchase to cover over-allotments, if any.
(3)
Calculated pursuant to
    Rule 457(o) of the Securities Act of 1933, as amended,
    based on an estimate of the proposed maximum aggregate offering
    price.
The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section 8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Commission
    acting pursuant to said Section 8(a) may determine.
Table of Contents
The
information in this prospectus is not complete and may be
changed. Neither we nor the selling stockholders may sell these
securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities, and neither we nor the
selling stockholders are soliciting offers to buy these
securities in any state where the offer or sale is not
permitted.
PROSPECTUS
    (Subject to Completion)
Issued
    April 29, 2010
Shares
Class A Common Stock
Aurora Diagnostics, Inc. is
    offering          
    shares of its Class A common stock and the selling
    stockholders are
    offering          
    shares of Class A common stock. We will not receive any
    proceeds from the sale of shares by the selling stockholders.
    This is our initial public offering and no public market exists
    for our shares. We anticipate that the initial public offering
    price will be between $      and
    $      per share.
We intend to apply to have our Class A common stock
    listed on the NASDAQ Global Market under the symbol
    "ARDX."
Investing in our Class A common stock involves risks.
    See "Risk Factors" beginning on page 16.
Price
$
Per Share
Underwriting
Proceeds to
Price to
Discounts and
Proceeds to
Selling
Public
Commissions
Us
Stockholders
Per share
$
$
$
$
Total
$
$
$
$
We and the selling stockholders have granted the underwriters
    the right to purchase up to an
    additional           shares
    of Class A common stock to cover over-allotments.
The Securities and Exchange Commission and state securities
    regulators have not approved or disapproved these securities or
    determined if this prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense.
The underwriters expect to deliver the shares of Class A
    common stock to purchasers
    on          ,
    2010.
Morgan
    Stanley
UBS Investment Bank
Barclays Capital
RBC
    Capital Markets
BMO Capital Markets
Lazard Capital Markets
,
    2010
TABLE OF
    CONTENTS
Page
Prospectus Summary
1
Risk Factors
16
Forward-Looking Statements
36
Organizational Structure
39
Use of Proceeds
44
Dividend Policy
44
Capitalization
45
Dilution
47
Unaudited Pro Forma Financial Information
49
Selected Consolidated Financial Data
55
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
58
Industry
77
Business
81
Management and Board of Directors
101
Executive Compensation — Compensation
    Discussion and Analysis
108
Principal and Selling Stockholders
116
Certain Relationships and Related Party
    Transactions
120
Description of Capital Stock
126
Shares Eligible for Future Sale
131
Certain U.S. Federal Income and Estate Tax
    Consequences to
Non-U.S.
Holders of Common Stock
133
Underwriters
137
Legal Matters
141
Experts
141
Where You Can Find More Information
142
Index to Consolidated Financial Statements
F-1
EX-23.1
EX-23.2
You should rely only on the information contained in this
    prospectus and in any free writing prospectus. We, the
    underwriters and the selling stockholders have not authorized
    anyone to provide you with information different from that
    contained in this prospectus. We, the underwriters and the
    selling stockholders are offering to sell, and seeking offers to
    buy, shares of our Class A common stock only in
    jurisdictions where offers and sales are permitted. The
    information in this prospectus is accurate only as of the date
    of this prospectus, regardless of the time of delivery of this
    prospectus or any sale of shares of our Class A common
    stock.
Until          ,
    2010 (25 days after the commencement of this offering), all
    dealers that buy, sell or trade shares of our Class A
    common stock, whether or not participating in this offering, may
    be required to deliver a prospectus. This delivery requirement
    is in addition to the obligation of dealers to deliver a
    prospectus when acting as underwriters and with respect to their
    unsold allotments or subscriptions.
For investors outside of the United States, neither we, nor the
    selling stockholders or any of the underwriters have done
    anything that would permit this offering or possession or
    distribution of this prospectus in any jurisdiction where action
    for that purpose is required. Persons outside the United States
    who come into possession of this prospectus must inform
    themselves about, and observe any restrictions relating to, the
    offering of the shares of Class A common stock and the
    distribution of this prospectus outside of the United States.
INDUSTRY
    AND MARKET DATA
Industry and market data used throughout this prospectus were
    obtained through company research, surveys and studies conducted
    by third parties and industry and general publications. The
    information contained in "Prospectus Summary,"
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations," "Industry"
    and "Business" is based on studies, analyses and
    surveys prepared by Washington G-2 Reports, Laboratory
    Economics, U.S. Census Bureau, American Hospital
    Association, the National Institutes of Health and the American
    Cancer Society. Information originally published in Washington
    G2 Reports "Laboratory Industry Strategic Outlook: Market
    Trends & Analysis 2009" is used herein with the
    express written permission of Washington G2 Reports. Copyright
©
2010.

    www.g2reports.com. While we are not aware of any misstatements
    regarding the industry data presented herein, estimates involve
    risks and uncertainties and are subject to change based on
    various factors, including those discussed under the heading
    "Risk Factors."
TRADEMARKS
AURORA DIAGNOSTICS and CONNECTDX THE INFORMATION GATEWAY and
    Design and other trademarks or service marks of Aurora appearing
    in this prospectus are our property. All trade names, trademarks
    and service marks of other companies appearing in this
    prospectus are the property of the respective holders.
Table of Contents
PROSPECTUS
    SUMMARY
This summary highlights all material information about us and
    this offering, but does not contain all of the information that
    you should consider before investing in our Class A common
    stock. You should read this entire prospectus carefully,
    including the "Risk Factors" and the consolidated
    financial statements and related notes. This prospectus includes
    forward-looking statements that involve risks and uncertainties.
    See "Forward-Looking Statements."
Unless we state otherwise or the context otherwise requires,
    the terms "we," "us," "our,"
    "Aurora Diagnostics" and the "Company" refer
    to Aurora Diagnostics, Inc. and our subsidiaries, as well as the
    professional associations and professional corporations which
    are separate legal entities in certain states that we control
    through contractual arrangements. All information in this
    prospectus with respect to Aurora Diagnostics, Inc. gives effect
    to the reorganization transactions described under
    "Prospectus Summary — Reorganization
    Transactions" and "Organizational Structure" as
    if they had occurred on December 31, 2009. "Aurora
    Holdings" refers to our subsidiary "Aurora Diagnostics
    Holdings, LLC." With respect to periods prior to
    April 23, 2010, the terms "we," "us,"
    "our," "Aurora" and the "Company"
    refer to Aurora Holdings and its subsidiaries.
Our
    Business
We are a specialized diagnostics company providing services that
    play a key role in the diagnosis of cancer and other diseases.
    Our experienced pathologists deliver comprehensive diagnostic
    reports of a patient's condition and consult frequently
    with referring physicians to help determine the appropriate
    treatment. Our diagnostic reports often enable the early
    detection of disease, allowing referring physicians to make
    informed and timely treatment decisions that improve their
    patients' health in a cost-effective manner.
We are a leading specialized diagnostics company in terms of
    revenues, focused on the anatomic pathology market. We are
    well-positioned in the higher-growth subspecialties of anatomic
    pathology, with a leading market position in dermatopathology
    and in the women's health pathology subspecialty, and a
    growing market position in urologic pathology, hematopathology
    and general surgical pathology. Our strengths in anatomic
    pathology are complemented by our specialized clinical and
    molecular diagnostics offerings, which enable us to provide a
    broad selection of diagnostic services to our referring
    physicians, our primary clients.
The majority of our revenues in 2009 were derived from
    physicians providing diagnostic services in the non-hospital
    outpatient channel of the anatomic pathology market, which in
    2008 was one of the fastest-growing and largest channels of that
    market. We also maintain 36 exclusive contracts with hospitals
    under which we provide inpatient and outpatient professional
    anatomic pathology services. We also provide medical director
    services and, for some hospitals, technical slide preparation
    services.
Our business model builds upon the expertise of our experienced
    pathologists to provide seamless, reliable and comprehensive
    pathology and molecular diagnostics offerings to referring
    physicians. We typically have established, long-standing
    relationships with our referring physicians as a result of
    focused localized delivery of diagnostic services, personalized
    responses and frequent consultations, and flexible information
    technology, or IT, solutions that are customizable to our
    clients' needs. Our IT and communications platform enables
    us to deliver diagnostic reports to our clients generally within
    24 hours of specimen receipt, helping to improve patient
    care. In addition, our IT platform enables us to closely track
    and monitor volume trends from referring physicians.
The success of our business model and the value of our
    specialized diagnostic service offering are reflected in our
    significant growth allowing us to reach $171.6 million in
    annual revenues in 2009. Through a combination of organic growth
    and strategic acquisitions, we have achieved a scale allowing us
    to provide diagnostic services to the patients of our
    approximately 10,000 referring physicians, generating
    approximately 1.6 million accessions in 2009. With 19
    primary laboratories across the United States, we have achieved
    a national footprint and a leading presence in our local markets
    upon which we are continuing to build a more integrated and
    larger-scale diagnostics company.
1
Table of Contents
Our
    Industry
The U.S. diagnostic testing industry had revenues of
    approximately $55 billion in 2008 and grew at a rate of
    7 percent compounded annually from 2000 to 2008, according
    to Washington G-2 Reports "Lab Industry Strategic Outlook:
    Market Trends of Analysis 2009." Within the overall
    industry in 2008, the anatomic pathology market totaled
    approximately $13 billion in revenues, or 24 percent
    of total industry revenues, according to Laboratory Economics.
    Anatomic pathology services involve the diagnosis of cancer and
    other medical conditions through the examination of tissues
    (histology) and the analysis of cells (cytology) and generally
    command higher reimbursement rates, on a per specimen basis,
    than clinical pathology services.
According to the Washington G-2 Reports, the anatomic pathology
    market has expanded more rapidly than the overall industry, with
    revenues growing 4.8 percent on a compound annual basis
    between 2006 and 2009, compared to 4.5 percent for the rest
    of the industry. Excluding growth in esoteric testing, the
    remainder of the industry grew at a compound annual rate of only
    0.1 percent over the same period. Substantially all of the
    revenues for anatomic pathology businesses consist of payments
    or reimbursements for specialized diagnostic services rendered
    to referring physicians, and these revenues are affected
    primarily by changes in case volume, which we refer to as
    accession volume, payor mix and reimbursement rates.
The non-hospital outpatient channel is the largest component of
    the anatomic pathology market and has grown more rapidly than
    other channels. This channel accounted for $7.6 billion, or
    57 percent, of anatomic pathology revenues for the year
    ended December 31, 2008, representing 10 percent
    growth in 2008 according to Laboratory Economics. The remainder
    of the anatomic pathology market is comprised of the hospital
    inpatient channel, which accounted for $3.7 billion or
    28 percent, of anatomic pathology revenues, representing
    2 percent growth in 2008, and the hospital outpatient
    channel, which accounted for $1.9 billion, or
    15 percent, of anatomic pathology revenues, representing
    4 percent growth in 2008, according to Laboratory Economics.
We believe that demand for non-hospital outpatient anatomic
    pathology services will continue to expand due to the following
    trends:
•
Aging of the U.S. Population
:  The number
    of individuals
65-years-old
and older will increase to 55 million, or by
    36 percent, over the next decade, a percentage rate that is
    nearly four times faster than that of the overall population,
    according to the U.S. Census Bureau. According to the
    American Cancer Society, the risk of being diagnosed with cancer
    increases as individuals age, with an estimated 52 percent
    of all new cancer cases diagnosed in persons
65-years-old
and older in 2009.
•
Increasing Incidence of Cancer:
The number of
    new cancer cases grew by 2 percent between 2007 and 2009 to
    approximately 1.5 million new cases according to the
    American Cancer Society. The number of new skin cancer cases
    grew by 15 percent between 2007 and 2009, representing the
    highest percentage increase among all diagnosed cancer types.
•
Expanding Demand for Non-Hospital Outpatient
    Services:
The non-hospital outpatient channel of
    the anatomic pathology market is expected to continue growing at
    a higher percentage rate than the overall industry, principally
    driven by patient preference and the cost-effectiveness of
    outpatient diagnostic services compared to inpatient diagnostic
    services.
•
Medical Advancements Allowing for Earlier Diagnosis and
    Treatment of Disease
:  Physicians are increasingly
    relying on diagnostic testing to help identify the risk of
    disease, to detect the symptoms of disease earlier, to aid in
    the choice of therapeutic regimen, to monitor patient compliance
    and to evaluate treatment results. We believe physicians,
    patients and payors increasingly recognize the value of
    diagnostic testing as a means to improve health and reduce the
    overall cost of health care through early detection.
The anatomic pathology market remains highly-fragmented, with
    the two largest clinical laboratory companies accounting for
    only 14 percent of annual revenues for the market in 2008.
    The remaining 86 percent of annual revenues for the market
    was comprised of over 13,000 pathologists and numerous
    specialized testing companies that offer a relatively narrow
    menu of diagnostic tests. In 2008, approximately 70 percent
    of pathologists licensed in the U.S. were in private
    practice according to Washington G-2 Reports. As a result, we
    believe that there
2
Table of Contents
are substantial consolidation opportunities in the anatomic
    pathology market as smaller operators seek access to the
    resources of diagnostics companies with a more comprehensive
    selection of services for referring physicians.
Our
    Competitive Strengths
We believe that we are distinguished by the following
    competitive strengths:
•
Leading Market Position in Higher-Growth Subspecialties of
    Expanding Industry
.  We are a leading specialized
    diagnostics company, focused on the faster-growing non-hospital
    outpatient channel within the anatomic pathology market with
    leading market positions in two of the three higher-growth
    subspecialties of the market: dermatopathology and women's
    health pathology.
•
Locally-Focused Business Model with National
    Scale.
Our business model centers on achieving
    significant local market share, which yields operating
    efficiencies and national scale when consolidated across all of
    our operations. The diagnostic services we provide are designed
    specifically to meet the needs of the local markets we serve.
    Our national infrastructure enables us to more efficiently
    manage our operations, improve productivity and deliver a more
    extensive menu of diagnostic services to our local clients. As a
    result of our strong local presence and high-quality diagnostic
    services, we have established significant loyalty with referring
    physicians and key payors in our local markets. In 2009, we
    derived more than 85 percent of our revenues from
    locally-focused,
in-network
payor contracts.
•
Experienced, Specialized Pathologists Focused on Client
    Service
.  We believe our pathologists have
    long-standing client relationships and provide high-quality
    service within their respective local communities. Over
    one-third of our pathologists are specialized in
    dermatopathology, with the remainder focused on women's
    health pathology, urologic pathology, hematopathology and
    general surgical pathology. This alignment of our
    pathologists' specialties with those of the referring
    physicians is critical to our ability to retain existing and
    attract new clients. Our clinical expertise and frequent
    interactions with clients on patient diagnoses enables us to
    establish effective consultative and long-term relationships
    with referring physicians.
•
Professional Sales, Marketing and Client Service
    Team.
We maintain a sales, marketing and client
    service team of over 100 professionals who are highly-trained
    and organized by subspecialty to better meet the needs of our
    referring physicians and their patients. Our sales
    representatives are incentivized through compensation plans to
    not only secure new physician clients, but also to maintain and
    enhance relationships with existing physician clients. As a
    result, they have enabled us to expand our geographic market
    presence to 30 states and increase market penetration and
    market share in our local markets.
•
Proprietary IT Solutions.
Delivery of clinical
    information is essential to our business and a critical aspect
    of the differentiated service that we provide to our clients. We
    have developed scalable IT solutions that maximize the
    flexibility,
ease-of-use
and speed of delivery of our diagnostic reports, which has
    enabled us to rapidly grow our accession volume and meet the
    increasing physician demand for our diagnostic services. We also
    monitor referral patterns on a daily basis using our IT
    infrastructure, which allows us to respond quickly to referring
    physicians through our sales and marketing teams. We achieved
    this through the development of a proprietary suite of IT
    solutions called
ConnectDX
that is compatible with most
    electronic medical record, or EMR, systems.
ConnectDX
incorporates customized interface solutions, low cost and
    efficient printer capabilities, compliant web portal capacities,
    and proprietary software, all resulting in efficient and
    reliable onsite client connections.
•
Proven Acquisition, Integration and Development
    Capabilities
.  We have significant expertise and a
    proven track record of identifying, acquiring and integrating
    pathology practices into our diagnostic laboratory network. Our
    management team successfully expanded our operations through the
    acquisition of 16 anatomic pathology laboratories and one
    clinical laboratory and through the development of two de
    novo diagnostic laboratories. We have improved the performance
    of the laboratories we have acquired by applying our standard
    operating procedures, enhancing sales and marketing
    capabilities, implementing our IT platform and realizing
    efficiencies from our national operations and management. We
    believe our operational platform, expertise and value
    proposition enable us to capitalize on the considerable
3
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consolidation opportunities in the highly-fragmented anatomic
    pathology market, as reflected by our significant current
    pipeline of potential acquisition targets.
•
Experienced Senior Leadership.
Our senior
    management team has approximately 80 years of combined
    experience in the health care industry, including senior
    management positions with leading diagnostic companies including
    AmeriPath, DIANON Systems and Laboratory Corporation of America,
    and collectively have successfully completed over 65
    acquisitions and built a number of de novo specialized
    diagnostic laboratories. We believe that our management's
    strong reputation, extensive network of industry relationships
    and experience in building and growing successful companies in
    the industry help us to drive operating performance, hire and
    retain talented pathologists and other employees and attract
    acquisition candidates.
Our
    Business Strategy
We intend to achieve growth by pursuing the following strategies:
•
Continue to Drive Market Penetration through Sales and
    Marketing
.  We plan to drive organic growth
    through our professional sales and marketing organization. Our
63-person
sales and marketing team provides us with broad coverage to
    augment and further penetrate existing physician relationships
    and to develop new referral relationships. We plan to
    strategically add sales professionals to laboratories in markets
    that will most benefit from enhanced outreach, increasing our
    presence in existing and new markets.
•
Leverage our IT Platform to Increase Operating
    Efficiencies
.  We believe our IT platform will
    allow us to gain market share in our existing subspecialties by
    improving productivity and reducing turnaround times. We have
    recently introduced an IT solution called
doc2MD
, a
    leading EMR system for dermatology practices for which we have
    an exclusive, long-term license. We intend to continue to
    develop our internal IT operations into a better-integrated
    diagnostic platform, which will improve national coordination
    and provide real time visibility into key performance metrics.
    In addition, we plan to continue to introduce innovative IT
    solutions, interface capabilities and market-specific IT
    solutions that enhance our value proposition to referring
    physicians.
•
Expand through Targeted Acquisitions.
We plan
    to identify and acquire leading laboratories to augment our
    organic growth, broaden our geographic presence and enhance our
    service offering. We intend to continue to build our business
    and enhance our reputation as a preferred acquiror for
    independent laboratories. We believe that our recognizable
    identity and strong reputation make us a preferred partner for
    independent laboratories.
•
Expand Diagnostic Services Capabilities.
We
    intend to expand our services in the areas of clinical and
    molecular diagnostics to complement our existing anatomic
    pathology businesses. We believe we can leverage our depth of
    experience and physician relationships to sell these new
    diagnostic services in conjunction with our existing testing
    services as a comprehensive offering. As a "one-stop"
    diagnostic services provider, we would not only better serve our
    current clients, but also position ourselves to attract new
    business under a more diverse service model.
•
Develop De Novo Diagnostics Laboratories.
We
    plan to continue to selectively develop diagnostic laboratories
    on a de novo basis, as we have done in certain markets, to
    expand our market presence, broaden our service offering and
    leverage the capabilities of our existing laboratories and
    pathologists.
•
Expand Contracts with Hospitals in Target
    Markets.
We intend to continue to develop
    additional contracts with hospitals in target markets as part of
    a broader strategy to strengthen and grow our outpatient
    business and expand our local market share.
•
Further Expand into Growing Long-Term Care
    Market.
We have a growing presence providing
    clinical diagnostic services to the long-term care markets in
    Central and Northern Florida. We intend to expand this regional
    coverage into the large South Florida market and replicate our
    success in other states with growing long-term care markets. We
    believe that our IT solutions, and our ability to meet the rapid
    service requirements for the long term care market, provide us
    with a significant competitive advantage in these markets.
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Risks
    Associated with Our Business
Our business is subject to numerous risks, which are highlighted
    in the section entitled "Risk Factors." These risks
    represent challenges to the successful implementation of our
    strategy and the growth of our business. Some of these risks are:
•
Adverse changes in coverage or reimbursement guidelines and
    amounts applicable to our specialized diagnostic services,
    including health care reimbursement reform and cost-containment
    measures implemented by government agencies, could reduce our
    revenues and have a material adverse impact on our business;
•
If referring physicians, who are our primary clients, choose to
    internalize technologies or technical or professional diagnostic
    services functions that we currently use or perform, and we do
    not develop new or alternative technologies or functions that
    are attractive to our clients, it may reduce the demand for our
    specialized diagnostic services and adversely affect our
    business; and
•
Proposed federal or state health care reform measures, if
    enacted, could increase our costs, decrease our revenues, expose
    us to expanded liability or require us to revise the ways in
    which we conduct our business, any of which could adversely
    affect our operating results and financial condition.
For further discussion of these and other risks you should
    consider before making an investment in our Class A common
    stock, see the section entitled "Risk Factors"
    beginning on page 16.
Corporate
    History and Organizational Structure
We were incorporated in Delaware on April 23, 2010. We are
    a holding company and our principal asset after the completion
    of this offering will be our indirect equity interest in Aurora
    Holdings. In June 2006, Aurora Holdings was organized as a
    limited liability company and was initially capitalized by
    affiliates of Summit Partners, affiliates of GSO Capital
    Partners and members of our senior management team. In June
    2009, GSO Capital Partners' equity interest in Aurora
    Holdings was purchased by an affiliate of KRG Capital Partners.
    Prior to giving effect to the reorganization transactions
    described below, affiliates of Summit Partners, whom we refer to
    as the Summit Partners Equityholders, owned 51 percent  of
    the economic interest in Aurora Holdings; an affiliate of KRG
    Capital Partners, whom we refer to as the KRG Equityholders,
    owned 34 percent of the economic interest in Aurora
    Holdings and members of our senior management team and
    consultants, whom we refer to as the Management Equityholders,
    owned 15 percent of the economic interest in Aurora
    Holdings. We refer to the Summit Partners Equityholders, the KRG
    Equityholders and the Management Equityholders as our Principal
    Equityholders. We refer to membership interests in Aurora
    Holdings as Aurora Holdings Units.
Reorganization
    Transactions
In connection with this offering, we will enter into a series of
    transactions as described below that will result in our indirect
    acquisition of all of the business and operational control of
    Aurora Holdings
    and           percent
    of the Aurora Holdings Units. We refer to this series of
    transactions as the Reorganization Transactions.
As part of the Reorganization Transactions, we will indirectly,
    through a newly-formed, wholly-owned subsidiary, ARDX Sub, Inc.,
    which we refer to as ARDX Sub, acquire Aurora Holdings Units
    from certain of the Summit Partners Equityholders and the KRG
    Equityholders in exchange for shares of our Class A common
    stock, as well as rights, which we refer to as TRA Rights, under
    an agreement that we refer to as the Tax Receivable Agreement.
    This Tax Receivable Agreement will obligate Aurora Diagnostics,
    Inc. to pay to an entity controlled by our Principal
    Equityholders 85 percent of certain cash tax savings, if
    any, realized by Aurora Diagnostics, Inc. after the completion
    of this offering. See "Certain Relationships and Related
    Party Transactions — Tax Receivable Agreement."
Following the Reorganization Transactions, certain of the Summit
    Partners Equityholders and all of the Management Equityholders,
    who we refer to as the Aurora Holdings Continuing Members, will
    continue to own      percent of
    the Aurora Holdings Units. See "Organizational
    Structure — Reorganization Transactions." The KRG
    Equityholders will not continue to own any Aurora Holdings Units
    following the consummation of the
5
Table of Contents
Reorganization Transactions. In addition, we will indirectly
    acquire all of the business and operational control of Aurora
    Holdings, and an immaterial amount of cash, from the Aurora
    Holdings Continuing Members in exchange for newly-issued shares
    of our Class B common stock. The Aurora Holdings Continuing
    Members will also receive rights to distributions that are
    calculated in a manner that is similar to the TRA Rights under
    the Aurora Holdings limited liability company agreement, which
    will be further amended and restated in connection with the
    Reorganization Transactions. We refer to the Aurora Holdings
    limited liability company agreement, as further amended and
    restated, as the Second Amended and Restated Aurora Holdings LLC
    Agreement. See "Organizational Structure —
    Reorganization Transactions." Our Class B common stock
    is intended to provide voting rights in us to the Aurora
    Holdings Continuing Members that reflect their continuing
    economic interest in Aurora Holdings after the completion of
    this offering.
All of these Reorganization Transactions will be consummated
    immediately prior to the closing of this offering.
Following the completion of the Reorganization Transactions, we
    will have two classes of common stock:
•
Class A common stock.
We will sell shares
    of our Class A common stock in this offering. Each share of
    our Class A common stock will be entitled to one vote on
    matters submitted to a vote of our stockholders. Our
    Class A common stock will represent all of the economic
    rights in us (including rights to dividends and distributions
    upon liquidation, but excluding the return of the par value of
    the Class B common stock upon liquidation). Immediately
    following consummation of the Reorganization Transactions, but
    without giving effect to the sale of shares of our Class A
    common stock by us or the selling stockholders in this offering:
•
the Summit Partners Equityholders will
    hold          
    shares of our Class A common stock;
•
the KRG Equityholders will
    hold          
    shares of our Class A common stock; and
•
the Management Equityholders will hold no shares of our
    Class A common stock.
•
Class B common stock.
The Aurora Holdings
    Continuing Members will be the only holders of our Class B
    common stock. Each share of our Class B common stock will
    be entitled to one vote on matters submitted to a vote of our
    stockholders. Our Class B common stock will only represent
    voting rights and will not represent any economic rights in us
    (including rights to dividends and distributions upon
    liquidation, but excluding the return of the par value of the
    Class B common stock upon liquidation). The Aurora Holdings
    Continuing Members will hold one share of our Class B common
    stock for each Aurora Holdings Unit held by them. Immediately
    following consummation of the Reorganization Transactions, but
    without giving effect to the purchase of shares of our
    Class B common stock with a portion of the net proceeds
    that we will receive from this offering:
•
the Summit Partners Equityholders will
    hold          
    shares of our Class B common stock;
•
the KRG Equityholders will hold no shares of our Class B
    common stock; and
•
the Management Equityholders will
    hold          
    shares of our Class B common stock.
See "Principal and Selling Stockholders" for more
    information on the shares of our Class A common stock to be
    offered by the selling stockholders in this offering.
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Table of Contents
The diagram below depicts our organizational structure
    immediately after the completion of this offering, after giving
    effect to the Reorganization Transactions and after giving
    effect to this offering and the application of the net proceeds
    that we will receive from this offering.
(1)
The Summit Partners Equityholders
    will
    hold          percent
    of the Aurora Holdings Units.
(2)
The Summit Partners Equityholders
    will
    hold           percent
    of our Class A common stock.
(3)
The Summit Partners Equityholders
    will
    hold           percent
    of our Class B common stock.
(4)
Public stockholders will
    hold           percent
    of our Class A common stock.
(5)
The KRG Equityholders will
    hold           percent
    our Class A common stock.
(6)
The Management Equityholders will
    hold           percent
    our Class B common stock.
(7)
The Management Equityholders will
    hold          percent
    of the Aurora Holdings Units.
(8)
We will hold 100 percent of
    ARDX Sub common stock.
(9)
ARDX Sub will
    hold          percent
    of the Aurora Holdings Units.
Following the Reorganization Transactions, and after giving
    effect to this offering and the application of the net proceeds
    that we will receive from this offering, we will indirectly
    hold           percent
    of the Aurora Holdings Units and will, through ARDX Sub, be the
    sole managing member of Aurora Holdings. As the sole managing
    member of Aurora Holdings, we will have all business and
    operational control of Aurora Holdings and its subsidiaries. We
    will consolidate the financial results of Aurora Holdings and
    our net income (loss) will be reduced by the noncontrolling
    interest expense to reflect the rights of the Aurora Holdings
    Continuing Members with respect to their retained Aurora
    Holdings Units.
As part of this offering, the Summit Partners Equityholders and
    the KRG Equityholders will sell a portion of their shares of our
    Class A common stock. We will not receive any of the
    proceeds from the sale of shares of our Class A common
    stock in this offering by the selling stockholders. Immediately
    following the completion of this offering, we will use a portion
    of the net proceeds that we will receive from this offering,
    along with TRA Rights, to purchase shares of our Class B
    common stock and Aurora Holdings Units from the Aurora Holdings
    Continuing Members.
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Tax
    Receivable Agreement
In connection with this offering, Aurora Diagnostics, Inc. will
    enter into the Tax Receivable Agreement, with ARDX Sub and an
    entity controlled by our Principal Equityholders, which we refer
    to as the Tax Receivable Entity, to which our Principal
    Equityholders are contributing the TRA Rights they receive in
    the Reorganization Transactions. This Tax Receivable Agreement
    will provide for the payment by Aurora Diagnostics, Inc. to the
    Tax Receivable Entity of 85 percent of certain cash tax
    savings, if any, in U.S. federal, state, local and foreign
    income tax realized by Aurora Diagnostics, Inc. after the
    completion of this offering as a result of:
•
favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
•
any
step-up
in tax basis in our share of Aurora Holdings' assets
    resulting from:
•
the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class A common stock or cash, or
•
payments under the Tax Receivable Agreement to the Tax
    Receivable Entity; and
•
tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
See "Organizational Structure — Reorganization
    Transactions."
Corporate
    Information
We were incorporated in Delaware in April 2010 and began
    laboratory operations in June 2006. Our executive offices are
    located at 11025 RCA Center Drive, Suite 300, Palm Beach
    Gardens, FL 33410. Our telephone number is
(866) 420-5512
or
(561) 626-5512.
Our website address is www.auroradx.com. Information included or
    referred to on our website is not part of this prospectus.
8
Table of Contents
THE
    OFFERING
Shares of Class A common stock outstanding before this
    offering
shares
Shares of Class A common stock offered by us
shares
Shares of Class A common stock offered by the selling
    stockholders
shares
Total
shares
Shares of Class A common stock to be outstanding after this
    offering
shares.
    If, immediately after the completion of this offering and the
    application of the net proceeds that we will receive from this
    offering, all of the Aurora Holdings Continuing Members elected
    to exchange their Aurora Holdings Units for shares of our
    Class A common
    stock,           shares
    of Class A common stock would be outstanding.
Shares of Class B common stock to be outstanding after this
    offering
shares.
    Shares of our Class B common stock have voting but no
    economic rights (including rights to dividends and distributions
    upon liquidation, but excluding the return of par value upon
    liquidation) and will be issued in an amount equal to the number
    of Aurora Holdings Units held by the Aurora Holdings Continuing
    Members. When an Aurora Holdings Unit is exchanged by an Aurora
    Holdings Continuing Member for a share of Class A common
    stock, a share of our Class B common stock will be
    cancelled.
Over-allotment option to be offered by us
shares.
    All of the net proceeds we receive from any over-allotment
    option to be offered by us will be used to acquire additional
    Aurora Holdings Units and shares of Class B common stock from
    the Aurora Holdings Continuing Members.
Over-allotment option to be offered by the selling stockholders
shares
Voting Rights
Each share of our Class A common stock entitles its holder
    to one vote per share, representing an aggregate
    of      percent of the combined voting
    power of our common stock upon completion of this offering and
    the application of the net proceeds that we will receive from
    this offering.
Each share of our Class B common stock entitles its holder
    to one vote per share, representing an aggregate
    of      percent of the combined voting
    power of our common stock upon completion of this offering and
    the application of the net proceeds that we will receive from
    this offering.
All classes of our common stock generally vote together as a
    single class on all matters submitted to a vote of our
    stockholders. Upon completion of this offering, our Class B
    common stock will be held exclusively by the Aurora Holdings
    Continuing Members.
See "Description of Capital Stock."
9
Table of Contents
Exchange
Aurora Holdings Units held by the Aurora Holdings Continuing
    Members (along with a corresponding number of shares of our
    Class B common stock) may be exchanged with us for shares
    of our Class A common stock on a
one-for-one
basis or, in certain circumstances, an equivalent amount of
    cash. The Aurora Holdings Continuing Members will
    hold          
    Aurora Holdings Units, or      percent
    of the outstanding Aurora Holdings Units, following the
    completion of this offering and the application of the net
    proceeds that we will receive from this offering.
Use of proceeds
We expect the net proceeds that we will receive from this
    offering will be approximately
    $      million based on an assumed
    initial public offering price of $     
    per share, which is the midpoint of the price range set forth on
    the cover page of this prospectus, after deducting underwriting
    discounts and commissions and estimated offering expenses
    payable by us and after giving effect to estimates of certain
    expenses that we expect to be reimbursed.
Based on an assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, we intend to use $      of
    the proceeds from this offering, along with TRA Rights, to
    purchase          
    Aurora Holdings Units
    and           shares
    of our Class B common stock held by the Aurora Holdings
    Continuing Members (or $     
    and          
    Aurora Holdings Units
    and           shares
    of our Class B common stock if the underwriters exercise
    their over-allotment option in full).
We intend to use the remaining proceeds from this offering for
    working capital and general corporate purposes, which may
    include future acquisitions.
We will not receive any of the proceeds from the sale of shares
    of Class A common stock by the selling stockholders in this
    offering.
See "Use of Proceeds."
Risk Factors
You should read the "Risk Factors" section of this
    prospectus for a discussion of factors to consider carefully
    before deciding to invest in shares of our Class A common
    stock.
Proposed NASDAQ Global Market Symbol
''ARDX"
The number of shares of our Class A common stock that will
    be outstanding after this offering excludes shares of our
    Class A common stock reserved for issuance upon the
    exchange of our Class B common stock and Aurora Holdings
    Units into Class A common stock.
Unless we indicate otherwise, all information in this prospectus
    assumes:
•
consummation of the Reorganization Transactions described under
    "Prospectus Summary — Reorganization
    Transactions" and "Organizational Structure;"
•
that the underwriters do not exercise their option to purchase
    up
    to           shares
    of our Class A common stock from us and the selling
    stockholders to cover over-allotments; and
•
an initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus.
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Table of Contents
Summary
    Historical and Pro Forma
Consolidated Financial and Operating Data
The following table sets forth our summary historical and pro
    forma consolidated financial data, at the dates and for the
    periods indicated.
The historical financial data as of December 31, 2008 and
    2009, and for each of the three years in the period ended
    December 31, 2009, have been derived from our historical
    consolidated financial statements included elsewhere in this
    prospectus.
The summary unaudited pro forma condensed consolidated financial
    data have been derived by the application of pro forma
    adjustments to our historical consolidated financial statements
    included elsewhere in this prospectus. The unaudited pro forma
    condensed consolidated statements of operations data for the
    year ended December 31, 2009 and balance sheet data as of
    December 31, 2009 give effect to:
•
our 2009 acquisition of South Texas Dermatopathology Lab, P.A.,
    as if that acquisition occurred January 1, 2009;
•
our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory, P.C., as if those acquisitions
    had occurred as of January 1, 2009;
•
our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
•
consummation of the Reorganization Transactions as if they
    occurred as of December 31, 2009; and
•
this offering and the use of the net proceeds that we will
    receive from this offering, as if effective on December 31,
    2009 for the unaudited pro forma consolidated balance sheet and
    January 1, 2009 for the unaudited pro forma consolidated
    statement of operations.
The unaudited pro forma financial information does not include
    our most recent acquisition, which was completed March 12,
    2010, as we continue to obtain the necessary financial
    information to complete the pro forma financial presentation for
    that acquisition.
The summary pro forma financial information is included for
    illustrative purposes only and may not accurately reflect our
    results of operations or financial position for the periods and
    as of the dates described above had the relevant transactions
    occurred as of these dates. In addition, the summary pro forma
    financial information is based on certain preliminary estimates
    which may change materially upon completion of further analysis
    and is not necessarily indicative of future results.
You should read this summary historical and pro forma
    consolidated financial data together with our consolidated
    financial statements and the related notes, "Unaudited Pro
    Forma Financial Information" and "Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations," in each case, included elsewhere in this
    prospectus.
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Table of Contents
Aurora
    Diagnostics Holdings LLC
Summary
    Consolidated Financial and Operating
    Data
(1)
Year Ended December 31,
Pro Forma,
As Adjusted
2007
(1)
2008
(1)
2009
(1)
2009
(2)
(in thousands, except per share data)
Consolidated Income Statement Data:
Net Revenues
$
63,451
$
157,850
$
171,565
$
197,179
Operating costs and expenses:
Cost of services
27,480
66,382
71,778
84,177
Selling, general and administrative expenses
15,172
33,194
36,854
41,528
Provision for doubtful accounts
2,378
8,037
9,488
10,220
Intangible asset amortization expense
5,721
14,308
14,574
15,454
Management fees
644
1,559
1,778
—
Impairment of goodwill and other intangible assets
—
—
8,031
(4)
8,031
Acquisition and business development costs
374
676
1,074
467
Equity based compensation expense
—
1,164
(3)
—
—
Total operating costs and expenses
51,769
125,320
143,577
159,877
Income from operations
11,682
32,530
27,988
37,302
Other income (expense):
Interest expense
(7,114
)
(21,577
)
(18,969
)
(17,956
)
Write-off of deferred debt issue
    costs
(5)
(3,451
)
—
—
(7,330
)
Other income
124
125
28
33
Total other expense, net
(10,441
)
(21,452
)
(18,941
)
(25,253
)
Income before income taxes
1,241
11,078
9,047
12,049
Provision for income
    taxes
(6)
762
408
45
4,820
Net income
$
479
$
10,670
$
9,002
7,229
Income available to noncontrolling interest
Income available to common stockholders
$
Income available to common stockholders per common share:
Basic net income per common share
Diluted net income per common share
Consolidated operating data:
Number of accessions
619
1,472
1,557
1,903
Other financial data:
Adjusted
    EBITDA
(9)
$
18,712
$
51,390
$
55,464
$
63,313
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Aurora
    Diagnostics Holdings LLC
Summary
    Consolidated Financial and Operating Data
December 31, 2009
Pro Forma for
Pro Forma,
Actual
(1)
Acquisitions
(7)
As
    Adjusted
(8)
(in thousands)
Consolidated balance sheet data:
Cash and cash equivalents
$
27,424
$
28,807
$
Total assets
462,744
471,732
Working capital, excluding deferred tax items
30,081
31,675
Long term debt, including current portion
219,752
225,652
Total equity
217,064
217,064
Tax receivable arrangement
—
—
(1)
The summary consolidated financial
    data for the years ended December 31, 2007, 2008 and 2009
    are that of Aurora Holdings prior to the completion of the
    Reorganization Transactions, this offering and our pending
    refinancing.
(2)
The pro forma, as adjusted,
    consolidated income statement data for the year ended
    December 31, 2009 gives effect to the following as if they
    had occurred January 1, 2009:
•
our 2009 acquisition of South Texas Dermatopathology Lab, P.A.;
•
our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory, P.C.;
•
our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
•
the consummation of the Reorganization Transactions; and
•
the use of the net proceeds that we will receive from this
    offering.
(3)
During 2008, we adopted a new
    equity incentive plan, which we refer to as the New Plan, to
    replace our original equity incentive plan. The New Plan
    provides awards of membership interest units in Aurora Holdings.
    These interests are denominated as
Class D-1,
Class D-2,
and
Class D-3 units
of Aurora Holdings. During 2008, we authorized and issued 4,000
    D-1 units, 3,000 D-2 units and 3,000 D-3 units of
    Aurora Holdings under the New Plan. All membership interest
    units in Aurora Holdings issued in 2008 were fully vested as of
    December 31, 2008. We recorded compensation expense of
    $1.2 million for these awards. There were no other grants
    under the New Plan. In connection with the Reorganization
    Transactions, the Class D Units of Aurora Holdings issued
    under the New Plan will be either exchanged for shares of our
    Class A common stock or cancelled without consideration.
(4)
As of September 30, 2009, we
    tested goodwill and intangible assets for potential impairment
    and recorded a non-cash impairment expense of $8.0 million
    resulting from a write down of $6.6 million in the carrying
    value of goodwill and a write down of $1.4 million in the
    carrying value of other intangible assets. The write-down of the
    goodwill and other intangible assets related to one reporting
    unit. Regarding this reporting unit, we believe events occurred
    and circumstances changed that more likely than not reduced the
    fair value of the intangible assets and goodwill below their
    carrying amounts. These events during 2009 consisted primarily
    of the loss of significant customers present at the acquisition
    date, which adversely affected the current year and expected
    future revenues and operating profit of the reporting unit.
(5)
In December 2007, we refinanced our
    previous credit facilities. As a result, we wrote off
    $3.5 million of unamortized deferred debt issue costs. Pro
    forma, as adjusted 2009 represents the write off of
    $1.1 million and $3.9 million of unamortized original
    issue discount and deferred debt issuance costs, respectively,
    originally incurred in connection with our current credit
    facilities, as well as $2.3 million related to a prepayment
    penalty under the current credit agreement.
(6)
Aurora Holdings is a Delaware
    limited liability company taxed as a partnership for federal and
    state income tax purposes, in accordance with the applicable
    provisions of the Internal Revenue Code. Accordingly, Aurora
    Holdings was not generally subject to income taxes. The income
    attributable to Aurora Holdings was allocated to the members of
    Aurora Holdings in accordance with the terms of the existing
    Aurora Holdings limited liability company agreement, which we
    refer to as the Aurora Holdings LLC Agreement. However, certain
    of our subsidiaries are corporations, file separate returns and
    are subject to federal and state income taxes. The historical
    provision for income taxes for these subsidiaries is reflected
    in our consolidated financial statements and includes federal
    and state taxes currently payable and changes in deferred tax
    assets and liabilities excluding the establishment of deferred
    tax assets and liabilities related to the acquisitions. The pro
    forma, as adjusted, provision for income taxes assumes a
    40 percent effective tax rate, after giving effect to the
    Reorganization Transactions.
(7)
The pro forma, for acquisitions,
    consolidated balance sheet data as of December 31, 2009
    gives effect to our 2010 acquisitions of Bernhardt Laboratories,
    Inc. and Pinkus Dermatopathology Laboratory, P.C. as if
    they were effective December 31, 2009.
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(8)
The pro forma, as adjusted,
    consolidated balance sheet data as of December 31, 2009
    gives effect to the following, as if they were effective as of
    December 31, 2009:
•
Our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory, P.C.;
•
Our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
•
The consummation of the Reorganization Transactions; and
•
The use of the net proceeds that we will receive from this
    offering.
(9)
The following is a reconciliation
    of net income to Adjusted EBITDA:
2009
Year Ended December 31,
Pro forma,
2007
2008
2009
As
    Adjusted
(A)
(in thousands)
Net Income
$
479
$
10,670
$
9,002
$
7,229
Interest expense
7,114
21,577
18,969
17,956
Income taxes
762
408
45
4,820
Depreciation and amortization
6,386
16,137
17,060
17,980
EBITDA
14,741
48,792
45,076
47,985
Management
    fees
(B)
644
1,559
1,778
—
Stock-based compensation
—
1,164
—
—
Unusual
    charges
(C)(D)(E)
3,451
—
8,638
15,361
Other
(124
)
(125
)
(28
)
(33
)
Adjusted EBITDA, as defined
$
18,712
$
51,390
$
55,464
$
63,313
Adjusted EBITDA is a non-GAAP
    financial measure used in key financial covenants contained in
    our senior credit facilities, which are material facilities
    supporting our capital structure and providing liquidity to our
    business. Adjusted EBITDA is defined as earnings before
    interest, taxes, depreciation and amortization (EBITDA), further
    adjusted to exclude unusual items and other adjustments
    permitted in calculating covenant compliance under our senior
    credit facilities. We believe that the inclusion of
    supplementary adjustments to EBITDA applied in presenting
    Adjusted EBITDA is appropriate to provide additional information
    to investors to demonstrate compliance with the specified
    financial ratios and other financial condition tests contained
    in our credit facilities.
Our management uses Adjusted EBITDA
    to gauge the costs of our capital structure on a
day-to-day
basis when full financial statements are unavailable. Our
    management further believes that providing this information
    allows our investors greater transparency and a better
    understanding of our ability to meet our debt service
    obligations and make capital expenditures.
Any breach of covenants in our
    senior credit facilities that are tied to ratios based on
    Adjusted EBITDA could result in a default under that agreement,
    in which case the lenders could elect to declare all amounts
    borrowed due and payable and to terminate any commitments they
    have to provide further borrowings. Any default and subsequent
    acceleration of payments under our debt agreements would have a
    material adverse effect on our results of operations, financial
    position and cash flows. Additionally, under our debt
    agreements, our ability to engage in activities such as
    incurring additional indebtedness, making investments and paying
    dividends or making distributions is also tied to ratios based
    on Adjusted EBITDA.
Adjusted EBITDA does not represent
    net income or cash flow from operations as those terms are
    defined by GAAP and does not necessarily indicate whether cash
    flows will be sufficient to fund cash needs. Further, our senior
    credit facilities require that Adjusted EBITDA be calculated for
    the most recent four fiscal quarters. As a result, the measure
    can be disproportionately affected by a particularly strong or
    weak quarter. Further, it may not be comparable to the measure
    for any subsequent four-quarter period or any complete fiscal
    year.
Adjusted EBITDA is not a recognized
    measurement under GAAP, and investors should not consider
    Adjusted EBITDA as a substitute for measures of our financial
    performance and liquidity as determined in accordance with GAAP,
    such as net income, operating income or net cash provided by
    operating activities. Because other companies may calculate
    Adjusted EBITDA differently than we do, Adjusted EBITDA may not
    be comparable to similarly titled measures reported by other
    companies. Adjusted EBITDA has other limitations as an
    analytical tool, when compared to the use of net income, which
    is the most directly comparable GAAP financial measure,
    including:
•
Adjusted EBITDA does not reflect the provision of income tax
    expense in our various jurisdictions;
•
Adjusted EBITDA does not reflect the interest expense we incur;
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Table of Contents
•
Adjusted EBITDA does not reflect any attribution of costs to our
    operations related to our investments and capital expenditures
    through depreciation and amortization charges;
•
Adjusted EBITDA does not reflect the cost of compensation we
    provide to our employees in the form of stock option
    awards; and
•
Adjusted EBITDA excludes expenses that we believe are unusual or
    non-recurring, but which others may believe are normal expenses
    for the operation of a business.
(A)
The pro forma, as adjusted,
    Adjusted EBITDA does not give effect to our 2010 acquisition of
    Pathology Solutions, LLC, which we believe, based on preliminary
    estimates, would increase 2009 Pro forma, as adjusted, Adjusted
    EBITDA by $4.0 million to $6.0 million. Our final
    estimates and related accounting may differ materially from the
    preliminary estimates.
(B)
Management fees related to expenses
    payable to affiliates. These management fees will terminate
    along with our management services agreement upon the completion
    of this offering.
(C)
During 2007, net income included
    the write-off of previously deferred debt issue costs in
    connection with the refinancing of our previous credit facility.
(D)
During 2009, we recorded a non-cash
    impairment charge of $8.0 million related to goodwill and
    other intangible assets and a non-recurring charge of
    $0.6 million for acquisition costs.
(E)
The 2009 pro forma, as adjusted
    amount includes the following charges:
Non Cash Charges:
Impairment of goodwill and other intangibles
$
8,031
Write off of unamortized deferred debt issue costs
3,932
Write off of unamortized original issue discount
1,098
Total Non Cash Charges
13,061
Prepayment penalty
2,300
Total unusual charges
$
15,361
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RISK
    FACTORS
Buying shares of our Class A common stock involves risk.
    You should consider carefully the risks and uncertainties
    described below, together with all of the other information in
    this prospectus, including the financial statements and the
    related notes appearing in the back of this prospectus, before
    deciding to purchase shares of our Class A common stock.
Risks
    Relating to Our Business
Changes
    in regulation and policies may adversely affect reimbursement
    for diagnostic services and could have a material adverse impact
    on our business.
Reimbursement levels for health care services are subject to
    continuous and often unexpected changes in policies, and we face
    a variety of efforts by government payors to reduce utilization
    and reimbursement for diagnostic testing services. Changes in
    governmental reimbursement may result from statutory and
    regulatory changes, retroactive rate adjustments, administrative
    rulings, competitive bidding initiatives, and other policy
    changes.
In 2010, the U.S. Congress passed legislation relating to
    health care reform, including the Patient Protection and
    Affordable Care Act, or PPACA, and the Health Care and Education
    Affordability Reconciliation Act of 2010, or HCEARA. While the
    comprehensive health reform legislation passed by the
    U.S. Congress and signed into law by the President in 2010
    did not adversely affect reimbursement for our anatomic
    pathology services, this legislation provides for two separate
    reductions in the reimbursement rates for our clinical
    laboratory services: a "productive adjustment"
    (currently estimated to be between 1.1 and 1.4 percent),
    and an additional 1.75 percent reduction. Each of these
    would reduce the annual Consumer Price Index-based update that
    would otherwise determine our reimbursement for clinical
    laboratory services. The U.S. Congress has considered, at
    least yearly in conjunction with budgetary legislation, changes
    to one or both of the Medicare fee schedules under which we
    receive reimbursement, which include the physician fee schedule
    and the clinical laboratory fee schedule. Further reductions in
    reimbursement for Medicare services or changes in policy
    regarding coverage of tests may be implemented from time to
    time. A substantial portion of our anatomic pathology services
    are billed under a single code (CPT 88305) and our revenue and
    business may be adversely affected if the reimbursement rate
    associated with that code is reduced. Even when reimbursement
    rates are not reduced, policy changes add to our costs by
    increasing the complexity and volume of administrative
    requirements. Medicaid reimbursement, which varies by state, is
    also subject to administrative and billing requirements and
    budget pressures. Recently, state budget pressures have caused
    states to consider several policy changes that may impact our
    financial condition and results of operations, such as delaying
    payments, reducing reimbursement, restricting coverage
    eligibility and service coverage, and imposing taxes on our
    services.
Increased
    internalization of diagnostic testing by our clients or
    patients, including the use of new testing technologies by our
    clients or patients, could adversely affect our
    business.
Our clients, such as referring physicians and hospitals, may
    internalize diagnostic testing or technologies that have
    historically been performed by diagnostic laboratory companies
    like us. Our industry has experienced a recent market trend in
    which physicians and hospitals perform the technical
and/or
professional components of their laboratory testing needs in
    their own offices. If this trend continues or becomes more
    pronounced and our clients internalize diagnostic testing
    functions or technologies that we currently perform or use, and
    we do not develop new or alternative functions or technologies
    that are attractive to our clients, it may reduce the demand for
    our diagnostic testing services and adversely affect our
    business.
In addition, advances in technology may lead to the development
    of more cost-effective tests that can be performed outside of a
    commercial laboratory such as:
•
point-of-care
tests that can be performed by physicians in their offices;
•
tests that can be performed by hospitals in their own
    laboratories; or
•
home testing that can be performed by patients in their homes.
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Any advance in technology could reduce demand for our services
    or render them obsolete.
Compliance costs associated with the Clinical Laboratory
    Improvement Amendments of 1988, or CLIA, make it
    cost-prohibitive for many physicians to operate clinical
    laboratories in their offices. However, diagnostic tests
    approved or cleared by the U.S. Food and Drug
    Administration, or FDA, for home use are automatically deemed to
    be "waived" tests under CLIA and may be performed by
    our referring physicians and their patients with minimal
    regulatory oversight under CLIA. Test kit manufacturers could
    seek to increase sales to both our referring physicians and
    their patients of test kits approved by the FDA for
point-of-care
testing or home use. Development of such technology and its use
    by our clients would reduce the demand for our laboratory-based
    testing services and adversely affect our business.
Failure
    to timely or accurately bill for our services or collect
    outstanding payments could have a material adverse effect on our
    business.
Billing for diagnostic services is complex. We bill numerous
    payors, including physicians, patients, insurance companies,
    Medicare, and Medicaid, according to applicable law, billing
    requirements and, as applicable, contractual arrangements. This
    complexity is further compounded by rapidly changing
    requirements for auditing, external compliance, and internal
    compliance policies and procedures.
Most of our bad debt expense in 2009, which totaled
    5.5 percent of revenues, resulted from the failure of
    patients to pay their bills, including copayments and
    deductibles. Failure to timely or correctly bill could lead to
    lack of reimbursement for services or an increase in the aging
    of our accounts receivable, which could adversely affect our
    results of operations. Increases in write-offs of doubtful
    accounts, delays in receiving payments, potential retroactive
    adjustments, and penalties resulting from audits by payors would
    also adversely affect our financial condition. Failure to comply
    with applicable laws relating to billing governmental health
    care programs could also lead to various penalties, including
    exclusion from participation in Medicare or Medicaid programs,
    asset forfeitures, civil and criminal fines and penalties, and
    the loss of various licenses, certificates, and authorizations
    necessary to operate our business, any of which could have a
    material adverse effect on our business.
Non-governmental
    third-party payors have taken steps to control the utilization
    and reimbursement of diagnostic services.
We face efforts by non-governmental third-party payors,
    including health plans, to reduce utilization of diagnostic
    testing services and reimbursement for diagnostic services. For
    instance, third-party payors often use the payment amounts under
    the Medicare fee schedules as a reference in negotiating their
    payment amounts. As a result, a reduction in Medicare
    reimbursement rates could result in a reduction in the
    reimbursements we receive from such third-party payors. Changes
    in test coverage policies of and reimbursement from other
    third-party payors may also occur independently from changes in
    Medicare. Such reimbursement and coverage changes in the past
    have resulted in reduced prices, added costs and reduced
    accession volume and have added more complex and new regulatory
    and administrative requirements.
The health care industry has also experienced a trend of
    consolidation among health insurance plans, resulting in fewer,
    larger health plans with significant bargaining power to
    negotiate fee arrangements with health care providers like us.
    Some of these health plans, as well as independent physician
    associations, have demanded that laboratories accept discounted
    fee structures or assume a portion or all of the financial risk
    associated with providing diagnostic testing services to their
    members through capitated payment arrangements. In addition,
    some health plans have limited the preferred provider
    organization or
point-of-service
laboratory network to only a single national laboratory to
    obtain improved
fee-for-service
pricing. The increased consolidation among health plans also has
    increased the potential adverse impact of ceasing to be a
    contracted provider with any such insurer. See
    "— Failure to participate as a provider with
    payors or operating as a non-contracted provider could have a
    material adverse effect on our business."
We expect that efforts to reduce reimbursements, impose more
    stringent cost controls and reduce utilization of diagnostic
    testing services will continue. These efforts may have a
    material adverse effect on our business and results of
    operations.
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Changes
    in payor mix may adversely affect reimbursement for diagnostic
    services and could have a material adverse impact on our
    business.
Most of our services are billed to a party other than the
    physician that ordered the test. In 2009, we received
    25 percent of our revenues from Medicare and Medicaid and
    61 percent of our revenues from non-governmental
    third-party payors, including health plans. If we bill a higher
    percentage of our services to payors who reimburse at rates
    lower than our current payors, our results of operations and
    financial condition would suffer.
Integration
    of our operations with newly acquired businesses may be
    difficult and costly.
Since our inception, we have acquired 17 existing diagnostic
    services businesses. We expect to evaluate potential strategic
    acquisitions of diagnostic services and other businesses that
    might augment our existing specialized diagnostic testing
    services. These acquisitions have involved and could continue to
    involve the integration of a separate company that previously
    operated independently and had different systems, processes and
    cultures. As such, we have not yet completed the integration of
    several of our past acquisitions. In particular, many of our
    operations, such as our laboratory information systems and
    billing systems, are not yet standardized and some aspects of
    the
day-to-day
operations of our laboratories continue to be conducted on a
    decentralized basis.
The process of integrating businesses we acquire may
    substantially disrupt both our existing businesses and the
    businesses we acquire. This disruption may divert management
    from the operation of our business or may cause us to lose key
    employees or clients. Additionally, we may have difficulty
    consolidating facilities and infrastructure, standardizing
    information and other systems and coordinating
    geographically-separated facilities and workforces, resulting in
    a decline in the quality of services.
Any past or future acquisitions, and the related integration
    efforts, may be difficult, costly or unsuccessful. In each case,
    our existing business and the businesses we acquire may be
    adversely affected. Even if we are able to successfully
    integrate businesses we have acquired, we may not be able to
    realize the benefits that we expect from them.
Businesses
    we acquire may have significant unknown or contingent
    liabilities that could adversely impact our operating
    results.
Businesses we acquire may have unknown or contingent liabilities
    or liabilities that are in excess of the amounts that we
    originally estimated. Although we generally seek indemnification
    from the sellers of businesses we acquire for matters that are
    not properly disclosed to us, we may not successfully obtain
    indemnification. Even in cases where we are able to obtain
    indemnification, we may be subject to liabilities greater than
    the contractual limits of our indemnification or the financial
    resources of the indemnifying party. In the event that we are
    responsible for liabilities substantially in excess of any
    amounts recovered through rights to indemnification, this could
    adversely impact our operating results.
Our
    business is subject to rapid technological innovation, and the
    development by third parties of new or improved diagnostic
    testing technologies or treatments for diseases could have a
    material adverse effect on our business.
The anatomic pathology market is characterized by rapid changes
    in technology, frequent introductions of new diagnostic tests,
    and evolving industry standards and client demands for new
    diagnostic technologies. Advances in technology may result in
    the creation of enhanced diagnostic tools that enable other
    laboratories, hospitals, physicians, patients or third parties
    to provide specialized diagnostic services that are superior to
    ours or more patient-friendly, efficient or cost-effective. Our
    success depends upon our ability to acquire or license these
    technologies on favorable terms or to develop new and improved
    technologies for early diagnosis before our competitors and to
    obtain appropriate reimbursement for diagnostic tests using
    these technologies. Furthermore, introduction of prophylactic
    treatments or cures for some of the diseases on which we focus
    could substantially reduce or eliminate demand for our services.
Any failure to maintain pace with technological changes could
    reduce our competitiveness, reduce demand for our services or
    render our services obsolete.
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Failure
    of our IT or communication systems, or the failure of these
    systems to keep pace with technological advances or changes in
    regulation and policies related to our IT or communication
    systems, could adversely impact our business.
Our laboratory operations depend significantly on the
    uninterrupted performance of our IT and communication systems.
    Sustained system failures or interruption of our systems in one
    or more of our laboratories could disrupt our ability to process
    laboratory requisitions, handle client service, perform testing,
    provide our reports or test results in a timely manner, or bill
    the appropriate party for our services.
Our efforts to invest in new or improved IT systems and billing
    systems may be costly, and require time and resources for
    implementation. While we have begun implementing a plan to
    standardize and improve our laboratory information systems and
    billing systems, we expect that it will take several years to
    complete full implementation. Our efforts to invest in new or
    improved IT systems and billing systems may not ultimately be
    successful, and our failure to properly implement our plan to
    standardize and improve our laboratory information systems and
    billing systems could adversely impact our business.
Public and private initiatives to create electronic medical
    record standards and to mandate standardized coding systems for
    the electronic exchange of information, including test orders
    and test results, could require costly modifications to our
    existing IT systems. We expect that any standards that might be
    adopted or implemented would allow us adequate time to comply
    with such standards. However, any failure or delay in
    implementing standards may result in a loss of clients and
    business opportunities, which could adversely impact our
    business.
Failure
    to adequately safeguard data, including patient data that is
    subject to regulations related to patient privacy, could
    adversely impact our business.
The success of our business depends on our ability to obtain,
    process, analyze, maintain and manage data, including sensitive
    information such as patient data. If we do not adequately
    safeguard that information and it were to become available to
    persons or entities that should not have access to it, our
    business could be impaired, our reputation could suffer and we
    could be subject to fines, penalties and litigation. Although we
    have implemented security measures, our infrastructure is
    vulnerable to computer viruses, break-ins and similar disruptive
    problems caused by our clients or others that could result in
    interruption, delay or cessation of service. Break-ins, whether
    electronic or physical, could potentially jeopardize the
    security of confidential client and supplier information stored
    physically at our locations or electronically in our computer
    systems. Such an event could damage our reputation, cause us to
    lose existing clients and deter potential clients. It could also
    expose us to liability to parties whose security or privacy has
    been infringed, to regulatory actions by the Centers for
    Medicare & Medicaid Services, or CMS, part of the United
    States Department of Health and Human Services, or HHS, or to
    civil or criminal sanctions. The occurrence of any of the
    foregoing events could adversely impact our business.
The American Recovery and Reinvestment Act of 2009 imposed
    additional obligations on health care entities with respect to
    data privacy and security, including new notifications in case
    of a breach of privacy and security standards. We are unable to
    predict the extent to which these new obligations may prove
    technically difficult, time-consuming or expensive to implement.
Failure
    to attract and retain experienced and qualified personnel could
    adversely affect our business.
Our success depends on our ability to attract, retain and
    motivate experienced anatomic pathologists, histotechnologists,
    cytotechnologists, skilled laboratory and IT staff, experienced
    sales representatives and other personnel. Competition for these
    employees is strong, and if we are not able to attract and
    retain qualified personnel it would have a material adverse
    effect on our business.
We are dependent on the expertise of our local medical directors
    and our executive officers. The loss of these individuals could
    have a material adverse effect on our business.
Our sales representatives have developed and maintain close
    relationships with a number of health care professionals, and
    our specialized approach to marketing our services positions our
    sales representatives to have a deep knowledge of the needs of
    the referring physicians they serve. Given the nature of the
    relationships we seek to develop with our clients, losses of
    sales representatives may cause us to lose clients.
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Table of Contents
Changes
    in medical treatment, reimbursement rates and other market
    conditions in the dermatopathology market could adversely affect
    our business.
We derive a significant portion of our revenues from our
    dermatopathology subspecialty, which makes us particularly
    sensitive to changes in medical treatment, reimbursement rates
    and other market conditions in the dermatopathology market. Our
    revenues are particularly sensitive to changes that affect the
    number of or reimbursement for dermatopathology-related
    services. In 2009, we derived approximately 47 percent of
    our revenues from our dermatopathology subspecialty services,
    primarily from biopsies of the skin. If there is a significant
    development in the prevention of skin cancer, or an adverse
    development in the reimbursement rate for skin biopsies, it
    could have a material adverse effect on our business.
Failure
    to adequately scale our infrastructure to meet demand for our
    diagnostic services or to support our growth could create
    capacity constraints and divert resources, resulting in a
    material adverse effect on our business.
Increases in demand for our diagnostic services, including
    unforeseen or significant increases in demand due to client or
    accession volume, could strain the capacity of our personnel and
    infrastructure. Any strain on our personnel or infrastructure
    could lead to inaccurate test results, unacceptable turn-around
    times or client service failures. Furthermore, although we are
    not currently subject to these capacity constraints, if demand
    increases for our diagnostic services, we may not be able to
    scale our personnel or infrastructure accordingly. Any failure
    to handle increases in demand, including increases due to client
    or accession volumes, could lead to the loss of established
    clients and have a material adverse effect on our business.
We intend to expand by establishing laboratories in additional
    geographic markets. In addition to acquisition or development
    costs, this will require us to spend considerable time and money
    to expand our infrastructure and to hire and retain experienced
    anatomic pathologists, histotechnologists, cytotechnologists,
    skilled laboratory and IT staff, experienced sales
    representatives, client service associates and other personnel
    for our additional laboratories. We will also need federal,
    state and local certifications, as well as supporting
    operational, logistical and administrative infrastructure. Even
    after new laboratories are operational, it may take time for us
    to derive the same economies of scale we have in our existing
    laboratories. Moreover, we may suffer reduced economies of scale
    in our existing laboratories as we seek to balance the amount of
    work allocated to each facility and expand those laboratories.
    An expansion of our laboratories or systems could divert
    resources, including the focus of our management, away from our
    current business.
Failure
    to effectively continue or manage our strategic and organic
    growth could cause our growth rate to decline.
Our business strategy includes continuing to selectively acquire
    existing diagnostic services businesses. Since our inception, we
    have acquired 17 existing diagnostic services businesses. To
    continue this strategic growth, we will need to continue to
    identify appropriate businesses to acquire and successfully
    undertake the acquisition of these businesses on reasonable
    terms. Consolidation and competition within our industry, among
    other factors, may make it difficult or impossible to identify
    businesses to acquire on a timely basis, or at all. In
    particular, the competition to acquire independent private labs
    and pathology groups has increased. In addition to historical
    competitors such as national lab companies, regional hospital
    centers and specialty lab companies, a number of private equity
    firms have recently made initial investments in the laboratory
    industry and may become potential competitors to our efforts to
    source new acquisitions. Our inability to continue our strategic
    growth would cause our growth rate to decline and could have a
    material adverse effect on our business.
We also seek to continue our organic growth through the
    expansion of our sales force, the development of de novo
    laboratories, strategic extension of our operations into markets
    such as long-term care, and the inclusion of new clinical and
    molecular tests in our testing menu. Because of limitations in
    available capital and competition within our industry, among
    other factors, we may not be able to implement any or all of
    these organic growth strategies on a reasonable schedule, or at
    all. Our failure to continue our organic growth would cause our
    growth rate to decline and could have a material adverse effect
    on our business.
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Our revenues have grown from $3.5 million in 2006 to
    $171.6 million in 2009. To manage our growth, we must
    continue to implement and improve our operational and financial
    systems and to expand, train, manage and motivate our employees.
    We may not be able to effectively manage the expansion of our
    operations, and our systems, procedures or controls may not be
    adequate to support our operations. Our management may not be
    able to rapidly scale the infrastructure necessary to exploit
    the market opportunity for our services. Our inability to manage
    growth could have a material adverse effect on our business.
Failure
    to participate as a provider with payors or operating as a
    non-contracted provider could have a material adverse effect on
    our business.
The health care industry has experienced a trend of
    consolidation among health care insurers, resulting in fewer,
    larger insurers with significant bargaining power in negotiating
    fee arrangements with health care providers like us. Managed
    care providers often restrict their contracts to a small number
    of laboratories that may be used for tests ordered by physicians
    in the managed care provider's network. If we do not have a
    contract with a managed care provider, we may be unable to gain
    those physicians as clients, and it could adversely affect our
    business.
In cases in which we do contract with a specified insurance
    company as a participating provider, we are considered
"in-network,"
and the reimbursement of third-party payments is governed by
    contractual relationships.
In cases in which we do not have a contractual relationship with
    an insurance company or we are not an approved provider for a
    government program, we have no contractual right to collect for
    our services and such payors may refuse to reimburse us for our
    services. This could lead to a decrease in accession volume and
    a corresponding decrease in our revenues. In instances where we
    are an
out-of-network
provider, reductions in reimbursement rates for
    non-participating providers could also adversely affect us.
    Third-party payors with whom we do not participate as a
    contracted provider may also require that we enter into
    contracts, which may have pricing and other terms that are
    materially less favorable to us than the terms under which we
    currently operate. While accession volume may increase as a
    result of these contracts, our revenues per accession may
    decrease.
Use of our diagnostic services as a non-participating provider
    also typically results in greater copayments for the patient
    unless we elect to treat them as if we were a participating
    provider in accordance with applicable law. Treating such
    patients as if we were a participating provider may adversely
    impact results of operations because we may be unable to collect
    patient copayments and deductibles. In some states, applicable
    law prohibits us from treating these patients as if we were a
    participating provider. As a result, referring physicians may
    avoid use of our services, which could result in a decrease in
    accession volume and adversely affect revenues.
Failure
    to raise additional capital or generate the significant capital
    necessary to continue our growth could reduce our ability to
    compete and could harm our business.
We expect that our existing cash and cash equivalents, together
    with the net proceeds that we will retain from this offering and
    availability under our credit facilities, will be sufficient to
    meet our anticipated cash needs until 2012. After that, we may
    need to raise additional funds, and we may not be able to obtain
    additional debt or equity financing on favorable terms, if at
    all. If we raise additional equity financing, our stockholders
    may experience significant dilution of their ownership
    interests, and the per share value of our Class A common
    stock could decline. Furthermore, if we engage in debt
    financing, the holders of debt would have priority over the
    holders of common stock, and we may be required to accept terms
    that restrict our ability to incur additional indebtedness, and
    take other actions that would otherwise be in the interests of
    our stockholders and force us to maintain specified liquidity or
    other ratios, any of which could harm our business, operating
    results and financial condition. If we need additional capital
    and cannot raise it on acceptable terms, we may not, among other
    things, be able to:
•
continue to expand our sales and marketing and research and
    development organizations;
•
develop or acquire complementary technologies, services,
    products or businesses;
•
expand operations both organically and through acquisitions;
•
hire, train and retain employees; or
•
respond to competitive pressures or unanticipated working
    capital requirements.
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Our failure to do any of these things could seriously harm our
    business, financial condition and results of operations.
The
    agreement governing our credit facility contains, and future
    debt agreements may contain, various covenants that limit our
    discretion in the operation of our business.
Our agreement and the related instruments governing borrowings
    under our credit facility contain, and the agreements and
    instruments governing any future debt agreements of ours may
    contain, various restrictive covenants that, among other things,
    require us to comply with or maintain certain financial tests
    and ratios and restrict our ability to:
•
incur more debt;
•
redeem or repurchase stock, pay dividends or make other
    distributions;
•
make certain investments;
•
create liens;
•
enter into transactions with affiliates;
•
make acquisitions;
•
merge or consolidate;
•
transfer or sell assets; and
•
make fundamental changes in our corporate existence and
    principal business.
In addition, events beyond our control could affect our ability
    to comply with and maintain the financial tests and ratios
    contained in these documents. Any failure by us to comply with
    or maintain all applicable financial tests and ratios and to
    comply with all applicable covenants could result in an event of
    default with respect to our term loan and revolving credit
    facility or future debt agreements. This could lead to the
    acceleration of the maturity of our outstanding loans and the
    termination of the commitments to make further extensions of
    credit. Even if we are able to comply with all applicable
    covenants, the restrictions on our ability to operate our
    business at our sole discretion could harm our business by,
    among other things, limiting our ability to take advantage of
    financing, mergers, acquisitions and other corporate
    opportunities.
We may
    be unable to obtain, maintain or enforce our intellectual
    property rights and may be subject to intellectual property
    litigation that could adversely impact our
    business.
We may be unable to obtain or maintain adequate proprietary
    rights for our products and services or to successfully enforce
    our proprietary rights, and we cannot assure you that our
    products or methods do not infringe the patents or other
    intellectual property rights of third parties. Infringement and
    other intellectual property claims and proceedings brought
    against us, whether successful or not, could result in
    substantial costs and harm our reputation. Such claims and
    proceedings can also distract and divert management and key
    personnel from other tasks important to the success of our
    business. In addition, intellectual property litigation or
    claims could force us to do one or more of the following:
•
cease developing, performing or selling products or services
    that incorporate the challenged intellectual property;
•
obtain and pay for licenses from the holder of the infringed
    intellectual property right, which licenses may not be available
    on reasonable terms, or at all;
•
redesign or reengineer our tests;
•
change our business processes; and
•
pay substantial damages, court costs and attorneys' fees,
    including potentially increased damages for any infringement
    held to be willful.
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In the event of an adverse determination in an intellectual
    property suit or proceeding, or our failure to license essential
    technology, our sales could be harmed
and/or
our
    costs could increase, which would harm our financial condition.
We
    have a limited operating history, which may make it difficult to
    accurately evaluate our business and prospects.
We commenced operations in June 2006. As a result, we have a
    limited operating history upon which to accurately predict our
    potential revenue. Our revenues and income potential and our
    ability to expand our business into additional anatomic
    pathology specialties and markets is still unproven. As a result
    of these factors, the future revenues and income potential of
    our business is uncertain. Although we have experienced
    significant revenue growth since our inception, we may not be
    able to sustain this growth. Any evaluation of our business and
    our prospects must be considered in light of these factors and
    the risks and uncertainties often encountered by companies in
    our stage of development. Our profitability may be adversely
    affected as we expand our infrastructure or if we incur
    increased selling expenses or other general and administrative
    expenses. Some of these risks and uncertainties include our
    ability to:
•
execute our business model;
•
create brand recognition;
•
respond effectively to competition;
•
manage growth in our operations;
•
respond to changes in applicable government regulations and
    legislation;
•
access additional capital when required; and
•
attract and retain key personnel.
Current
    economic conditions, including the current recession in the
    United States and the worldwide economic slowdown, as well as
    further disruptions in the financial markets, could adversely
    impact our operating results and financial
    condition.
The current economic recession in the United States and
    worldwide economic slowdown could adversely affect our operating
    results and financial condition. Among other things, the
    potential decline in federal and state revenues that may result
    from these conditions may create additional pressures to contain
    or reduce reimbursements for our services from Medicare,
    Medicaid and other government sponsored programs. The increased
    job losses and elevated unemployment rates in the United States
    resulting from the recession could result in a smaller
    percentage of our patients being covered by commercial payors
    and a larger percentage being covered by lower-paying Medicaid
    programs. Employers may also begin to select more restrictive
    commercial plans with lower reimbursement rates. To the extent
    that payors are adversely affected by a decline in the economy,
    we may experience further pressure on commercial rates, delays
    in fee collections and a reduction in the amounts we are able to
    collect. In addition, if the current turmoil in the financial
    markets continues, interest rates may increase and it could be
    more difficult to obtain credit in the future. Any or all of
    these factors, as well as other consequences of the current
    economic conditions which currently cannot be anticipated, could
    adversely impact our operating results and financial condition.
Failure
    to adequately protect our proprietary rights could adversely
    affect operations.
We consider our trademarks, service marks, trade secrets,
    copyrights, unpatented know-how and similar intellectual
    property critical to our success. We rely upon intellectual
    property law, trade secret protection and confidentiality and
    license agreements with our employees, contractors, clients and
    others to protect our proprietary rights. Any of these parties
    may breach these agreements, and we may not have adequate
    remedies for any specific breach. In addition, our competitors
    may independently develop equivalent knowledge, methods and
    know-how, and we would not be able to prevent their use of such
    information. To the extent that our employees or contractors use
    intellectual property owned by others in their work for us,
    disputes may arise as to the rights in the related or
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resulting know-how and inventions. If any of our trade secrets,
    know-how or other technologies were to be disclosed to or
    independently developed by a competitor, our business, financial
    condition and results of operations could be materially
    adversely affected. A loss of key personnel or their work
    product, including software code, related to our trade secrets,
    unpatented know-how or other technologies could adversely affect
    our business, financial condition and results of operations.
We may have to engage in litigation to defend our trademarks,
    service marks, trade secrets, copyrights and other intellectual
    property rights. Even if we are successful, such litigation
    could result in substantial costs and be a distraction to
    management. If we fail in such litigation, we may lose valuable
    intellectual property rights.
Further, we are a party to licenses that grant us rights to
    intellectual property that is necessary or useful to our
    business. One or more of our licensors may allege that we have
    breached our license agreement with them and accordingly seek to
    terminate our license. If successful, this could result in our
    loss of the right to use the licensed intellectual property,
    which could adversely affect our ability to commercialize our
    technologies, products or services, as well as harm our
    competitive business position and our business prospects.
Competition
    in our industry from existing or new companies and failure to
    obtain and retain clients could have a material adverse impact
    on our business.
Our success depends on our ability to obtain and retain clients
    and maintain accession volume. A reduction in the number of our
    clients, or in the tests ordered or specimens submitted by our
    clients, without offsetting increases or growth, could impact
    our ability to maintain or grow our business and could have a
    material adverse effect on our business.
While there has been significant consolidation in recent years
    in the diagnostic testing industry, the industry remains
    fragmented and highly-competitive both in terms of price and
    service. We primarily compete with various clinical test
    providers, anatomic pathology practices, hospital-affiliated
    laboratories, commercial clinical laboratories and
    physician-office laboratories. This competition is based
    primarily on price, clinical expertise, quality of service,
    client relationships, breadth of testing menu, speed of
    turnaround of test results, reporting and IT systems, reputation
    in the medical community and ability to employ qualified
    personnel. Some of our competitors may have greater technical,
    financial and other resources than we do. Our failure to
    successfully compete on any of these factors could result in a
    loss of clients and adversely affect our ability to grow.
Replication of our business model by competitors may adversely
    affect growth and profitability. Barriers to entry in anatomic
    pathology markets include the need to form strong relationships
    with referring physicians, hire experienced pathologists, make
    capital investments and acquire IT. These barriers may not be
    sufficient to prevent or deter new entrants to our market, and
    competitors could replicate or improve some or all aspects of
    our business model and cause us to lose market share in the
    areas where we compete or inhibit our growth, which could have a
    material adverse effect on our business.
Failure
    to acquire rights to new tests, technology and services, or
    discontinuations or recalls of existing tests, technologies or
    services, could negatively impact our testing volume and net
    revenues.
The diagnostic testing industry is continuously faced with
    changing technology and new product introductions. Other
    companies or individuals, including our competitors, may obtain
    patents or other property rights that would prevent, limit or
    interfere with our ability to develop, perform or sell our tests
    or operate our business or increase our costs. In addition, they
    could introduce new tests that may result in a decrease in the
    demand for our tests or cause us to reduce the prices for our
    tests. We may be unable to develop or introduce new tests on our
    own, which means that our success may depend, in part, on our
    ability to license new and improved technologies on favorable
    terms. We may be unable to continue to negotiate acceptable
    licensing arrangements, and arrangements that we do conclude may
    not yield commercially successful diagnostic tests. If we are
    unable to acquire rights to these testing methods at competitive
    rates, our research and development costs may increase as a
    result. In addition, if we are unable to develop and introduce,
    or acquire rights to, new tests, technology and services to
    expand our testing business, our testing methods may become
    outdated when compared with our competition and our testing
    volume and revenues may be materially and adversely affected.
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From time to time, manufacturers discontinue or recall reagents,
    test kits or instruments we use to perform diagnostic services.
    Such discontinuations or recalls could adversely affect our
    costs, testing volume and revenues.
Regulatory
    Risks
New
    and proposed federal or state health care reform measures could
    adversely affect our operating results and financial
    condition.
The U.S. Congress and state legislatures continue to focus
    on health care reform. Together, the recently-enacted PPACA and
    HCEARA comprise a broad health care reform initiative. While
    this legislation does not adversely affect reimbursement for our
    anatomic pathology services, it provides for two separate
    reductions in the reimbursement rates for our clinical
    laboratory services: a "productive adjustment"
    (currently estimated to be between 1.1 and 1.4 percent) and
    an additional 1.75 percent reduction. Each of these would
    reduce the annual Consumer Price Index-based update that would
    otherwise determine our reimbursement for clinical laboratory
    services. The effect of the new legislation on the extent of
    coverage and reimbursement for new services is uncertain. This
    legislation also provides for increases in the number of persons
    covered by public and private insurance programs in the U.S.
In addition, several key legislators and appointed and elected
    officials have proposed significant reform to the federal health
    care system. Some of the reforms call for universal health care
    coverage, including the availability of a new
    government-sponsored health plan, and tax levies on
    laboratories. A number of states, including California,
    Colorado, Connecticut, Massachusetts, New York and Pennsylvania,
    are contemplating significant reform of their health insurance
    markets. These federal and state proposals are still being
    debated in the U.S. Congress and various legislatures.
We cannot predict whether the federal and state health care
    reform legislation that has been enacted will have a material
    impact on us. Further, we cannot predict whether federal or
    state governments will enact any additional laws to effect
    health care reform and, if any such new laws were enacted, what
    their terms would be and whether or in what ways any new laws
    would affect us. However, it is possible that new laws could
    increase our costs, decrease our revenues, expose us to expanded
    liability or require us to revise the ways in which we conduct
    our business, any of which could adversely affect our operating
    results and financial condition.
If we
    fail to comply with the complex federal, state and local
    government laws and regulations that apply to our business, we
    could suffer severe consequences that could adversely affect our
    operating results and financial condition.
Our operations are subject to extensive federal, state and local
    government regulations, all of which are subject to change.
    These government laws and regulations currently include, among
    other things:
•
the federal Anti-Kickback Statute, which prohibits persons from
    knowingly and willfully soliciting, receiving, offering or
    providing remuneration, directly or indirectly, in cash or in
    kind, in exchange for or to induce either the referral of an
    individual for, or the purchase, order or recommendation of, any
    goods or service for which payment may be made under
    governmental payor programs such as Medicare and Medicaid;
•
the federal False Claims Act, which prohibits individuals or
    entities from knowingly presenting to, or causing to be
    presented to, the federal government, claims for payment that
    are false or fraudulent;
•
the Health Insurance Portability and Accountability Act, or
    HIPAA, which established comprehensive federal standards with
    respect to the use and disclosure of protected health
    information;
•
the Health Information Technology for Economic and Clinical
    Health Act, or HITECH Act, which was passed as part of the
    American Recovery and Reinvestment Act and which strengthens
    many of the requirements applicable to privacy and security,
    among other things;
•
the Stark Law, which prohibits a physician from making a
    referral to an entity for certain designated health services
    reimbursed by Medicare or Medicaid if the physician (or a member
    of the physician's family) has a
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financial relationship with the entity and which also prohibits
    the submission of any claim for reimbursement for designated
    health services furnished pursuant to a prohibited referral;
•
the federal Civil Monetary Penalty Law, which prohibits the
    offering of remuneration or other inducements to beneficiaries
    of federal health care programs to influence the
    beneficiaries' decisions to seek specific governmentally
    reimbursable items or services or to choose particular providers;
•
the Clinical Laboratory Improvement Amendments, which requires
    that laboratories be certified by the federal government or by a
    federally-approved accreditation agency;
•
the anti-markup rule, which prohibits a physician or supplier
    billing the Medicare program from marking up the price of a
    purchased diagnostic service performed by another physician or
    supplier who does not "share a practice" with the
    billing physician or supplier;
•
state law equivalents of the above, such as anti-kickback and
    false claims laws that may apply to items or services reimbursed
    by any third-party payor, including commercial insurers;
•
state laws that prohibit the splitting or sharing of fees
    between physicians and non-physicians;
•
state laws that govern the manner in which licensed physicians
    can be organized to perform and bill for medical services;
•
the reassignment rules, which preclude Medicare payment for
    covered services to anyone other than the patient, physician, or
    other person who provided the service, with limited
    exceptions; and
•
state laws that prohibit other specified practices, such as
    billing an entity that does not have ultimate financial
    responsibility for the service, waiving coinsurance or
    deductibles, billing Medicaid a higher charge than the lowest
    charge offered to another payor, and placing professionals who
    draw blood, or phlebotomists, in the offices of referring
    physicians.
We believe that we operate in material compliance with these
    laws and regulations. However, these laws and regulations are
    complex and, among other things, practices that are permissible
    under federal law may not be permissible in all states. In
    addition, these laws and regulations are subject to
    interpretation by courts and enforcement agencies. Our failure
    to comply could lead to civil and criminal penalties, exclusion
    from participation in Medicare and Medicaid, and possible
    prohibitions or restrictions on our laboratories' ability
    to provide diagnostic services, and any such penalties,
    exclusions, prohibitions or restrictions could have a material
    adverse effect on our arrangements with managed care
    organizations and private payors.
Governmental investigations of laboratories have been ongoing
    for a number of years and are expected to continue. In fact, a
    substantial increase in funding of Medicare and Medicaid program
    integrity and anti-fraud efforts has been proposed.
    Investigations of our laboratories, regardless of their outcome,
    could damage our reputation and adversely affect important
    business relationships that we have with third parties, as well
    as have a material adverse effect on our business.
Failure
    to comply with complex federal and state laws and regulations
    related to submission of claims for our services could result in
    significant monetary damages and penalties and exclusion from
    the Medicare and Medicaid programs.
We are subject to extensive federal and state laws and
    regulations relating to the submission of claims for payment for
    our services, including those that relate to coverage of our
    services under Medicare, Medicaid and other governmental health
    care programs, the amounts that may be billed for our services
    and to whom claims for services may be submitted. Submission of
    our claims is particularly complex because we provide both
    anatomic pathology services and clinical laboratory tests, which
    generally are paid using different reimbursement principles. Our
    failure to comply with applicable laws and regulations could
    result in our inability to receive payment for our services or
    result in attempts by third-party payors, such as Medicare and
    Medicaid, to recover payments from us that have already been
    made. Submission of claims in violation of certain statutory or
    regulatory requirements can result in penalties, including civil
    money penalties of up to $10,000 for each item or service billed
    to Medicare in violation of the legal requirement, and exclusion
    from participation in Medicare and Medicaid. Government
    authorities may
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also assert that violations of laws and regulations related to
    submission of claims violate the federal False Claims Act or
    other laws related to fraud and abuse, including submission of
    claims for services that were not medically necessary. We could
    be adversely affected if it was determined that the services we
    provided were not medically necessary and not reimbursable,
    particularly if it were asserted that we contributed to the
    physician's referrals of unnecessary services to us. It is
    also possible that the government could attempt to hold us
    liable under fraud and abuse laws for improper claims submitted
    by an entity for services that we performed if we were found to
    have knowingly participated in the arrangement that resulted in
    submission of the improper claims.
Our
    business could be harmed by the loss or suspension of a license
    or imposition of a fine or penalties under, or future changes
    in, the law or regulations of the Clinical Laboratory
    Improvement Amendments or those of Medicare, Medicaid or other
    federal, state or local agencies.
The diagnostic testing industry is subject to extensive
    regulation, and many of these statutes and regulations have not
    been interpreted by the courts. CLIA requires that laboratories
    be certified by the federal government or by a
    federally-approved accreditation agency every two years. CLIA
    mandates specific standards in the areas of personnel
    qualifications, administration, proficiency testing, patient
    test management, quality control, quality assurance and
    inspections. CLIA regulations include special rules applicable
    to cytology testing, such as pap smears, including workload
    limits, specialized proficiency testing requirements that apply
    not just to the laboratory, but also to the individuals
    performing the tests, specialized personnel standards and
    quality control procedures. A laboratory may be sanctioned based
    on its failure to participate in an acceptable proficiency
    testing program, unsatisfactory performance in proficiency
    testing or for prohibited activities related to proficiency
    testing, such as failing to test the proficiency testing samples
    in the same manner as patient specimens or communicating with
    other laboratories regarding proficiency testing results. The
    sanction for failure to comply with CLIA requirements, including
    proficiency testing violations, may be suspension, revocation or
    limitation of a laboratory's CLIA certificate, as well as
    the imposition of significant fines and criminal penalties.
    While imposition of certain CLIA sanctions may be subject to
    appeal, few, if any, such appeals have been successful. A CLIA
    certificate is necessary to conduct business. As a result, any
    CLIA sanction or our failure to renew a CLIA certificate could
    have a material adverse effect on our business. Although each
    laboratory facility is separately certified by CLIA, if the CLIA
    certificate of any our laboratories is revoked, CMS could seek
    revocation of our other laboratories' CLIA certificates
    based on their common ownership or operation with the laboratory
    facility whose certificate was revoked. Some states have enacted
    analogous state laws that are more strict than CLIA.
Changes
    in laws and regulations that address billing arrangements for
    our services could have a material adverse effect on our
    revenues.
While we do not bill referring physicians for our services when
    those services are covered under a government program, in some
    cases, we do, where permissible, bill referring physicians for
    services that are not covered under a government program. Laws
    and regulations in several states currently preclude us from
    billing referring physicians, either by requiring us to bill
    directly the third-party payor or other person ultimately
    responsible for payment for the service, or by prohibiting or
    limiting the referring physician's or other
    purchaser's ability to bill a greater amount than the
    amount paid for the service. An increase in the number of states
    whose laws prevent such arrangements could adversely affect us
    by encouraging physicians to furnish such services directly or
    by causing physicians to refer services to another laboratory
    for testing. Currently, Medicare does not require beneficiaries
    to pay coinsurance for clinical laboratory testing or subject
    such tests to a deductible. From time to time, legislation has
    been proposed that would subject diagnostic services to
    coinsurance and deductibles. Such legislation could be enacted
    in the future. Legislation subjecting diagnostic services to
    coinsurance or deductibles could adversely affect our revenues
    given the anticipated difficulty in collecting such amounts from
    Medicare beneficiaries. In addition, we could be subject to
    potential fraud and abuse violations if adequate procedures to
    bill and collect copayments were not established and followed.
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We are
    increasingly subject to initiatives to recover improper payments
    and overpayments and such initiatives could result in
    significant monetary damages and penalties and exclusion from
    the Medicare and Medicaid programs.
Government payors have increased initiatives to recover improper
    payments and overpayments. For example, in March 2005, CMS
    initiated a demonstration project using Recovery Audit
    Contractors, or RACs, who are paid a contingent fee to detect
    and correct improper Medicare payments. As part of their duties,
    RACs collect overpayments from Medicare providers, including
    those providers who were paid for services that were not
    medically necessary or were incorrectly coded. Effective
    January 1, 2010, the RAC program will be operated
    throughout the United States on a permanent basis, and RACs will
    then have authority to pursue improper payments made on or after
    October 1, 2007.
Failure
    to comply with environmental, health and safety laws and
    regulations could adversely affect our ability to operate and
    result in fines, litigation or other consequences.
We are subject to licensing and regulation under numerous
    federal, state and local laws and regulations relating to the
    protection of the environment and human health and safety. Our
    use, generation, manufacture, handling, transportation, storage
    and disposal of medical specimens, such as human tissue,
    infectious and hazardous waste, and radioactive materials, as
    well as the health and safety of our laboratory employees, are
    covered under these laws and regulations.
In particular, the federal Occupational Safety and Health
    Administration has established extensive requirements relating
    to workplace safety for health care employers, including certain
    laboratories, whose workers may be exposed to blood-borne
    pathogens such as HIV and the hepatitis B virus. These
    requirements, among other things, require work practice
    controls, protective clothing and equipment, training, medical
follow-up,
vaccinations and other measures designed to minimize exposure
    to, and the transmission of, blood-borne pathogens. In addition,
    the Needlestick Safety and Prevention Act requires, among other
    things, that we include in our safety programs the evaluation
    and use of engineering controls such as safety needles if found
    to be effective at reducing the risk of needlestick injuries in
    the workplace.
We cannot entirely eliminate the risk of accidental injury,
    contamination or sabotage from working with hazardous materials
    or wastes. Our general liability insurance or workers'
    compensation insurance policies may not cover damages and fines
    arising from biological or hazardous waste exposure or
    contamination. In the event of contamination or injury, we could
    be held liable for damages or subject to fines in an amount
    exceeding our resources, and our operations could be suspended
    or otherwise adversely affected.
Failure to comply with federal, state and local laws and
    regulations could subject us to denial of the right to conduct
    business, fines, criminal penalties
and/or
other
    enforcement actions which would have a material adverse effect
    on our business. In addition, the current environmental, health
    and safety requirements applicable to our business, facilities
    and employees could be revised to become more stringent, and new
    laws and requirements could be adopted in the future. Thus,
    compliance with applicable environmental, health and safety laws
    and regulations could become both more costly and more difficult
    in the future.
Failure
    to comply with the Health Insurance Portability and
    Accountability Act security and privacy regulations may increase
    our costs.
HIPAA and related regulations establish comprehensive federal
    standards with respect to the use and disclosure of protected
    health information by health plans, health care providers and
    health care clearinghouses. Additionally, HIPAA establishes
    standards to protect the confidentiality, integrity and
    availability of protected health information.
Federal privacy regulations restrict our ability to use or
    disclose patient identifiable laboratory data, without patient
    authorization for purposes other than payment, treatment or
    health care operations, as defined by HIPAA. These privacy and
    security regulations provide for significant fines and other
    penalties for wrongful use or disclosure of protected health
    information, including civil and criminal fines and penalties.
    We believe we are in substantial compliance with the privacy
    regulations. However, the documentation and process requirements
    of the
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privacy regulations are complex and subject to interpretation
    and our efforts in this respect are ongoing. Our failure to
    comply with the privacy regulations could subject us to
    sanctions or penalties. Although the HIPAA statute and
    regulations do not expressly provide for a private right of
    damages, we could also incur damages under state laws to private
    parties for the wrongful use or disclosure of confidential
    health information or other private information. We have
    policies and procedures to comply with the HIPAA regulations and
    state laws. In addition, we must also comply with
non-U.S. laws
governing the transfer of health care data relating to citizens
    of other countries.
Changes
    in regulations or failure to follow regulations requiring the
    use of "standard transactions" for health care
    services issued under the Health Insurance Portability and
    Accountability Act could adversely affect our profitability and
    cash flows.
Pursuant to HIPAA, the Secretary of HHS has issued final
    regulations designed to facilitate the electronic exchange of
    information in certain financial and administrative
    transactions. HIPAA transaction standards are complex and
    subject to differences in interpretation by payors. For
    instance, some payors may interpret the standards to require us
    to provide certain types of information, including demographic
    information not usually provided to us by physicians. As a
    result of inconsistent application of transaction standards by
    payors or our inability to obtain certain billing information
    not usually provided to us by physicians, we could face
    increased costs and complexity, a temporary disruption in
    receipts and ongoing reductions in reimbursements and revenues.
    Any future requirements for additional standard transactions,
    such as claims attachments or use of a national provider
    identifier, could prove technically difficult, time-consuming or
    expensive to implement.
Our
    business could be adversely impacted by the Centers for Medicare
    & Medicaid Services' adoption of the new coding set
    for diagnoses.
CMS has adopted a new coding set for diagnosis, commonly known
    as ICD-10, which significantly expands the coding set for
    diagnoses. The new coding set is currently required to be
    implemented by October 1, 2013. We may be required to incur
    significant expense in implementing the new coding set, and if
    we do not adequately implement it, our business could be
    adversely impacted. In addition, if as a result of the new
    coding set physicians fail to provide appropriate codes for
    desired tests, we may not be reimbursed for tests we perform.
We may
    be subject to liability claims for damages and other expenses
    not covered by insurance that could adversely impact our
    operating results.
The provision of diagnostic testing services to patients may
    subject us to litigation and liability for damages based on an
    allegation of malpractice, professional negligence in the
    performance of our treatment and related services, the acts or
    omissions of our employees, or other matters. Our exposure to
    this litigation and liability for damages increases with growth
    in the number of our laboratories and tests performed. Potential
    judgments, settlements or costs relating to potential future
    claims, complaints or lawsuits could result in substantial
    damages and could subject us to the incurrence of significant
    fees and costs. Our insurance may not be sufficient or available
    to cover these damages, costs or expenses. Our business,
    profitability and growth prospects could suffer if we face
    negative publicity or if we pay damages or defense costs in
    connection with a claim that is outside the scope of any
    applicable insurance coverage, including claims related to
    contractual disputes and professional and general liability
    claims.
Our
    insurance costs may increase over the next several years, and
    our coverage may not be sufficient to cover claims and
    losses.
We maintain a program of insurance coverage against a broad
    range of risks in our business. In particular, we maintain
    professional liability insurance, subject to deductibles. The
    premiums and deductibles under our insurance may increase over
    the next several years as a result of general business rate
    increases, coupled with our continued growth. We are unable to
    predict whether such increases in premiums and deductibles will
    occur and the amount of any such increases, but such increases
    could adversely impact our earnings. The liability exposure of
    operations in the health care services industry has increased,
    resulting not only in increased premiums, but also in limited
    liability on behalf of the insurance carriers. Our ability to
    obtain the necessary and sufficient insurance coverage for our
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operations upon expiration of our insurance policies may be
    limited, and sufficient insurance may not be available on
    favorable terms, if at all. We could be materially and adversely
    affected by any of the following:
•
our inability to obtain sufficient insurance for our operations;
•
the collapse or insolvency of one or more of our insurance
    carriers;
•
further increases in premiums and deductibles; and
•
an inability to obtain one or more types of insurance on
    acceptable terms.
Risks
    Related to Our Organization and Structure
We are
    a holding company and our principal asset after completion of
    this offering will be our equity interests in Aurora Holdings,
    and we are accordingly dependent upon distributions from Aurora
    Holdings to pay dividends, if any, taxes and other
    expenses.
We are a holding company and, upon completion of the
    Reorganization Transactions and this offering, our principal
    asset will be our indirect ownership of equity interests in
    Aurora Holdings. See "Prospectus Summary —
    Reorganization Transactions" and "Organizational
    Structure — Reorganization Transactions." We have
    no independent means of generating revenue. We intend to cause
    Aurora Holdings to make pro rata distributions to its
    unitholders, including us, in an amount sufficient to cover all
    applicable taxes payable. We also intend to cause Aurora
    Holdings to make distributions to us, including for purposes of
    paying corporate and other overhead expenses and payments under
    the Tax Receivable Agreement, but our ability to make these
    distributions will be limited by restrictions in our debt
    agreements. To the extent that we need funds and Aurora Holdings
    is restricted from making such distributions under applicable
    law or regulation or as a result of the terms in our debt
    agreements, or is otherwise unable to provide such funds, it
    could adversely affect our liquidity and financial condition.
We are
    controlled by our Principal Equityholders whose interest in our
    business may be different than yours, and certain statutory
    provisions afforded to stockholders are not applicable to
    us.
Together, our Principal Equityholders will control
    approximately           percent
    of the combined voting power of our Class A common stock
    and Class B common stock
    (or           percent
    if the underwriters exercise their over-allotment option in
    full) after the completion of this offering and the application
    of the net proceeds that we will receive from this offering.
Accordingly, our Principal Equityholders can exercise
    significant influence over our business policies and affairs,
    including the power to nominate our Board of Directors. In
    addition, our Principal Equityholders can control any action
    requiring the general approval of our stockholders, including
    the adoption of amendments to our certificate of incorporation
    and bylaws and the approval of mergers or sales of substantially
    all of our assets. The concentration of ownership and voting
    power of our Principal Equityholders may also delay, defer or
    even prevent an acquisition by a third party or other change of
    control of our company and may make some transactions more
    difficult or impossible without the support of our Principal
    Equityholders, even if such events are in the best interests of
    noncontrolling stockholders. Moreover, this concentration of
    ownership may make it difficult for stockholders other than our
    Principal Equityholders to replace management. The concentration
    of voting power among our Principal Equityholders may have an
    adverse effect on the price of our Class A common stock.
We have opted out of section 203 of the General Corporation
    Law of the State of Delaware, or the Delaware General
    Corporation Law, which, subject to certain exceptions, prohibits
    a publicly-held Delaware corporation from engaging in a business
    combination transaction with an interested stockholder for a
    period of three years after the interested stockholder became
    such. Therefore, after the
lock-up
period expires, our Principal Equityholders are able to transfer
    control of us to a third party by transferring their
    Class A common stock, which would not require the approval
    of our Board of Directors or our other stockholders.
Our certificate of incorporation will provide that the doctrine
    of "corporate opportunity" will not apply against our
    Principal Equityholders and their respective affiliates in a
    manner that would prohibit them from investing in competing
    businesses or doing business with our clients. To the extent
    they invest in such other businesses, our Principal
    Equityholders may have differing interests than our other
    stockholders.
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We are party to a Registration Agreement with certain of our
    Principal Equityholders. Under the Registration Agreement, our
    Principal Equityholders have certain registration rights with
    respect to our Class A common stock. See "Certain
    Relationships and Related Party Transactions —
    Registration Agreement."
See "Principal and Selling Stockholders" and
    "Certain Relationships and Related Party Transactions."
The
    U.S. Congress has enacted new legislation that affects the
    taxation of our Class A common stock held by or through foreign
    entities.
Recently enacted legislation generally will impose a withholding
    tax of 30 percent on dividend income from our Class A common
    stock and the gross proceeds of a disposition of our Class A
    common stock paid to certain foreign entities after
    December 31, 2012, unless the foreign entity complies with
    certain conditions or an exception applies. See "Certain
    U.S. Federal Income and Estate Tax Consequences to Non-U.S.
    Holders of Common Stock — Recently-Enacted Federal Tax
    Legislation."
We
    will be required to pay an affiliate of our Principal
    Equityholders for certain tax benefits we may claim (but may
    never fully realize) as a result of transactions before and
    after this offering.
Beginning in 2006, certain acquisitions by Aurora Holdings have
    resulted in an increase in the tax basis of intangible assets,
    primarily goodwill, which results in tax amortization deductions
    that would not have been available in the absence of those
    acquisitions. The Aurora Holdings Units held by the Aurora
    Holdings Continuing Members (along with shares of our
    Class B common stock) will be exchangeable in the future
    for cash or shares of our Class A common stock. These
    future exchanges are likely to result in tax basis adjustments
    to the assets of Aurora Holdings, which adjustments would also
    be allocated to us. The existing tax basis and the anticipated
    tax basis adjustments are expected to reduce the amount of tax
    that we would otherwise be required to pay in the future.
In connection with this offering, Aurora Diagnostics, Inc. will
    enter into the Tax Receivable Agreement with ARDX Sub and the
    Tax Receivable Entity that will provide for the payment by
    Aurora Diagnostics Inc. to the Tax Receivable Entity of
    85 percent of certain cash tax savings, if any, in
    U.S. federal, state, local and foreign income tax realized
    by Aurora Diagnostics Inc. after the completion of this offering
    as a result of:
•
favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
•
any
step-up
in tax basis in our share of Aurora Holdings' assets
    resulting from:
•
the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class A common stock or cash, or
•
payments under the Tax Receivable Agreement to the Tax
    Receivable Entity; and
•
tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
The actual increase in tax basis, as well as the amount and
    timing of any payments under the Tax Receivable Agreement, will
    vary depending upon a number of factors, including the timing of
    exchanges by the Aurora Holdings Continuing Members, the price
    of our Class A common stock at the time of the exchange,
    the extent to which such exchanges are taxable, the amount and
    timing of the taxable income we generate in the future and the
    tax rate then applicable and the portion of our payments under
    the Tax Receivable Agreement constituting imputed interest or
    amortizable basis.
The payments we are required to make under the Tax Receivable
    Agreement could be substantial. We expect that, as a result of
    the amount of the increases in the tax basis of the tangible and
    intangible assets of Aurora Holdings, assuming no material
    changes in the relevant tax law and that we earn sufficient
    taxable income to realize in full the potential tax benefit
    described above, future payments under the Tax Receivable
    Agreement in respect of the existing tax attributes will
    aggregate $      and range from
    approximately $      to
    $      per year over the
    next   years. These amounts reflect only the cash
    tax savings attributable to current tax attributes resulting
    from past acquisitions described above as well as from the
    Reorganization Transactions. Future payments under the Tax
    Receivable Agreement in respect of subsequent acquisitions of
    Aurora Holdings Units would be in addition to these
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amounts and would, if such exchanges took place at
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, be of substantial but relatively smaller magnitude.
In addition, although we do not believe that the Internal
    Revenue Service, or IRS, would challenge the tax basis increases
    or other benefits arising under the Tax Receivable Agreement,
    the Tax Receivable Entity will not reimburse or indemnify us for
    any payments previously made if such tax basis increases or
    other tax benefits are subsequently disallowed or for any other
    claims made by the IRS, except that excess payments made to the
    Tax Receivable Entity will be netted against payments otherwise
    to be made, if any, after our determination of such excess. As a
    result, in such circumstances, we could make payments under the
    Tax Receivable Agreement that are greater than our cash tax
    savings.
Because we are a holding company with no operations of our own,
    our ability to make payments under the Tax Receivable Agreement
    is dependent on the ability of Aurora Holdings and its
    subsidiaries to make distributions to us. Our debt agreements
    will restrict the ability of our subsidiaries to make
    distributions to us, which could affect our ability to make
    payments under the Tax Receivable Agreement. To the extent that
    we are unable to make payments under the Tax Receivable
    Agreement because of such restrictions, such payments will be
    deferred and will accrue interest until paid.
Under the terms of the Tax Receivable Agreement, certain events
    may cause the acceleration or modification of our obligation to
    make payments to our Principal Equityholders. In the event of an
    adverse change in tax law or if we choose to terminate the Tax
    Receivable Agreement (with the consent of our independent
    directors), we would be required to pay a lump sum amount in
    lieu of the estimated future payments otherwise provided for in
    the Tax Receivable Agreement. The lump sum amount would be based
    on assumptions regarding tax margins and would be calculated
    based on a present value of the total amount otherwise payable
    under the Tax Receivable Agreement. If the assumptions used turn
    out to be false, we may pay more or less than the 85 percent of
    the cash tax savings that would have been realized by us.
    Furthermore, in the event of a change of control, our
    successor's obligations under the Tax Receivable Agreement
    would be based on the assumption that the cash tax savings to us
    were realized in full. See "Certain Relationships and
    Related Party Transactions — Tax Receivable
    Agreement."
Risks
    Related to This Offering
We
    have broad discretion in the use of the net proceeds that we
    will receive from this offering and may not use them in a manner
    in which our stockholders would consider
    appropriate.
A portion of the net proceeds that we will receive from this
    offering will be used to acquire Aurora Holdings Units (and
    accompanying shares of our Class B common stock) from the
    Aurora Holdings Continuing Members, but we cannot specify with
    certainty the particular uses of the remaining net proceeds that
    we will receive from this offering. Our management will have
    broad discretion in the application of the remaining net
    proceeds that we will receive from this offering, including for
    any of the purposes described under the heading "Use of
    Proceeds" included elsewhere in this prospectus. Our
    stockholders may not agree with the manner in which our
    management chooses to allocate and spend the net proceeds that
    we will receive from this offering. The failure by our
    management to apply these funds effectively could have a
    material adverse effect on our business. Pending their use, we
    may invest the net proceeds that we will receive from this
    offering in a manner that does not produce income or that loses
    value.
After
    this offering, our executive officers, directors and major
    stockholders will maintain the ability to control all matters
    submitted to stockholders for approval.
When this offering is completed, our Principal Equityholders
    will beneficially own shares representing, in aggregate,
    approximately      percent of our
    common stock. Specifically, the Summit Partners Equityholders
    will, in aggregate, beneficially
    own      percent of our common
    stock immediately following the completion of this offering, the
    KRG Equityholders will, in aggregate, beneficially own
    approximately      percent of our
    common stock immediately following the completion of this
    offering, and our Managing Equityholders will, in aggregate,
    beneficially own
    approximately      percent of our
    common stock immediately following the completion of this
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offering. As a
    result,     ,
and/or
as a group, will be able to control all matters submitted to our
    stockholders for approval, as well as our management and
    affairs. For example, such parties will control the election of
    directors and approval of any merger, consolidation or sale of
    all or substantially all of our assets. This concentration of
    voting power could delay or prevent an acquisition of our
    company on terms that other stockholders may desire. See
    "— Risks Related to Our Organization and
    Structure — We are controlled by our Principal
    Equityholders whose interest in our business may be different
    than yours, and certain statutory provisions afforded to
    stockholders are not applicable to us."
We may
    become involved in securities class action litigation that could
    harm our reputation and business.
The public equities markets intermittently experience
    significant price and volume fluctuations that have affected the
    market prices of shares of diagnostic services companies like
    ours. Market fluctuations may cause the price of our stock to
    decline. In the past, public companies have often been subject
    to securities class action litigation following a broad decline
    in the market price of their securities. This risk is especially
    relevant for us because diagnostic services companies have
    experienced significant stock price volatility in recent years.
    We may become involved in this type of litigation in the future.
    Litigation often is lengthy and costly and may divert
    management's attention and resources, which could adversely
    affect our business.
Failure
    to manage increased costs, including those related to company
    compliance programs, as a result of operating as a public
    company may have an adverse effect on our
    business.
As a public company, we will incur significant additional
    administrative, legal, accounting and other expenses beyond
    those of a private company. In addition, the Sarbanes-Oxley Act
    of 2002, as well as rules subsequently implemented by the
    Securities and Exchange Commission, or the SEC, and the NASDAQ
    Global Market in the past several years have imposed numerous
    additional requirements on public companies. These requirements
    have included the establishment and maintenance of effective
    disclosure and financial controls and changes in corporate
    governance practices. We will need to devote significant
    resources to deal with these public company-associated
    requirements, including compliance programs, investor relations
    and financial reporting obligations. These rules and regulations
    will increase our legal and financial compliance costs and will
    make some activities more time-consuming and costly. As a public
    company, it will be more difficult and more expensive for us to
    obtain director and officer liability insurance, and we may be
    required to accept reduced policy limits and coverage or incur
    substantially higher costs to obtain the same or similar
    coverage. If we are not able to comply with the requirements of
    the Sarbanes-Oxley Act of 2002 or if we or our independent
    registered public accounting firm identify deficiencies in our
    internal control over financial reporting that are deemed to be
    significant deficiencies or material weaknesses, the market
    price of our Class A common stock could decline. We could
    also be subject to sanctions or investigations by the NASDAQ
    Global Market, the SEC or other regulatory authorities, which
    could adversely affect our reputation, results of operations,
    and financial condition.
Failure
    to achieve and maintain effective internal control over
    financial reporting in accordance with Section 404 of the
    Sarbanes-Oxley Act of 2002 could have a material adverse effect
    on our business.
As a public company, we will be required to document and test
    our internal control procedures in order to satisfy the
    requirements of Section 404 of the Sarbanes-Oxley Act of
    2002, which will require annual management assessments of the
    effectiveness of our internal control over financial reporting.
    Our independent registered public accounting firm will also be
    required to deliver a report providing its own assessment of the
    effectiveness of our internal control over financial reporting.
    During the course of our testing, we may identify deficiencies
    that we may not be able to remediate in time to meet our
    deadline for compliance with Section 404. We will first be
    required to comply with the requirements of Section 404 for
    our fiscal year ended December 31, 2011. We also may not be
    able to conclude on an ongoing basis that our internal control
    over financial reporting is effective in accordance with
    Section 404, and our independent registered public
    accounting firm may not be able to or willing to agree with our
    assessment of the effectiveness of our internal control over
    financial reporting. Failure to achieve and maintain an
    effective internal control environment could harm our operating
    results, cause us to fail to meet our reporting obligations or
    require that we restate our financial statements for prior
    periods, any of which could cause a decline in
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the market price of our Class A common stock. Testing and
    maintaining internal control over financial reporting will also
    involve significant costs and could divert management's
    attention from other matters that are important to our business.
Provisions
    in our certificate of incorporation and under Delaware law may
    prevent or frustrate attempts by our stockholders to change our
    management and hinder efforts to acquire a controlling interest
    in us.
Provisions of our certificate of incorporation and bylaws may
    discourage, delay or prevent a merger, acquisition or other
    change in control that stockholders may consider favorable,
    including transactions in which you might otherwise receive a
    premium for your shares. These provisions may also prevent or
    frustrate attempts by our stockholders to replace or remove our
    management. These provisions include:
•
a classified board of directors;
•
limitations on the removal of directors;
•
advance notice requirements for stockholder proposals and
    nominations;
•
the inability of stockholders to act by written consent or to
    call special meetings; and
•
the ability of our Board of Directors to designate the terms of
    and issue new series of preferred stock without stockholder
    approval.
The affirmative vote of the holders of at least two-thirds of
    our shares of capital stock entitled to vote is necessary to
    amend or repeal the above provisions of our certificate of
    incorporation. In addition, absent approval of our Board of
    Directors, our bylaws may only be amended or repealed by the
    affirmative vote of the holders of at least two-thirds of our
    shares of capital stock entitled to vote.
If an
    active, liquid trading market for our Class A common stock
    does not develop, you may not be able to sell your shares
    quickly or at or above the initial offering price.
Prior to this offering, there has not been a public market for
    our Class A common stock. An active and liquid trading
    market for our Class A common stock may not develop or be
    sustained following the completion of this offering. You may not
    be able to sell your shares quickly, at or above the initial
    offering price or at all if trading in our stock is not active.
    The initial public offering price may not be indicative of
    prices that will prevail in the trading market. See
    "Underwriters" for more information regarding the
    factors that will be considered in determining the initial
    public offering price.
If you
    purchase shares of our Class A common stock in this
    offering, you will suffer immediate and substantial dilution of
    your investment and may suffer dilution in the
    future.
Purchasers of our Class A common stock in this offering
    will pay a price per share that substantially exceeds the per
    share value of our tangible assets after subtracting our
    liabilities and the per share price paid by our existing
    stockholders. Accordingly, if you purchase shares at an assumed
    initial public offering price of $     
    per share, you will experience immediate and substantial
    dilution of $      per share,
    representing the difference between our pro forma net tangible
    book value per share after giving effect to this offering at the
    assumed initial public offering price and the public offering
    price of $      per share. In addition,
    purchasers of our Class A common stock in this offering
    will have contributed
    approximately      percent of the
    aggregate price paid by all purchasers of our stock but will own
    only approximately      percent of
    our Class A common stock outstanding after this offering.
    In the future, we may also acquire other companies or assets,
    raise additional needed capital or finance strategic alliances
    by issuing equity, which may result in additional dilution to
    you.
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If
    equity research analysts do not publish research or reports
    about our business, or if they issue unfavorable commentary or
    downgrade our Class A common stock, the price of our
    Class A common stock could decline.
The trading market for our Class A common stock will rely
    in part on the research and reports that equity research
    analysts publish about us and our business. We do not control
    these analysts or the content and opinions included in their
    reports. Securities analysts may elect not to provide research
    coverage of our Class A common stock after the completion
    of this offering, and such lack of research coverage may
    adversely affect the market price of our Class A common
    stock. The price of our stock could decline if one or more
    equity research analysts downgrade our stock or if those
    analysts issue other unfavorable commentary or cease publishing
    reports about us or our business. If one or more equity research
    analysts ceases coverage of our company, we could lose
    visibility in the market, which in turn could cause our stock
    price to decline.
Purchasers
    of our Class A common stock could incur substantial
    losses.
Our stock price is likely to be volatile. The stock market in
    general has experienced extreme volatility that has often been
    unrelated to the operating performance of particular companies.
    Investors may not be able to sell their Class A common
    stock at or above the initial public offering price. The market
    price for our Class A common stock may be influenced by
    many factors, including:
•
changes in health care coverage or reimbursement guidelines and
    amounts, including health care reimbursement reform and
    cost-containment measures implemented by government agencies;
•
changes in the structure of health care payment systems;
•
variations in deductible and coinsurance amounts;
•
regulatory developments affecting the health care or diagnostic
    services industry;
•
our failure to comply with applicable regulations or increased
    investigative or enforcement initiatives by governmental and
    other third-party payors;
•
changes in the payor mix or the mix or cost of our specialized
    diagnostic services;
•
the timing and volume of patient orders and seasonality of our
    business;
•
the timing and cost of our sales and marketing efforts;
•
litigation involving our company, our industry, or both;
•
the departure of key personnel;
•
our ability to continue to add new laboratories;
•
future sales of our Class A common stock;
•
variations in our financial results or those of companies that
    are perceived to be similar to us;
•
changes in market valuations of companies similar to ours;
•
changes in recommendations by securities analysts and
    investors' perceptions of us;
•
changes in our capitalization, including future issuances of our
    Class A common stock or the incurrence of additional
    indebtedness; and
•
general economic, industry and market conditions.
Shares
    eligible for future sale by existing stockholders may adversely
    affect our stock price.
Sales of a substantial number of shares of our Class A
    common stock in the public market could occur at any time,
    particularly after the expiration of the
lock-up
agreements described in the "Underwriters" section of
    this prospectus. These sales, or the perception in the market
    that the holders of a large number of shares intend to sell
    shares, could reduce the market price of our Class A common
    stock.
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After the closing of this offering, we will
    have          
    outstanding shares of our Class A common stock, after
    giving effect to the sale
    of           shares
    of our Class A common stock offered by us and the selling
    stockholders in this offering at a purchase price equal to the
    assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, after deducting the estimated underwriting discount
    and commissions and offering expenses payable by us.
This also includes the shares that we are selling in this
    offering, which may be resold in the public market immediately.
    Of the remaining
    shares,           shares
    are currently restricted as a result of securities laws or
lock-up
agreements but will be available for resale in the public market
    as described in the "Shares Eligible for Future
    Sale" section of this prospectus.
Our Principal Equityholders own
    approximately           shares
    of our Class A common stock or
    approximately           percent
    of our outstanding Class A common stock. If the Aurora
    Holdings Continuing Members exchanged all of their Aurora
    Holdings Units (and accompanying shares of our Class B
    common stock) for shares of our Class A common stock, the
    Aurora Holdings Continuing Members would hold an
    additional      shares of our
    Class A common stock, or
    approximately      percent of our
    outstanding Class A common stock in the aggregate. All of
    the shares held by our Principal Equityholders may be sold
    without complying with the registration provisions of the
    Securities Act, as amended, or the Securities Act, upon
    satisfying the conditions of Rule 144 of the Securities
    Act. The sale of shares by these Principal Equityholders under
    Rule 144 may have an adverse affect on the market price of
    our Class A common stock and may inhibit our ability to
    manage subsequent equity or debt financing.
If a large number of shares of our Class A common stock or
    securities convertible into our Class A common stock are
    sold in the public market after they become eligible for sale,
    the sales could reduce the trading price of our Class A
    common stock and impede our ability to raise future capital.
We
    have not paid cash dividends and do not expect to pay dividends
    in the future, which means that you may not be able to realize
    the value of our shares except through sale.
Although Aurora Holdings has made tax and other distributions to
    its members in accordance with the Aurora Holdings LLC
    Agreement, we have never declared or paid cash dividends. We
    currently expect to retain earnings for our business and do not
    anticipate paying dividends on our Class A common stock at
    any time in the foreseeable future. Our Board of Directors will
    decide whether to pay dividends on our Class A common stock
    from time to time in the exercise of its business judgment.
    Because we do not anticipate paying dividends in the future, the
    only opportunity to realize the value of our Class A common
    stock will likely be through an appreciation in value and a sale
    of those shares. There is no guarantee that shares of our
    Class A common stock will appreciate in value or even
    maintain the price at which our stockholders have purchased
    their shares.
FORWARD-LOOKING
    STATEMENTS
This prospectus includes forward-looking
    statements.  All statements other than statements of
    historical facts contained in this prospectus, including
    statements regarding our future results of operations and
    financial position, business strategy and plans and objectives
    for future operations, are forward-looking statements. The words
    "believe," "may," "might,"
    "will," "estimate," "continue,"
    "anticipate," "intend," "expect,"
    "plan," "could," "would" and
    similar expressions are intended to identify forward-looking
    statements. We have based these forward-looking statements
    largely on our current expectations and projections about future
    events and financial trends that we believe may affect our
    financial condition, results of operations, business strategy,
    short-term and long-term business operations and objectives, and
    financial needs. We caution the forward-looking statements in
    this prospectus are subject to a number of known and unknown
    risks, uncertainties and assumptions that may cause our actual
    results, performance or achievements to be materially different
    from any future results, performances or achievements expressed
    or implied by the forward-looking statements. In addition to the
    risks described in "Risk Factors," factors that could
    contribute to these differences include, among other things:
•
changes in medical treatment or reimbursement rates or
    utilization for our anatomic pathology markets;
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•
competition for our diagnostic services, including the
    internalization of testing functions and technologies by our
    clients;
•
changes in payor regulations, policies or payor mix;
•
the anticipated benefits from acquisitions not being fully
    realized or not being realized within the expected time frames;
•
disruptions or failures of our IT solutions or infrastructure;
•
loss of key executives and technical personnel;
•
the failure to maintain relationships with clients, including
    referring physicians and hospitals, and with payors;
•
covenants in our debt agreements;
•
our substantial amount of indebtedness;
•
the protection of our intellectual property;
•
general economic, business or regulatory conditions affecting
    the health care and diagnostic testing services industries;
•
federal or state health care reform initiatives;
•
violation of, failure to comply with, or changes in federal and
    state laws and regulations related to, submission of claims for
    our services, fraud and abuse, patient privacy, and billing
    arrangements for our services;
•
attainment of licenses required to test patient specimens from
    certain states or the loss or suspension of licenses;
•
control by our Principal Equityholders;
•
payments under the Tax Receivable Agreement;
•
compliance with certain corporate governance requirements and
    costs incurred in connection with becoming a public company;
•
failure to establish and maintain internal controls over
    financial reporting; and
•
the other factors discussed under the heading "Risk
    Factors" and elsewhere in this prospectus.
Moreover, we operate in a very competitive and rapidly changing
    environment, and new risks emerge from
time-to-time.
It is not possible for our management to predict all risks, nor
    can we assess the impact of all factors on our business or the
    extent to which any factor, or combination of factors, may cause
    actual results to differ materially from those contained in any
    forward-looking statements we may make. In light of these risks,
    uncertainties and assumptions, the forward-looking events and
    circumstances discussed in this prospectus may not occur, and
    actual results could differ materially and adversely from those
    anticipated or implied in the forward-looking statements.
You should not rely upon forward-looking statements as
    predictions of future events. Although we believe that the
    expectations reflected in the forward-looking statements are
    reasonable, we cannot guarantee that the future results, levels
    of activity, performance or events and circumstances reflected
    in the forward-looking statements will be achieved or occur.
    Moreover, neither we nor any other person assumes responsibility
    for the accuracy and completeness of the forward-looking
    statements. We undertake no obligation to update publicly any
    forward-looking statements for any reason after the date of this
    prospectus to conform these statements to actual results or
    changes in our expectations.
The forward-looking statements in this prospectus speak only as
    of the date of this prospectus. You should assume that the
    information appearing in this prospectus is accurate only as of
    the date on the front cover of this prospectus. Our business,
    financial condition, results of operations, or prospects may
    have changed since that date. Neither the delivery of this
    prospectus nor the sale of the common shares means that
    information contained in this
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prospectus is correct after the date of this prospectus. Except
    as otherwise required by applicable laws, we undertake no
    obligation to publicly update or revise any forward-looking
    statements, the risk factors or other information described in
    this prospectus, whether as a result of new information, future
    events, changed circumstances or any other reason after the date
    of this prospectus.
The Private Securities Litigation Reform Act of 1995 and
    Section 27A of the Securities Act do not protect any
    statements we make in connection with this offering.
This prospectus also contains market data related to our
    business and industry. These market data include projections
    that are based on a number of assumptions. While we believe
    these assumptions to be reasonable and sound as of the date of
    this prospectus, if these assumptions turn out to be incorrect,
    actual results may differ from the projections based on these
    assumptions. As a result, our markets may not grow at the rates
    projected by these data, or at all. The failure of these markets
    to grow at these projected rates may have a material adverse
    effect on our business, results of operations, financial
    condition and the market price of our Class A common stock.
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ORGANIZATIONAL
    STRUCTURE
Structure
    Prior to the Reorganization Transactions
We were incorporated in Delaware on April 23, 2010. We are
    a holding company, and our principal asset after the completion
    of this offering will be our indirect equity interest in Aurora
    Holdings. We have not engaged in any business or other
    activities except for activities in contemplation of this
    offering. We currently expect that our only business or other
    activities will be our indirect investment in Aurora Holdings
    and our participation in the Reorganization Transactions. Aurora
    Holdings and its subsidiaries have historically conducted the
    business described in this prospectus. Following the completion
    of this offering and the Reorganization Transactions, we expect
    to conduct our business through Aurora Holdings and its
    subsidiaries.
Aurora Holdings was organized in 2006 as a limited liability
    company to act as a holding company for Aurora Diagnostics, LLC
    and our other operating subsidiaries. Aurora Holdings was
    initially capitalized by affiliates of Summit Partners,
    affiliates of GSO Capital Partners and members of our senior
    management team. In June 2009, GSO Capital Partners' equity
    interest in Aurora Holdings was purchased by an affiliate of KRG
    Capital Partners.
We are authorized to issue two classes of common stock:
    Class A common stock and Class B common stock. Each
    share of the Class A common stock and Class B common
    stock provides the holder with one vote on all matters submitted
    to a vote of stockholders; however, the holders of Class B
    common stock do not have any of the economic rights (including
    rights to dividends and distributions upon liquidation, but
    excluding the return of the par value on liquidation) provided
    to holders of Class A common stock. All shares of our
    common stock generally vote together, as a single class, on all
    matters submitted to a vote of stockholders. Prior to giving
    effect to the Reorganization Transactions, all of our
    outstanding common stock is and will be held by James C. New,
    our Chairman, Chief Executive Officer and President.
Prior to the Reorganization Transactions, Aurora Holdings had
    131,382 outstanding membership interests in eight classes,
    including 21,382
Class A-1
Units, 85,000 Class A Units, 10,000 Class B Units,
    5,000 Class C Units, 4,000
Class D-1
Units, 3,000
Class D-2
Units, 3,000
Class D-3
Units and Class X capital of $7.1 million. Prior to
    giving effect to the Reorganization Transactions, the Aurora
    Holdings Units are owned as follows:
•
the Summit Partners Equityholders currently own 51 percent
    of the economic interest in Aurora Holdings;
•
the KRG Equityholders currently own 34 percent of the
    economic interest in Aurora Holdings; and
•
the Management Equityholders currently own 15 percent of
    the economic interest in Aurora Holdings.
Prior to giving effect to the Reorganization Transactions, we
    will own no outstanding Aurora Holdings Units. We refer to the
    Summit Partners Equityholders, the KRG Equityholders and the
    Management Equityholders as our Principal Equityholders.
Reorganization
    Transactions
In connection with this offering, we will enter into the
    Reorganization Transactions. As part of the Reorganization
    Transactions:
•
We will form ARDX Sub and certain entities organized and
    controlled, respectively, by the Summit Partners Equityholders
    and the KRG Equityholders will merge with and into ARDX Sub, and
    ARDX Sub will be the surviving entity in the merger and will
    hold all of the Aurora Holdings Units previously owned by those
    entities; the stockholders of each of those entities will
    receive in the merger an aggregate
    of           shares
    of our Class A common stock and TRA Rights;
•
ARDX Sub will acquire additional Aurora Holdings Units from
    entities organized and controlled by the Summit Partners
    Equityholders in exchange for shares of our Class A common
    stock and TRA Rights;
•
Aurora Holdings will enter into the Second Amended and Restated
    Aurora Holdings LLC Agreement such that all of its outstanding
Class A-1
Units, Class A Units, Class B Units, Class C
    Units,
Class D-1
Units,
Class D-2
Units,
Class D-3
Units and Class X capital will be reclassified as Aurora
    Holdings Units (all of which will be of a single class), and the
    Aurora Holdings Continuing Members will also receive rights to
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distributions that are calculated in a manner that is similar to
    the TRA Rights under the Second Amended and Restated Aurora
    Holdings LLC Agreement;
•
ARDX Sub will acquire all business and operational control of
    Aurora Holdings, and an immaterial amount of cash, from the
    Aurora Holdings Continuing Members in exchange for newly-issued
    shares of our Class B common stock;
•
Certain of the Summit Partners Equityholders and the KRG
    Equityholders and all of the Management Equityholders will form
    the Tax Receivable Entity;
•
Certain of the Summit Partners Equityholders and the KRG
    Equityholders and all of the Management Equityholders will
    contribute TRA Rights for interests in the Tax Receivable
    Entity, and we and ARDX Sub will enter into the Tax Receivable
    Agreement with the Tax Receivable Entity; and
•
We will use a portion of the net proceeds that we will receive
    from this offering to acquire, through ARDX Sub, a portion of
    the Aurora Holdings Units (and a corresponding number of shares
    of Class B common stock) held by the Aurora Holdings Continuing
    Members in exchange for cash and TRA Rights.
See "— Holding Company Structure and Tax
    Receivable Agreement" and "Certain Relationships and
    Related Party Transactions."
Effect of
    the Reorganization Transactions and this Offering
The Reorganization Transactions are intended to create a
    corporate holding company that will facilitate public ownership
    of, and investment in, us.
As part of this offering, the Summit Partners Equityholders and
    KRG Equityholders will
    sell           shares
    of our Class A common stock. We will not receive any of the
    proceeds from the sale of shares of our Class A common
    stock in this offering by the selling stockholders. Immediately
    following the completion of this offering, we will use a portion
    of the net proceeds that we will receive from this offering,
    along with TRA Rights, to
    purchase           shares
    of our Class B common stock and an equal number of Aurora
    Holdings Units from the Aurora Holdings Continuing Members. This
    will further reduce the interest of the Aurora Holdings
    Continuing Members in us.
Upon completion of the Reorganization Transactions, this
    offering and the application of the net proceeds that we will
    receive from this offering, our Class A common stock will
    be held as follows:
•
Our public stockholders will hold an aggregate
    of     shares of our Class A
    common stock
    (or           shares
    if the underwriters exercise their over-allotment option in
    full), representing      percent
    of the combined voting power in us
    (or      percent if the
    underwriters exercise their over-allotment option in full)
    and      percent of the economic
    interest in us (or      percent if
    the underwriters exercise their over-allotment option in full);
•
Certain Summit Partners Equityholders will hold an aggregate
    of           shares
    of our Class A common stock
    (or           shares
    if the underwriters exercise their over-allotment option in
    full),
    representing           percent
    of the combined voting power in us
    (or           percent
    if the underwriters exercise their over-allotment option in
    full) and      percent of the
    economic interest in us
    (or           percent
    if the underwriters exercise their over-allotment option in
    full);
•
The KRG Equityholders will hold an aggregate
    of           shares
    of our Class A common stock
    (or           shares
    if the underwriters exercise their over-allotment option in
    full), representing      percent
    of the combined voting power in us
    (or      percent if the
    underwriters exercise their over-allotment option in full)
    and      percent of the economic
    interest in us (or      percent if
    the underwriters exercise their over-allotment option in
    full); and
•
The Management Equityholders will hold no shares of our
    Class A common stock.
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Upon completion of the Reorganization Transactions, this
    offering and the application of the net proceeds that we will
    receive from this offering, our Class B common stock will
    be held as follows:
•
Certain of the Summit Partners Equityholders will hold an
    aggregate
    of           shares
    of our Class B common stock
    (or           shares
    if the underwriters exercise their over-allotment in full),
    representing      percent of the
    combined voting power in us
    (or      percent if the
    underwriters exercise their over-allotment in full) and none of
    the economic interest in us; and
•
The KRG Equityholders will hold no shares of our Class B
    common stock; and
•
The Management Equityholders will hold an aggregate
    of           shares
    of our Class B common stock
    (or           shares
    if the underwriters exercise their over-allotment in full),
    representing      percent of the
    combined voting power in us
    (or      percent if the
    underwriters exercise their over-allotment in full) and none of
    the economic interest in us.
Upon completion of the Reorganization Transactions, this
    offering and the application of the net proceeds that we will
    receive from this offering, the Aurora Holdings Units will be
    held as follows:
•
We will indirectly, through ARDX Sub, be the sole managing
    member of Aurora Holdings, will have all business and
    operational control of Aurora Holdings, and will indirectly hold
    an aggregate of        Aurora
    Holdings Units (or       
    Aurora Holdings Units if the Underwriters exercise their
    over-allotment in full),
    representing      percent of the
    combined voting power in Aurora Holdings
    and      percent of the economic
    interest in Aurora Holdings (or     
    percent if the Underwriters exercise their over-allotment in
    full). We will consolidate the financial results of Aurora
    Holdings, and our net income (loss) will be reduced by a
    noncontrolling interest expense to reflect the entitlement of
    the Aurora Holdings Continuing Members to a portion of Aurora
    Holdings' net income (loss);
•
Certain of the Summit Partners Equityholders, will hold an
    aggregate
    of          
    Aurora Holdings Units (or     Aurora
    Holdings Units if the underwriters exercise their over-allotment
    in full),
    representing      percent of the
    combined voting power in Aurora Holdings
    and      percent of the economic
    interest in Aurora Holdings (or     
    percent if the underwriters exercise their over-allotment in
    full);
•
The KRG Equityholders will hold no Aurora Holdings
    Units; and
•
The Management Equityholders will hold an aggregate
    of          
    Aurora Holdings Units (or     Aurora
    Holdings Units if the underwriters exercise their over-allotment
    in full),
    representing      percent of the
    combined voting power in Aurora Holdings
    and      percent of the economic
    interest in Aurora Holdings (or     
    percent if the underwriters exercise their over-allotment in
    full).
Holding
    Company Structure and Tax Receivable Agreement
We are a holding company and, immediately after the consummation
    of the Reorganization Transactions and the completion of this
    offering, our principal asset will be our indirect interest in
    Aurora Holdings. We do not intend to list our Class B
    common stock on any stock exchange.
The Tax Receivable Entity will be formed with our Principal
    Equityholders holding its equity interests. Aurora Diagnostics,
    Inc. will enter into the Tax Receivable Agreement with ARDX Sub
    and the Tax Receivable Entity that will provide for the payment
    by Aurora Diagnostics, Inc. to the Tax Receivable Entity of
    85 percent of certain cash tax savings, if any, in
    U.S. federal, state, local and foreign income tax realized
    by Aurora Diagnostics, Inc. after the completion of this
    offering as a result of:
•
favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
•
any
step-up
in tax basis in our share of Aurora Holdings' assets
    resulting from:
•
the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class A common stock or cash, or
•
payments under the Tax Receivable Agreement to the Tax
    Receivable Entity; and
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•
tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
We are entering into the Tax Receivable Agreement because
    favorable tax attributes have been or will be made available to
    us as a result of transactions before and after the offering.
    Our Principal Equityholders believe that the value of these tax
    attributes should be considered in determining the value of
    their contribution to us. As it may be difficult to determine
    the present value of these tax attributes with a reasonable
    level of certainty, the Tax Receivable Agreement with the Tax
    Receivable Entity will obligate Aurora Diagnostics, Inc. to make
    payments to the Tax Receivable Entity of 85 percent of
    certain cash tax savings, if any, in U.S. federal, state,
    local and foreign income tax realized by Aurora Diagnostics,
    Inc. as a result of these attributes. Aurora Diagnostics, Inc.
    will retain the benefit of the remaining 15 percent of
    these certain cash tax savings.
In addition, future exchanges of Aurora Holdings Units for
    shares of our Class A common stock or cash, as well as
    payments under the Tax Receivable Agreement, will produce
    additional favorable tax attributes to us, which would not be
    available in the absence of such exchanges. The Tax Receivable
    Agreement therefore will obligate Aurora Diagnostics, Inc. to
    make payments to the Tax Receivable Entity of 85 percent of
    certain cash tax savings, if any, realized by Aurora
    Diagnostics, Inc. as a result of those additional tax
    attributes. Aurora Diagnostics, Inc. will also retain the
    benefit of the remaining 15 percent of these additional
    certain cash tax savings.
Although we do not believe that the IRS would challenge the tax
    basis increases or other benefits arising under the Tax
    Receivable Agreement, the Tax Receivable Entity will not
    reimburse or indemnify us for any payments previously made if
    such tax basis increases or other tax benefits are subsequently
    disallowed or for any other claims made by the IRS, except that
    excess payments made to the Tax Receivable Entity will be netted
    against payments otherwise to be made, if any, after our
    determination of such excess. As a result, in such
    circumstances, we could make payments to the Tax Receivable
    Entity under the Tax Receivable Agreement that are greater than
    our cash tax savings. See "Certain Relationships and
    Related Party Transactions — Tax Receivable
    Agreement."
As a member of Aurora Holdings, ARDX Sub will incur
    U.S. federal, state, local and foreign income taxes on its
    allocable share of any net taxable income of Aurora Holdings. As
    will be authorized by the Second Amended and Restated Aurora
    Holdings LLC Agreement and to the extent permitted under our
    debt agreements, we intend for our subsidiary to cause Aurora
    Holdings to continue to distribute cash, generally, on a pro
    rata basis, to its members (which, after consummation of the
    Reorganization Transactions and the completion of this offering,
    will consist of ARDX Sub and the Aurora Holdings Continuing
    Members) at least to the extent necessary to provide sufficient
    funds to each member to pay its tax liabilities, if any, with
    respect to the taxable income of Aurora Holdings.
See "Certain Relationships and Related Party
    Transactions — Second Amended and Restated Aurora
    Holdings Limited Liability Company Agreement" and
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations — Liquidity and
    Capital Resources."
The obligations resulting from the Tax Receivable Agreement that
    will be entered into are expected to be more than offset by the
    tax benefits that we will receive in connection with the
    Reorganization Transactions and subsequent exchanges. Although
    not assured, we expect that the consideration that we will remit
    under the Tax Receivable Agreement will not exceed the tax
    liability that we otherwise would have been required to pay
    absent the transfers of tax attributes indirectly to us as a
    result of the Reorganization Transactions and subsequent
    exchanges.
Rights to receive payments under the Tax Receivable Agreement
    may be terminated by the Tax Receivable Entity if, as the result
    of an actual or proposed change in law, the existence of the
    agreement would cause recognition of ordinary income (instead of
    capital gain) in connection with future exchanges of Aurora
    Holdings Units for cash or shares of Class A common stock
    or would otherwise have material adverse tax consequences to the
    Tax Receivable Entity or its owners. There have been legislative
    proposals in the U.S. Congress that, if enacted, may result in
    such ordinary income recognition. Further, in the event of such
    a termination, the Tax Receivable Entity would have the right,
    subject to the delivery of an appropriate tax opinion, to
    require us to pay a lump sum amount in lieu of the payments
    otherwise provided under the agreement. That lump sum amount
    would be calculated by increasing the portion of the tax savings
    retained by us to 30 percent (from 15 percent) and by
    calculating a present value for the total amount that would
    otherwise be payable under the agreement, using a discount rate
    and assumptions as to income tax rates and as to our ability to
    utilize the tax benefits (including the assumption that we will
    have sufficient taxable income to fully utilize the tax
    benefits). If the assumptions used in this calculation turn
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out not to be true, we may pay more or less than the specified
    percentage of our actual cash tax savings. This lump sum amount
    is subordinate to amounts payable under our senior credit
    agreements and may be paid in cash or be deferred until all
    amounts payable under our senior credit agreements in existence
    as of the date of termination of the Tax Receivable Agreement
    have been paid, and the deferred amount will bear interest at a
    rate of      percent per annum. In view
    of the foregoing changes in the calculation of our obligations,
    we do not expect that the net impact of any such acceleration
    upon our overall financial condition would be materially adverse
    as compared to our obligations if laws do not change and the
    obligations are not accelerated. It is also possible that the
    net impact of such an acceleration would be beneficial to our
    overall financial condition. The ultimate impact of a decision
    to accelerate will depend on what the ongoing payments would
    have been under the Tax Receivable Agreement absent
    acceleration, which will depend on various factors.
We also have the right (with the consent of our independent
    directors) to terminate the Tax Receivable Agreement. If we
    exercise this right, then the Tax Receivable Entity would be
    entitled to a lump sum amount in lieu of the payments otherwise
    provided under the agreement. That lump sum amount would be
    calculated by determining a present value for the total amount
    that would otherwise be payable under the agreement, using a
    discount rate and assumptions as to income tax rates and as to
    our ability to utilize the tax benefits (including the
    assumption that we will have sufficient taxable income to fully
    utilize the tax benefits and the assumption that all exchanges
    that have not taken place will take place as of the date of the
    termination, which will increase the amount of the lump sum
    payment). If the assumptions used in this calculation turn out
    not to be true, we may pay more or less than the specified
    percentage of certain cash tax savings realized by us after the
    completion of this offering. This lump sum amount must be paid
    in cash. Any such acceleration can occur only at our election.
    Should we elect to terminate the Tax Receivable Agreement, we do
    not expect that the net impact of any such acceleration upon our
    overall financial condition would be materially adverse as
    compared to our existing obligations. The ultimate impact of a
    decision to accelerate will depend on what the ongoing payments
    would have been under the Tax Receivable Agreement absent
    acceleration, which will in turn depend on the various factors
    mentioned above.
If we default on any of our material obligations under the Tax
    Receivable Agreement, then, unless the Tax Receivable Entity
    seeks specific performance of the Tax Receivable Agreement, the
    Tax Receivable Entity has the option to accelerate payments due
    under the Tax Receivable Agreement and require us to make a lump
    sum payment representing all past due and future payments under
    the Tax Receivable Agreement, discounted to present value.
In addition, the Tax Receivable Agreement provides that, upon
    certain mergers, asset sales or other forms of business
    combination or certain other changes of control, our or our
    successor's obligations with respect to tax benefits would
    be based on certain assumptions, including that we or our
    successor would have sufficient taxable income to fully utilize
    the deductions arising from the increased tax deductions and tax
    basis and other benefits covered by the Tax Receivable
    Agreement. As a result, upon a change of control, we could be
    required to make payments under the Tax Receivable Agreement
    that are greater than or less than the specified percentage of
    our cash tax savings.
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USE OF
    PROCEEDS
We estimate that the net proceeds that we will receive from the
    sale of the Class A common stock offered by us will be
    approximately $      million,
    assuming an initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, and after deducting estimated underwriting discounts
    and commissions and estimated offering expenses payable by us
    and after giving effect to estimates of certain expenses that we
    expect to be reimbursed. We will not receive any proceeds from
    the sale of shares of Class A common stock by the selling
    stockholders, including any proceeds resulting from the
    underwriters' exercise of their option to purchase
    additional shares from the selling stockholders. A $1.00
    increase (decrease) in the assumed initial public offering price
    of $      per share would increase
    (decrease) the amount of proceeds that we will receive from this
    offering by $      million,
    assuming the number of shares offered by us, which is set forth
    on the cover page of this prospectus, remains the same, and
    after deducting the estimated underwriting discounts and
    commissions and estimated offering expenses payable by us.
The principal purposes of this offering are to raise capital to
    acquire Aurora Holdings Units in connection with this offering
    and to increase our capitalization and financial flexibility,
    fund our growth, provide a public market for our Class A
    common stock and facilitate access to public capital markets. We
    intend to use the remainder of the net proceeds that we will
    receive from this offering for working capital and other general
    corporate purposes, which may include general and administrative
    expenditures, sales and marketing expenditures, developing new
    products and funding acquisitions and capital expenditures. We
    may use a portion of the net proceeds that we will receive from
    this offering to acquire businesses, products, services or
    technologies. However, we do not have commitments for any
    specific acquisitions at this time. Based on an assumed initial
    public offering price of $      per
    share, which is the midpoint of the price range set forth on the
    cover page of this prospectus, we intend to use
    $      of the proceeds from this
    offering to
    purchase          
    Aurora Holdings Units held by the Aurora Holdings Continuing
    Members or      shares of Class B
    common stock (or $     
    or          
    Aurora Holdings Units  or      shares
    of Class B common stock if the underwriters exercise their
    over-allotment option in full). As a result of this purchase,
    certain Aurora Holdings Continuing Members may be obligated to
    make filings under Section 16(a) of the Securities Exchange
    Act of 1934, as amended, or the Exchange Act, reporting a change
    in beneficial ownership. We will have broad discretion in the
    way we use the net proceeds that we will receive from this
    offering.
The amounts that we actually expend for these specified purposes
    may vary significantly depending on a number of factors,
    including changes in our growth strategy, the amount of our
    future revenues and expenses and our future cash flow. As a
    result, we will retain broad discretion in the allocation of the
    net proceeds that we will receive from this offering and may
    spend these proceeds for any purpose, including purposes not
    presently contemplated. You will not have an opportunity to
    evaluate the economic, financial or other information on which
    we base our decisions regarding the use of the net proceeds that
    we will receive from this offering.
Pending the uses described above, we may invest the net proceeds
    that we receive from this offering in short-term,
    interest-bearing, investment-grade securities.
DIVIDEND
    POLICY
Although Aurora Holdings has made tax and other distributions to
    its members in accordance with the Aurora Holdings LLC
    Agreement, we have never declared or paid cash dividends on our
    common or preferred stock. We currently do not anticipate paying
    any cash dividends in the foreseeable future. We intend to
    retain any earnings to finance the development and expansion of
    our business. Any future determination to declare cash dividends
    will be made at the discretion of our Board of Directors,
    subject to applicable laws, and will depend on our financial
    condition, results of operations, contractual restrictions,
    capital requirements, general business conditions and other
    then-existing factors that our Board of Directors may deem
    relevant.
44
Table of Contents
CAPITALIZATION
The following table sets forth our actual capitalization as of
    December 31, 2009 and on a pro forma, as adjusted, basis to
    reflect:
•
the Reorganization Transactions described under "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure;"
•
the sale
    of           shares
    of our Class A common stock by us in this offering at an
    assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, after deducting the underwriters' discounts and
    commissions and the estimated offering expenses;
•
our new committed credit facilities, which we expect to close
    prior to the completion of this offering; and
•
the application of the net proceeds that we will receive from
    this offering as described under "Use of Proceeds."
The information below is illustrative only and our cash, cash
    equivalents and short-term investments and capitalization
    following the completion of this offering will be based on the
    actual initial public offering price and other terms of this
    offering determined at pricing. You should read this table
    together with "Management's Discussion and Analysis of
    Financial Condition and Results of Operations" and our
    consolidated financial statements and related notes included
    elsewhere in this prospectus.
December 31, 2009
Pro Forma,
Actual
(1)
as
    Adjusted
(3)
(unaudited)
(in thousands except share data)
Cash, cash equivalents and short-term investments
$
27,424
$
Current and long-term
    debt
(2)
219,752
Aurora Holdings Members' equity
217,064
Stockholders' Equity:
Class A common stock, $0.01 par value per
    share;          shares
    authorized
    (actual),          shares
    issued and outstanding (actual);
    and          shares
    authorized (pro forma as
    adjusted),          shares
    issued and outstanding (pro forma as adjusted)
—
Class B common stock, $0.01 par value per
    share;          shares
    authorized
    (actual),          shares
    issued
    and          shares
    outstanding
    (actual);          shares
    authorized (pro forma as
    adjusted),          shares
    issued
    and          shares
    outstanding (pro forma as adjusted)
—
Additional paid-in capital
—
Accumulated other comprehensive (loss)
—
Retained earnings
—
Total stockholders' equity of Aurora Diagnostics, Inc.
—
Noncontrolling interest
—
Total stockholders' equity
—
Total capitalization
$
464,240
$
45
Table of Contents
(1)
The actual capitalization
    represents Aurora Holdings' capitalization before giving
    effect to the Reorganization Transactions, the refinancing of
    our existing credit facility or the completion of this offering.
(2)
Actual as of December 31,
    2009, includes the current and long term portions of our
    existing credit facilities and the fair value of contingent
    consideration.
(3)
Each $1.00 increase (decrease) in
    the assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, after deducting the underwriters' discounts and
    commissions and the estimated offering expenses, would increase
    (decrease) the amount of pro forma as adjusted cash, cash
    equivalents and short-term investments, additional paid-in
    capital, total stockholders' equity, total capitalization
    and net proceeds that we will receive from this offering by
    approximately $      million,
    assuming the number of shares offered by us, as set forth on the
    cover page of this prospectus, remains the same and after
    deducting the estimated underwriting discounts and commissions
    and estimated offering expenses that we must pay and after
    giving effect to estimates of certain expenses that we expect to
    be reimbursed.
The above share data excludes shares of our Class A common
    stock reserved for issuance upon the exchange of our
    Class B common stock into Class A common stock.
46
Table of Contents
DILUTION
If you invest in our Class A common stock, your investment
    will be diluted immediately to the extent of the difference
    between the public offering price per share of our Class A
    common stock and the pro forma net tangible book value per share
    of our Class A common stock after this offering. Our pro
    forma net tangible book value as of December 31, 2009 was
    approximately $      million, or
    $      per share of Class A common
    stock. Pro forma net tangible book value per share represents
    the amount of stockholders' equity less the net book value
    of intangible assets, divided by the number of shares of our
    Class A common stock outstanding at that date, after giving
    effect to the Reorganization Transactions described under
    "Prospectus Summary — Reorganization
    Transactions" and "Organizational
    Structure — Reorganization Transactions."
Net tangible book value dilution per share to new investors
    represents the difference between the amount per share paid by
    purchasers of shares of Class A common stock in this
    offering and the pro forma net tangible book value per share of
    Class A common stock immediately after the completion of
    this offering. After giving effect to our sale of shares of
    Class A common stock in this offering at an assumed initial
    public offering price of $      per
    share, which is the midpoint of the price range set forth on the
    cover of this prospectus, and after deducting the underwriting
    discounts and commissions and estimated offering expenses
    payable by us and after giving effect to estimates of certain
    expenses that we expect to be reimbursed, our pro forma as
    adjusted net tangible book value as of December 31, 2009
    would have been $      million, or
    $      per share. This represents an
    immediate increase in net tangible book value of
    $      per share to existing
    stockholders and an immediate dilution in net tangible book
    value of $      per share to investors
    purchasing Class A common stock in this offering. Dilution
    per share to new investors is determined by subtracting pro
    forma net tangible book value per share after this offering from
    the assumed initial public offering price per share paid by a
    new investor. The following table illustrates the per share
    dilution:
Assumed initial public offering price per share
$
Pro forma net tangible book value (deficit) per share as of
    December 31, 2009 before giving effect to the Tax
    Receivable Agreement
Pro forma net tangible book value (deficit) per share before the
    change attributable to new investors
Increase in pro forma net tangible book value per share
    attributable to new investors
Pro Forma adjusted net tangible book value (deficit) per share
    after this offering
Dilution per share to new investors
$
A $1.00 increase or decrease in the assumed initial public
    offering price of $      per share,
    which is the midpoint of the price range set forth on the cover
    page of this prospectus, would increase or decrease our pro
    forma as adjusted net tangible book value as of
    December 31, 2009, by approximately
    $      million, the pro forma as
    adjusted net tangible book value per share after this offering
    by $      per share and the dilution in
    pro forma as adjusted net tangible book value per share to new
    investors in this offering by $     
    per share, assuming the number of shares offered by us, as set
    forth on the cover page of this prospectus, remains the same and
    after deducting the estimated underwriting discounts and
    commissions and offering expenses payable by us.
The sale
    of           shares
    of Class A common stock to be sold by the selling
    stockholders in this offering will reduce the number of shares
    held by our Principal Equityholders
    to           shares,
    or           percent
    of the total shares outstanding, and will increase the number of
    shares held by new investors participating in this offering
    to           shares,
    or           percent
    of the total shares outstanding. In addition, if the
    underwriters exercise their over-allotment option in full, the
    number of shares held by our Principal Equityholders will be
    further reduced
    to           shares,
    or           percent
    of the total shares outstanding after this offering, and the
    number of shares held by new investors participating in this
    offering will be further increased
    to           shares,
    or           percent
    of the total shares outstanding after this offering.
47
Table of Contents
The following table summarizes, on the same pro forma basis as
    of December 31, 2009, the total number of shares of
    Class A common stock and Class B common stock
    purchased from us, the total consideration paid to us and the
    average price per share paid by the Principal Equityholders, and
    by new investors purchasing shares in this offering (amounts in
    thousands, except percentages and per share data), after giving
    effect to the sale by us and the selling stockholders
    of           shares
    of our Class A common stock in this offering at an assumed
    initial public offering price of $     
    per share, which is the midpoint of the price range set forth on
    the cover page of this prospectus, before deducting the
    estimated underwriting discounts and commissions and offering
    expenses payable by us:
Shares of Class A
Common Stock and
Total Consideration
Class B Common Stock Purchased
to Us
Average Price
Number
Percent
Amount
Percent
per Share
Principal Equityholders
New investors
Total
48
Table of Contents
UNAUDITED
    PRO FORMA FINANCIAL INFORMATION
The unaudited pro forma consolidated balance sheet at
    December 31, 2009 and the unaudited pro forma consolidated
    statement of operations for the twelve months ended
    December 31, 2009 give effect to:
•
our 2009 acquisition of South Texas Dermatopathology Lab, P.A.,
    as if that acquisition had occurred January 1, 2009;
•
our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory, P.C., as if those acquisitions
    had occurred as of January 1, 2009; but not our 2010
    acquisition of Pathology Solutions, LLC;
•
our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
•
consummation of the Reorganization Transactions as if they were
    effective as of December 31, 2009; and
•
this offering and the use of the net proceeds that we will
    receive from this offering, as if effective on December 31,
    2009 for the unaudited pro forma consolidated balance sheet and
    January 1, 2009 for the unaudited pro forma consolidated
    statement of operations.
The unaudited pro forma financial information has been prepared
    by our management and is based on our historical financial
    statements and the assumptions and adjustments described herein
    and in the notes to the unaudited pro forma financial
    information below. We believe the presentation of the unaudited
    pro forma financial information is prepared in conformity with
    Article 11 of
Regulation S-X
of the Exchange Act.
Our historical financial information for the year ended
    December 31, 2009 has been derived from our audited
    consolidated financial statements and accompanying notes
    included elsewhere in this prospectus.
We based the pro forma adjustments on available information and
    on assumptions that we believe are reasonable under the
    circumstances. See "— Notes to Unaudited Pro
    Forma Financial Information" for a discussion of
    assumptions made. The unaudited pro forma financial information
    is presented for informational purposes and is based on
    management's preliminary estimates, including the
    preliminary application of our acquisition accounting. Our final
    estimates and related accounting may differ materially from the
    preliminary estimates. The unaudited pro forma consolidated
    statements of operations do not purport to represent what our
    results of operations actually would have been if the
    transactions set forth above had occurred on the dates indicated
    or what our results of operations will be for future periods.
49
Table of Contents
Aurora
    Diagnostics Inc.
Unaudited
    Pro Forma Consolidated Balance Sheet
December 31,
    2009
December 31, 2009
Pro Forma
Pro Forma
Offering and
2010
Acquisition
For
Refinancing
Reorganization
Pro Forma,
Historical
(1)
Acquisition
(2)
Adjustments
(3)
Acquisitions
Adjustments
Adjustments
As Adjusted
(in thousands)
Assets
Current Assets
Cash
$
27,424
$
1,383
$
—
$
28,807
$
(230,105
)
(5)
$
(6)
$
230,105
(5)
8,500
(4)
Accounts receivable, net
16,106
1,489
—
17,595
—
—
Prepaid expenses and other assets
2,031
58
—
2,089
—
—
Prepaid income taxes
133
—
—
133
—
—
Deferred tax assets
2,026
—
—
2,026
—
(7)
Total current assets
47,720
2,930
—
50,650
8,500
Property and Equipment, net
7,580
496
—
8,076
—
—
Other Assets:
Deferred debt issue costs, net
3,932
—
—
3,932
9,950
(5)
(3,932
)
(5)
Deposits and other noncurrent assets
17,149
—
(16,976
)
173
—
—
Goodwill
271,725
—
18,317
290,042
—
—
Intangible assets, net
114,638
—
4,221
118,859
—
—
407,444
—
5,562
413,006
6,018
—
$
462,744
$
3,426
$
5,562
$
471,732
$
14,518
$
$
Liabilities and Members' Equity
Current Liabilities
Current portion of long-term debt
$
11,596
$
—
$
—
$
11,596
$
4,705
(5)
$
—
$
2,300
(5)
(8,691
)
(5)
Current portion of fair value of contingent consideration
804
—
1,470
2,274
—
—
Accounts payable and accrued expenses
4,850
1,109
—
5,959
(255
)
(5)
—
255
(5)
Accrued compensation
7,124
227
—
7,351
—
—
Current portion of acquisition related liability
592
—
—
592
—
—
Accrued interest
3,047
—
—
3,047
—
—
Fair value of derivative
125
—
—
125
—
—
Taxes payable
—
—
—
—
—
—
Total current liabilities
28,138
1,336
1,470
30,944
(1,686
)
—
Tax receivable arrangement
—
—
—
—
—
(7)
Deferred tax liabilities, net
10,190
—
1,752
11,942
—
—
Long-term debt, net of current portion
205,056
—
—
205,056
1,098
(5)
—
223,100
(5)
(200,409
)
(5)
Fair value of contingent consideration, net of current portion
2,296
—
4,430
6,726
—
—
Commitments and contingencies
Equity
Members' equity
217,064
2,090
(2,090
)
217,064
(8,755
)
(5)
(8
)
8,500
(4)
(1,098
)
(5)
(3,932
)
(5)
(2,300
)
(5)
Common stockholders' equity
—
—
—
—
(9)
(8)
(7)
(6)
Noncontrolling interest
—
—
—
—
—
(9)
$
462,744
$
3,426
$
5,562
$
471,732
$
14,518
$
$
50
Table of Contents
(1)
Amounts represent our historical
    balance sheet as of December 31, 2009 which was derived
    from the audited financial statements contained elsewhere in the
    prospectus.
(2)
Amounts represent the historical
    unaudited December 31, 2009 balance sheets of the two
    acquisitions which were consummated January 1, 2010, which
    we refer to as the 2010 Acquisitions. The 2010 Acquisitions do
    not include our acquisition of Pathology Solutions, LLC.
(3)
The pro forma acquisitions
    adjustments relate to the application of the acquisition method
    of accounting for the 2010 Acquisitions consummated
    January 1, 2010. On December 31, 2009, we prepaid
    $17.0 million in cash to acquire 100 percent of the
    equity of the 2010 Acquisitions and therefore the cash paid was
    included in deposits and other noncurrent assets in the
    historical financial statements as of December 31, 2009. In
    addition, we agreed to pay additional consideration in future
    periods, based upon the attainment of stipulated levels of
    operating earnings by each of the acquired practices. We have
    made a preliminary estimate of the fair value of the contingent
    consideration related to the 2010 Acquisitions and recorded a
    $5.9 million liability as a pro forma adjustment. The total
    aggregate purchase for the 2010 acquisitions, including cash and
    contingent consideration, was approximately $22.9 million.
    The aggregate purchase price was allocated, on a preliminary
    basis, to the net assets acquired based on their estimated fair
    value. The estimated identifiable intangibles assets totaling
    $4.2 million relate primarily to customer relationships.
    The allocation of the purchase price is preliminary while we
    continue to obtain the information to determine the fair value
    of the assets acquired and the liabilities assumed. We will
    complete the final acquisition accounting for the 2010
    Acquisitions in 2010. The following summarizes the pro forma
    adjustments and preliminary application of the acquisition
    method of accounting for the 2010 Acquisitions (dollars in
    thousands).
Aggregate purchase price, including fair value of contingent
    consideration
$
22,876
Less :
Net assets acquired of 2010 Acquisitions
(2,090
)
Identified intangible assets acquired
(4,221
)
Plus : Deferred tax liability recorded
1,752
Estimated Goodwill
$
18,317
The $1.8 million deferred tax
    liability recorded in connection with the 2010 Acquisitions
    represents deferred taxes on identified intangible assets which
    are not deductible for income tax purposes and any estimated
    deferred tax liability related to the change from cash to
    accrual basis for income tax purposes. For these estimates we
    utilized a 40 percent effective tax rate.
(4)
On March 12, 2010, Aurora
    Holdings issued Class Z capital to its existing members for
    total consideration of $8.5 million. These funds, along
    with operating cash and contingent consideration, were used to
    acquire 100 percent of the membership interests of a
    pathology practice. This Class Z capital of Aurora
    Holdings, plus interest of 12 percent, will be repaid prior
    to the completion of this offering in connection with our
    refinancing.
(5)
These pro forma adjustments reflect
    the application of the net proceeds from our refinancing and the
    capitalization of the new deferred debt issue costs of
    $10.0 million in accordance with the sources and uses below
    (dollars in thousands).
Sources
Uses
Revolver
$
4,705
Repayment of existing term loan, long term portion
$
200,409
Term loan, long term portion
227,700
Repayment of existing term loan, current portion
8,691
Term loan, current portion
2,300
Repayment of Aurora Holdings Class Z capital
8,755
Original issue discount - term loan (2)%
(4,600
)
Estimated fees and expenses
12,250
Total Proceeds
$
230,105
Total Outflows
$
230,105
The repayment of Class Z capital
    includes $255,000 of accrued dividends at a rate of 12 percent
    for a period of three months.
Our estimated fees and expenses are
    summarized as follows:
Commitment fees
$
7,950
Expenses (legal, accounting, etc)
2,000
Total deferred debt issue costs
9,950
Prepayment penalty
2,300
Total estimated fees and expenses
$
12,250
In addition, in connection with our
    refinancing we wrote off prior deferred debt issues costs of
    $3.9 million and unamortized original issue discount of
    $1.1 million.
51
Table of Contents
(6)
Reflects the application of the
    primary proceeds of $   million from this
    offering net of estimated fees and expenses of
    $   million. The resulting net cash will be used
    to fund future operations, including acquisitions of additional
    pathology practices.
(7)
A number of acquisitions by Aurora
    Holdings have resulted in an increase in the tax basis of
    intangible assets, primarily goodwill, which results in higher
    tax amortization expense compared to book amortization. In
    addition, the Reorganization Transactions and future exchanges
    of Aurora Holdings Units for our Class A common stock or
    cash will result in an increase in our tax basis of intangible
    assets. These tax attributes would not have been available to us
    in the absence of those transactions. Amortization from the
    increase in tax basis will be available, subject to limitations,
    to reduce the amount of tax we may be required to pay in the
    future. Under the Tax Receivable Agreement, Aurora Diagnostics,
    Inc. will agree to pay to the Tax Receivable Entity
    85 percent of certain cash tax savings, if any, in U.S.
    federal, state, local and foreign income tax realized by Aurora
    Diagnostics, Inc. after the completion of this offering as a
    result of:
•
favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by
    previous acquisitions;
•
any
step-up
in tax basis in our share of Aurora Holdings' assets
    resulting from:
•
the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class A common stock or cash, or
•
payments under the Tax Receivable Agreement to the Tax
    Receivable Entity; and
•
tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
On a pro forma basis we estimated
    the total realizable tax benefit, excluding future exchanges, as
    the result of existing step up in basis to
    be      million. Therefore we have
    recorded a deferred tax asset
    of      million and a liability
    related to the Tax Receivable Agreement
    of      million representing our
    obligation to the Tax Receivable Entity. The remaining
    15 percent, or      million,
    has been recorded as an increase of additional paid-in capital,
    a component of common stockholders' equity.
In consideration of the
    Reorganization Transactions, the Tax Receivable Agreement
    further provides that Aurora Diagnostics, Inc. will pay to the
    Tax Receivable Entity 85 percent of Aurora Diagnostics,
    Inc.'s actual reduction in income taxes that we realize
    related to future exchanges for which we have not included a pro
    forma adjustment as we cannot predict the amounts and timing of
    such future exchanges, or if these exchanges will occur. In
    addition, future exchanges are not a part of the Reorganization
    Transactions or this offering.
(8)
Reflects the reclassification of
    the remaining pro forma Aurora Holdings members' equity to
    our common stockholders' equity.
(9)
Following the Reorganization
    Transactions and the completion of this offering, we will record
    a noncontrolling interest relating to the economic interests of
    our Principal Equityholders in Aurora Holdings. This adjustment
    reflects our pro forma equity in the economic interest after
    giving effect to the noncontrolling interest of our Principal
    Equityholders. As discussed under "Prospectus
    Summary— Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions," we will have all of the business and
    operational control of Aurora Holdings.
(10)
For purposes of supplemental
    disclosure, if 100 percent of the noncontrolling interest
    of Aurora Holdings had been exchanged in connection with this
    offering, the Tax Receivable Agreement would have increased
    $      million for a total of
    $     .
52
Table of Contents
Aurora
    Diagnostics Inc.
Unaudited
    Pro Forma Consolidated Statement of Operations
Year
    ended December 31, 2009
December 31, 2009
Pro
Pro
Pro
Forma
Forma
Offering and
Forma,
2009
2010
Acquisition
for
Refinancing
Reorganization
As
Historical
(1)
Acquisitions
(2)
Acquisitions
(3)
Adjustments
(2)(3)
Acquisitions
Adjustments
Adjustments
Adjusted
(in thousands)
Net Revenues
$
171,565
$
7,328
$
18,286
$
—
$
197,179
$
—
$
—
$
197,179
Operating costs and expenses:
Cost of services
71,778
5,200
11,857
(4,658
)
(4)
84,177
—
—
84,177
Selling, general and administrative expenses
36,854
1,482
4,673
(1,481
)
(4)
41,528
—
—
41,528
Provision for doubtful accounts
9,488
—
732
—
10,220
—
—
10,220
Intangible asset amortization expense
14,574
—
—
880
(5)
15,454
—
—
15,454
Management fees
1,778
—
—
258
(6)
2,036
—
(2,036
)
(11)
—
Impairment of goodwill and other intangible assets
8,031
—
—
—
8,031
—
—
8,031
Acquisition and business development costs
1,074
—
—
(607
)
(7)
467
—
—
467
Equity based compensation expense
—
—
—
—
—
—
—
—
Total operating costs and expenses
143,577
6,682
17,262
(5,608
)
161,913
—
(2,036
)
159,877
Income from operations
27,988
646
1,024
(5,608
)
35,266
—
2,036
37,302
Other income (expense):
Interest expense
(18,969
)
(52
)
—
—
(19,021
)
1,065
(9)
—
(17,956
)
Write-off of deferred debt issue costs
—
—
—
—
—
(7,330
)
(10)
—
(7,330
)
Other income
28
—
5
—
33
—
—
33
Total other expense, net
(18,941
)
(52
)
5
—
(18,988
)
(6,265
)
—
(25,253
)
Income before income taxes
9,047
594
1,029
5,608
16,278
(6,265
)
2,036
12,049
Provision for income taxes
45
215
434
2,243
(8)
2,937
(2,506
)
(8)
4,389
(12)
4,820
Net income
$
9,002
$
379
$
595
$
3,365
$
13,341
$
(3,759
)
$
(2,353
)
$
7,229
Income available to non-controlling interest
Income available to common stockholders
Income available to common stockholders per common share:
Basic net income per common share
Diluted net income per common share
(1)
Amounts represent our historical
    statement of operations for the year ended December 31,
    2009 which were derived from the audited financial statements of
    Aurora Holdings contained elsewhere in the prospectus.
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(2)
Amounts represent the historical
    audited statement of operations of one acquisition completed
    November 21, 2009, which we refer to as the 2009
    Acquisition, which was derived from the audited financial
    statements contained elsewhere in the prospectus.
(3)
Amounts represent the historical
    unaudited statements of operations of the 2010 Acquisitions
    which were funded on December 31, 2009 and were consummated
    January 1, 2010. The 2010 Acquisitions do not include the
    most recent acquisition completed March 12, 2010, as we
    continue to obtain the necessary financial information for the
    year ended December 31, 2009 to complete our pro forma
    financial presentation.
(4)
The pro forma adjustment reflects
    the reduction in compensation expense of physicians and former
    owners of acquired practices, including salary, bonus and other
    compensation, to the amounts that will be paid to these
    physicians and former owners in accordance with their post
    acquisition employment agreements.
(5)
Represents the additional
    amortization expense for the identifiable intangible assets,
    based on our preliminary acquisition accounting, as if the 2009
    and 2010 Acquisitions had occurred on the January 1, 2009.
    The identifiable intangible assets related to the 2009 and 2010
    Acquisitions total approximately $8.1 million and are being
    amortized over periods ranging from 5 to 10 years. The
    majority of the identifiable intangible assets relate to
    customer relationships. In determining the estimated
    amortization periods, we considered the operating history and
    customer stability of the acquired practice and industry
    information related to customary amortization periods.
(6)
Reflects the management fees
    payable under a management services agreement with certain of
    our Principal Equityholders. In accordance with the management
    services agreement, these fees are calculated as 1 percent
    of the net revenue of our 2009 and 2010 acquisitions.
(7)
Represents the elimination of the
    non-recurring acquisition costs.
(8)
Represents the tax effect of the
    pro forma adjustments at an effective tax rate of
    40 percent.
(9)
Represents the difference in
    interest expense related to the rates and balances outstanding
    under the new committed term loan compared to our term loans
    outstanding during the year ended December 31, 2009. For
    the new committed term loan we assumed the London Interbank
    Offering Rate, or LIBOR, floor of 2 percent plus the credit
    spread of 4.25 percent or a total interest rate of
    6.25 percent on a $230 million term loan balance. The
    adjustment also reflects the difference in the amortization of
    the deferred debt issue cost and original issue discount. The
    following summarizes the components of the interest expense
    adjustment.
Elimination of 2009 amortization of original issue discount
$
305
Amortization of new original issue discount
(767
)
Elimination of 2009 amortization of deferred debt issue costs
1,090
Amortization of new debt issue costs
(2,033
)
Elimination of 2009 term loan interest expense
16,853
Interest expense related to the new committed term loan
(14,375
)
Net reduction in interest expense
$
1,065
(10)
Represents the write off of
    $1.1 million and $3.9 million of unamortized original
    issue discount and deferred debt issuance costs, respectively,
    originally incurred in connection with our current credit
    facilities, as well as $2.3 million related to a prepayment
    penalty under the current credit agreement.
(11)
Represents the elimination of the
    management fees payable under a management services agreement
    with certain of our Principal Equityholders. The management
    services agreement will be terminated following the completion
    of this offering.
(12)
Reflects the necessary adjustment
    to record our income tax provision at a 40 percent rate due
    to our transition to being taxed as a corporation following
    completion of the Reorganization Transactions.
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SELECTED
    CONSOLIDATED FINANCIAL DATA
The following selected consolidated financial data should be
    read in conjunction with the section titled
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations" and the consolidated
    financial statements and the related notes included in this
    prospectus. The selected consolidated financial data included in
    this section are not intended to replace the consolidated
    financial statements and the related notes included in this
    prospectus.
The consolidated statements of operations data for the fiscal
    years 2007, 2008 and 2009, and consolidated balance sheets data
    as of fiscal year end 2008 and 2009, were derived from Aurora
    Holdings' audited consolidated financial statements that
    are included elsewhere in this prospectus. The consolidated
    statements of operations data for the period from our inception
    in June 2006 through December 31, 2006, and consolidated
    balance sheet data as of December 31, 2006 and
    December 31, 2007, were derived from Aurora Holdings'
    audited consolidated financial statements not included in this
    prospectus. The historical results presented below are not
    necessarily indicative of financial results to be achieved in
    future periods.
The selected consolidated financial data does not give effect to:
•
our 2009 acquisition of South Texas Dermatopathology Lab, P.A.;
•
our 2010 acquisitions of Bernhardt Laboratories, Inc. and Pinkus
    Dermatopathology Laboratory, P.C. or our most recent
    acquisition of Pathology Solutions, LLC;
•
our new committed credit facilities, which we expect to close
    prior to the completion of this offering;
•
consummation of the Reorganization Transactions; or
•
this offering and the use of the net proceeds that we will
    receive from this offering.
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Aurora
    Diagnostics Holdings, LLC
Audited Selected Consolidated Statements of
    Operations
(1)
Period from June 2006 (inception) to December 31,
    2006
Years ended December 31, 2007, 2008 and 2009
Period from
June 2006
(Inception) to
December 31,
Year Ended December 31,
2006
2007
2008
2009
(in thousands)
Net Revenues
$
3,487
$
63,451
$
157,850
$
171,565
Operating costs and expenses:
Cost of services
1,045
27,480
66,382
71,778
Selling, general and administrative expenses
3,035
15,172
33,194
36,854
Provision for doubtful accounts
69
2,378
8,037
9,488
Intangible asset amortization expense
470
5,721
14,308
14,574
Management fees
35
644
1,559
1,778
Impairment of goodwill and other intangible assets
—
—
—
8,031
(3)
Acquisition and business development costs
—
374
676
1,074
Equity based compensation expense
—
—
1,164
(2)
—
Total operating costs and expenses
4,654
51,769
125,320
143,577
Income (loss) from operations
(1,166
)
11,682
32,530
27,988
Other income (expense):
Interest expense
(94
)
(7,114
)
(21,577
)
(18,969
)
Write-off of deferred debt issue costs
—
(3,451
)
(4)
—
—
Other income
25
124
125
28
Total other expense, net
(69
)
(10,441
)
(21,452
)
(18,941
)
Income (loss) before income taxes
(1,236
)
1,241
11,078
9,047
Provision for income
    taxes
(5)
—
762
408
45
Net income (loss)
$
(1,236
)
$
479
$
10,670
$
9,002
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Aurora
    Diagnostics Holdings, LLC
Audited
    Selected Consolidated Balance Sheet
December 31,
    2006, 2007, 2008 and 2009
December 31,
2006
2007
2008
2009
(in thousands)
Consolidated Balance Sheets
Cash and equivalents
$
1,744
$
8,558
$
7,278
$
27,424
Total assets
40,180
388,339
415,516
462,744
Working capital, excluding deferred tax items
1,892
10,161
11,005
30,081
Long term debt, including current portion
7,550
215,678
227,313
219,752
Members' equity
31,334
145,077
161,176
217,064
(1)
The summary consolidated financial
    data for the period from June 2006 (inception) to
    December 31, 2006 and the years ended December 31,
    2007, 2008 and 2009 is that of Aurora Holdings prior to the
    Reorganization Transactions described under "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions."
(2)
During 2008, we adopted the New
    Plan to replace our original equity incentive plan. This New
    Plan provides awards of membership interest units in Aurora
    Holdings. These interests are denominated as
Class D-1,
Class D-2,
and
Class D-3 units
in Aurora Holdings. During 2008, Aurora Holdings authorized and
    issued 4,000 D-1 units, 3,000 D-2 units and 3,000
    D-3 units of Aurora Holdings. All membership interest units
    of Aurora Holdings issued in 2008 were fully vested as of
    December 31, 2008. We recorded a compensation expense of
    $1.2 million for these awards. There were no other grants
    under the New Plan. In connection with the Reorganization
    Transactions, the Class D Units of Aurora Holdings issued under
    the New Plan will either be exchanged for shares of our
    Class A common stock or cancelled without consideration.
(3)
As of September 30, 2009, we
    tested goodwill and intangible assets for potential impairment
    and recorded a non-cash impairment expense of $8.0 million
    resulting from a write-down of $6.6 million in the carrying
    value of goodwill and a write down of $1.4 million in the
    carrying value of other intangible assets. The write-down of the
    goodwill and other intangible assets related to one reporting
    unit. Regarding this reporting unit, we believe events occurred
    and circumstances changed that more likely than not reduced the
    fair value of the intangible assets and goodwill below their
    carrying amounts. These events during 2009 consisted primarily
    of the loss of significant customers present at the acquisition
    date, which adversely affected the current year and expected
    future revenues and operating profit of the reporting unit.
(4)
In December 2007, we refinanced our
    previous credit facilities. As a result, we wrote off
    $3.5 million of unamortized deferred debt issue costs.
(5)
Aurora Holdings is a Delaware
    limited liability company taxed as a partnership for federal and
    state income tax purposes, in accordance with the applicable
    provisions of the Internal Revenue Code. Accordingly, Aurora
    Holdings was generally not subject to income taxes. The income
    attributable to Aurora Holdings was allocated to the members of
    Aurora Holdings in accordance with the terms of the Aurora
    Holdings LLC Agreement. However, certain of our subsidiaries are
    structured as corporations, file separate returns and are
    subject to federal and state income taxes. The historical
    provision for income taxes for these subsidiaries is reflected
    in our consolidated financial statements and includes federal
    and state taxes currently payable and changes in deferred tax
    assets and liabilities excluding the establishment of deferred
    tax assets and liabilities related to the acquisitions. The pro
    forma, as adjusted, provision for income taxes assumes a
    40 percent effective tax rate, after giving effect to the
    Reorganization Transactions.
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MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The historical consolidated financial data discussed below
    reflect the historical results of operations and financial
    condition of our subsidiary Aurora Holdings.
You should read the following discussion and analysis of our
    financial condition and results of operations together with our
    financial statements and related notes appearing in the back of
    this prospectus. Some of the information contained in this
    discussion and analysis or set forth elsewhere in this
    prospectus, including information with respect to plans and
    strategy for our business and related financing, includes
    forward-looking statements that involve risks and uncertainties.
    You should review the section entitled "Risk Factors"
    contained in this prospectus for a discussion of important
    factors that could cause actual results to differ materially
    from the results described in or implied by the forward-looking
    statements contained in the following discussion and
    analysis.
General
We are a specialized diagnostics company providing services that
    play a key role in the diagnosis of cancer and other diseases.
    Our experienced pathologists deliver comprehensive diagnostic
    reports of a patient's condition and consult frequently
    with referring physicians to help determine the appropriate
    treatment. Our diagnostic reports often enable the early
    detection of disease, allowing referring physicians to make
    informed and timely treatment decisions that improve their
    patients' health in a cost-effective manner. Through our
    pathologist-operated laboratory practices, we provide
    physician-based general anatomic and clinical pathology,
    dermatopathology, molecular diagnostic services and other
    esoteric testing services to physicians, hospitals, clinical
    laboratories and surgery centers. Our operations consist of one
    reportable channel.
The U.S. diagnostic testing industry had revenues of
    approximately $55 billion in 2008 and, according to
    Washington G-2 Reports, grew at a rate of 7 percent
    compounded annually from 2000 to 2008. According to Laboratory
    Economics, within the overall industry, the anatomic pathology
    market totaled approximately $13 billion in revenues, or
    24 percent of total industry revenues, in 2008. Anatomic
    pathology services involve the diagnosis of cancer and other
    medical conditions through the examination of tissues
    (histology) and the analysis of cells (cytology) and generally
    command higher reimbursement rates, on a per specimen basis,
    than clinical pathology services.
According to Washington G-2 Reports, the anatomic pathology
    market has expanded more rapidly than the overall industry, with
    revenues growing 4.8 percent on a compound annual basis
    between 2006 and 2009, compared to 4.5 percent for the rest
    of the industry. Excluding growth in esoteric testing, the
    remainder of the industry grew at a compound annual rate of only
    0.1 percent over the same period. Substantially all of the
    revenues for anatomic pathology businesses consist of payments
    or reimbursements for specialized diagnostic services rendered
    to referring physicians, and these revenues are affected
    primarily by changes in case volume, which we refer to as
    accession volume, payor mix and reimbursement rates. Accessions
    are measured as the number of patient cases, and each accession
    may include multiple specimens. Accession volume varies from
    period to period based on the number of referring physicians and
    the frequency of their ordering, the relative mix of the
    referring physicians' anatomic pathology specialties, and
    the type and number of tests ordered.
The non-hospital outpatient channel is the largest component of
    the anatomic pathology market and has grown more rapidly than
    other channels. This channel accounted for $7.6 billion, or
    57 percent, of anatomic pathology revenues for the year
    ended December 31, 2008, representing 10 percent
    growth in 2008 according to Laboratory Economics. The remainder
    of the anatomic pathology market is comprised of the hospital
    inpatient channel, which accounted for $3.7 billion or
    28 percent, of anatomic pathology revenues, representing
    2 percent growth in 2008, and the hospital outpatient
    channel, which accounted for $1.9 billion, or
    15 percent, of anatomic pathology revenues, representing
    4 percent growth in 2008, according to Laboratory Economics.
For the year ended December 31, 2009 we processed
    approximately 1.6 million accessions.
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Corporate
    History
We were incorporated in the State of Delaware on April 23,
    2010 for purposes of this offering. As described under
    "Prospectus Summary — Reorganization
    Transactions" and "Organizational Structure," we
    are a holding company and our principal asset after completion
    of this offering will be our indirect equity interests in our
    subsidiary, Aurora Holdings. Our subsidiary was organized in the
    State of Delaware as a limited liability company on June 2,
    2006 to develop and operate as a diagnostic services company. We
    have grown our business significantly over the last three years,
    driven largely by the acquisition of local and regional
    pathology laboratories throughout the United States and organic
    growth within these acquired operations. We have completed 17
    acquisitions of diagnostic services companies and opened
    two de novo laboratories, and our revenues have increased
    from $3.5 million in 2006 to $171.6 million in 2009.
Statement
    of Operations Overview
Net
    Revenues
Substantially all of our revenues consist of payments or
    reimbursements for specialized diagnostic services rendered to
    patients of our referring physicians. Net revenue per accession
    is impacted mainly by changes in reimbursement rates and test
    and payor mix. Accession volume varies from period to period
    based on the referral patterns of our referring physicians and
    the frequency of their ordering, the relative mix of the
    referring physicians' anatomic pathology specialties, and
    the type and number of tests ordered. Accession volume is also
    affected by seasonal trends and generally declines during the
    summer and holiday periods. Furthermore, accession volume is
    also subject to declines due to weather conditions, such as
    severe snow storms and flooding or excessively hot or cold
    spells, which can deter patients from visiting our referring
    physicians. More recently, we believe the slowdown in the
    general economy and increase in unemployment has reduced the
    number of patients visiting our referring physician offices,
    resulting in a reduction of referrals.
Our billings for services reimbursed by third-party payors,
    including Medicare, and patients are based on a
    company-generated fee schedule that is generally set at higher
    rates than our anticipated reimbursement rates. Our billings to
    physicians, which are not reimbursed by third-party payors,
    represent less than 10 percent of net revenues and are
    billed based on negotiated fee schedules that set forth what we
    charge for our services. Reimbursement under Medicare for
    specialized diagnostic services is subject to a Medicare
    physician fee schedule and, to a lesser degree, a clinical
    laboratory fee schedule, both of which are updated annually. Our
    billings to patients include co-insurance and deductibles as
    dictated by the patient's insurance coverage. Billings for
    services provided to uninsured patients are based on our
    company-generated fee schedule. Our revenues are recorded net of
    the estimated differences between the amount billed and the
    estimated payment to be received from third party payors,
    including Medicare. We do not have any capitated payment
    arrangements, which are arrangements under which we are paid a
    contracted per person rate regardless of the services we
    provide. We generally provide services on an
in-network
basis, where we perform services for persons within the networks
    of payors with which we have contracts. Services performed on an
out-of-network
basis, where we perform services for persons outside of the
    networks of payors with which we have contracts, comprised less
    than 15 percent of our 2009 revenues. We may face
    continuing pressure on reimbursement rates as government payors
    and private insurers have taken steps and may continue to take
    steps to control the cost, use, and delivery of health care
    services, including diagnostic testing services. Changes in
    payor mix could lead to corresponding changes in revenues based
    on the differences in reimbursement rates.
Compliance with applicable laws and regulations, as well as
    internal policies and procedures, adds further complexity and
    costs to our operations. Furthermore, we are generally obligated
    to bill in the specific manner prescribed by each governmental
    payor and private insurer, who may each have different billing
    requirements. Reimbursements for anatomic pathology services are
    received from governmental payors, such as Medicare and
    Medicaid; private insurance, including managed care
    organizations and commercial payors; and private payors, such as
    physicians and individual patients. For the year ended
    December 31, 2009, we derived approximately 61 percent
    of revenues from private insurance, including managed care
    organizations and commercial payors; approximately
    25 percent of revenues from Medicare and Medicaid; and
    approximately 14 percent from physicians and individual
    patients.
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In most cases, we provide a global testing service which
    includes both the technical slide preparation and professional
    diagnosis. We also fulfill requests from physicians for only the
    technical component of our services, or TC, which principally
    includes technical slide preparation and the non-professional
    items associated with our diagnostic services, including
    equipment, supplies and technical personnel, or the professional
    component of our services, or PC, which principally includes
    review and diagnosis by a pathologist. If a physician requires
    only the TC services such as slide preparation, we prepare the
    slide and then return it to the referring physician for
    assessment and diagnosis.
Cost
    of Services
Cost of services consists of physician costs, including
    compensation, benefits and medical malpractice insurance and
    other physician related costs. In addition, cost of services
    includes all the costs related to the technical preparation,
    transcription, depreciation and courier and distribution to
    fulfill the diagnostic service requirements of our referring
    physicians and their patients.
Cost of services generally increases with accession volume and
    reflects the additional staffing, equipment, supplies and
    systems needed to process the increased volume and maintain
    client service levels. A major component of cost of services is
    physician costs which, for the year ended December 31,
    2009, represented 36 percent of our total cost of services.
    In the future, we may experience increases in physician costs to
    retain existing physicians, to replace departing physicians or
    to hire new pathologists to support accession growth. Therefore,
    we expect our cost of revenues will continue to increase
    commensurate with revenue growth.
Selling,
    General and Administrative Expenses
Selling, general and administrative expenses consist primarily
    of general lab and corporate overhead, billing, information
    technology, accounting, human resources, and sales and marketing
    expenses. We expect sales and marketing and IT expenses to
    increase faster than revenue as we hire additional personnel and
    invest in lab and billing information systems to support
    continued same store revenue growth and retain existing customer
    relationships. In addition, we expect accounting expenses, which
    includes audit and Sarbanes-Oxley Act of 2002 costs, to increase
    substantially as a result of our contemplated initial public
    offering. As our business matures and we attain a sufficient
    size and scope we expect selling, general and administrative
    expenses as a percent of revenue to reduce over time.
Provision
    for Doubtful Accounts
The provision for doubtful accounts and the related allowance
    are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, accounts
    receivable aging and other relevant factors. The majority of our
    provision for doubtful accounts relates to our estimate of
    uncollectible amounts from patients who are uninsured or fail to
    pay their coinsurance or deductible obligations. Changes in
    these factors in future periods could result in increases or
    decreases in our provision for doubtful accounts and impact our
    results of operations, financial position and cash flows.
Recent
    Developments
On March 12, 2010, we issued Class Z capital of Aurora
    Holdings to then-existing members of Aurora Holdings for total
    consideration of $8.5 million. In the event that the Class
    Z capital is repaid within six months of that date, the holders
    of the Class Z capital of Aurora Holdings will receive a
    preferred return equal to the initial contribution of the
    members holding such membership interests, plus interest.
    Interest accrues on the Class Z capital of Aurora Holdings
    at an annual rate of 12 percent for the first three months
    and 16 percent for the next three months. In the event we
    do not redeem the Class Z capital within six months from the
    date it was issued, the Class Z capital of Aurora Holdings
    will convert to
Class A-1
membership interests of Aurora Holdings at the same valuation as
    the original
Class A-1
membership interests of Aurora Holdings.
After December 31, 2009, we paid contingent consideration
    in connection with acquisitions completed prior to
    January 1, 2009 totaling $6.3 million. These
    contingent consideration payments resulted in increases to
    goodwill.
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On January 1, 2010, we acquired 100 percent of the
    equity of two pathology practices for an aggregate cash purchase
    price of $17.0 million. These acquisitions were consummated
    on January 1, 2010 and therefore, the cash paid totaling
    $17.0 million was included in deposits and other
    non-current assets as of December 31, 2009. On
    March 12, 2010, we acquired 100 percent of the
    membership interests of a pathology practice for an aggregate
    cash purchase price of $22.5 million. Each transaction
    included contingent consideration payable over three to five
    years based on the acquired practices' future performance.
    The maximum amount of the deferred contingent cash consideration
    is $32.8 million payable over three to five years. We
    funded the cash portion of the acquisitions using
    $31.0 million cash primarily related to
Class A-1
member contributions and an additional $8.5 million related
    to Class Z member contributions. We will estimate the fair
    value of the contingent consideration and record a related
    liability as of the date of each acquisition, once the estimated
    fair values of the assets acquired and liabilities assumed in
    connection with these acquisitions are finalized.
On April 20, 2010, we entered into a commitment letter that
    provides for a committed $340.0 million credit facility
    with Barclays Bank PLC and certain other lenders that we expect
    to close prior to the completion of this offering. This new
    committed financing includes a $230.0 million senior
    secured first lien term loan facility with a maturity date of
    6 years after the closing of the new financing. The new
    committed financing also includes a $110.0 million senior
    secured first lien revolving credit facility (of which
    $50.0 million will be available upon the closing of our new
    credit facility and $60.0 million will be available upon
    the completion of this offering) that matures 4 years after
    the closing of the new financing. Our new term loan facility
    will bear interest, at our option, at a rate initially equal to
    the prime rate plus 3.25 percent per annum or LIBOR plus 4.25
    percent per annum. We expect that we will record a non-cash
    write-off of any remaining unamortized original issue discount
    and debt issue costs related to our existing credit facilities
    during the quarter in which we complete our refinancing.
In 2010, the U.S. Congress passed and the President signed
    into law the PPACA and HCEARA. Together, the PPACA and HCEARA
    comprise a broad health care reform initiative. While this
    legislation did not adversely affect reimbursement for our
    anatomic pathology services, this legislation provides for two
    separate reductions in the reimbursement rates for our clinical
    laboratory services: a "productive adjustment"
    (currently estimated to be between 1.1 and 1.4 percent),
    and an additional 1.75 percent reduction. Each of these
    would reduce the annual Consumer Price Index-based update that
    would otherwise determine our reimbursement for clinical
    laboratory services. Uncertainty also exists around the extent
    of coverage and reimbursement for new services. This legislation
    also provides for increases in the number of persons covered by
    public and private insurance programs in the U.S. For the
    year ended December 31, 2009, revenues from clinical lab
    services were less than 10 percent of our total revenues.
In connection with this offering, we will enter into the
    Reorganization Transactions described under "Organizational
    Structure," including the creation or acquisition of
    amortizable tax assets in connection with this offering and the
    Reorganization Transactions and the creation of liabilities in
    connection with entering into the Tax Receivable Agreement,
    concurrent with the completion of this offering.
Acquisitions
Through March 31, 2010, we have acquired 17 diagnostic
    services companies throughout the United States. Our most recent
    acquisition, described above under "— Recent
    Developments," was completed on March 12, 2010. The
    following summarizes the acquisitions we completed in 2007, 2008
    and 2009.
2007
    Acquisitions
During 2007, we acquired substantially all of the assets of six
    pathology practices, and 100 percent of the equity of two
    pathology practices for an aggregate purchase price (including
    acquisition costs) of $319.8 million and additional
    consideration in the form of contingent notes. The aggregate
    purchase price included cash of $306.1 million and
    subordinated unsecured contingent notes payable of
    $13.7 million. The cash portion of the purchase price was
    funded primarily with proceeds from member contributions and
    drawings under our existing and former term loan facilities of
    $115.3 million and $190.8 million, respectively.
In connection with one acquisition in 2007, we agreed to assume
    up to $4.0 million to be paid to four retired physicians.
    The obligation is to be paid over three to five years. As of
    December 31, 2009, this acquisition related
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liability had a remaining balance of approximately
    $0.6 million. During 2008 and 2009, we paid
    $1.9 million and $1.5 million, respectively, related
    to this liability.
2008
    Acquisitions
During 2008, we acquired substantially all of the assets of one
    pathology practice, for an aggregate purchase price (including
    acquisition costs) of $27.3 million and additional
    consideration in the form of contingent notes. The purchase
    price was funded primarily with proceeds from the issuance of
    Aurora Holdings' Class A, C, and X membership
    interests of $7.3 million and drawings under our existing
    term loan facility of $20.0 million.
2009
    Acquisitions
On December 31, 2009, we paid cash totaling
    $17.0 million to acquire 100 percent of the equity of
    two pathology practices. These acquisitions were consummated on
    January 1, 2010 and therefore, the cash paid totaling
    $17.0 million was included in deposits and other
    non-current assets in our consolidated balance sheet as of
    December 31, 2009.
In November 2009, we acquired 100 percent of the equity of
    one pathology practice for an aggregate cash purchase price of
    $15.3 million. In addition, we issued contingent
    consideration, payable over three years based on the acquired
    practice's future performance. We have estimated the fair
    value of the contingent consideration and recorded a related
    liability as of December 31, 2009 of $3.1 million. The
    cash portion of the purchase price was funded primarily with
    proceeds from the issuance of
Class A-1
membership interests in June 2009. The estimated fair value of
    the assets acquired and liabilities assumed in connection with
    the 2009 acquisition are preliminary and are expected to be
    finalized in 2010.
On January 1, 2009, we adopted a new accounting standard
    issued by the Financial Accounting Standards Board, or the FASB,
    related to accounting for business combinations using the
    acquisition method of accounting (previously referred to as the
    purchase method). In connection with this adoption, during 2009,
    we have expensed $0.6 million of transaction costs
    associated with our completed acquisitions and business
    development costs as described in our results of operations.
The following table summarizes the consideration paid for the
    acquisitions completed in 2007, 2008 and 2009.
Subordinated
Total
Cash Paid
Notes Issued
Consideration
(in thousands)
2007 Acquisitions
$
306,116
$
13,658
$
319,774
2008 Acquisitions
$
27,301
$
—
$
27,301
2009 Acquisitions
$
15,340
$
—
$
15,340
As a result of the significant number and size of the
    acquisitions completed over the last three years many of the
    changes in our consolidated results of operations and financial
    position discussed below relate to the acquisitions completed in
    2007, 2008 and 2009.
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Results
    of Operations
The following table outlines, for the periods presented, our
    results of operations as a percentage of net revenues.
2007
2008
2009
Net revenues
100.0
%
100.0
%
100.0
%
Operating costs and expenses:
Cost of services
43.3
42.1
41.8
Selling, general and administrative expenses
23.9
21.0
21.5
Provision for doubtful accounts
3.7
5.1
5.5
Intangible asset amortization expense
9.0
9.1
8.5
Management fees
1.0
1.0
1.0
Impairment of goodwill and other intangible assets
—
—
4.7
Acquisition and business development costs
0.6
0.4
0.6
Equity-based compensation expense
—
0.7
—
Total operating costs and expenses
81.5
79.4
83.6
Income from operations
18.5
20.6
16.4
Other income (expense):
Interest expense
(11.2
)
(13.7
)
(11.1
)
Write-off of deferred debt issue costs
(5.4
)
—
—
Other income
0.2
0.1
—
Total other expense, net
(16.4
)
(13.6
)
(11.1
)
Income before income taxes
2.1
7.0
5.3
Provision for income taxes
1.2
0.3
—
Net income
0.9
%
6.7
%
5.3
%
Our historical consolidated operating results do not reflect:
•
the Reorganization Transactions described under "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure;"
•
the results of operations of our 2009 acquisition prior to the
    effective date of that acquisition; and
•
this offering and the application of the net proceeds that we
    will receive from this offering.
As a result, our historical consolidated operating results may
    not be indicative of what our results of operations will be for
    future periods.
Comparison
    of the Years Ended December 31, 2009 and 2008
Net
    Revenues
Net revenues increased $13.7 million or 8.7 percent to
    $171.6 million for the year ended December 31, 2009
    from $157.9 million for the year ended December 31,
    2008. Organic revenues increased $11.5 million or
    7.7 percent from $150.2 million to $161.8 million
    and the remaining increase of $2.2 million reflects the
    impact of the 2009 and 2008 acquisitions.
Our organic revenue growth of $11.5 million resulted from a
    4.5 percent increase in the volume of accessions and a
    3.0 percent increase in the average revenue per accession.
    Organic accessions grew by approximately 64,000 to approximately
    1.5 million accessions compared to approximately
    1.4 million for the year ended December 31,
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2008. The organic volume growth resulted from the expansion of
    our sales force in late 2008 and early 2009. The average revenue
    per accession increased 3.0 percent from approximately $106
    to approximately $109 resulting from a combination of an
    increase in reimbursement (price) and the ordering of additional
    tests for accessions related to cervical screenings.
While we anticipate continued organic growth in annual accession
    volumes of 5 to 10 percent, we also expect the average
    revenue per accession of our organic business to decline as the
    result of a number of factors including a trend towards
    referring physicians performing technical
and/or
professional components of their diagnostic services in their
    offices which results in a lower average revenue per accession.
    In addition, our women's health pathology services,
    including clinical tests, tend to have lower revenue per
    accession and, therefore, as we expand in this market we expect
    our average revenue per accession to decline slightly. In
    addition, our growth rates and average revenue per accession may
    be positively or negatively impacted by the reimbursement
    market, service mix and average revenue per accession of
    acquisitions completed in the future.
Our diagnostic testing services accounted for substantially all
    of our 2009 and 2008 revenues.
Cost of
    Services
Cost of services for the year ended December 31, 2009
    increased $5.4 million or 8.1 percent to
    $71.8 million from $66.4 million for the year ended
    December 31, 2008. Cost of services related to our organic
    revenue grew 7.2 percent or $4.6 million, primarily
    related to our organic growth in accessions of 4.5 percent.
    The increase in our cost of services also included approximately
    $0.3 million related to
start-up
costs of our clinical lab in North Carolina. The clinical lab
    became operational in March 2010 and will complement our
    existing anatomic pathology services, specifically for the
    women's health pathology market.
The remaining increase in cost of services was $0.5 million
    related to the 2009 and 2008 acquisitions.
As a percentage of revenues, cost of services for both periods
    was approximately 42.0 percent resulting in a gross margin
    of approximately 58.0 percent for both periods. We
    currently anticipate our gross margin to decline slightly due to
    a combination of lower average revenue per accession and
    increased costs related to pathologist retention and replacement
    and higher costs and lower gross margins in our women's
    health pathology services, including clinical tests. Cost of
    services and our related profit percentages may be positively or
    negatively impacted by the market, service mix and unit price
    dynamics of acquisitions completed in the future.
Selling,
    general and administrative expenses
Selling, general and administrative expenses increased
    $3.7 million, or 11.0 percent, to $36.9 million
    for the year ended December 31, 2009 from
    $33.2 million for the year ended December 31, 2008. Of
    the total increase, $0.4 million related to the 2009 and
    2008 acquisitions and $3.3 million related to our existing
    business. Of the total increase of $3.7 million,
    approximately $1.8 million, relates to sales and marketing
    initiatives including the increase in the number of sales
    representatives and our introduction of
doc2MD
. In
    addition, our billing costs increased $0.6 million
    primarily related to the 2009 and 2008 acquisitions. For both
    periods billing costs were approximately 4.4 percent of net
    revenue.
Selling, general and administrative expenses, as a percent of
    net revenue, increased slightly to 21.5 percent from
    21.0 percent for the year ended December 31, 2008. The
    primary reason for this increase was the expansion of sales and
    marketing activities in the year ended December 31, 2009.
    We expect to make additional investments in selling, general and
    administrative expenses in 2010, including the addition of
    additional field sales representatives, marketing and IT
    personnel. In addition, we expect accounting, legal, compliance
    and other public company related costs to increase substantially
    following the completion of this offering.
Provision
    for doubtful accounts
Our provision for doubtful accounts increased $1.5 million
    or 18.1 percent to $9.5 million from $8.0 million
    for the year ended December 31, 2008. Approximately
    $0.7 million relates to the increase in the total net
    revenue of $13.7 million. The remainder of the increase of
    $0.8 million related to the increase in the overall
    provision as a percent of net revenue to 5.5 percent from
    5.1 percent for the year ended December 31, 2008. A
    major factor
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contributing to this increase was slower payment patterns in
    certain markets such as Michigan and an increase in our
    historical write-offs related to uncollectible accounts,
    primarily patient accounts.
We expect our consolidated provision for doubtful accounts of
    our existing businesses to range between 5.5 percent and
    6.0 percent in future. The future provision for doubtful
    accounts could be positively or negatively impacted by the bad
    debt experience of future acquired laboratories.
Intangible
    asset amortization expense (Amortization)
Amortization expense for the year ended December 31, 2009
    increased to $14.6 million from $14.3 million for the
    year ended December 31, 2008 related to increases in our
    amortizable intangible assets associated with the 2009 and 2008
    acquisitions. We amortize our intangible assets over a weighted
    average lives ranging from 4 to 18 years.
Management
    fees
Management fees increased $0.2 million to $1.8 million
    for the year ended December 31, 2009 compared to
    $1.6 million for the year ended December 31, 2008.
    Management fees are based on 1.0 percent of net revenue
    plus expenses. The majority of the increase relates to the
    increase in our net revenues. Following the completion of this
    offering, we will not be obligated to pay management fees.
Impairment
    of goodwill and other intangible assets
For purposes of testing goodwill for impairment, each of our
    acquired practices is considered a separate reporting unit. To
    estimate the fair value of the reporting units, we utilize a
    discounted cash flow model as the primary approach to value
    supported by a market approach guideline public company method,
    or the GPC Method, which is used as a reasonableness test. We
    believe that a discounted cash flow analysis is the most
    appropriate methodology to test the recorded value of long-term
    assets with a demonstrated long-lived value. The results of the
    discounted cash flow provide reasonable estimates of the fair
    value of the reporting units because this approach is based on
    each respective unit's actual results and reasonable
    estimates of future performance, and also takes into
    consideration a number of other factors deemed relevant by
    management, including but not limited to, expected future market
    revenue growth and operating profit margins. We have
    consistently used these approaches in determining the value of
    goodwill. We consider the GPC Method to be an adequate
    reasonableness test which utilizes market multiples of industry
    participants to corroborate the discounted cash flow analysis.
    We believe this methodology is consistent with the approach that
    any strategic market participant would utilize if they were to
    value one of our reporting units.
The following assumptions were made by management in determining
    the fair value of the reporting units and related intangibles as
    of September 30, 2009: (a) the discount rates ranged
    between 13.0 percent and 15.0  percent, based on relative size
    and perceived risk of the reporting unit; (b) an average
    compound annual growth rate of 7.5 percent during the five year
    forecast period; and (c) earnings before interest, taxes,
    depreciation, and amortization with an average reporting unit
    level margin of 38.9 percent. These assumptions are based on:
    (a) the actual historical performance of the reporting
    units and (b) management's estimates of future
    performance of the reporting units.
We also consider the economic outlook for the healthcare
    services industry and various other factors during the testing
    process, including hospital and physician contract changes,
    local market developments, changes in third-party payor
    payments, and other publicly available information.
As of September 30, 2009, we tested goodwill and intangible
    assets for potential impairment and recorded a non-cash
    impairment charge of $8.0 million resulting from a write
    down of $6.6 million in the carrying value of goodwill and
    a write down of $1.4 million in the carrying value of other
    intangible assets. The write down of the goodwill and intangible
    assets related to one reporting unit. Regarding this reporting
    unit, we believe events occurred and circumstances changed that
    more likely than not reduced the fair value of the intangible
    assets and goodwill below their carrying amounts. These events
    during 2009 consisted primarily of the loss of significant
    customers present at the acquisition date, which adversely
    affected the current year and expected future revenues and
    operating profit of the reporting unit.
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As of December 31, 2009, we had goodwill and net intangible
    assets of $386.4 million. Many factors, including
    competition, general economic conditions, healthcare reform,
    third party payment patterns and industry consolidation, could
    have a negative impact on one or more of our reporting units
    used in evaluating for impairment. Therefore, we may experience
    additional impairment charges in future periods.
Acquisition
    and business development costs
On January 1, 2009, we adopted a new accounting standard
    related to accounting for business combinations using the
    acquisition method of accounting (previously referred to as the
    purchase method). In connection with this adoption, during 2009,
    we expensed $0.6 million of transaction costs associated
    with our completed acquisitions, which under the prior
    accounting would have been capitalized as part of the purchase
    price. In addition, we expensed $0.5 million of business
    development costs related to our prospecting and unsuccessful
    acquisition activity. Prior year amounts related to unsuccessful
    acquisitions and business development activities were
    reclassified to acquisition and business development costs from
    selling, general and administrative expenses for comparative
    purposes.
Equity
    based compensation expense
There was no equity based compensation expense recorded for the
    year ended December 31, 2009 because no equity awards were
    granted during 2009. The prior year amount of $1.2 million
    related to equity incentive awards granted in July 2008.
Interest
    Expense
Interest expense for the year ended December 31, 2009
    decreased to $19.0 million from $21.6 million for the
    year ended December 31, 2008, partially due to lower
    outstanding borrowings under our term loan, as well as lower
    effective interest rates. During 2009, we paid down
    $8.2 million of our existing term loan facility. In
    addition, $125.0 million of the balance outstanding on the
    term loan facility had a fixed interest rate, through our
    interest rate swap, at an effective interest rate of
    9.9 percent, while the remaining average balance of
    $88.2 million had interest based on a floating LIBOR rate.
    For the year ended December 31, 2009, the average
    30 day LIBOR was 0.33 percent compared to
    2.66 percent for the year ended December 31, 2008.
    Therefore, the majority of the reduction in interest expense
    related to the lower effective interest rate on our floating
    rate debt.
Other
    Income
Other income primarily consists of interest earned on our cash
    and cash equivalents.
Provision
    for Income Taxes
Prior to the completion of this offering, we were a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, we were generally not
    subject to income taxes and the income attributable to us was
    allocated to the members of Aurora Holdings in accordance with
    the terms of the Aurora Holdings LLC Agreement. We make tax
    distributions to the members in amounts designed to provide such
    members with sufficient cash to pay taxes on their allocated
    income. However, certain of our subsidiaries are structured as
    corporations, and therefore are subject to federal and state
    income taxes.
Upon the completion of this offering and the Restructuring
    Transactions, we expect our provision for income taxes to be
    more consistent with federal and state statutory rates, or
    40 percent.
Comparison
    of the Years Ended December 31, 2008 and 2007
Net
    Revenues
Net revenues increased $94.4 million or 148.8 percent
    to $157.9 million for the year ended December 31, 2008
    from $63.5 million for the year ended December 31,
    2007. Organic revenues increased $2.5 million or
    11.3 percent
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from $22.4 million to $25.0 million and the remaining
    increase of $91.9 million related to the 2008 and 2007
    acquisitions.
Our organic revenue growth of $2.5 million resulted from a
    20.0 percent increase in the volume of accessions and a
    7.2 percent decrease in the average revenue per accession.
    Organic accessions grew approximately 46,000 to approximately
    274,000 accessions for the year ended December 31, 2009
    compared to 228,000 for the year ended December 31, 2007.
    The organic volume growth resulted from the expansion of our
    sales force in late 2007 and 2008. The average organic unit
    price per accession decreased from $98.00 to $91.00 resulting
    from certain referring physicians converting from global billing
    to professional only arrangements which have a lower average
    revenue per accession.
Our diagnostic testing services accounted for substantially all
    of our 2008 and 2007 revenues.
Cost of
    Services
Cost of services for the year ended December 31, 2008
    increased $38.9 million or 141.6 percent to
    $66.4 million from $27.5 million for the year ended
    December 31, 2007. Cost of services related to our organic
    revenue grew 22.1 percent or $2.1 million, primarily
    related to our organic accession growth of 20.0 percent.
    Our pathologist costs accounted for $1.0 million of the
    increase which resulted primarily from the addition of a
    pathologist to service increased accession volume in certain
    growing markets and the replacement of two retiring pathologists
    with higher-cost pathologists. The remaining increase in cost of
    services of $36.8 million related to the 2008 and 2007
    acquisitions.
As a percentage of revenues, cost of services was
    42.1 percent for the year ended December 31, 2008
    compared to 43.3 percent for the year ended
    December 31, 2007, resulting in an increase in gross margin
    from 57.0 percent to 58.0 percent between periods.
Selling,
    general and administrative expenses
Selling, general and administrative expenses increased
    $18.0 million, or 118.8 percent, to $33.2 million
    for the year ended December 31, 2008 from
    $15.2 million for the comparable period in 2007. Of the
    total increase, $16.7 million related to the 2008 and 2007
    acquisitions and $1.3 million related to our existing
    business.
Of the total increase of $18.0 million, approximately
    $4.0 million, related to sales of sales and marketing
    initiatives including the increase in the number of sales
    representatives. In addition, our billing costs increased
    $4.4 million as a result of higher revenues in 2008 and
    increased billing cost as a percentage of revenues. Billing
    costs were 4.4 percent and 4.0 percent of our net
    revenues for the year ended December 31, 2008 and 2007,
    respectively.
As a percent of net revenue, total selling, general and
    administrative expenses decreased to 21.0 percent from
    23.9 percent in 2007.
Provision
    for doubtful accounts
Our provision for doubtful accounts increased $5.7 million
    or 238.0 percent to $8.0 million from
    $2.4 million for the year ended December 31, 2007.
    Approximately $3.5 million relates to the increase in the
    total net revenue of $94.4 million. The remainder of the
    increase of $2.2 million related to the increase in the
    overall provision as a percent of net revenue to
    5.0 percent from 3.8 percent for the year ended
    December 31, 2007. A major factor contributing to this
    increase was the fact that the blended provision for doubtful
    accounts as a percent of revenue for the 2008 and 2007
    acquisitions was higher than the base business due to their mix
    of services and geographic location in which they operate. This
    increased our blended company average in 2008.
Intangible
    asset amortization expense (Amortization)
Amortization expense for the year ended December 31, 2008
    increased to $14.3 million from $5.7 million for the
    year ended December 31, 2007 related primarily to the
    amortization expense related to the identifiable intangible
    assets acquired in connection with the 2008 and 2007
    acquisitions.
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Management
    fees
Management fees increased $0.9 million to $1.6 million
    for the year ended December 31, 2008 compared to
    $0.6 million for the year ended December 31, 2007. The
    majority of the increase relates to the increase in our net
    revenues.
Acquisition
    and business development costs
We expensed $0.7 million and $0.4 million for 2008 and
    2007, respectively, of business development costs related to our
    prospecting and unsuccessful acquisition activity. Prior year
    amounts related to unsuccessful acquisitions and business
    development activities were reclassified to acquisition and
    business development costs from selling, general and
    administrative expenses for comparative purposes.
Equity
    based compensation expense
During 2008, we adopted the New Plan to replace our original
    equity incentive plan. The New Plan provides awards of Aurora
    Holdings membership interest units. These interest units are
    designated as
Class D-1,
Class D-2
and
Class D-2
membership interest units of Aurora Holdings. During 2008, the
    Company authorized and issued 4,000 D-1 units, 3,000 D-2 units
    and 3,000 D-3 units. All membership interest units issued in
    2008 were fully vested as of December 31, 2008.
    Compensation expense of $1.2 million was recorded for these
    awards.
The fair value of each Aurora Holdings' membership interest
    unit granted in 2008 was estimated using the following
    assumptions:
2008
Expected life
3 years
Volatility percentage
20.2
%
Interest rate
3.1
%
Dividends
—
Forfeiture rate
—
There were no Aurora Holdings' membership units granted in
    2007.
Interest
    Expense
Interest expense for the year ended December 31, 2008
    increased to $21.6 million from $7.1 million for the
    year ended December 31, 2007, primarily due to higher
    outstanding balances under our term loan, resulting from
    borrowings related to our 2007 and 2008 acquisitions. During
    2008, we paid down $7.8 million of our existing term loan
    facility. Our average outstanding interest bearing debt
    increased to $218.8 million during 2008 from
    $70.4 million in 2007.
Other
    Income
Other income primarily consists of primarily of interest earned
    on cash and cash equivalents.
Provision
    for Income Taxes
Prior to the completion of this offering, we were a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, we were generally not
    subject to income taxes and the income attributable to us was
    allocated to the members of Aurora Holdings in accordance with
    the terms of the Aurora Holdings LLC Agreement. We make tax
    distributions to the members in amounts designed to provide such
    members with sufficient cash to pay taxes on their allocated
    income. However, certain of our subsidiaries are structured as
    corporations, and therefore are subject to federal and state
    income taxes.
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Upon the completion of this offering and the Restructuring
    Transactions, we expect our provision for income taxes to be
    more consistent with federal and state statutory rates, or
    40 percent.
Liquidity
    and Capital Resources
We are a holding company with no material business operations.
    Our principal asset is the equity interests we own in Aurora
    Holdings. We conduct all of our business operations through the
    direct and indirect subsidiaries of Aurora Holdings.
    Accordingly, our only material sources of cash are dividends or
    other distributions or payments that are derived from earnings
    and cash flow generated by the subsidiaries of Aurora Holdings.
Since inception, we have primarily financed operations through
    capital contributions from our Principal Equityholders, long
    term debt financings and cash flow from operations.
On April 20, 2010, we entered into a commitment letter that
    provides for a $340.0 million credit facility with Barclays
    Bank PLC and certain other lenders that we expect to close prior
    to the completion of this offering. This new committed credit
    facility will include a $230.0 million senior secured first
    lien term loan credit facility and a $110.0 million senior
    secured first lien revolving credit facility, $50.0 million
    of which will be available when we enter into definitive loan
    documents and an additional $60.0 million of which will be
    available upon the closing of this offering. Our new committed
    credit facility will be used to refinance our existing credit
    facilities, to redeem Aurora Holdings' Class Z capital
    and for acquisitions, working capital and general corporate
    purposes. We expect that we will recognize a write-off of
    unamortized original issue discount and debt issue costs in the
    quarter in which we complete the refinancing. In connection with
    our new credit facility, we will repay all amounts outstanding
    under the credit facility we entered in December 2007 with a
    syndicate of lenders. Our existing credit facilities provides
    for a loan commitment up to $255.0 million and for our
    lenders to provide financing for us to repay the outstanding
    balance of our pre-existing term loan facilities, fund working
    capital and make acquisitions of certain businesses. Our
    existing credit facility, which we entered in December 2007,
    includes:
•
a revolver loan, not in excess of $5.0 million and
•
term loans, with a first and second lien, not in excess of
    $165.0 million and $85.0 million, respectively.
For our existing credit facility, our lenders' unfunded
    term loan commitment expired on April 30, 2008. As of
    December 31, 2009, we had $132.6 million and
    $76.5 million outstanding under the first lien and second
    lien term loans, respectively. The funded, first lien term loan
    was subject to quarterly principal payments beginning on
    September 30, 2008 through September 30, 2012. Total
    principal paid for the years ended December 31, 2009 and
    2008 was $8.2 and $7.8 million, respectively, including
    mandatory and voluntary payments. All loans under our existing
    term loan facilities mature in December 2012. Our existing term
    loan facilities are collateralized by substantially all of our
    assets and guaranteed by all of our subsidiaries. For the
    revolver and first lien term loan, interest is at the prime rate
    plus 3.25 percent or LIBOR plus 4.25 percent. For the
    second lien term loan, interest is at the prime rate plus
    6.75 percent or LIBOR plus 7.75 percent. As of
    December 31, 2009, the effective interest rates were
    4.5 percent and 8.0 percent for the first lien and
    second lien, respectively. Other principal payments on the term
    loans may be due from time to time from annual excess cash flow
    and net cash proceeds from either the sale of assets or equity.
    The proceeds from our existing term loan facility were used to
    refinance our former term loan facility and acquire two
    businesses in December 2007 and one business in March 2008.
On March 21, 2007 in conjunction with an acquisition
    transaction, we entered into a subordinated, unsecured
    contingent note with a prior owner of one of our acquired
    practices. The payment amount is determined by the
    practice's cumulative EBITDA over a three-year period, with
    a minimum payment not to be less than $1.0 million and a
    maximum payment not to exceed $2.0 million. Payment amounts
    include a 5.5 percent interest rate factor, thus we have
    recorded the contingent note in the original purchase price at
    its minimum payment amount, discounted by the interest rate
    factor of 5.5 percent. The original discount of
    $0.1 million is being amortized into interest expense over
    the term of the contingent note using the interest method.
On April 30, 2007 in conjunction with an acquisition
    transaction, we entered into a subordinated, unsecured
    contingent note with prior owners of one of our acquired
    practices. The payment amount is determined by the
    practice's cumulative EBITDA over a five-year period, with
    a minimum payment not to be less than $15.0 million and a
    maximum payment not to exceed $30.0 million. Payment
    amounts include a 5.5 percent interest rate factor,
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thus we recorded the contingent note in the original purchase
    price at its minimum payment amount, discounted by the interest
    rate factor of 5.5 percent. The original discount of
    $2.2 million will be amortized into interest expense over
    the term of the contingent note using the interest method.
On November 17, 2006, we entered into a subordinated,
    unsecured note payable with a prior owner of one of our acquired
    practices with the principal amount of $1.0 million to
    assist in the financing of an acquisition. The note had a
    three-year term and principal payments were due in equal
    quarterly installments of $0.08 million. Interest was paid
    quarterly at the prime rate.
Long-term debt consists of the following as of December 31,
    2008 and 2009 (in thousands):
2008
2009
Term loan, first
    lien
(1)
$
140,766
$
132,566
Term loan, second
    lien
(1)
76,534
76,534
Revolver
    loan
(1)
1
—
Subordinated unsecured contingent note, dated March 31, 2007
614
316
Subordinated unsecured contingent note, dated April 30, 2007
10,481
8,072
Subordinated unsecured contingent note, dated November 17,
    2006
320
—
Capital lease obligations
—
262
228,716
217,750
Less:
Original issue discount, net
(1,403
)
(1,098
)
Current portion
(10,010
)
(11,596
)
Long-term debt, net of current portion
$
217,303
$
205,056
(1)
Reflects the credit facility we
    entered into during December 2007 with a syndicate of lenders
    which we will pay off with the credit facility with respect to
    which we have signed a commitment letter on April 20, 2010.
As of December 31, 2009, future maturities of long-term
    debt are as follows (in thousands):
Years ending December
    31,
2010
$
11,596
2011
13,145
2012
192,899
2013
64
2014
46
$
217,750
In connection with the majority of our acquisitions, we have
    agreed to pay additional consideration in future periods, based
    upon the attainment of stipulated levels of operating earnings
    by each of the acquired entities, as defined in their respective
    agreements. Generally the contingent consideration is payable
    over periods ranging from 3 to 5 years. For all
    acquisitions prior to January 1, 2009, we do not accrue
    contingent consideration obligations prior to the attainment of
    the objectives and the amount owed becomes fixed and
    determinable. For the years ended December 31, 2007, 2008
    and 2009, we paid contingent consideration related to
    acquisitions completed prior to 2009, of $1.9 million,
    $12.5 million and $12.7 million, respectively.
For acquisitions completed after January 1, 2009, we
    estimate the fair value of the contingent consideration and
    record a related liability on our balance sheet. As of
    December 31, 2009 we have recorded a $3.1 million
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liability related to the fair value of the contingent
    consideration related to the acquisition that was completed in
    November 2009.
As of December 31, 2009, assuming the practices, including
    the one acquired in November 2009, achieve the maximum level of
    stipulated operating earnings, as defined in the agreements; the
    maximum principal amount of contingent consideration payable
    over the next three to five years is approximately
    $101 million. A lesser amount will be paid for earnings
    below the maximum level of stipulated earnings or no payments
    will be made if the practices do not achieve the minimum level
    of stipulated earnings as outlined in their respective
    agreements. Any such payments in the future for acquisitions
    completed prior to January 1, 2009 would be accounted for
    as additional purchase price and increase goodwill. For
    acquisitions completed during 2009, future payments will be
    reflected in the change in the fair value of the contingent
    consideration.
As of December 31, 2009, we had $27.4 million in cash
    and cash equivalents deposited at high quality financial
    institutions. Our primary uses of cash are to fund our
    operations, service debt, including contingent notes, and
    acquire property and equipment. Cash used to fund our operations
    excludes the impact of non-cash items, such as the allowance for
    doubtful accounts, depreciation, and non-cash stock-based
    compensation, and is impacted by the timing of our payments of
    accounts payable and accrued expenses and collections of
    accounts receivable.
As of December 31, 2009, we had working capital of
    $30.1 million. We expect to continue to spend substantial
    amounts of capital to grow our business and acquire diagnostics
    businesses. We believe the net proceeds that we will receive
    from this offering, together with cash from operations and our
    current and future debt financings will be sufficient to fund
    our capital requirements through 2012.
Cash
    flows from operating activities
Net cash provided by operating activities during the year ended
    December 31, 2009 was $36.4 million compared to
    $29.0 million during the year ended December 31, 2008.
    The increase related primarily to an increase in net income
    after giving effect to the non cash charge for the impairment of
    goodwill and intangible assets.
Net cash provided by operating activities during the year ended
    December 31, 2008 was $29.0 million compared to
    $9.8 million during the year ended December 31, 2007.
    The increase related primarily to an increase in net income,
    adjusted for depreciation and amortization related to our 2007
    and 2008 acquisitions.
Cash flow
    used in investing activities
Net cash used in investing activities during the year ended
    December 31, 2009 was $49.3 million compared to
    $46.3 million during the year ended December 31, 2008.
    Net cash used in investing activities during the year ended
    December 31, 2009 consisted of $3.0 million of
    purchases of property and equipment, $16.9 million for
    deposits (primarily for acquisitions completed January 1,
    2010), $12.7 million for the payment of contingent notes
    and $16.7 million for acquisitions, net of cash acquired.
The purchases of equipment during 2009 primarily consist of
    $1.0 million related to computer equipment and software,
    $1.3 million related to laboratory equipment, and
    $0.7 million related to automobiles, furniture and
    leasehold improvements. The computer equipment and software
    primarily consisted of servers, desktops, laptops, and related
    software in support of our headcount growth across all
    functional areas. The laboratory equipment primarily consisted
    of microscopes and other analysis equipment for our existing
    laboratories.
The increase in deposits relates to our payment on
    December 31, 2009 of approximately $17.0 million in
    cash to acquire 100 percent of the equity of two pathology
    practices. These acquisitions were consummated on
    January 1, 2010 and therefore included in deposits as of
    December 31, 2009.
In connection with the acquisitions, we have agreed to pay
    additional consideration in future periods, based upon the
    attainment of stipulated levels of operating earnings by each of
    the acquired entities, as defined in their respective
    agreements. For all acquisitions prior to January 1, 2009,
    we do not accrue contingent consideration obligations prior to
    the attainment of the objectives and the amount owed becomes
    fixed and determinable. For the year ended December 31,
    2009, we paid contingent consideration of $12.7 million.
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The majority of the cash used for acquisitions for the year
    ended December 31, 2009 related to our November 2009,
    acquisition of 100 percent of the equity of one pathology
    practice for an aggregate cash purchase price of
    $15.3 million. The cash portion of the purchase price was
    funded primarily with proceeds from the June 2009 issuance of
Class A-1
membership interests.
Net cash used in investing activities was $46.3 million
    during the year ended December 31, 2008 compared to
    $303.5 million during the year ended December 31,
    2007. Net cash used in investing activities during the year
    ended December 31, 2008 consisted of $2.7 million of
    purchases of property and equipment, $12.5 million for the
    payment of contingent notes and $31.0 million for
    acquisitions, net of cash acquired.
The purchases of equipment during 2008 primarily consist of
    $1.3 million related to computer equipment and software,
    $0.5 million related to laboratory equipment and
    $0.9 million related to furniture and leasehold
    improvements. The computer equipment and software primarily
    consisted of servers, desktops, laptops, and related software in
    support of our headcount growth across all functional areas. The
    laboratory equipment primarily consisted of microscopes and
    other analysis equipment for our existing laboratories.
The majority of the cash used for acquisitions for the year
    ended December 31, 2008 related to our 2008 acquisition.
    During 2008, we acquired substantially all of the assets of one
    pathology practice, for an aggregate purchase price (including
    acquisition costs) of $27.3 million and additional
    consideration in the form of contingent notes. The purchase
    price was funded primarily with proceeds from the issuance of
    Aurora Holdings' Class A, C, and X membership
    interests of $7.3 million and our existing term loan
    facility of $20.0 million.
The majority of the cash used for acquisitions for the year
    ended December 31, 2007 related to the acquisition of eight
    pathology practices for an aggregate cash purchase price of
    $306.1 million. The cash portion of the purchase price was
    funded primarily with contributions from members of Aurora
    Holdings and borrowings under our existing term loan facility of
    $115.3 million and $190.8 million, respectively.
Cash
    flows from financing activities
Net cash provided by financing activities for the year ended
    December 31, 2009 was $33.0 million compared to
    $16.0 million for the year ended December 31, 2008.
For the year ended December 31, 2009, we received proceeds
    of $50.3 million in connection with the issuance of 21,382
A-1
class
    membership interests. In connection with the A -1 issuance, we
    incurred $3.1 million of costs which were recorded as a
    reduction in members' equity. In addition, during 2009 we
    made repayments of $8.2 million and $3.0 million under
    our existing term loan facilities and subordinated notes
    payable, respectively. Also during 2009, in accordance with the
    Aurora Holdings LLC Agreement, we made tax distributions to
    certain members totaling $2.8 million.
Net cash provided by financing activities for the year ended
    December 31, 2008 was $16.0 million compared to
    $300.5 million for the year ended December 31, 2007.
For the year ended December 31, 2008, we borrowed
    $22.1 million under our existing term loan facility of
    which $20.0 million, along with $7.3 million of
    contributions members of Aurora Holdings, was used to complete
    the 2008 acquisition. In addition, during 2008 we made
    repayments of $7.8 million and $2.9 million under our
    existing term loan facilities and subordinated notes payable,
    respectively. Also during 2008, in accordance with the Aurora
    Holdings LLC Agreement, we made tax distributions to certain
    Aurora Holdings' members totaling $0.4 million. During
    2008, we paid $1.8 million of costs related to Aurora
    Holdings' original member investments.
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Contractual
    Obligations and Commitments
The following table sets forth our long-term contractual
    obligations and commitments as of December 31, 2009 (in
    thousands):
Payments Due by Period
Contractual
    obligations
2010
2011
2012
2013
2014
After 2014
Total
Revolving loan
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Term loans
8,691
10,406
190,003
—
—
—
209,100
Capital lease obligations
44
50
56
64
48
—
262
Estimated interest on term
    loans
(1)
11,850
11,410
8,250
—
—
—
31,510
Subordinated unsecured continent notes
2,860
2,688
2,840
—
—
—
8,388
Real estate leases
2,389
2,300
1,974
1,657
1,239
6,219
15,778
Total
$
25,834
$
26,854
$
203,123
$
1,721
$
1,287
$
6,219
$
265,039
(1)
Estimated interest payments on our
    term loan facilities represent the majority of future interest
    payments, and have been calculated using the effective interest
    rates (three month LIBOR, plus credit spread) multiplied by the
    outstanding balances as of December 31, 2009, less
    mandatory repayments, through their maturity dates.
After the Reorganization Transactions and the completion of this
    offering, we will enter into the Tax Receivable Agreement which
    will obligate Aurora Diagnostics, Inc. to pay 85 percent of
    certain cash tax savings, if any, in U.S. federal, state, local
    and foreign income tax realized by Aurora Diagnostics, Inc.
    from certain existing and future tax attributes. See
    "Certain Relationships and Related Party
    Transactions — Tax Receivable Agreement".
From time to time, we may enter into contracts with suppliers,
    manufacturers, and other third parties under which we may be
    required to make minimum payments. The table above does not
    reflect any future obligations that may arise due to the
    establishment of additional laboratory facilities, including
    facility leasing costs, tenant improvements, and other facility
    startup and infrastructure costs.
Off
    Balance Sheet Arrangements
None.
Critical
    Accounting Policies and Estimates
Our consolidated financial statements are prepared in accordance
    with GAAP, which requires us to make estimates and assumptions
    that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the dates of
    the financial statements and the reported amounts of revenues
    and expenses during the reported periods. We have provided a
    description of all our significant accounting policies in
    Note 1 to our audited consolidated financial statements
    included in the back of this prospectus. We believe that of
    these significant accounting policies, the following may involve
    a higher degree of judgment or complexity.
Net
    Revenue and Accounts Receivable
Substantially all of our revenues consist of payments or
    reimbursements for specialized diagnostic services rendered to
    patients of our referring physicians. Our billings for services
    reimbursed by third-party payors, including Medicare, and
    patients are based on a company-generated fee schedule that is
    generally set at higher rates than our anticipated reimbursement
    rates. Our billings to physicians are billed based on negotiated
    fee schedules that set forth what we charge for our services.
    Reimbursement under Medicare for our services is subject to a
    Medicare physician fee schedule and, to a lesser degree, a
    clinical laboratory fee schedule, both of which are
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updated annually. Our billings to patients include co-insurance
    and deductibles as dictated by the patient's insurance
    coverage. Billings for services provided to uninsured patients
    are based on our company-generated fee schedule. We do not have
    any capitated payment arrangements, which are arrangements under
    which we are paid a contracted per person rate regardless of the
    services we provide.
Our net revenues are recorded net of contractual allowances
    which represent the estimated differences between the amount
    billed and the estimated payment to be received from third party
    payors, including Medicare. Adjustments to the estimated
    contractual allowances, based on actual receipts from
    third-party payors, including Medicare, are recorded upon
    settlement.
The process for estimating the ultimate collection of accounts
    receivable associated with our services involves significant
    assumptions and judgment. The provision for doubtful accounts
    and the related allowance are adjusted periodically, based upon
    an evaluation of historical collection experience with specific
    payors for particular services, anticipated collection levels
    with specific payors for new services, industry reimbursement
    trends, accounts receivable aging and other relevant factors.
    The majority of our provision for doubtful accounts relates to
    our estimate of uncollectible amounts from patients who are
    uninsured and may fail to pay their coinsurance or deductible
    obligations. Changes in these factors in future periods could
    result in increases or decreases in our provision for doubtful
    accounts and impact our results of operations, financial
    position and cash flows.
Annual
    Impairment Testing of Goodwill and Intangibles
Goodwill is our single largest asset. We evaluate the
    recoverability and measure the potential impairment of our
    goodwill annually. The annual impairment test is a two-step
    process that begins with the estimation of the fair value of the
    reporting unit. For purposes of testing goodwill for impairment,
    each of our acquired practices is considered a separate
    reporting unit. To estimate the fair value of the reporting
    units, we utilize a discounted cash flow model as the primary
    approach to value supported by a market approach guideline
    public company method, or the GPC Method, which is used as a
    reasonableness test. We believe that a discounted cash flow
    analysis is the most appropriate methodology to test the
    recorded value of long-term assets with a demonstrated
    long-lived value. The results of the discounted cash flow
    provide reasonable estimates of the fair value of the reporting
    units because this approach is based on each respective
    unit's actual results and reasonable estimates of future
    performance, and also takes into consideration a number of other
    factors deemed relevant by management, including but not limited
    to, expected future market revenue growth and operating profit
    margins. We have consistently used these approaches in
    determining the value of goodwill. We consider the GPC Method as
    an adequate reasonableness test which utilizes market multiples
    of industry participants to corroborate the discounted cash flow
    analysis. We believe this methodology is consistent with the
    approach that any strategic market participant would utilize if
    they were to value one of our reporting units.
The first step of the goodwill impairment process screens for
    potential impairment and the second step measures the amount of
    the impairment, if any. Our estimate of fair value considers
    (i) the financial projections and future prospects of our
    business, including its growth opportunities and likely
    operational improvements, and (ii) comparable sales prices,
    if available. As part of the first step to assess potential
    impairment, we compare our estimate of fair value for the
    reporting unit to the book value of the reporting unit. If the
    book value is greater than our estimate of fair value, we would
    then proceed to the second step to measure the impairment, if
    any. The second step compares the implied fair value of goodwill
    with its carrying value. The implied fair value is determined by
    allocating the fair value of the reporting unit to all of the
    assets and liabilities of that unit as if the reporting unit had
    been acquired in a business combination and the fair value of
    the reporting unit was the purchase price paid to acquire the
    reporting unit. The excess of the fair value of the reporting
    unit over the amounts assigned to its assets and liabilities is
    the implied fair value of goodwill. If the carrying amount of
    the reporting unit's goodwill is greater than its implied
    fair value, an impairment loss will be recognized in the amount
    of the excess.
On a quarterly basis, we perform a review of our business to
    determine if events or changes in circumstances have occurred
    which could have a material adverse effect on our fair value and
    the fair value of our goodwill. If such events or changes in
    circumstances were deemed to have occurred, we would perform an
    impairment test of goodwill as of the end of the quarter,
    consistent with the annual impairment test performed on
    September 30, and record any noted impairment loss.
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The following assumptions were made by management in determining
    the fair value of the reporting units and related intangibles as
    of September 30, 2009: (a) the discount rates ranged
    between 13.0 percent and 15.0 percent, based on relative size
    and perceived risk of the reporting unit; (b) an average
    compound annual growth rate of 7.5 percent during the five year
    forecast period; and (c) earnings before interest, taxes,
    depreciation, and amortization, with an average reporting unit
    level margin of 38.9 percent. These assumptions are based on
    (a) the actual historical performance of the reporting
    units and (b) management's estimates of future
    performance of the reporting units.
We also consider the economic outlook for the healthcare
    services industry and various other factors during the testing
    process, including hospital and physician contract changes,
    local market developments, changes in third-party payor
    payments, and other publicly available information.
Intangible assets, acquired as the result of a business
    combination, are recognized at fair value, as an asset apart
    from goodwill if the asset arises from contractual or other
    legal rights, or if it is separable. Intangible assets,
    principally representing the fair value of customer
    relationships, health care facility agreements and
    non-competition agreements acquired, are capitalized and
    amortized on the straight-line method over their expected useful
    life, which generally ranges from 4 to 18 years.
We recognize impairment losses for intangible assets when events
    or changes in circumstances indicate the carrying amount may not
    be recoverable. We continually assesses whether an impairment in
    the carrying value of the intangible assets has occurred. If the
    undiscounted future cash flows over the remaining amortization
    period of an intangible asset indicate the value assigned to the
    intangible asset may not be recoverable, we reduce the carrying
    value of the intangible asset. We would determine the amount of
    any such impairment by comparing anticipated discounted future
    cash flows from acquired businesses with the carrying value of
    the related assets. In performing this analysis, we consider
    such factors as current results, trends and future prospects, in
    addition to other relevant factors.
As of September 30, 2009, we tested goodwill and intangible
    assets for potential impairment and recorded a non-cash
    impairment expense of $8.0 million resulting from a write
    down of $6.6 million in the carrying value of goodwill and
    a write down of $1.4 million in the carrying value of
    intangible assets. The write down of the goodwill and intangible
    assets related to one reporting unit. Regarding this reporting
    unit, we believe events occurred and circumstances changed that
    more likely than not reduced the fair value of the intangible
    assets and goodwill below their carrying amounts. These events
    during 2009 consisted primarily of the loss of significant
    customers present at the acquisition date, which adversely
    affected the current year and expected future revenues and
    operating profit of the reporting unit.
Quantitative
    and Qualitative Disclosures about Market Risk
We maintain our cash balances at high quality financial
    institutions. The balances in our accounts may periodically
    exceed amounts insured by the Federal Deposit Insurance
    Corporation, of up to $250,000 at December 31, 2009 and
    2008. We do not believe we are exposed to any significant credit
    risk and have not experienced any losses.
Our primary exposure to market risk is interest expense
    sensitivity due to changes in the underlying prime rate or LIBOR
    which determines the all in cost of our interest expense on our
    term loan facilities. As of December 31, 2009, we had an
    interest rate swap agreement that expired January 10, 2010.
    Therefore subsequent to that date the majority of our debt will
    be variable rate debt and our earnings could be impacted by
    changes in variable interest rates. We do not enter into
    interest rate swap agreements, or other derivative financial
    instruments, for trading or speculative purposes. We plan to
    periodically review our exposure to interest rate fluctuations
    and access strategies to manage our exposure.
Recent
    Accounting Pronouncements
On January 1, 2009, we adopted a new accounting standard
    issued by the FASB related to accounting for business
    combinations using the acquisition method of accounting
    (previously referred to as the purchase method). Among the
    significant changes, this standard requires a redefining of the
    measurement date of a business combination, expensing direct
    transaction costs as incurred, capitalizing in-process research
    and development costs as an intangible asset and
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Table of Contents
recording a liability for contingent consideration at the
    measurement date with subsequent re-measurements recorded in the
    results of operations. This standard also requires costs for
    business restructuring and exit activities related to the
    acquired company to be included in the post-combination
    financial results of operations and also provides new guidance
    for the recognition and measurement of contingent assets and
    liabilities in a business combination. In addition, this
    standard requires several new disclosures, including the reasons
    for the business combination, the factors that contribute to the
    recognition of goodwill, the amount of acquisition related
    third-party expenses incurred, the nature and amount of
    contingent consideration, and a discussion of pre-existing
    relationships between the parties. The application of this
    standard was material for business combinations completed in
    2009. The standard is likely to have a significant effect on the
    way we allocate the purchase price of certain future business
    combinations, including the recognition and measurement of
    assets acquired and liabilities assumed and the expensing of
    direct transaction costs and costs to integrate the acquired
    business.
On January 1, 2009, we adopted a new accounting standard
    issued by the FASB related to the disclosure of derivative
    instruments and hedging activities. This standard expanded the
    disclosure requirements about an entity's derivative
    financial instruments and hedging activities, including
    qualitative disclosures about objectives and strategies for
    using derivatives, quantitative disclosures about fair value
    amounts of and gains and losses on derivative instruments, and
    disclosures about credit-risk-related contingent features in
    derivative instruments.
Effective June 30, 2009, we adopted a newly issued
    accounting standard related to accounting for and disclosure of
    subsequent events in our consolidated financial statements. This
    standard provides the authoritative guidance for subsequent
    events that was previously addressed only in United States
    auditing standards. This standard establishes general accounting
    for and disclosure of events that occur after the balance sheet
    date but before financial statements are issued or are available
    to be issued and requires us to disclose that we have evaluated
    subsequent events through the date of the filing or issue date.
    This standard does not apply to subsequent events or
    transactions that are within the scope of other applicable GAAP
    that provide different guidance on the accounting treatment for
    subsequent events or transactions. The adoption of this standard
    did not have a material impact on our consolidated financial
    statements.
In June 2009, the FASB issued the FASB Accounting Standards
    Codification, or ASC. The ASC has become the single source of
    non-governmental accounting principles generally accepted in the
    United States of America, or GAAP, recognized by the FASB in the
    preparation of financial statements. We adopted the ASC as of
    July 1, 2009. The ASC does not change GAAP and did not have
    an effect on our financial position, results of operations or
    cash flows.
In June 2009, the FASB issued new accounting guidance on when an
    entity should be included in consolidated financial statements.
    The new guidance amends the evaluation criteria to identify the
    primary beneficiary of a variable interest entity, or VIE, and
    requires ongoing reassessment of whether an enterprise is the
    primary beneficiary of the VIE. The new guidance significantly
    changes the consolidation rules for VIEs including the
    consolidation of common structures, such as joint ventures,
    equity-method investments, and collaboration arrangements. The
    guidance is applicable to all new and existing VIEs. This
    standard is effective for us as of January 1, 2010 and we
    do not expect the impact of its adoption to be material to our
    consolidated financial statements.
In January 2010, the FASB issued an amendment to the accounting
    standards related to the disclosures about an entity's use
    of fair value measurements. Among these amendments, entities
    will be required to provide enhanced disclosures about transfers
    into and out of the Level 1(fair value determined based on
    quoted prices in active markets for identical assets and
    liabilities) and Level 2 (fair value determined based on
    significant other observable inputs) classifications, provide
    separate disclosures about purchases, sales, issuances and
    settlements relating to the tabular reconciliation of beginning
    and ending balances of the Level 3 (fair value determined
    based on significant unobservable inputs) classification and
    provide greater disaggregation for each class of assets and
    liabilities that use fair value measurements. Except for the
    detailed Level 3 roll-forward disclosures, the new standard
    is effective for us for interim and annual reporting periods
    beginning after December 31, 2009. The requirement to
    provide detailed disclosures about the purchases, sales,
    issuances and settlements in the roll-forward activity for
    Level 3 fair value measurements is effective for us for
    interim and annual reporting periods beginning after
    December 31, 2010. We do not expect that the adoption of
    this new standard will have a material impact on our
    consolidated financial statements.
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INDUSTRY
Our
    Market
The U.S. diagnostic testing industry had revenues of
    approximately $55 billion in 2008 and grew at a rate of
    7 percent compounded annually from 2000 to 2008, according
    to Washington G-2 Reports.
Testing
    Markets
The markets within the broader diagnostic testing industry are
    defined as anatomic pathology, clinical pathology, and gene
    based and other esoteric testing. Anatomic pathology represents
    our core focus and, in 2009, we derived approximately
    94 percent of our revenues from anatomic pathology
    services, approximately 5 percent of our revenues from
    clinical pathology services and approximately 1 percent of
    our revenues from gene based and other esoteric testing.
•
Anatomic Pathology.
Anatomic pathology
    services involve the diagnosis of cancer and other medical
    conditions through the examination of tissues (histology) and
    the analysis of cells (cytology). Volume is measured by the
    number of accessions, or the number of patient cases, where each
    accession may then include multiple specimens. Generally, the
    anatomic pathology process involves the preparation of slides by
    trained histotechnologists or cytotechnologists and the review
    of those slides by anatomic pathologists. Although anatomic
    pathologists do not treat patients, they establish a definitive
    diagnosis and may also consult with the referring physician. The
    anatomic pathology market was $13 billion, or
    24 percent, of 2008 total diagnostic testing industry
    revenues according to Laboratory Economics, with
    $7.6 billion derived from the outpatient anatomic pathology
    channel. Generally, anatomic pathology services command higher
    reimbursement rates, on a per specimen basis, than clinical
    pathology services. According to the Washington
G-2
Reports,
    the anatomic pathology market has expanded more rapidly than the
    overall industry, with revenues growing 4.8 percent on a
    compound annual basis between 2006 and 2009, compared to
    4.5 percent for the rest of the industry. Excluding growth
    in esoteric testing, the remainder of the industry grew at a
    compound annual rate of only 0.1 percent over the same
    period.
•
Clinical Pathology.
Clinical pathology
    services generally involve chemical testing and analysis of body
    fluids using standardized laboratory tests. These tests usually
    do not require the expertise of a pathologist and are frequently
    routine, automated and performed by large national or regional
    clinical laboratory companies and hospital laboratories. This is
    the largest diagnostic testing market representing
    $34 billion, or 62 percent, of 2008 total industry
    revenues according to Laboratory Economics. The clinical
    pathology market grew at a rate of 0.2 percent compounded
    annually from 2006 to 2008, according to Washington G-2 Reports.
    Quest Diagnostics Incorporated and Laboratory Corporation of
    America are the largest providers to the clinical laboratory
    market.
•
Gene-Based and Other Esoteric
    Testing.
Esoteric testing services typically
    involve unique and complex genetic and molecular diagnostics
    performed by skilled personnel using sophisticated instruments.
    As a result, the esoteric testing market is dominated by a
    limited number of commercial laboratories. Compound annual
    growth rate for the total esoteric testing market was
    19.5 percent from 2006 to 2008, according to Washington G-2
    Reports. We believe the esoteric testing market will continue to
    demonstrate the fastest growth of any market in the
    U.S. diagnostic testing industry.
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The following chart depicts the relative and total size of the
    U.S. laboratory testing markets in 2008:
2008 U.S.
    Laboratory Testing Markets
Source: Laboratory Industry
    Strategic Outlook: Market Trends & Analysis
(Washington G-2 Reports)
Patient
    Channels
The anatomic pathology market on which we focus includes both
    inpatient and outpatient channels. We are primarily focused on
    the non-hospital outpatient channel of the anatomic pathology
    market.
•
Outpatient Channel.
The outpatient channel of
    the anatomic pathology market involves diagnostic testing
    performed on tissues and cells of patients who do not reside in
    a medical facility during their diagnosis and treatment. The
    outpatient channel is divided into the hospital outpatient
    channel, which involves patients diagnosed and treated at
    hospitals on an outpatient basis, and the non-hospital
    outpatient channel, which involves patients diagnosed and
    treated at medical facilities other than hospitals on an
    outpatient basis. The non-hospital outpatient channel is the
    largest component of the anatomic pathology market and has grown
    more rapidly than other channels. This channel accounted for
    $7.6 billion, or 57 percent, of anatomic pathology
    revenues for the year ended December 31, 2008, representing
    10 percent growth according to Laboratory Economics, and is
    expected to grow at a higher rate than the overall industry from
    2008 to 2012. The hospital outpatient channel accounted for
    $1.9 billion, or 15 percent, of anatomic pathology
    revenues, representing 4 percent growth in 2008.
•
Inpatient Channel.
The inpatient channel of
    the anatomic pathology market involves diagnostic testing
    performed on tissues and cells of patients who reside in a
    hospital during their diagnosis and treatment. Typically, the
    hospital operates its own clinical and histology laboratories,
    but contracts on an exclusive basis with an independent
    pathology group. In 2008, according to Laboratory Economics, the
    hospital inpatient channel accounted for $3.7 billion, or
    28 percent, of the anatomic pathology revenues.
The following chart depicts the relative and total size of the
    outpatient and inpatient channels in 2008:
2008
    Anatomic Pathology Laboratory Testing by Channel
Total: $13 billion
Source: The U.S. Anatomic Pathology
    Market: Forecast & Trends 2010
(Laboratory Economics LLC)
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Anatomic
    Pathology Subspecialties
The non-hospital outpatient channel of the anatomic pathology
    market also includes a number of subspecialties, including
    primarily women's health pathology, urologic pathology and
    dermatopathology. All three of these subspecialty testing areas
    are among our core competencies, and we derived approximately
    80 percent of our revenues, in aggregate, from these three
    subspecialties in 2009.
•
Women's Health Pathology.
The
    women's health pathology subspecialty, which includes
    gynecological pathology and cytopathology, principally involves
    diagnostic tests performed on samples such as Pap smears and
    cervical biopsies that are primarily provided by referring
    physicians in the obstetrics and gynecology areas. In 2008,
    according to Laboratory Economics, the women's health
    pathology subspecialty accounted for $2.6 billion, or
    34 percent, of the broader non-hospital outpatient channel.
    In particular, the cervical cancer screening market in the
    U.S. has tripled over the past 10 years to
    $2 billion in 2008, driven by the adoption of more
    expensive monolayer liquid-based testing technologies, favorable
    changes in Medicare reimbursement and the introduction of
    DNA-based human papillomavirus testing for indeterminate Pap
    tests. From 1998 to 2007, monolayer technology grew from
    10 percent to 92 percent of the women's health
    pathology subspecialty, according to Washington G-2 Reports.
•
Urologic Pathology.
The urologic pathology
    subspecialty involves diagnostic tests performed on tissue
    specimens such as prostate biopsies that are provided by
    referring physicians in the urology area. In particular, the
    prostate cancer screening market is large and growing and in
    2008, according to Laboratory Economics, represented
    $1.7 billion, or 22 percent, of the broader
    non-hospital outpatient channel.
•
Dermatopathology.
The dermatopathology
    subspecialty primarily involves diagnostic tests performed on
    samples such as skin biopsies that are primarily provided by
    referring physicians in the dermatology or plastic surgery
    areas. In 2008, according to Laboratory Economics,
    dermatopathology accounted for $1 billion, or
    13 percent, of the broader non-hospital outpatient channel,
    and the number of new skin cancer cases grew 15 percent
    between 2007 and 2009, according to Laboratory Economics.
•
Other.
The non-hospital outpatient channel
    includes other subspecialty areas such as gastrointestinal
    pathology, which involves diagnostic tests performed on samples
    such as endoscopic biopsies that are primarily provided by
    gastroenterologists, and hematopathology, which involves
    diagnostic tests performed on samples such as blood, bone marrow
    and lymph node biopsies that are primarily provided by referring
    physicians in the hematology and oncology areas. In 2008,
    according to Laboratory Economics, these other subspecialties
    accounted for $2.3 billion, or 30 percent, in
    aggregate, of the broader non-hospital outpatient channel.
The following chart depicts the relative and total size of the
    U.S. non-hospital outpatient anatomic pathology
    subspecialty testing markets in 2008:
Anatomic
    Pathology Outpatient Subspecialties
Source: The U.S. Anatomic Pathology
    Market: Forecast & Trends 2010
(Laboratory Economics LLC)
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Our
    Opportunity
We believe that demand for diagnostic services in the
    non-hospital outpatient channel of the anatomic pathology
    market, including those in the women's health pathology,
    urologic pathology and dermatopathology subspecialties, will
    continue to expand.
Aging
    of the U.S. population
The number of individuals
65-years-old
and older will increase to 55 million, or by
    36 percent, over the next decade, a percentage rate that is
    nearly four times faster than that of the overall population,
    according to the U.S. Census Bureau. According to the
    American Cancer Society, the risk of being diagnosed with cancer
    increases as individuals age, with an estimated 52 percent
    of all new cancer cases diagnosed in persons
65-years-old
and older in 2009.
Increasing
    Incidence of Cancer
The number of new cancer cases per year grew by 2 percent
    between 2007 and 2009 to approximately 1.5 million new
    cases according to the American Cancer Society. Within that
    total growth, new skin cancer cases per year grew by
    15 percent between 2007 and 2009, representing the highest
    percentage increase among all diagnosed cancer types and the
    largest number of new cases per year of any type of cancer. With
    a high cure rate of greater than 99 percent for certain
    types of skin cancer, according to American Academy of
    Dermatology, the benefits of preventive skin cancer screening
    are significant. Screening for cervical cancer within the
    women's health pathology subspecialty grew at a
    12 percent compounded annual rate between 1998 and 2008,
    and we expect continued innovation in testing techniques to
    drive continued rapid growth. Cancers that can be prevented or
    detected earlier by screening account for approximately half of
    new cancer cases per year. In 2008, approximately
    $228 billion was spent in the U.S. for the diagnosis
    and treatment of cancer, including $93 billion for direct
    medical costs.
Expanding
    Demand for Non-Hospital Outpatient Services
The non-hospital outpatient channel of the anatomic pathology
    market is expected to continue growing at a higher percentage
    rate than the overall industry, principally driven by patient
    preference and the cost-effectiveness of outpatient treatment
    settings like ambulatory surgery centers compared to inpatient
    hospital-based services. In the year ended December 31,
    2008, the number of outpatient surgical procedures represented
    62 percent of all surgical procedures performed in the
    U.S., as compared to 17 percent in 1980, according to the
    American Hospital Association.
Medical
    Advancements Allowing for Earlier Diagnosis and Treatment of
    Disease
Physicians are increasingly relying on diagnostic testing to
    help identify the  risk of disease, to detect the symptoms of
    disease earlier, to aid in the choice of therapeutic regimen, to
    monitor patient compliance and to evaluate treatment results. We
    believe physicians, patients and payors increasingly recognize
    the value of diagnostic testing as a means to improve health and
    reduce the overall cost of health care through early detection.
Nursing
    Home and Home Health Markets
We believe that the aging of the U.S. population is a
    natural driver for the demand for long-term care facilities and
    home health and that clinical laboratory testing is a critical
    service offered by nursing homes. According to Washington G-2
    reports, this market has grown from $168.7 billion in 2005
    to $198.5 billion in 2008, and projected growth is
    estimated at 6.0 percent.
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BUSINESS
Overview
We are a specialized diagnostics company providing services that
    play a key role in the diagnosis of cancer and other diseases.
    Our experienced pathologists deliver comprehensive diagnostic
    reports of a patient's condition and consult frequently
    with referring physicians to help determine the appropriate
    treatment. Our diagnostic reports often enable the early
    detection of disease, allowing referring physicians to make
    informed and timely treatment decisions that improve their
    patients' health in a cost-effective manner.
We are a leading specialized diagnostics company in terms of
    revenues, focused on the anatomic pathology market. We are
    well-positioned in the higher-growth subspecialties of anatomic
    pathology, with a leading market position in dermatopathology
    and in the women's health pathology subspecialty, and a
    growing market position in urologic pathology, hematopathology
    and general surgical pathology. Our strengths in anatomic
    pathology are complemented by our specialized clinical and
    molecular diagnostics offerings, which enable us to provide a
    broad selection of diagnostic services to our referring
    physicians, our primary clients.
The majority of our revenues in 2009 were derived from
    physicians providing diagnostic services in the non-hospital
    outpatient channel of the anatomic pathology market, which in
    2008 was one of the fastest-growing and largest channels of that
    market. We also maintain 36 exclusive contracts with hospitals
    under which we provide inpatient and outpatient professional
    anatomic pathology services. We also provide medical director
    services and, for some hospitals, technical slide preparation
    services.
Our business model builds upon the expertise of our experienced
    pathologists to provide  seamless, reliable and comprehensive
    pathology and molecular diagnostics offerings to referring
    physicians. We typically have established, long-standing
    relationships with our referring physicians as a result of
    focused localized delivery of diagnostic services, personalized
    responses and frequent consultations, and flexible information
    technology, or IT, solutions that are customizable to our
    clients' needs. Our IT and communications platform enables
    us to deliver diagnostic reports to our clients generally within
    24 hours of specimen receipt, helping to improve patient
    care. In addition, our IT platform enables us to closely track
    and monitor volume trends from referring physicians.
The success of our business model and the value of our
    specialized diagnostic service offering are reflected in our
    significant growth allowing us to reach $171.6 million in
    annual revenues in 2009. Through a combination of organic growth
    and strategic acquisitions, we have achieved a scale allowing us
    to provide diagnostic services to the patients of our
    approximately 10,000 referring physicians, generating
    approximately 1.6 million accessions in 2009. With 19
    primary laboratories across the United States, we have achieved
    a national footprint and a leading presence in our local markets
    upon which we are continuing to build a more integrated and
    larger-scale diagnostics company.
Our
    Competitive Strengths
We believe that we are distinguished by the following
    competitive strengths:
•
Leading Market Position in Higher-Growth Subspecialties of
    Expanding Industry
.  We are a leading specialized
    diagnostics company, focused on the faster-growing non-hospital
    outpatient channel within the anatomic pathology market with
    leading market positions in two of the three higher-growth
    subspecialties of the market: dermatopathology and women's
    health pathology.
•
Locally-Focused Business Model with National
    Scale.
Our business model centers on achieving
    significant local market share, which yields operating
    efficiencies and national scale when consolidated across all of
    our operations. The diagnostic services we provide are designed
    specifically to meet the needs of the local markets we serve.
    Our national infrastructure enables us to more efficiently
    manage our operations, improve productivity and deliver a more
    extensive menu of diagnostic services to our local clients. As a
    result of our strong local presence and high-quality diagnostic
    services, we have established significant loyalty with referring
    physicians and key payors in our local markets. In 2009, we
    derived more than 85 percent of our revenues from
    locally-focused,
in-network
payor contracts.
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•
Experienced, Specialized Pathologists Focused on Client
    Service
.  We believe our pathologists have
    long-standing client relationships and provide high-quality
    service within their respective local communities. Over
    one-third of our pathologists are specialized in
    dermatopathology, with the remainder focused on women's
    health pathology, urologic pathology, hematopathology and
    general surgical pathology. This alignment of our
    pathologists' specialties with those of the referring
    physicians is critical to our ability to retain existing and
    attract new clients. Our clinical expertise and frequent
    interactions with clients on patient diagnoses enables us to
    establish effective consultative and long-term relationships
    with referring physicians.
•
Professional Sales, Marketing and Client Service
    Team.
We maintain a sales, marketing and client
    service team of over 100 professionals who are highly-trained
    and organized by subspecialty to better meet the needs of our
    referring physicians and their patients. Our sales
    representatives are incentivized through compensation plans to
    not only secure new physician clients, but also to maintain and
    enhance relationships with existing physician clients. As a
    result, they have enabled us to expand our geographic market
    presence to 30 states and increase market penetration and
    market share in our local markets.
•
Proprietary IT Solutions.
Delivery of clinical
    information is essential to our business and a critical aspect
    of the differentiated service that we provide to our clients. We
    have developed scalable IT solutions that maximize the
    flexibility,
ease-of-use
and speed of delivery of our diagnostic reports, which has
    enabled us to rapidly grow our accession volume and meet the
    increasing physician demand for our diagnostic services. We also
    monitor referral patterns on a daily basis using our IT
    infrastructure, which allows us to respond quickly to referring
    physicians through our sales and marketing teams. We achieved
    this through the development of a proprietary suite of IT
    solutions called
ConnectDX
that is compatible with most
    electronic medical record, or EMR, systems.
ConnectDX
incorporates customized interface solutions, low cost and
    efficient printer capabilities, compliant web portal capacities,
    and proprietary software, all resulting in efficient and
    reliable onsite client connections.
•
Proven Acquisition, Integration and Development
    Capabilities
.  We have significant expertise and a
    proven track record of identifying, acquiring and integrating
    pathology practices into our diagnostic laboratory network. Our
    management team successfully expanded our operations through the
    acquisition of 16 anatomic pathology laboratories and one
    clinical laboratory and through the development of two de
    novo diagnostic laboratories. We have improved the performance
    of the laboratories we have acquired by applying our standard
    operating procedures, enhancing sales and marketing
    capabilities, implementing our IT platform and realizing
    efficiencies from our national operations and management. We
    believe our operational platform, expertise and value
    proposition enable us to capitalize on the considerable
    consolidation opportunities in the highly-fragmented anatomic
    pathology market, as reflected by our significant current
    pipeline of potential acquisition targets.
•
Experienced Senior Leadership.
Our senior
    management team has approximately 80 years of combined
    experience in the health care industry, including senior
    management positions with leading diagnostic companies including
    AmeriPath, DIANON Systems and Laboratory Corporation of America,
    and, collectively, have successfully completed over 65
    acquisitions and built a number of de novo specialized
    diagnostic laboratories. We believe that our management's
    strong reputation, extensive network of industry relationships
    and experience in building and growing successful companies in
    the industry help us to drive operating performance, hire and
    retain talented pathologists and other employees and attract
    acquisition candidates.
Our
    Business Strategy
We intend to achieve growth by pursuing the following strategies:
•
Continue to Drive Market Penetration through Sales and
    Marketing
.  We plan to drive organic growth
    through our professional sales and marketing organization. Our
63-person
sales and marketing team provides us with broad coverage to
    augment and further penetrate existing physician relationships
    and to develop new referral relationships. We plan to
    strategically add sales professionals to laboratories in markets
    that will most benefit from enhanced outreach, increasing our
    presence in existing and new markets.
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•
Leverage our IT Platform to Increase Operating
    Efficiencies
.  We believe our IT platform will
    allow us to gain market share in our existing subspecialties by
    improving productivity and reducing turnaround times. We have
    recently introduced an IT solution called
doc2MD
, a
    leading EMR system for dermatology practices for which we have
    an exclusive, long-term  license. We intend to continue to
    develop our internal IT operations into a better-integrated
    diagnostic platform, which will improve national coordination
    and provide real time visibility into key performance metrics.
    In addition, we plan to continue to introduce innovative IT
    solutions, interface capabilities and market-specific IT
    solutions that enhance our value proposition to referring
    physicians.
•
Expand through Targeted Acquisitions.
We plan
    to identify and acquire leading laboratories to augment our
    organic growth, broaden our geographic presence and enhance our
    service offering. We intend to continue to build our business
    and enhance our reputation as a preferred acquiror for
    independent laboratories. We believe that our recognizable
    identity and strong reputation make us a preferred partner for
    independent laboratories.
•
Expand Diagnostic Services Capabilities.
We
    intend to expand our services in the areas of clinical and
    molecular diagnostics to complement our existing anatomic
    pathology businesses. We believe we can leverage our depth of
    experience and physician relationships to sell these new
    diagnostic services in conjunction with our existing testing
    services as a comprehensive offering. As a "one-stop"
    diagnostic services provider, we would not only better serve our
    current clients, but also position ourselves to attract new
    business under a more diverse service model.
•
Develop De Novo Diagnostics Laboratories.
We
    plan to continue to selectively develop diagnostic laboratories
    on a de novo basis, as we have done in certain markets, to
    expand our market presence, broaden our service offering and
    leverage the capabilities of our existing laboratories and
    pathologists.
•
Expand Contracts with Hospitals in Target
    Markets.
We intend to continue to develop
    additional contracts with hospitals in target markets as part of
    a broader strategy to strengthen and grow our outpatient
    business and expand our local market share.
•
Further Expand into Growing Long-Term Care
    Market.
We have a growing presence providing
    clinical diagnostic services to the long-term care markets in
    Central and Northern Florida. We intend to expand this regional
    coverage into the large South Florida market and replicate our
    success in other states with growing long-term care markets. We
    believe that our IT solutions, and our ability to meet the rapid
    service requirements for the long term care market, provide us
    with a significant competitive advantage in these markets.
Our
    Services
Anatomic pathology typically requires a pathologist to make a
    specific diagnosis. Anatomic pathologists are medical doctors
    who specialize in the study of disease. Anatomic pathologists do
    not treat patients, but rather assist other physicians in
    determining the correct diagnosis of their patient's
    ailments. A pathologist's diagnosis represents a critical
    factor in determining a patient's future care. In addition,
    anatomic pathologists may consult with attending physicians
    regarding treatment plans. In these capacities, the anatomic
    pathologist often serves as the "physician's
    physician," thereby creating long-term relationships.
Anatomic pathologists perform their duties in laboratories,
    including independent free-standing local laboratories, hospital
    laboratories, regional and national laboratories, in ambulatory
    surgery centers and in a variety of other settings. Referring
    physicians take specimens from patients, and those specimens are
    transported to a laboratory by courier or an overnight delivery
    service. Once received at the laboratory, a specimen is
    processed and mounted onto a slide by laboratory technologists
    for examination by a pathologist. Once the pathologist examines
    a specimen, the pathologist typically records the results of
    testing performed in the form of a report to be transmitted to
    the referring physician. Since specimens are transportable and
    technology facilitates communication, samples can be diagnosed
    by a pathologist from a remote location. Therefore, pathologists
    are generally not needed
"on-site"
to make a diagnosis. This enhances utilization of available
    capacity in outpatient and inpatient laboratories and allows the
    practice to service a wider geographic area.
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An anatomic pathologist must have an understanding of a broad
    range of medicine. An anatomic pathologist may perform
    diagnostic testing services for a number of subspecialty testing
    markets such as dermatopathology, urologic pathology,
    women's health pathology, gastrointestinal pathology,
    hematopathology or surgical pathology. While physical
    examination or radiology procedures may suggest a diagnosis for
    many diseases, the definitive diagnosis is generally established
    by the anatomic pathologist.
Sales and
    Marketing; Client Service
The selection of a pathologist to perform diagnostic testing
    services is primarily made by individual referring physicians.
    We maintain a sales and marketing team of 63 professionals who
    are highly-trained and organized by subspecialty to better meet
    the needs of our referring physicians. We have designed our
    compensation structure to incentivize our sales representatives
    to not only secure new physician clients, but also to maintain
    and enhance relationships with existing physician clients. As a
    result, our sales and marketing team has enabled us to expand
    our geographic market presence to 30 states by leveraging
    our extensive offering of diagnostic services across our markets.
We currently focus our marketing and sales efforts primarily on
    dermatologists, urologists and gynecologists, as well as
    gastroenterologists, hematologists and oncologists and their
    office staff. The physicians on which our marketing and sales
    efforts are focused include both non-hospital-based and
    hospital-based physicians. Our sales representatives concentrate
    on a geographic area based on the number of existing clients and
    client prospects, which we identify using several national
    physician databases that provide physician address information,
    patient demographic information and other data.
At the beginning of a new client relationship, one of our sales
    representatives visits a prospective physician client and
    describes in detail our differentiated service offerings,
    focusing on our experienced pathologists, local presence, rapid
    turn-around times, comprehensive diagnostic reports, client
    service and IT solutions. Our sales representatives focus on the
    specialties offered by their respective divisions, which allows
    them not only to discuss our specialized diagnostic services,
    but also to describe diagnostic developments and new products
    and technologies in their practice areas.
We also maintain a client service team of over 40 professionals
    who are highly-trained and organized by subspecialty. Our
    dedicated client service team provides ongoing support to our
    clients and, in particular, the office staff of our referring
    physicians. Our client service team enables us to augment the
    long-standing relationships between our pathologists and their
    clients to maintain a more stable base of referrals. These
    service teams provide our clients with a personal, knowledgeable
    and consistent point of contact within our company. Client
    service team members coordinate the provision of services,
    ensure testing supplies are replenished, answer administrative
    and billing questions, and resolve service issues. We believe
    these additional client contacts greatly enhance client
    satisfaction and strengthen overall client relationships.
Once a client relationship is established, our sales
    representatives and client service team provide frequent
follow-up
sales and service calls to ensure we are continuing to meet
    physician needs and expectations and to explore other
    opportunities for the physician to use our diagnostic services.
    For example, once a client relationship is established, our
    sales representatives and client service team frequently contact
    the client to track testing volume and monitor satisfaction. In
    addition, our sales representatives and client service team
    frequently conduct client surveys, and our pathologists dialogue
    with clients to develop relationships and identify areas in
    which our relationships and service levels may be improved or
    expanded. We believe that the frequency of these sales calls
    allows our sales representatives and client service team to
    build and enhance strong relationships with our clients, helping
    us to better understand their needs and develop new service
    offerings.
We currently focus our marketing and sales efforts by
    subspecialty. Our representatives are extensively trained in the
    specific subspecialty they service and they are knowledgeable
    about our test offerings and new diagnostic technologies
    available in the market by subspecialty. This provides
    additional value to our physician clients and staff, as our
    representatives become a resource to our client's practice.
    Our product offerings which have been developed to meet the
    unique needs of each subspecialty are branded under the
    following names:
•
DermDX (dermatopathology services for the dermatology market);
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•
WomensDX (Womens Health Services for the OB/GYN market);
•
UroDX (for the Urology market);
•
GastroDX (for the gastroenterology market);
•
HemaDX (for the Hematology and Oncology market);
•
TreatmentDX (drug treatment market — CHC
    focus); and
•
CareDX (long term and assisted care markets).
The offerings provide a comprehensive test menu so each
    physician specialist can order the best test available to make a
    accurate diagnosis and appropriate treatment decisions.
Competition
The anatomic pathology market is highly competitive. Competition
    in our industry is based on several factors, including price,
    clinical expertise, quality of service, client relationships,
    breadth of testing menu, speed of turnaround of test results,
    reporting and IT systems, reputation in the medical community
    and ability to employ qualified personnel. Our competitors
    include local and regional pathology groups, national
    laboratories, hospital-based pathology groups and specialty
    physician groups.
•
Local and Regional Pathology Groups.
Local and
    regional pathology groups typically provide a relatively narrow
    menu of test services to community physicians and, in certain
    cases, to hospital-based pathologists.
•
National Laboratory Companies.
National
    laboratories typically offer a full suite of tests for a variety
    of medical professionals, including general practitioners,
    hospitals and pathologists. National laboratories have
    identified anatomic pathology as a focus area for future growth
    and will continue to be a competitive challenge going forward.
•
Hospital Pathologists.
Pathologists working in
    hospitals typically provide most of the diagnostic services
    required for hospital in-patients and, sometimes, hospital
    outpatients. Hospital pathologists act as medical directors for
    the hospital's clinical and histology laboratories.
    Typically, hospital pathologists provide these services to
    hospitals under exclusive and long-term contractual arrangements.
•
Specialty Physician Groups.
An increasing
    number of specialty physician groups (urologists and
    gastroenterologists in particular) are building their own
    laboratories and in-sourcing pathology services. This trend
    represents a significant source of competition, and it could
    impact the anatomic pathology landscape in the future. According
    to Laboratory Economics, at least 500 specialty physician groups
    have set up laboratories between 2005 and 2009.
The anatomic pathology market remains highly-fragmented, with
    the two largest clinical laboratory companies accounting for
    only 14 percent of annual revenues for the market in 2008.
    The remaining 86 percent of annual revenues for the market
    was comprised of over 13,000 pathologists and numerous
    specialized testing companies that offer a relatively narrow
    menu of diagnostic services. In 2008, approximately
    70 percent of pathologists licensed in the U.S. were
    in private practices according to Washington G-2 Reports. There
    is an evolving trend among pathologists to form larger practices
    to provide a broader range of outpatient and inpatient services
    and enhance the utilization of the practices' pathologists.
    We believe this trend can be attributed to several factors,
    including cost containment pressures by governmental and other
    third-party payors, increased competition, managed care and the
    increased costs and complexities associated with operating a
    medical practice. Moreover, given the current trends of
    increasing outpatient services, outsourcing and the
    consolidation of hospitals, pathologists are seeking to align
    themselves with larger practices that can assist providers in
    the evolving health care environment. Larger practices can offer
    pathologists certain advantages, such as obtaining and
    negotiating contracts with hospitals and other providers,
    managed care providers and national clinical laboratories;
    marketing and selling of professional services; providing
    continuing education and career advancement opportunities;
    making available a broad range of specialists with whom to
    consult; providing access to capital and business and management
    experience; establishing and implementing more efficient and
    cost effective billing and collection procedures; and expanding
    the practice's geographic coverage area. Each of these
    factors support the pathologists in the efficient
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management of the complex and time-consuming non-medical aspects
    of their practice. As a result, we believe that there are
    substantial consolidation opportunities in the anatomic
    pathology market as smaller pathology providers seek access to
    the resources of diagnostics companies with a more comprehensive
    selection of services for referring physicians.
Seasonality
Our business is affected by seasonal trends and generally
    declines during the winter months, the year-end holiday period
    and other major holidays. Adverse weather conditions can also
    influence our business.
Quality
    Assurance
We consider the quality of our diagnostic services to be of
    critical importance, and we have established a comprehensive
    quality assurance program for our laboratories designed to drive
    accurate and timely test results and to ensure the consistent
    high quality of our testing services. In addition to the
    compulsory proficiency programs and external inspections
    required by the Centers for Medicare & Medicaid Services,
    or CMS, and other regulatory agencies, we have developed a
    variety of internal systems and procedures to emphasize,
    monitor, and continuously improve the quality of our operations.
We also participate in numerous externally-administered quality
    surveillance programs, and our laboratories are accredited by
    the College of American Pathologists, or CAP. CAP is an
    independent, non-governmental organization of board-certified
    pathologists that accredits laboratories nationwide on a
    voluntary basis and that has been accredited by CMS to inspect
    laboratories to determine adherence to the CLIA standards. The
    CAP accreditation program involves both unannounced
on-site
inspections of our laboratories and our participation in
    CAP's ongoing proficiency testing program. A
    laboratory's receipt of accreditation by CAP satisfies the
    Medicare requirement for participation in proficiency testing
    programs administered by an external source, one of
    Medicare's primary requirements for reimbursement
    eligibility.
Information
    Systems
We are focused on implementing IT systems that streamline
    internal operations and provide customized IT solutions to meet
    the needs of our clients. We offer our IT solutions primarily
    through the proprietary system
ConnectDx
and increasingly
    through the
doc2MD
system for which we have an exclusive,
    long-term license.
We developed
ConnectDx
, a customizable application
    platform to provide a gateway for delivering and printing our
    reports and communicating with many of our clients. A number of
    our IT solutions provide an immediate impact to referring
    physicians and their offices. The most common connectivity tools
    include:
•
Electronic interfaces;
•
Client EMR interfacing;
•
Internet report delivery (web portal);
•
Printed reports;
•
Patient education document;
•
Auto fax;
•
Patient data from clients office system requisitions;
•
Color remote printing hardware; and
•
Secure remote printing software.
Electronic interfaces provide a means through which we and our
    clients can share data efficiently and accurately. These
    customized interfaces can transfer patient information like
    demographics, requisitions and diagnostic results between our IT
    system and the IT system of our referring physicians. It takes
    us an average of
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eight weeks to build and implement a new interface tailored to
    the client, whereas it may take our competitors up to eight
    months to implement a standard interface.
Two key elements that we believe differentiate
ConnectDx
from our competitors' electronic interfaces are the
    relative speed with which we can create and implement customized
    solutions for clients and the reduced overhead costs associated
    with doing so. Since
ConnectDx
was created to accommodate
    flexibility, customizations such as delivering reports to
    specified client system directories or printing multiple copies
    of reports at physician offices during particular times each day
    are easy to implement. This functional flexibility is achieved
    with relatively low cost to us as a result of our IT
    solution's layered and adaptable design. We expect the
    number of
ConnectDx
installations to grow and provide
    additional value to our customers. We plan to expand the
    products offered through
ConnectDx
to include utilization
    and patient education reports as well as practice-specific
    solutions.
We recently acquired an exclusive, long-term license to
doc2MD
, an EMR and practice management software that was
    specifically designed for dermatology practices, and we have
    begun installing this software at select client locations. We
    believe that the
doc2MD
software is a simple,
    cost-effective program that allows dermatologists to quickly and
    accurately document patient encounters. During 2009, we
    conducted a market test for
doc2MD
with a number of our
    dermatology practices and received positive feedback. We believe
    that
doc2MD
will provide us with the platform to drive
    our organic growth in the dermatopathology space, further
    enabling us to maintain stable relationships with existing
    dermatology clients and build relationships with new dermatology
    clients.
Most of our IT solutions are implemented on a laboratory by
    laboratory basis in connection with our efforts to integrate
    acquired laboratories. We have developed, and will continue to
    develop, faster integration times of our laboratory information
    system, or LIS, offering. After an acquisition, we generally
    transition our acquired laboratories to a common accounting
    system and software package for financial processing and
    reporting within 60 days of closing. Generally, the LIS and
    billing platforms of our acquired laboratories, as well as all
    their
day-to-day
laboratory operations, continue to operate as they did
    pre-acquisition. We bill for our services using the existing
    billing systems of the acquired laboratories or, in some
    locations, we use an outsourced vendor to provide billing
    services.
A significant benefit for acquired laboratories is the linkage
    of data between our central database and our laboratories via a
    private network. Information feeds from our laboratory systems
    to our centralized backend database tally accession details,
    client delivery products, practice management interfacing and
    sales data. Daily sales volumes are monitored and can be
    categorized by channel including product line, or territory. The
    centralized client contact system's ability to alert sales
    representatives to changes in client trends within a single day
    further enables our sales and client service teams to monitor
    existing client retention and grow our client base.
Corporate
    Structure
We derive our revenues from owned practices in which we either
    directly employ our pathologists through our wholly owned
    operating subsidiaries, or, in states with laws that restrict
    the direct employment of physicians by for-profit corporations,
    we contract with an affiliated practice entity that employs our
    pathologists. As a result of corporate practice of medicine
    restrictions, the affiliated physicians in such states retain
    ownership of a separate practice entity through which they
    practice medicine, but we enter into contractual arrangements
    that generally:
•
prohibit our affiliated physicians from transferring their
    ownership interests in the practice entity, except in very
    limited circumstances, and
•
require the affiliated physicians to transfer their ownership
    interests in the practice entity to our designees upon the
    occurrence of specified events.
Through these contractual arrangements, we have controlling
    voting and financial interests in the separate practice entities.
In addition, in Alabama, which restricts the corporate practice
    of medicine, our laboratory is party to a long-term services
    agreement with an unaffiliated physician group that provides
    services to the laboratory on an exclusive basis. While we do
    not have a controlling voting or financial interest in the
    physician group, we have the
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right to consult with the physician group regarding business
    decisions and approve or disapprove the retention or discharge
    of all employees by the physician group.
The manner in which we acquire and operate a particular practice
    is determined primarily by the corporate practice of medicine
    restrictions of the state in which the practice is located and
    other applicable regulations. We exercise diligence and care in
    structuring our practices and arrangements with providers in an
    effort to comply with applicable federal and state laws and
    regulations, and we believe that our current practices and
    arrangements do comply in all material respects with applicable
    laws and regulations. However, due to uncertainties in the law,
    there can be no assurance that our practices and arrangements
    would be deemed to be in compliance with applicable laws and
    regulations, and any noncompliance could result in a material
    adverse effect on us. See "— Government
    Regulation."
Contracts
    and Relationships with Providers
We employ our pathologists, control the practice entities that
    employ our pathologists or contract with pathologists on an
    independent contractor basis to provide diagnostic services in
    our laboratories. While we exercise legal control over our
    practices, we do not exercise control over, or otherwise
    influence, the medical judgment or professional decisions of any
    pathologist associated with our practices.
Our pathologist employment agreements typically have terms of
    between 3 and 5 years and generally can be terminated by
    either party without cause upon between 90 and 180 days
    notice. Our pathologists generally receive a base compensation,
    health and welfare benefits generally available to our employees
    and, in some cases, annual performance bonuses. Our pathologists
    are required to hold a valid license to practice medicine in the
    jurisdiction in which they practice. We are responsible for
    billing patients, physicians and payors for services rendered by
    our pathologists. Most of our pathologist employment agreements
    contain restrictive covenants, including non-competition,
    non-solicitation and confidentiality covenants.
Our business is dependent on the recruitment and retention of
    pathologists, particularly those with subspecialties like
    dermatopathology. While we have generally been able to recruit
    and retain pathologists in the past, no assurance can be given
    that we will be able to continue to do so successfully or on
    terms similar to our current arrangements. The relationship
    between our pathologists and their respective local medical
    communities is important to the operation and continued
    profitability of our practices. In the event that a significant
    number of pathologists terminate their relationships with us or
    become unable or unwilling to continue their employment, our
    business could be materially harmed.
We manage and control all of the non-medical functions of our
    practices. We are not licensed to practice medicine. The
    practice of medicine is conducted solely by the physicians in
    our practices.
Billing
    and Reimbursement
Billing
Billing for diagnostic services is generally highly complex.
    Laboratories must bill various payors, such as private insurance
    companies, managed care companies, governmental payors such as
    Medicare and Medicaid, physicians, hospitals and employer
    groups, each of which may have different billing requirements.
    Additionally, the audit requirements we must meet to ensure
    compliance with applicable laws and regulations, as well as our
    internal compliance policies and procedures, add further
    complexity to the billing process. Other factors that complicate
    billing include:
•
variability in coverage and information requirements among
    various payors;
•
missing, incomplete or inaccurate billing information provided
    by ordering physicians;
•
billings to payors with whom we do not have contracts;
•
disputes with payors as to which party is responsible for
    payment; and
•
disputes with payors as to the appropriate level of
    reimbursement.
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Billing for diagnostic services in connection with governmental
    payor programs is subject to numerous federal and state
    regulations and other requirements, resulting in additional
    costs to us. These additional costs include those related to:
•
variability in coverage and information requirements among
    various payors;
•
increased complexity in our billing due to the additional
    procedures and processes required by governmental payor programs;
•
training and education of our employees and customers;
•
compliance and legal costs; and
•
costs related to, among other factors, medical necessity denials
    and the absence of advance beneficiary notices.
Reimbursement
Depending on the billing arrangement and applicable law, the
    party that reimburses us for our services may be:
•
a third party who provides coverage to the patient, such as an
    insurance company, managed care organization or a governmental
    payor program;
•
the physician or other authorized party (such as a hospital or
    another laboratory) who ordered the testing service or otherwise
    referred the services to us; or
•
the patient.
For the year ended December 31, 2009, we derived
    approximately 61 percent of our revenues from private
    insurance, including managed care organizations and other
    healthcare insurance providers, 25 percent from
    governmental payor programs and 14 percent from other
    sources.
In 2009, approximately 22 percent of our annual revenues
    were derived from the Medicare program, which is overseen by
    CMS. Because a large percentage of our revenues are derived from
    the Medicare program, the Medicare coverage and reimbursement
    rules are significant to our operations. Reimbursement under the
    Medicare program for the diagnostic services that we offer is
    subject to either the national Medicare clinical laboratory fee
    schedule or the national Medicare physician fee schedule, each
    of which is subject to geographic adjustments and is updated
    annually. The physician fee schedule is designed to set
    compensation rates for those medical services provided to
    Medicare beneficiaries that require a degree of physician
    supervision. Clinical diagnostic laboratory tests furnished to
    non-hospital patients are paid according to the clinical
    laboratory fee schedule.
Most of the services that we provide are anatomic pathology
    services, which are reimbursed separately under the Medicare
    physician fee schedule, and beneficiaries are responsible for
    applicable coinsurance and deductible amounts. The physician fee
    schedule is based on assigned relative value units for each
    procedure or service, and an annually determined conversion
    factor is applied to the relative value units to calculate the
    reimbursement. The Sustainable Growth Rate formula used to
    calculate the fee schedule conversion factor resulted in
    significant decreases in payment levels in recent years,
    including a decrease in physician fee schedule payments for 2010
    of approximately 21 percent. On December 19, 2009, the
    President signed into law a provision that delayed the cut for
    two months until March 1, 2010. The reimbursement cut was
    again delayed until May 31, 2010. It is not clear when, or
    if, the cut will be enacted and, if so, for how long the cut
    will be effective.
Future decreases in the Medicare physician fee schedule are
    possible unless the U.S. Congress acts to change the
    Sustainable Growth Rate formula used to calculate the fee
    schedule payment amounts or continues to mandate freezes or
    increases each year. Because the vast majority of our diagnostic
    services currently are reimbursed under the physician fee
    schedule, changes to the physician fee schedule could result in
    a greater impact on our revenues than changes to the Medicare
    clinical laboratory fee schedule.
The clinical laboratory fee schedule assigns amounts to specific
    procedure billing codes, and each Medicare contractor
    jurisdiction has a fee schedule that establishes the price for
    each specific laboratory billing code. In addition, Medicare
    also sets a cap on the amount that it will pay for any
    individual test. Currently, this cap, usually
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referred to as the National Limitation Amount, or NLA, is set at
    a percentage of the median of all the contractor fee schedule
    amounts for each test code. In the past, the U.S. Congress
    has frequently lowered the percentage of the median used to
    calculate the NLA in order to achieve budget savings. Currently,
    the NLA ceiling is set at 74 percent of the medians for
    established tests and 100 percent of the median for certain
    new tests that were not previously reimbursed. In billing
    Medicare for clinical laboratory services, we are required to
    accept, as payment in full, the lowest of our actual charge, the
    fee schedule amount for the state or local geographical area, or
    the NLA.
Because we must accept Medicare payment for clinical laboratory
    services as payment in full, Medicare beneficiaries have no
    coinsurance or deductible amount for clinical laboratory
    services, although they do for anatomic pathology services.
    However, on several occasions, in recent years, the
    U.S. Congress has considered also imposing a
    20 percent coinsurance on clinical laboratory fees, which
    would require us to bill patients for their portion of these
    services. To date, the U.S. Congress has never enacted such
    a provision. However, because of the relatively low payment for
    many clinical laboratory tests, the cost of billing and
    collecting for these services would often exceed the amount
    actually received from the patient. Therefore, the imposition of
    such a requirement by the U.S. Congress would have the
    effect of increasing our costs of billing and collecting.
The federal Social Security Act establishes that these clinical
    laboratory fee schedule amounts are to be increased annually
    based on the Consumer Price Index for All Urban Consumers, or
    the CPI-U, as of June 30 for the previous
12-month
period. The U.S. Congress has frequently legislated that
    the CPI-U increase not be implemented. For instance, the
    U.S. Congress eliminated the CPI-U update through 2008 in
    the Medicare Prescription Drug, Improvement and Modernization
    Act of 2003, or MMA. For 2009, the CPI-U update would have been
    5.0 percent. However, the Medicare Improvements for
    Patients and Providers Act of 2008, or MIPPA, mandated a
    0.5 percent cut to the CPI-U for years 2009 through 2013.
    Accordingly, the update for 2009 was reduced to
    4.5 percent. Because of the falling CPI-U and the
    0.5 percent mandatory reduction, the clinical laboratory
    fee schedule update for 2010 was -1.9 percent.
The U.S. Congress recently passed, and the President
    recently signed into law, comprehensive health care reform
    legislation that consisted of the PPACA and the HCEARA. This
    legislation imposed additional cuts on the Medicare
    reimbursement for clinical laboratories and repealed the
    0.5 percent cut that was enacted by MIPPA and replaced it
    with a "productivity adjustment" that will reduce the
    update in payments for clinical laboratory tests by between 1.1
    and 1.4 percent. In addition, this legislation includes a
    1.75 percent reduction in reimbursement rates for clinical
    laboratories for the years 2011 through 2015.
The payment amounts under the Medicare clinical laboratory fee
    schedule are important not only for our reimbursement under
    Medicare, but also because the schedule often establishes the
    payment amounts set by other third party payors. For example,
    state Medicaid programs are prohibited from paying more than the
    Medicare fee schedule limit for clinical laboratory services
    furnished to Medicaid recipients.
The MMA required CMS to conduct a competitive bidding
    demonstration project for clinical laboratory tests, with some
    exclusions, to determine whether competitive bidding could be
    used to provide laboratory services at reduced cost to Medicare,
    while continuing to maintain quality and access to care.
    Anatomic physician services were not, however, covered by the
    demonstration. The initial demonstration project in the
    San Diego — Carlsbad — San Marcos,
    California area was scheduled to begin on July 1, 2008.
    However, the demonstration project was enjoined by an April 2008
    preliminary injunction in a lawsuit filed by laboratory
    plaintiffs against the Secretary HHS, and the demonstration was
    later repealed in July 2008 by the U.S. Congress under
    MIPPA. Currently, the court in the lawsuit is considering the
    request by laboratories that CMS either return the bid
    information or agree not to use it in any rate-setting
    activities. The court recently denied the government's
    request to dismiss the lawsuit as moot. Despite the repeal of
    the demonstration project, the HHS Secretary could retain the
    bid application information to set lower future payment rates
    for laboratory services if the court decides against the
    laboratory plaintiffs. In addition, the U.S. Congress could
    revisit competitive bidding for clinical laboratory services in
    light of the current Administration's efforts to reform the
    healthcare system and generate healthcare savings. If
    competitive bidding for clinical laboratory services is
    implemented at a future time, we could be precluded from billing
    the Medicare program for certain clinical laboratory services
    furnished to Medicare beneficiaries if we are not a winning
    bidder, or, as part of the competitive bidding process, we could
    be required to offer reduced payment amounts in order to
    participate in the arrangement.
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When we provide clinical diagnostic laboratory services to
    patients who reside in skilled nursing facilities, we must
    comply with special billing rules for Medicare. For skilled
    nursing facilities patients who are covered by Part A of
    Medicare, which typically applies to patients who have been
    discharged from a hospital into the skilled nursing facility, we
    must bill, and be paid by, the skilled nursing facility itself.
    For other Medicare patients, covered by Part B, we must
    bill Medicare directly for the testing services requested.
    Because skilled nursing facilities sometimes move between
    Part A and Part B coverage, billing appropriately for
    these services may be complex and time-consuming.
Government
    Regulation
The services that we provide are heavily regulated by both
    federal and state governmental authorities. Failure to comply
    with the applicable regulations can subject us to significant
    civil and criminal penalties, loss of license, or the
    requirement that we repay amounts previously paid to us. The
    significant areas of regulation are set out below.
Clinical
    Laboratory Improvement Amendments of 1988 and State
    Regulation
As a diagnostic service provider, each of our laboratory
    entities is required to hold certain federal, state and local
    licenses, certifications and permits to conduct our business.
    Under the Clinical Laboratory Improvement Amendments of 1988, or
    CLIA, each laboratory is required to hold a certificate
    applicable to the type of work we perform at the laboratory and
    to comply with certain CLIA-imposed standards. CLIA regulates
    virtually all clinical laboratories by requiring they be
    certified by the federal government and comply with various
    operational, personnel, facilities administration, quality and
    proficiency requirements intended to ensure that their clinical
    laboratory testing services are accurate, reliable and timely.
    CLIA does not preempt state laws that are more stringent than
    federal law.
As part of the renewal process, our laboratories are subject to
    survey and inspection every two years to assess compliance with
    program standards and may be subject to additional random
    inspections. Standards for testing under CLIA are based on the
    level of complexity of the tests performed by the laboratory.
    Laboratories performing high complexity testing are required to
    meet more stringent requirements than laboratories performing
    less complex tests. Each of our laboratories holds a CLIA
    certificate to perform high complexity testing. CLIA compliance
    and certification is also a prerequisite to be eligible to bill
    for services provided to governmental payor program
    beneficiaries. In addition, each laboratory must also enroll
    with an approved proficiency testing program by which it
    periodically tests specimens submitted from an outside
    proficiency testing organization and then submits its results
    back to the organization for grading. Failure to achieve a
    passing score on a proficiency test can result in the laboratory
    losing its right to perform the test at issue. Failure to comply
    with other proficiency testing regulations, such as referring a
    proficiency testing specimen to another laboratory for analysis,
    can result in the revocation of the laboratory's license
    and of the licenses of other laboratories owned by us.
In addition to CLIA requirements, we are subject to various
    state laws. CLIA provides that a state may adopt laboratory
    regulations that are more stringent than those under federal
    law. In some cases, the state programs actually substitute for
    the federal CLIA program. In other instances the state's
    regulations may be in addition to the CLIA program. State laws
    may require that laboratory personnel meet certain
    qualifications, specify certain quality controls or prescribe
    record maintenance requirements. Our laboratories are licensed
    and accredited by the appropriate state agencies in the states
    in which they operate.
Health
    Insurance Portability and Accountability Act
Under the administrative simplification provisions of the Health
    Insurance Portability and Accountability Act, or HIPAA, HHS has
    issued regulations that establish uniform standards governing
    the conduct of certain electronic healthcare transactions and
    protecting the privacy and security of protected health
    information, referred to as PHI, used or disclosed by healthcare
    providers and other covered entities. Four principal regulations
    with which we are currently required to comply have been issued
    in final form under HIPAA: privacy regulations; security
    regulations; standards for electronic transactions; and the
    national provider identifier, or NPI, regulations. We must also
    comply with regulations that require covered entities and
    business associates to provide notification after a breach of
    unsecured PHI.
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The privacy regulations cover the use and disclosure of PHI by
    healthcare providers. They also set forth certain rights that an
    individual has with respect to his or her PHI maintained by a
    healthcare provider, including the right to access or amend
    certain records containing PHI or to request restrictions on the
    use or disclosure of PHI. The HIPAA privacy regulations, among
    other things, restrict our ability to use or disclose PHI in the
    form of patient-identifiable laboratory data without written
    patient authorization for purposes other than payment,
    treatment, or healthcare operations, except for disclosures for
    various public policy purposes and other permitted purposes
    outlined in the privacy regulations. The privacy regulations
    provide for significant fines and other penalties for wrongful
    use or disclosure of PHI. In addition, the American Recovery and
    Reinvestment Act of 2009, or ARRA, increases the civil monetary
    penalty amounts for violations of the HIPAA regulations.
    Although the HIPAA statute and regulations do not expressly
    provide for a private right of damages, laws in certain states
    provide for damages to private parties for the wrongful use or
    disclosure of confidential health information or other private
    personal information. Moreover, ARRA has created a new right of
    action for state attorneys general to sue on behalf of
    individuals who are harmed under the HIPAA regulations.
The security regulations establish requirements for safeguarding
    the confidentiality, integrity and availability of PHI which is
    electronically transmitted or electronically stored. The
    security regulations provide for sanctions and penalties for
    violations. In addition, ARRA increases the civil monetary
    penalty amounts for violations of the HIPAA regulations and
    creates a new right of action for state attorneys general. The
    HIPAA privacy and security regulations establish a uniform
    federal minimum standard and do not supersede state laws that
    are more stringent or provide individuals with greater rights
    with respect to the privacy or security of, and access to, their
    records containing PHI. As a result, we are required to comply
    with both HIPAA privacy and security regulations and varying
    state privacy and security laws. ARRA also applies the HIPAA
    privacy and security provisions and the civil and criminal
    penalties associated with violating these provisions to business
    associates in the same manner as they apply to covered entities.
In addition, HIPAA imposes standards for electronic
    transactions, which establish standards for common healthcare
    transactions. In particular, we utilize these standard
    transaction sets where required by HIPAA.
Finally, HIPAA also established a new NPI as the standard unique
    health identifier for healthcare providers to use in filing and
    processing healthcare claims and other transactions.
As part of the HIPAA requirements, certain specified coding sets
    are established that must be used for all billing transactions.
    Currently, all healthcare providers use a system of diagnosis
    coding referred to as the International Classification of
    Diseases, 9th edition, or ICD-9. However, HHS, which oversees
    HIPAA, has recently established a new requirement that will
    require all healthcare entities, including ours, to move to a
    new system of diagnosis codes, ICD-10, by October 1, 2013.
    ICD-10 utilizes more codes and is considered more complex than
    the current system. Because we must often rely on referring
    physicians to supply us with the appropriate diagnosis codes,
    the movement to the new system may increase billing difficulties
    if physicians or payors have difficulty in making the transition
    to the new codes.
In addition to PHI, the healthcare information of patients often
    includes social security numbers and other personal information
    that is not of an exclusively medical nature. The consumer
    protection laws of a majority of states now require
    organizations that maintain such personal information to notify
    each individual if their personal information is accessed by
    unauthorized persons or organizations so that the individuals
    can, among other things, take steps to protect themselves from
    identity theft. Penalties imposed by these state consumer
    protection laws vary from state to state but may include
    significant civil monetary penalties, private litigation and
    adverse publicity. In addition, the Federal Trade Commission, or
    FTC, has established new Red Flag Rules relating to identity
    theft prevention programs, which are considered applicable to
    healthcare companies. The compliance date for the Red Flag Rules
    has repeatedly been delayed and is currently June 1, 2010.
    Under the Red Flag Rules, the FTC is authorized to bring
    enforcement actions in federal court for violations and could
    impose a $2,500 penalty for each violation of the Red Flag
    Rules. Noncompliance could also be penalized through state
    enforcement or other civil liability.
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Federal
    and State Fraud and Abuse Laws
There are a variety of federal laws prohibiting fraud and abuse
    involving federal government payment programs, such as Medicare
    and Medicaid. These laws are enforced by the federal
    U.S. Attorneys and the HHS Office of the Inspector General,
    or OIG. In addition, the Medicare program increasingly uses a
    variety of contractors to review billings submitted by providers
    to the Medicare program. These contractors include Recovery
    Audit Contractors, or RACs, and Carrier Error Rate Test, or
    CERT, contractors. The RAC program began as a demonstration
    program in a limited number of states that was designed to
    detect improper Medicare payments to providers and suppliers. It
    was expanded to cover all 50 states by Section 302 of
    the Tax Relief and Health Care Act of 2006, which makes the RAC
    program permanent and requires the HHS Secretary to expand the
    program to all 50 states by no later than 2010. In
    addition, CMS conducts CERT audits, which also monitor the
    accuracy of payments made by Medicare payment contractors. In
    either case, any overpayments found by the RAC or CERT
    contractors must be repaid to the Medicare program. In some
    cases, these overpayments can be used as the basis for an
    extrapolation, by which the error rate is applied to a larger
    universe of claims, which can result in even higher repayments.
The federal healthcare Anti-Kickback Law prohibits, among other
    things, knowingly and willfully offering, paying, soliciting or
    receiving remuneration as an inducement for, or in return for,
    the purchase, lease or order of any healthcare item or service
    reimbursable under a governmental payor program. The definition
    of "remuneration" has been broadly interpreted to
    include anything of value, including, for example, gifts,
    discounts, the furnishing of supplies or equipment, credit
    arrangements, payments of cash, waivers of payments, ownership
    interests and providing anything at less than its fair market
    value. The Anti-Kickback Law is broad, and it prohibits many
    arrangements and practices that are lawful in businesses outside
    of the healthcare industry.
Recognizing that the Anti-Kickback Law is broad and may
    technically prohibit many innocuous or beneficial arrangements
    within the healthcare industry, HHS has issued a series of
    regulatory "safe harbors." These safe harbor
    regulations set forth certain provisions which, if met, will
    assure healthcare providers and other parties that they will not
    be prosecuted under the federal Anti-Kickback Law. Although full
    compliance with these provisions ensures against prosecution
    under the federal Anti-Kickback Law, the failure of a
    transaction or arrangement to fit within a specific safe harbor
    does not necessarily mean that the transaction or arrangement is
    illegal or that prosecution under the federal Anti-Kickback Law
    will be pursued. Still, in the absence of an applicable safe
    harbor, a violation of the Anti-Kickback Law may occur even if
    only one purpose of an arrangement is to induce patient
    referrals or purchases or to induce the provision of a
    laboratory service reimbursable by a federal healthcare program.
    The penalties for violating the Anti-Kickback Law can be severe.
    These sanctions include criminal penalties and civil sanctions,
    including fines, imprisonment and possible exclusion from the
    Medicare and Medicaid programs. Many states have also adopted
    laws similar to the federal Anti-Kickback Law, some of which
    apply to the referral of patients for healthcare items or
    services reimbursed by any source, not only governmental payor
    programs.
Generally, arrangements that would be considered suspect and
    possible violations under the Anti-Kickback Law include
    arrangements between a laboratory and a physician (or related
    organizations or individuals) in which the laboratory would:
•
provide items or services to the physician or other referral
    source without charge or for amounts that are less than their
    fair market value;
•
pay the physician or other referral source amounts that are in
    excess of the fair market value of items or services that were
    provided; or
•
enter into an arrangement with a physician or other entity
    because it is a current or potential referral source.
In 2006, the OIG adopted a new safe harbor (and an exception
    under the Physician Self-Referral Law, discussed below) that
    permitted health care entities, including laboratories, to
    provide electronic prescribing and electronic health records, or
    EHR, technology to referring physicians. Compliance with the
    provisions of these provisions allows us to donate EHR to
    physicians without being found to be in violation of either the
    Anti-Kickback Law or the Physician Self-Referral Law. Under
    these provisions, we are permitted to donate software,
    information technology and training services (but not hardware)
    that is necessary and used predominately to create, maintain,
    transmit or receive EHR, so long as the recipient of the
    donation meets certain established criteria. Such technology
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must be considered "interoperable" and must have
    certain other capabilities established in the regulations. In
    addition, the recipient of the donation must pay at least
    15 percent of the cost of the service.
From time to time, the OIG issues alerts and other guidance on
    certain practices in the healthcare industry. In October 1994,
    the OIG issued a Special Fraud Alert on arrangements for the
    provision of laboratory services. The Fraud Alert set forth a
    number of practices allegedly engaged in by some laboratories
    and healthcare providers that raise issues under the
    Anti-Kickback Law. These practices include laboratories
    providing:
•
employees to furnish valuable services for physicians (other
    than collecting patient specimens for testing for the
    laboratory) that are typically the responsibility of the
    physicians' staff;
•
free testing to physicians' managed care patients in
    situations where the referring physician benefits from the free
    laboratory tests;
•
free
pick-up
and disposal of biohazardous waste for physicians for items
    unrelated to a laboratory's testing services;
•
general-use facsimile machines or computers to physicians that
    are not exclusively used in connection with the laboratory
    services; and
•
free testing for healthcare providers, their families and their
    employees, known as professional courtesy testing.
The OIG emphasized in the Special Fraud Alert that when one
    purpose of an arrangement is to induce referrals of
    program-reimbursed laboratory testing, both the laboratory and
    the healthcare provider or physician may be liable under the
    Anti-Kickback Law and may be subject to criminal prosecution and
    exclusion from participation in the Medicare and Medicaid
    programs.
The OIG has also expressed concern about the provision of
    discounts on laboratory services billed to customers in return
    for the referral of more lucrative federal healthcare program
    business. In a 1999 Advisory Opinion, the OIG concluded that a
    proposed arrangement whereby a laboratory would offer physicians
    significant discounts on non-federal healthcare program
    laboratory tests might violate the Anti-Kickback Law. The OIG
    reasoned that the laboratory could be viewed as providing such
    discounts to the physician in exchange for referrals by the
    physician of business to be billed by the laboratory to Medicare
    at non-discounted rates. The OIG indicated that the arrangement
    would not qualify for protection under the discount safe harbor
    because Medicare and Medicaid would not get the benefit of the
    discount. Subsequently, in 2000 correspondence, the OIG stated
    that the Anti-Kickback Law could be violated if there were
    linkage between the discount offered to the physician and the
    physician's referrals of tests covered under a federal
    healthcare program that would be billed by the laboratory
    directly. Where there was evidence of such linkage, the
    arrangement would be considered suspect if the charge to the
    physician was below the laboratory's "average fully
    loaded costs" of the test.
As discussed above, discounts to referral sources raise issues
    under the Anti-Kickback Law. In addition, any discounted charge
    below the amount that Medicare or Medicaid would pay for a
    service also raises issues under Medicare's
    "substantially in excess" provision. The Medicare
    statute permits the government to exclude a laboratory from
    participation in federal healthcare programs if it charges
    Medicare or Medicaid substantially in excess of its usual
    charges in the absence of good cause. In 2000, the OIG stated in
    informal correspondence that the prohibition was violated only
    if the laboratory's charge to Medicare was substantially
    more than the "median non-Medicare/-Medicaid charge."
    On September 15, 2003, the OIG issued a notice of proposed
    rulemaking addressing the statutory prohibition. Under the
    proposed rule, a provider's charge to Medicare or Medicaid
    would be considered "substantially in excess of [its] usual
    charges" if it was more than 120 percent of the
    provider's mean or median charge for the service. The
    proposed rule was withdrawn in June 2007. At that time, the OIG
    stated that it would continue to evaluate billing patterns of
    individuals and entities on a
case-by-case
basis.
In addition to the administrative simplification regulations
    discussed above, HIPAA created two new federal crimes:
    healthcare fraud and false statements relating to healthcare
    matters. The healthcare fraud statute prohibits knowingly and
    willfully executing a scheme to defraud any healthcare benefit
    program, including private payors. A violation of this statute
    is a felony and may result in fines, imprisonment or exclusion
    from governmental payor programs such as the Medicare and
    Medicaid programs. The false statements statute prohibits
    knowingly and
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willfully falsifying, concealing or covering up a material fact
    or making any materially false, fictitious or fraudulent
    statement in connection with the delivery of or payment for
    healthcare benefits, items or services. A violation of either of
    these two statutes is a felony and may result in fines or
    imprisonment or exclusion from governmental payor programs.
Finally, another development affecting the healthcare industry
    is the increased use of the False Claims Act and, in particular,
    actions brought pursuant to the False Claims Act's
    "whistleblower" or "qui tam" provisions. The
    False Claims Act imposes liability on any person or entity that,
    among other things, knowingly presents, or causes to be
    presented, a false or fraudulent claim for payment by a federal
    governmental payor program. Under the False Claims Act, a person
    acts knowingly if he has actual knowledge of the information,
    acts in deliberate ignorance of the truth or falsity of the
    information, or acts in reckless disregard of the truth or
    falsity of the information, A claim may be considered false if
    any information included on the claim is inaccurate, including
    the code reflecting the patient's diagnosis or the
    procedure performed. Similarly, if the service for which the
    claim was submitted does not reflect the service that was
    ordered and performed, the claim could be considered a false
    claim. The qui tam provisions of the False Claims Act allow a
    private individual to bring actions on behalf of the federal
    government, alleging that the defendant has defrauded the
    federal government by submitting a false claim to the federal
    government, and they permit such individuals to share in any
    amounts paid by the entity to the government in fines or
    settlement. In addition, various states have enacted false claim
    laws analogous to the federal False Claims Act, although many of
    these state laws apply where a claim is submitted to any third
    party payor and not merely a governmental payor program. When an
    entity is determined to have violated the False Claims Act, it
    may be required to pay up to three times the actual damages
    sustained by the government, plus civil penalties of between
    $5,500 and $11,000 for each separate false claim. Conduct that
    violates the False Claims Act may also lead to exclusion from
    the Medicare and Medicaid programs. Given the number of claims
    likely to be at issue in connection with any billing practice on
    which liability might be based, potential damages under the
    False Claims Act for even a single inappropriate billing
    arrangement could be significant.
On May 20, 2009, the Federal Enforcement and Recovery Act
    of 2009, or FERA, became law, significantly amending the federal
    False Claims Act. FERA subjects entities to False Claims Act
    liability if they knowingly make a false statement in an attempt
    to obtain money or property that is to be spent or used on the
    government's behalf or to advance a government program or
    interest. Previously, the False Claims Act allowed entities to
    be held liable for making false statements only if such
    statements were made to "get" a false claim paid or
    approved "by the Government." Because no guidance
    exists as to the meaning of the language contained in FERA, the
    full scope of this provision will likely be resolved in
case-by-case
litigation. The False Claims Act amendments under FERA also
    extend liability for the knowing retention of overpayments. The
    overpayment provision imposes liability if an entity
    "knowingly and improperly avoids or decreases an obligation
    to pay or transmit money or property to the Government."
    This provision has been interpreted to require recipients of
    government funds to immediately determine whether they have
    received "overpayments" and whether the funds received
    should be retained or returned to the government. Under the
    False Claims Act amendments, recipients of government funds may
    also now face False Claims Act liability for failure to repay,
    or at least to reassess, historical overpayments of which they
    are currently aware. The enactment of FERA will likely result in
    heightened scrutiny and enforcement.
Physician
    Referral Prohibitions
Under a federal law directed at "self-referral,"
    commonly known as the "Stark Law," there are
    prohibitions, with certain exceptions, on Medicare and Medicaid
    payments for laboratory tests referred by physicians who
    personally, or through a family member, have an investment
    interest in, or a compensation arrangement with, the laboratory
    performing the tests. A person who engages in a scheme to
    circumvent the Stark Law's referral prohibition may be
    fined up to $100,000 for each such arrangement or scheme. In
    addition, any person who presents or causes to be presented a
    claim to the Medicare or Medicaid program in violation of the
    Stark Law is subject to civil monetary penalties of up to
    $15,000 per bill submission, an assessment of up to three times
    the amount claimed, and possible exclusion from participation in
    federal governmental payor programs. Bills submitted in
    violation of the Stark Law may not be paid by Medicare or
    Medicaid, and any person collecting any amounts with respect to
    any such prohibited bill is obligated to refund such amounts.
    Many states also have anti-"self-referral" and other
    laws that are not limited to Medicare and Medicaid referrals.
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The Stark Law prohibits a laboratory from obtaining payment for
    services resulting from a physician's referrals if there is
    any arrangement between the laboratory and the physician or the
    physicians' practice that involves remuneration, unless the
    arrangement is protected by an exception to the Stark Law's
    self-referral prohibition or a provision of the Stark Law
    stating that the particular arrangement would not result in
    "remuneration," as defined for purposes of the Stark
    Law. In addition, under the Stark Law's provisions, a
    request by a pathologist for laboratory and pathology testing
    services is not considered a "referral" covered by the
    Stark Law, so long as the request meets certain other
    requirements.
Other
    Government Billing and Payment Policies
Many payors establish specific rules and requirements that
    affect how we bill for our services. The most significant of
    those payors is the federal Medicare program, because it
    accounts for a substantial percentage of our revenues.
    Therefore, we must closely follow the policies that are imposed
    by Medicare with regard to billing and payment.
Medicare has several ways in which it can limit how it pays for
    our services. For example, Medicare can impose either National
    Coverage Decisions (NCD) or Local Coverage Decisions
    (LCD) for the services that we provide. Under NCDs and
    LCDs, Medicare can impose imitations on when it will pay for
    certain services, such as requiring particular diagnosis codes
    to be submitted from the physician or limiting the number of
    units of any particular service. Recently, the Medicare
    Administrative Contractors, or MACs, which process and pay
    Medicare claims, have considered some LCDs that could limit how
    we bill for our services. For example, Palmetto GBA, which
    processes Medicare claims in several jurisdictions, has limited
    how it reimburses for flow cytometry services, which constitute
    a commonly performed pathology service. If that policy is
    implemented, or if other MACs adopt a similar policy, then it
    could limit the payment we receive for these services.
In addition, Medicare has implemented a policy referred to as
    Medically Unbelievable Edits, which limit the number of units of
    a service that can be billed at any one time. Some Medically
    Unbelieveable Edits have already been established for the
    services that we offer, and Medicare is considering adding
    Medically Unbelievable Edits for some other services that we
    offer. Under these edits, Medicare will not pay us for any
    services, if we bill for more units of service than are
    permitted under the Medically Unbelievable Edits limit
    established by Medicare. This could affect the amount that we
    are paid for services that we bill to the Medicare Program.
Medicare also regulates who we are permitted to bill for our
    services. In most instances, we must bill directly to, and are
    paid by, Medicare or its contractors for the services that we
    furnish to Medicare beneficiaries. However, because of recent
    interpretations by Medicare, ordering physicians are permitted
    to order diagnostic services, such as those that we provide,
    which the service provider then bills to the physician or his
    group practice. The ordering physician, in turn, then bills and
    is paid by the Medicare Program. In response to these
    arrangements, Medicare has enacted an "anti-markup"
    provision that requires physicians to bill Medicare at their
    acquisition price for the services, rather than at the higher
    Medicare fee schedule amount. However, even under the
    anti-markup provision, physicians are permitted to bill Medicare
    at the full fee schedule amount if the services were performed
    by a physician who "shares a practice" with the
    ordering physician. The services will be considered to have been
    done by a physician who shares a practice with the ordering
    physician, so long as they were done in the same building where
    the ordering physician maintains a practice. This interpretation
    of the anti-markup provision, as well as other provisions, may
    lead more physicians to decide to provide these services
    "in house," which could affect our revenues.
Under Medicare regulations, we are also sometimes required to
    bill other entities for the services that we provide. In 1999,
    Medicare announced a policy that applies to anatomic pathology
    specimens for hospital patients. This policy would require us to
    bill the technical component to the hospital and the
    professional component to Medicare for all anatomic pathology
    services that we provide to hospital patients. However, in 2000,
    the U.S. Congress prevented this policy from going into
    effect for all "covered hospitals," which were those
    hospitals that had arrangements with independent laboratories in
    effect as of July 22, 1999, the date that CMS had first
    announced the policy. That "grandfather provision" was
    originally scheduled to be effective for two years, but it has
    been extended repeatedly by the U.S. Congress and remains
    in effect. The "grandfather provision" is currently
    scheduled to expire on December 31, 2010.
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Education
    Requirements of the Deficit Reduction Act of 2005
The federal Deficit Reduction Act of 2005, or DRA, contains,
    among other things, requirements concerning False Claims Act
    education that state Medicaid programs must impose on
    participating providers as well as other entities. The DRA
    requires organizations that make or receive Medicaid payments of
    at least $5 million annually in a state to establish an
    education plan for their employees, managers, contractors and
    agents, which must include written policies and detailed
    guidance on the federal False Claims Act, state false claims
    laws, and the rights and protections afforded whistleblowers
    under the False Claims Act and its state counterparts.
Food
    and Drug Administration Regulation
Pursuant to its authority under the federal Food, Drug and
    Cosmetic Act, or FDCA, the Food and Drug Administration, or FDA,
    has regulatory responsibility over instruments, test kits,
    reagents and other devices used to perform diagnostic testing by
    laboratories such as ours. Specifically, the manufacturers and
    suppliers of reagents, which we obtain for use in diagnostic
    tests, are subject to regulation by the FDA and are required to,
    among other things, register their establishments with the FDA,
    to conform manufacturing operations to the FDA's quality
    system regulation, or QSR, and to comply with certain reporting
    and other record-keeping requirements. The FDA also regulates
    the sale or distribution, in interstate commerce, of products
    classified as medical devices under the FDCA, including
    in vitro diagnostic test kits. Such devices must undergo
    premarket review by the FDA prior to commercialization unless
    the device is of a type exempted from such review by statute or
    pursuant to the FDA's exercise of enforcement discretion.
The FDA has not usually attempted to regulate standard
    laboratory diagnostic tests developed and validated by
    laboratories for their own use, known as laboratory-developed
    tests or LDTs; rather, it has stated it will exercise its
    enforcement discretion over such tests. However, more recently,
    the FDA has expressed some concern about the use of certain
    LDTs, including new, sophisticated molecular diagnostics or
    genetic testing, and has suggested greater FDA oversight of such
    tests may be appropriate. One of our laboratories uses some LDTs
    and, therefore, some of the tests that we offer could be subject
    to the FDA requirements if the FDA were to act in this area. The
    FDA regularly considers the application of additional regulatory
    controls over the development and use of LDTs by laboratories
    such as ours, and with the recent change in political
    administration at the FDA, more robust enforcement, (including
    inspections, warning letters, and other agency inquiries) of the
    applicable pre- and post-market requirements for LDTs is
    possible.
The comprehensive health care reform legislation enacted in 2010
    contains a provision that creates a new 2.3 percent excise
    tax applicable to the sale of medical devices. Because we
    purchase and utilize certain products in our laboratory that
    could be considered medical devices, it is possible that some of
    these products could be subject to this excise tax. Because this
    legislation is new and insufficient guidance exists as to its
    applicability, we are currently unable to determine the impact
    this provision will have on our business.
State
    Requirements
Corporate
    Practice of Medicine
Numerous states have enacted laws prohibiting business
    corporations, such as us, from practicing medicine and employing
    or engaging physicians to practice medicine. These laws are
    designed to prevent interference in the medical decision-making
    process by anyone who is not a licensed physician. This
    prohibition is generally referred to as the prohibition against
    the corporate practice of medicine. Violation of this
    prohibition may result in civil or criminal fines, as well as
    sanctions imposed against us
and/or
the
    professional through licensing proceedings. We do not employ
    physicians in any states where the prohibition against the
    corporate practice of medicine applies to our laboratories. Our
    arrangements with providers in corporate practice of medicine
    states are described above under "— Corporate
    Structure" and "— Contracts and
    Relationships with Providers."
Direct
    Billing Laws
While we often cannot bill physicians for our services when
    those services are covered under a government program, where
    permissible, we do in some cases bill referring physicians for
    services that are not covered under a
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government program. Laws and regulations in several states
    currently preclude us from billing referring physicians, either
    by requiring us to bill directly the third-party payor or other
    person ultimately responsible for the service or by prohibiting
    or limiting the referring physician's or other
    purchaser's ability to "markup" its acquisition
    cost for that service. An increase in the number of states that
    impose similar restrictions could adversely affect us by
    encouraging physicians to furnish such services directly or by
    causing physicians to refer services to another laboratory for
    testing.
State
    Laboratory Licensing
In addition to CLIA requirements, we are subject to various
    state laws regulating the operation of our laboratories, as well
    as the receipt by our laboratories of
out-of-state
specimens. If a laboratory is out of compliance with a
    state's statutory or regulatory standards, the applicable
    state agency may suspend, limit, revoke or annul the
    laboratory's license, censure the holder of the license or
    assess civil money penalties. In certain instances, statutory or
    regulatory noncompliance may also result in a laboratory's
    being found guilty of a misdemeanor.
Each of Florida, New York, Alabama, New Hampshire, Nevada,
    Massachusetts and Georgia require in-state laboratories to be
    licensed under the laws and regulations of such states. Because
    New York State's regulation of laboratories is more
    stringent than the federal CLIA standards, New York State is
    exempt from CLIA. However, New York State maintains its own
    regulatory framework, which establishes standards for
day-to-day
operation of a clinical laboratory, physical facilities
    requirements, equipment and quality control. New York law also
    mandates proficiency testing for laboratories licensed under New
    York state law, regardless of whether or not such laboratories
    are located in New York. Each of our laboratories is licensed
    and accredited by the appropriate state agency in the state in
    which it operates.
Other
    States' Laboratory Testing
Florida, New York, Pennsylvania, California and Maryland each
    require
out-of-state
laboratories that accept specimens from those states to be
    licensed. We have obtained licenses in these states and believe
    we are in material compliance with applicable licensing laws.
We may become aware from time to time of other states that
    require
out-of-state
laboratories to obtain licensure in order to accept specimens
    from the state, and it is possible that other states do have
    such requirements or will have such requirements in the future.
    If we identify any other state with such requirements or if we
    are contacted by any other state advising us of such
    requirements, we intend to follow instructions from the state
    regulators as to how we should comply with such requirements.
Physician
    Licensing
Many of the states from which we solicit specimens require that
    a physician interpreting specimens from that state be licensed
    by that particular state, irrespective of where the services are
    provided. If our pathologists read specimens from states for
    which they are not properly licensed, our pathologists could be
    considered to be engaged in the unlicensed practice of medicine
    and could face fines or other penalties, which we could be
    required to pay on behalf of our pathologists. We are not aware
    of any states from which we do not have required pathologist
    licenses.
Other
    Regulatory Requirements
Our laboratory is subject to federal, state and local
    regulations relating to the handling and disposal of regulated
    medical waste, hazardous waste and biohazardous waste, including
    chemical and biological agents and compounds, blood and bone
    marrow samples and other human tissue. Typically, we use outside
    vendors who are contractually obligated to comply with
    applicable laws and regulations to dispose of such waste. These
    vendors are licensed or otherwise qualified to handle and
    dispose of such waste. Historically, our costs associated with
    handling and disposal of such wastes have not been material.
The Occupational Safety and Health Administration has
    established extensive requirements relating to workplace safety
    for healthcare employers, including requirements to develop and
    implement programs to protect workers from exposure to
    blood-borne pathogens by preventing or minimizing any exposure
    through
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needle stick or similar penetrating injuries. We have instituted
    policies and procedures to comply with the OSHA requirements,
    and we regularly monitor the implementation of our safety
    programs.
Compliance
    Infrastructure
Compliance with government rules and regulations is a
    significant concern throughout our industry, in part due to
    evolving interpretations of these rules and regulations. We seek
    to conduct our business in compliance with all statutes and
    regulations applicable to our operations. To this end, we have
    created a Compliance Committee and have designated a Compliance
    Officer to assist with reviews of regulatory compliance
    procedures and policies throughout our business. Our executive
    management team is responsible for the oversight and operation
    of our compliance efforts. The Compliance Officer is responsible
    for administering and monitoring compliance with our Standards
    of Conduct. We provide periodic training programs to our
    personnel to promote the observance of our policies, which are
    designed to ensure compliance with the statutes and regulations
    applicable to us.
Intellectual
    Property
Our intellectual property consists primarily of trademarks and
    trade secrets. The marks AURORA DIAGNOSTICS and CONNECTDX THE
    INFORMATION GATEWAY and Design are our most recognizable
    trademarks. Those trademarks are registered with the
    U.S. Patent and Trademark Office, or USPTO, along with the
    mark CUNNINGHAM PATHOLOGY ASSOCIATES P.A. and Design. We have
    submitted applications to the USPTO for registration of the
    marks DERMDX, GASTRODX, TREATMENTDX, URODX and WOMEN'SDX.
    We maintain a program to protect our trademarks and will
    institute legal action where necessary to prevent others from
    using or registering confusingly similar trademarks. Our
    intellectual property also includes the copyright in and to our
    Tiger TCPC software, which is registered with the
    U.S. Copyright Office.
Properties
    and Facilities
We lease our corporate headquarters at 11025 RCA Center Drive,
    Suite 300, Palm Beach Gardens, FL 33410 (approximately
    8,500 square feet), and we lease 32 other facilities: 12 in
    Florida, one in New York, two in Nevada, one in New Jersey, two
    in Arizona, four in Michigan, one in New Hampshire, one in
    Massachusetts, one in Minnesota, one in Texas, one in Georgia,
    four in Alabama and one in North Carolina. These facilities are
    used for laboratory operations, administrative, billing and
    collections operations and storage space. The 32 facilities have
    lease terms expiring from 2010 to 2019. We also own one
    commercial condominium in Florida, which is used as a draw
    station and satellite laboratory.
Insurance
We maintain liability insurance for our services. As a general
    matter, providers of diagnostic services may be subject to
    lawsuits alleging medical malpractice or other similar legal
    claims. Some of these suits may involve claims for substantial
    damages, and the results may be material to our results of
    operations and cash flows in the period in which the impact of
    such claims is determined or the claims are paid. We believe our
    insurance coverage is sufficient to protect us from material
    liability for such claims, and we believe that we will be able
    to obtain adequate insurance coverage in the future at
    acceptable costs. However, we must renew our insurance policies
    annually, and we may not be able to maintain adequate liability
    insurance in the future on acceptable terms or with adequate
    coverage against potential liabilities or at all.
Employees
As of March 31, 2010, we had 986 employees. We employ
    73 pathologists, 764 laboratory technicians and staff, 30
    corporate office personnel and 103 sales, marketing and client
    service personnel. In addition to our 73 employed pathologists,
    we have contractual arrangements with a physician practice under
    which 16 pathologists exclusively practice medicine as
    independent contractors at our Alabama laboratory. None of our
    employees are subject to collective bargaining agreements. We
    consider our relationships with our employees to be good.
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Legal
    Proceedings
We are not currently a party to any material legal proceedings.
    We may be named in other various claims, disputes, legal actions
    and other proceedings involving malpractice, employment and
    other matters. A negative outcome in certain of the ongoing
    litigation could harm our business, financial condition,
    liquidity or results of operations. Further, prolonged
    litigation, regardless of which party prevails, could be costly,
    divert management's attention or result in increased costs
    of doing business.
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MANAGEMENT
    AND BOARD OF DIRECTORS
The following table sets forth the name, age and position of
    each of our executive officers and directors as of
    April 23, 2010.
Name
(1)
Age
Position(s)
James C. New
64
Chairman of our Board of Directors, Chief Executive Officer and
    President
Martin J. Stefanelli
49
Chief Operating Officer, Vice President and Secretary
Gregory A. Marsh
49
Chief Financial Officer, Vice President and Treasurer
Fred Ferrara
42
Chief Information Officer
Michael J. Null
40
Vice President, Sales and Marketing
Thomas S.
    Roberts
(2)
46
Director
Christopher
    Dean
(3)
36
Director
Peter J.
    Connolly
(4)
37
Director
Mark M.
    King
(2)
49
Director
Christopher J.
    Bock
(1)
40
Director
Blair
    Tikker
(2)
53
Director
(1)
Prior to the completion of this
    offering, we intend to elect a new, independent member of our
    Board of Directors that satisfies the requirements of the NASDAQ
    Global Market governance standards. Our newly-appointed director
    will become a member of our Audit Committee, Nominating and
    Corporate Governance Committee and Compensation Committee prior
    to the completion of this offering.
(2)
Will become a member of our
    Compensation Committee prior to the completion of this offering.
(3)
Will become a member of our
    Nominating and Corporate Governance Committee prior to the
    completion of this offering.
(4)
Will become a member of our Audit
    Committee prior to the completion of this offering.
James C. New
Chairman,
Chief Executive Officer
and President
Mr. New has served as our Chairman, Chief Executive Officer and
    President since 2006.  Prior to joining us, Mr. New was a
    private investor from 2003 to 2006.  Mr. New served as the
    President, Chief Executive Officer and Chairman of AmeriPath, an
    anatomic pathology laboratory company, from January 1996 through
    2003.  Prior to joining AmeriPath, Mr. New served as the
    President, Chief Executive Officer, and a director of
    RehabClinics, an outpatient rehabilitation company.
Martin J. Stefanelli
Chief Operating
Officer, Vice President and
Secretary
Mr. Stefanelli has served as our Chief Operating Officer, Vice
    President and Secretary since 2006. Prior to joining us, Mr.
    Stefanelli served as the President and Chief Operating Officer
    of Asterand, a tissue-based research services provider for the
    pharmaceutical and biotechnology industry, from 2004 to 2006.
    Mr. Stefanelli served as the Executive Vice President and Chief
    Operating Officer of AmeriPath, an anatomic pathology laboratory
    company, from June 2003 to November 2004, and prior to joining
    AmeriPath, Mr. Stefanelli was employed for thirteen years by
    DIANON Systems, an anatomic and clinical pathology laboratory
    company.
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Gregory A. Marsh
Chief Financial
Officer, Vice
President and
Treasurer
Mr. Marsh has served as our Chief Financial Officer, Vice
    President and Treasurer since November 2007. Prior to joining
    us, Mr. Marsh served as an executive officer at CardioNet and
    PDSHeart, each a cardiovascular diagnostic healthcare provider.
    He served as the Chief Financial Officer of PDSHeart from 2003
    to 2005 and then Chief Operating Officer from 2005 until March
    2007, when the company was acquired by CardioNet.  Mr. Marsh
    then served as the Chief Financial Officer of CardioNet until
    November 2007. From 1996 until 2003, Mr. Marsh was employed by
    AmeriPath, an anatomic pathology laboratory company, serving as
    Vice President, Chief Financial Officer and Secretary from 2001
    to 2003 and Vice President, Corporate Controller from 1996 to
    2001.
Fred Ferrara
Chief Information
Officer
Mr. Ferrara has served as our Chief Information Officer since
    2006.  Mr. Ferrara served as the Director of Information
    Technology at LabCorp Inc., an anatomic pathology laboratory
    company, from 2003 until he joined Aurora in 2006. Mr. Ferrara
    joined LabCorp upon its acquisition of DIANON Systems, where Mr.
    Ferrara had been employed since 1997.
Michael J. Null
Vice President, Sales
and Marketing
Mr. Null has served as our Vice President, Sales &
    Marketing since April 2007.  Prior to joining us, Mr. Null
    served as the Vice President of Sales and Marketing at Asterand,
    a tissue-based research services provider for the pharmaceutical
    and biotechnology industry, from 2001 to 2007. He served as a
    senior account manager and business development manager at
    Renaissance, a global IT consulting and staffing company, from
    1997 to 2002. Prior to joining Renaissance, Mr. Null was
    employed for five years by DIANON Systems, an anatomic and
    clinical pathology laboratory company.
Thomas S. Roberts
Director
Mr. Roberts has served as one of our directors since 2006 and
    currently serves as a Managing Director of Summit Partners, a
    growth equity firm.  Mr. Roberts joined Summit Partners in
    1989.  Mr. Roberts also served in the past as the Chairman and
    Director of AmeriPath, an anatomic pathology laboratory company.
Christopher Dean
Director
Mr. Dean has served as one of our directors since 2006 and
    currently serves as a Managing Director of Summit Partners, a
    growth equity firm.  Mr. Dean joined Summit Partners in 2001.
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Peter J. Connolly
Director
Mr. Connolly has served as one of our directors since 2006 and
    currently serves as a Principal at Summit Partners, a growth
    equity firm.  Prior to joining Summit Partners in 2004, Mr.
    Connolly was employed by Goldman, Sachs & Co., an
    investment banking firm and Deloitte LLP, an accounting and
    consulting firm.
Mark M. King
Director
Mr. King has served as one of our directors since June 2009 and
    is a Co-Founder and Managing Director of KRG Capital Partners, a
    private equity investment firm. Prior to forming KRG Capital
    Partners in 1996, Mr. King led many industry consolidating
    transactions and co-founded and was President and Vice Chairman
    of Industrial Services Technologies, Inc., a provider of
    maintenance services in the refinery, fertilizer and chemicals
    industries.
Christopher J. Bock
Director
Mr. Bock has served as one of our directors since June 2009 and
    is a Managing Director of KRG Capital Partners, a private equity
    investment firm. Mr. Bock joined KRG Capital Partners in
    1997.
Blair Tikker
Director
Mr. Tikker has served as one of our directors since June 2009
    and is a Managing Director of KRG Capital Partners, a private
    equity investment firm. Mr. Tikker joined KRG Capital
    Partners in 2007. Prior to joining KRG Capital Partners, Mr.
    Tikker was employed by a number of hospital systems, physician
    groups and managed care companies. Mr. Tikker served as the
    CEO of HMS Healthcare, a hospital information systems provider,
    from 2001 until 2005.
Board
    Composition and Election of Directors
Board
    Composition
Our Board of Directors is currently authorized to
    have      members and is currently
    composed of 7 members, consisting of six non-employee members
    and our current Chairman, Chief Executive Officer and President,
    James C. New. We expect to elect a new independent director
    prior to completion of this offering, to elect one or more
    additional independent directors not more than 90 days
    after the completion of this offering
and/or
to
    elect one or more additional independent directors not more than
    one year after the completion of this offering.
Under the NASDAQ Global Market standards, a director will only
    qualify as an "independent director" if, in the
    opinion of our Board of Directors, that person does not have a
    relationship that would interfere with the exercise of
    independent judgment in carrying out the responsibilities of a
    director.
Our Board of Directors has not determined that any of our
    current directors is an "independent director" as
    defined under the NASDAQ Global Market standards.
There are no family relationships among any of our directors or
    executive officers.
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Election
    and Classification of Directors
In accordance with the terms of our certificate of incorporation
    and bylaws, our Board of Directors will be divided into three
    classes, Class I, Class II and Class III, with
    each class serving staggered three-year terms. Upon the closing
    of this offering, the members of the classes will be divided as
    follows:
•
the Class I directors will be Mr. King,
    Mr. Connolly and Mr. New, and their term will expire
    at the annual meeting of stockholders to be held in 2011;
•
the Class II directors will be Mr. Tikker and
    Mr. Dean, and their term will expire at the annual meeting
    of stockholders to be held in 2012; and
•
the Class III directors will be Mr. Bock and
    Mr. Roberts, and their term will expire at the annual
    meeting of stockholders to be held in fiscal year 2013.
At each annual meeting of stockholders, or special meeting in
    lieu thereof, upon the expiration of the term of a class of
    directors, the successors to such directors will be elected to
    serve from the time of his or her election and qualification
    until the third annual meeting following his or her election or
    special meeting held in lieu thereof. The number of directors
    may be changed only by resolution of our Board of Directors or a
    66.67 percent vote of the stockholders. Any additional
    directorships resulting from an increase in the number of
    directors will be distributed among the three classes so that,
    as nearly as possible, each class will consist of one-third of
    the directors. This classification of our Board of Directors may
    have the effect of delaying or preventing changes in control of
    management.
Board
    Committees
Committees
    of our Board of Directors
Our Board of Directors will establish three committees prior to
    the effectiveness of our registration statement:
•
the audit committee;
•
the nominating and corporate governance committee; and
•
the compensation committee.
Although the NASDAQ Global Market standards require that all
    members of our board committees and a majority our Board of
    Directors be independent, under special phase-in rules
    applicable to initial public offerings, we have twelve months
    from the date of listing to comply with these requirements. We
    currently expect to achieve compliance with the NASDAQ Global
    Market majority board independence and committee independence
    requirements by electing a new independent director prior to
    completion of this offering and adding additional independent
    directors to our Board of Directors before the expiration of the
    phase-in period and, for affected committees, replacing
    directors who are not independent with one or more of the new
    independent directors we expect to elect. If we do not comply
    with these requirements before the expiration of the phase-in
    period, we will be subject to disciplinary sanctions by the
    NASDAQ Global Market, which may include suspension of trading in
    the common stock or delisting of the common stock from the
    NASDAQ Global Market.
We believe that our audit and compensation committees will meet
    the current requirements of the Sarbanes-Oxley Act of 2002 and
    the NASDAQ Global Market standards as they become applicable to
    us and that our nominating and corporate governance committee
    will meet the current requirements of the NASDAQ Global Market
    standards as they become applicable to us. The audit committee,
    compensation committee and nominating and corporate governance
    committee will adopt written charters that will be available on
    our website prior to completion of the offering.
Audit Committee.
Our audit committee's
    responsibilities include:
•
selecting and engaging our independent registered public
    accounting firm;
•
evaluating the qualifications, independence and performance of
    our independent registered public accounting firm, including
    through the receipt and consideration of reports from such firm;
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•
approving (or, as permitted, pre-approving) the audit and
    non-audit services to be performed by our independent registered
    public accounting firm;
•
establishing policies regarding hiring employees from our
    independent registered public accounting firm and procedures for
    the receipt and retention of accounting related complaints and
    concerns;
•
meeting independently with our independent registered public
    accounting firm and management;
•
reviewing the design, implementation, adequacy and effectiveness
    of our internal controls over financial reporting, our
    disclosure controls and procedures and our critical accounting
    policies;
•
reviewing and discussing with management and the independent
    registered public accounting firm the results of our annual
    audit and the review of our quarterly unaudited financial
    statements;
•
reviewing, overseeing and monitoring the integrity of our
    financial statements and our compliance with legal and
    regulatory requirements as they relate to financial statements
    or accounting matters;
•
reviewing with management and our auditors any earnings
    announcements and other public announcements regarding our
    results of operations;
•
preparing the audit committee report that the SEC requires in
    our annual proxy statement;
•
reviewing and approving any related party transactions and
    reviewing and monitoring compliance with our code of business
    conduct and ethics; and
•
reviewing and evaluating, at least annually, the performance of
    the audit committee and its members including compliance of the
    audit committee with its charter.
The audit committee has the sole and direct responsibility for
    appointing, evaluating and retaining our independent auditors
    and for overseeing their work. All audit services and all
    non-audit services, other than de minimis non-audit services, to
    be provided to us by our independent auditors must be approved
    in advance by our audit committee.
Upon the completion of this offering, our audit committee will
    be comprised of the director we will elect prior to the
    completion of this offering and Messrs. Connolly and Bock.
    Prior to the completion of this offering, our Board of Directors
    will have determined that the director we will elect is an
    independent director for audit committee service as defined in
Rule 10A-3
under the Exchange Act. The director we will elect prior to the
    completion of this offering will be designated as the audit
    committee financial expert, as defined in Item 407(d) of
Regulation S-K
under the Securities Act. Although the NASDAQ Global Market
    standards require that the audit committee be comprised solely
    of independent directors, under special phase-in rules
    applicable to initial public offerings, we have twelve months
    from the date of listing to comply with this requirement. As
    described more fully under "Committees of our Board of
    Directors" above, we expect to be in compliance before the
    expiration of the phase-in period.
Compensation Committee.
Our compensation
    committee's responsibilities include:
•
reviewing and recommending to our Board of Directors
    compensation and benefit plans for our executive officers and
    compensation policies for members of our Board of Directors and
    Board committees;
•
reviewing the terms of offer letters and employment agreements
    and arrangements with our officers;
•
setting performance goals for our officers and reviewing their
    performance against these goals and setting compensation based
    on such review;
•
evaluating the competitiveness of our executive compensation
    plans and periodically reviewing executive succession plans;
•
administering our benefit plans and the issuance of stock
    options and other awards under our equity incentive plans;
•
preparing the compensation committee report that the SEC
    requires in our annual proxy statement;
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•
reviewing and discussing annually with management our
    "Compensation Discussion and Analysis" disclosure
    required by SEC rules; and
•
reviewing and evaluating, at least annually, the performance of
    the compensation committee and its members including compliance
    of the compensation committee with its charter.
Upon the completion of this offering, our compensation committee
    will be comprised of the director we will elect prior to the
    completion of this offering and Messrs. Roberts and
    Tikker.      will serve as chairperson
    of the compensation committee. Although the NASDAQ Global Market
    standards require that the compensation committee be comprised
    solely of independent directors, under special phase-in rules
    applicable to initial public offerings, we have twelve months
    from the date of listing to comply with this requirement. As
    described more fully under "Committees of our Board of
    Directors" above, we expect to be in compliance before the
    expiration of the phase-in period.
Nominating and Corporate Governance
    Committee.
Our nominating and corporate
    governance committee responsibilities include:
•
evaluating the composition, size and governance of our Board of
    Directors and its committees and making recommendations
    regarding future planning and the appointment of directors to
    our committees;
•
overseeing an annual evaluation of management succession
    planning;
•
administering a policy for considering stockholder nominees for
    election to our Board of Directors;
•
evaluating and recommending candidates for election to our Board
    of Directors;
•
overseeing our Board of Directors' performance and
    self-evaluation process;
•
reviewing our corporate governance principles and providing
    recommendations to our Board of Directors regarding possible
    changes; and
•
reviewing and evaluating, at least annually, the performance of
    the nominating/corporate governance committee and its members
    including compliance of the nominating/corporate governance
    committee with its charter.
The nominating and corporate governance committee is also
    responsible for reviewing developments in corporate governance
    practices, evaluating the adequacy of our corporate governance
    practices and reporting and making recommendations to our Board
    of Directors concerning corporate governance matters.
Upon the completion of this offering, our nominating and
    corporate governance committee will be comprised of the director
    we will elect prior to the completion of this offering and
    Messrs. Dean and King.      will
    serve as chairperson of the compensation committee. Although the
    NASDAQ Global Market standards require that the nominating and
    corporate governance committee be comprised solely of
    independent directors, under special phase-in rules applicable
    to initial public offerings, we have twelve months from the date
    of listing to comply with this requirement. As described more
    fully under "Committees of our Board of Directors"
    above, we expect to be in compliance before the expiration of
    the phase-in period.
Compensation
    Committee Interlocks and Insider Participation
During 2008 and 2009, we did not have a compensation committee.
    Following the completion of this offering, none of our
    compensation committee members will be an officer or employed by
    us.
Code of
    Business Conduct and Ethics
Prior to the completion of this offering, our Board of Directors
    will adopt procedures and policies to comply with the
    Sarbanes-Oxley Act of 2002 and the rules adopted by the SEC and
    the NASDAQ Global Market, including a code of business conduct
    and ethics applicable to our officers, directors and employees.
    Upon completion of this offering, our code of conduct and ethics
    will be available on our website.
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Indemnification
    of Officers and Directors and Limitation of Liability
Our certificate of incorporation and bylaws limit the liability
    of our directors for monetary damages for breach of their
    fiduciary duties, except for liability that cannot be eliminated
    under the Delaware General Corporation Law. Delaware law
    provides that directors of a corporation will not be personally
    liable to the corporation or its stockholders for monetary
    damages for breach of their fiduciary duties as directors,
    except liability for any of the following:
•
any breach of their duty of loyalty to the corporation or its
    stockholders;
•
acts or omissions not in good faith or that involve intentional
    misconduct or a knowing violation of law;
•
voting or assenting to unlawful payments of dividends or
    unlawful stock repurchases or redemptions as provided in
    Section 174 of the Delaware General Corporation Law; or
•
any transaction from which the director derived an improper
    personal benefit.
This limitation of liability does not apply to liabilities
    arising under the federal securities laws and does not affect
    the availability of equitable remedies such as injunctive relief
    or rescission.
Our certificate of incorporation and our bylaws provide that we
    shall indemnify our directors and executive officers and may
    indemnify our other officers and employees and other agents to
    the fullest extent permitted by law, as it now exists or may in
    the future be amended, against all expenses and liabilities
    reasonably incurred in connection with their service for or on
    behalf of us. We believe that indemnification under our bylaws
    covers at least negligence and gross negligence on the part of
    indemnified parties. If the Delaware General Corporation Law is
    amended to provide for further limitations on the personal
    liability of directors of corporations, then the personal
    liability of our directors will be further limited to the
    greatest extent permitted by the Delaware General Corporation
    Law. Any amendment to or repeal of the provisions of our bylaws
    or certificate of incorporation will not eliminate or reduce the
    effect of these provisions in respect of any act or failure to
    act, or any cause of action, suit or claim that would accrue or
    arise, prior to any amendment or repeal or adoption of an
    inconsistent provision.
Our bylaws also permit us to secure insurance on behalf of any
    officer, director, employee or other agent for any liability
    arising out of his or her actions in this capacity, regardless
    of whether our bylaws would permit indemnification. We maintain
    liability insurance that insures our directors and officers
    against losses and that insures us against our obligations to
    indemnify our directors and officers.
In connection with this offering, we expect to enter into
    separate indemnification agreements with our directors and
    executive officers, in addition to indemnification provided for
    in our certificate of incorporation and bylaws. These
    agreements, among other things, will provide for indemnification
    of our directors and executive officers for expenses, judgments,
    fines and settlement amounts incurred by this person in any
    action or proceeding arising out of this person's services
    as a director or executive officer or at our request. We believe
    that these provisions and agreements are necessary to attract
    and retain qualified persons as directors and executive officers.
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EXECUTIVE
    COMPENSATION
COMPENSATION
    DISCUSSION AND ANALYSIS
In the paragraphs that follow, we provide an overview and
    analysis of our compensation program and policies, the material
    compensation decisions we have made under those programs and
    policies with respect to our named executive officers, and the
    material factors that we considered in making those decisions.
    Following this Compensation Discussion and Analysis, you will
    find a series of tables containing specific data about the
    compensation earned or paid in fiscal year 2009 to the following
    individuals, whom we refer to as our named executive officers:
•
James C. New, Chairman of our Board of Directors, and our Chief
    Executive Officer and President;
•
Gregory A. Marsh, our Chief Financial Officer, Vice President
    and Treasurer;
•
Fred Ferrara, our Chief Information Officer;
•
Michael J. Null, our Vice President, Sales and
    Marketing; and
•
Martin J. Stefanelli, our Chief Operating Officer, Vice
    President and Secretary.
Objectives
    of our Compensation Program; How We Set Compensation
Our compensation objectives as a privately-held company were to
    recruit and retain a talented team of employees to grow and
    develop our business and to reward those employees for
    accomplishments related to our growth and development.
Prior to this offering, we did not have a compensation
    committee. Historically, our Board of Directors determined the
    compensation for our Chief Executive Officer and, based on the
    recommendations of our Chief Executive Officer, the rest of our
    management team. In setting compensation, Mr. New and our
    Board of Directors did not seek to allocate long-term and
    current compensation, or cash and non-cash compensation, in any
    particular percentage. Instead, they reviewed each element of
    compensation independently and determined the appropriate amount
    for each element, as discussed below. Neither management nor our
    Board of Directors have engaged a compensation consultant during
    fiscal year 2009. Our historical compensation-setting processes
    have been effective for a privately-held company. As we
    transition to a public company, we intend to adjust some of our
    practices to further align the interests of our management team
    with our stockholders.
In connection with our initial public offering, we will
    establish a compensation committee comprised entirely of
    independent directors. The compensation committee, with input
    from our Chief Executive Officer, will set and determine the
    compensation of our executive officers in later years. In this
    regard, our compensation committee will, among other things,
    review and recommend to our Board of Directors compensation and
    benefit plans for our executive officers, review the terms of
    employment agreements and arrangements with our officers, set
    performance goals for our officers, review their performance
    against these goals and set compensation based on such review,
    evaluate the competitiveness of our executive compensation
    plans, periodically review executive succession plans, and
    administer our benefit plans and the issuance of stock options
    and other awards under our equity incentive plans. The
    compensation committee will have sole authority to evaluate our
    Chief Executive Officer's performance in light of corporate
    objectives and to set our Chief Executive Officer's
    compensation based on the achievement of corporate objectives.
    Each member of the compensation committee will be
    "independent" for purposes of the NASDAQ Global Market
    standards, a "non-employee director" for purposes of
Rule 16b-3
of the Exchange Act, and an "outside director" for
    purposes of Section 162(m) of the Internal Revenue Code.
2009
    Elements of Compensation
The key elements of compensation for our named executive
    officers in fiscal year 2009 were base salary and annual cash
    bonuses. We also are party to an employment agreement with each
    of Messrs. New, Marsh, Ferrara, Null and Stefanelli. These
    agreements provide the executive with certain benefits as
    described in greater detail below.
Base Salaries.
We intend for base salaries to
    reward core competence in the executive role relative to skill,
    experience and contributions to us. We negotiated the base
    salaries individually with each executive, with a focus on
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the executive's experience in his respective field and
    expected contribution to us. In general, we adjust base salaries
    in connection with performance reviews
and/or
changes to the scope of a named executive officer's
    responsibilities. In 2009, none of our named executive officers
    received salary increases over 2008 levels. The 2009 annual base
    salaries for our named executive officers were as follows:
    Mr. New, $400,000; Mr. Marsh, $294,000;
    Mr. Ferrara, $222,600; Mr. Null, $225,750; and
    Mr. Stefanelli, $315,000. The named executive officers have
    not received base salary increases in 2010.
Annual Cash Bonuses.
Annual bonuses reward our
    named executive officers for their contribution to our financial
    goals and focus our named executive officers on both short- and
    long-term objectives. Annual bonuses are earned based on the
    achievement of certain pre-determined performance goals. On an
    annual basis, or at the commencement of an executive
    officer's employment with us, our Board of Directors set a
    target level of bonus compensation that is structured as a
    percentage of such executive officer's annual base salary.
    The target bonuses for each of our executive officers are as
    follows, reflected as a percentage of base salary: Mr. New,
    100 percent; Mr. Marsh; 50 percent;
    Mr. Ferrara, 40 percent; Mr. Null,
    35 percent; and Mr. Stefanelli,75 percent. Our
    Board of Directors set such target bonuses after negotiation
    with each individual and consideration of Mr. New's
    recommendation and the expected role of each of our executives.
    The actual amount of the bonus is based on the extent to which
    we and the executive meet or exceed predetermined goals under
    the performance metrics, which goals are set by our Board of
    Directors prior to the beginning of the performance year in
    connection with the annual budgetary process, as discussed below.
For 2009, annual cash incentive bonus opportunities for our
    named executive officers were based on achieving pre-established
    performance goals relating to net revenue, EBITDA, cash flow
    from operations, management of acquisition programs (measured by
    the achievement of acquisitions with a target EBITDA run rate),
    and management of bank covenants. Each of these performance
    metrics is an important driver of our business. We selected net
    revenue and EBITDA to focus the executive on supporting,
    improving and growing our business. Cash from operations is a
    direct measure of our profitability and financial performance.
    Acquisitions with a target EBITDA run rate focuses the executive
    on identifying acquisitions which meet our financial goals and
    positively affect our covenant position. In addition, the
    management and maintenance of our bank covenants is important
    from a compliance perspective.
From the above list, our Board of Directors assigned certain
    objectives to each named executive officer based on his role
    with us, and assigned a weight to each metric, as reflected in
    the table below.
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Name
Performance Objective and
    Weight
Mr. New
•   Net revenue (15%)
•   EBITDA (50%)
•   Acquisition Management (10%)
•   Management of Bank Covenants (25%)
Mr. Marsh
•   Net revenue (10%)
•   Cash flow from Operations (60%)
•   Acquisition Management (5%)
•   Management of Bank Covenants (25%)
Mr. Ferrara
•   Net revenue (50%)
•   EBITDA (40%)
•   Cash flow from Operations (10%)
Mr. Null
•   Net revenue (50%)
•   EBITDA (40%)
•   Cash flow from Operations (10%)
Mr. Stefanelli
•   Net revenue (15%)
•   EBITDA (50%)
•   Acquisition Management (10%)
•   Management of Bank Covenants (25%)
The following table provides the targets (in millions) for each
    of the performance objectives and actual performance in fiscal
    year 2009.
Objective
Target Goal
FY 2009 Actual
Net Revenue
$173.8
$170.9
EBITDA
$57.2
$55.8
Cash flow from Operations
$30.6
$33.4
Acquisitions with Target EBITDA Run Rate
Run rate of $4.0
Run rate of $6.4
Management of covenants
N/A
100%
With the exception of the "Management of Covenants"
    objective, the achievement of which is either zero percent or
    ten percent, for each increment of one percent that actual
    performance falls below our target goal, the executive's
    target bonus would be reduced by ten percent. Likewise, for each
    increment of one percent that actual performance exceeds our
    target goal, the executive's target bonus would be
    increased by ten percent, with a maximum of 110 percent.
    For example, if we had achieved 90 percent of our target
    goal, then the executive would have received zero percent of his
    target bonus, and if we had achieved 110 percent of our
    target goal, then the executive would have received two hundred
    percent of his target bonus. Linear interpolation is used to
    determine payouts between the ranges. The following table
    provides details regarding the awards earned by named executive
    officers in 2009.
Target
Target Bonus
Actual Bonus Earned
Actual Bonus Earned
Name
Bonus ($)
(% of Base Salary)
($)
(% of Base Salary)
Mr. New
$
400,000
100
%
$
381,000
95
%
Mr. Marsh
$
147,000
50
%
$
233,000
79
%
Mr. Ferrara
$
89,040
40
%
$
81,000
36
%
Mr. Null
$
79,013
35
%
$
72,000
32
%
Mr. Stefanelli
$
236,250
75
%
$
225,000
71
%
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In addition to the bonus described above, in June 2009,
    Mr. Marsh received a $10,000 cash bonus in recognition of
    his role in connection with KRG Capital Partners'
    acquisition of GSO Capital Partners' equity interest in
    Aurora Holdings.
Long-Term Equity Incentives.
In prior years
    (most recently 2008), our Board of Directors granted certain
    equity interests in Aurora Holdings to our named executive
    officers pursuant to our New Plan. The New Plan provided for
    grants of
Class D-1,
Class D-2
and
Class D-3
Units, which we refer to collectively as the Class D Units,
    to our employees. The terms of the Class D Units were
    governed by the Aurora Holdings LLC Agreement, and, generally,
    the Class D Units represent the right of the holder to
    receive a portion of the proceeds in the event  of liquidation
    of Aurora Holdings. The Class D units generally vested over
    a period of time, subject to the named executive officer's
    continued employment with us. All of such units held by our
    named executive officers were fully-vested by December 31,
    2008. None of our named executive officers received Class D
    units, or any other equity grants, in 2009. In connection with
    the Reorganization Transactions discussed elsewhere in this
    prospectus, the Class D Units held by our named executive
    officers will be exchanged for shares of our Class A common
    stock or cancelled without consideration.
Other Benefits.
Our named executive officers
    participate in various health and welfare programs that are
    generally made available to all salaried employees. Our named
    executive officers also participate in our executive-level life
    insurance program. Mr. New receives reimbursements related
    to his country club memberships, as well as Company-paid
    premiums for an individual life insurance policy.
Employment
    Arrangements
We maintain employment agreements with each of Messrs. New,
    Marsh, Ferrara, Null and Stefanelli. The employment agreements
    guarantee certain benefits, such as bonus and benefit plans, to
    the executives during their employment with us. In addition, the
    employment agreements provide certain benefits to the executives
    upon their termination of employment by us without cause, by the
    executive for good reason, or by reason of their death or
    disability. For a description of the employment agreements, see
    the narrative following the Summary Compensation table and
    "Potential Payments upon Termination of Employment"
    and "Potential Payments upon Change in Control" later
    in this prospectus.
Tax
    Treatment of our Compensation Program
Section 162(m) of the Internal Revenue Code places a limit
    of $1 million on the amount of compensation that public
    companies may deduct in any one year with respect to its named
    executive officers. In fiscal year 2009, as a privately-held
    company, Section 162(m) of the Internal Revenue Code did
    not apply to us. To the extent that we compensate our named
    executive officers in excess of the $1 million limit in the
    future, our compensation committee will consider whether we
    should design our compensation programs to meet the qualified
    performance-based requirements. To maintain flexibility in
    compensating our executives, we expect that the compensation
    committee will reserve the right to use its judgment to
    authorize compensation payments that may be subject to the limit
    when the compensation committee believes that such payments are
    appropriate.
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Table of Contents
Summary
    Compensation
The following table sets forth the cash and other compensation
    that we paid to our named executive officers, or that was
    otherwise earned by our named executive officers, for their
    services in all capacities during the last fiscal year.
Summary
    Compensation Table
Non-Equity
Incentive Plan
All Other
Name and Principal
    Position
Year
Salary ($)
Compensation
    ($)
(1)
Compensation
    ($)
(2)
Total ($)
James C. New
2009
400,000
381,000
45,154
826,154
Chairman of our Board of Directors, Chief Executive Officer and
    President
Gregory A. Marsh
2009
294,000
243,000
630
537,630
Chief Financial Officer, Vice President and Treasurer
Fred Ferrara
2009
222,600
81,000
287
303,887
Chief Information Officer
Michael J. Null
2009
225,750
71,915
84,261
381,926
Vice President, Sales and Marketing
Martin J. Stefanelli
2009
315,000
225,000
630
540,630
Chief Operating Officer, Vice President and Secretary
(1)
Reflects the dollar amount of
    annual performance-based bonuses earned by our named executive
    officers in 2009. For Mr. Marsh, the dollar amount reported
    also includes the $10,000 bonus he received in recognition of
    his role in connection with KRG Capital Partners'
    investment, including the acquisition of GSO Capital
    Partners' equity interest in Aurora Holdings. For more
    information regarding the annual bonuses, see the
    "— 2009 Elements of Compensation —
    Annual Cash Bonuses."
(2)
Reflects premiums paid in
    accordance with the executive-level life insurance plan. Also
    includes (i) for Mr. New, reimbursement of $19,087
    related to country club memberships and $23,295 in premiums paid
    for a separate life insurance policy; and (ii) for
    Mr. Null, $83,986 relating to our forgiveness of a note
    extended to him in connection with his relocation to Florida, as
    further described in "Certain Relationships and Related
    Party Transactions — Loans to Related Parties").
2009
    Grants of Plan-Based Awards
The following table sets forth each plan-based award granted to
    our named executive officers during 2009. No equity awards were
    granted to our named executive officers during 2009.
Estimated Future Payouts Under
Non-Equity Incentive Plan
    Awards
(1)
Threshold
Target
Maximum
Name
($)
($)
($)
Mr. New
—
400,000
800,00
Mr. Marsh
—
147,000
294,000
Mr. Ferrara
—
89,040
178,080
Mr. Null
—
79,013
158,026
Mr. Stefanelli
—
236,250
472,500
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Table of Contents
(1)
Reflects potential payout
    opportunities under the annual bonus plan. The actual amount
    earned by each named executive officer is reflected in the
    "Non-Equity Incentive Compensation" column of the
    Summary Compensation table.
Employment Agreements.
We maintain employment
    agreements with each of Messrs. New, Marsh, Stefanelli,
    Ferrara and Null, the term of which will continue until
    terminated by the executive or us. Pursuant to the agreements,
    the initial annual base salaries are subject to increases from
    time to time in the sole discretion of our Board of Directors,
    and the executives have the opportunity to earn performance
    bonuses on an annual basis as determined by our Board of
    Directors. The executives are also entitled to participate in
    any employee benefit plans that we may from time to time have in
    effect for our executive-level personnel. In addition, the
    employment agreements provide certain benefits to the executives
    upon their termination of employment by us. For a description of
    such benefits, see "— Potential Payments Upon
    Termination of Employment," below.
Potential
    Payments upon Termination of Employment
Payments Made Upon Any Termination of
    Employment.
Regardless of the manner in which a
    named executive officer's employment terminates, he is
    entitled to receive amounts earned during his term of employment
    including accrued but unpaid base salary through the date of
    termination, accrued but unpaid annual bonus, unreimbursed
    employment-related expenses owed to the executive officer under
    our policies and accrued but unpaid vacation pay. The executive
    is also entitled to all accrued benefits under any of our
    employee benefit programs (in accordance with the terms of such
    programs). These payments do not differ from payments made upon
    termination to all employees.
Payments Made Upon Termination Without Cause or Good
    Reason.
Each of the employment agreements
    provides that if the executive is terminated without Cause, or
    the executive terminates his employment with us for Good Reason,
    the executive will be entitled to receive:
•
his base salary for a specified period (in the case of
    Mr. New, 24 months, in the case of
    Messrs. Stefanelli, Ferrara and Null, 12 months, and
    in the case of Mr. Marsh, 12 months if his termination
    occurs prior to an Approved Sale (as defined below) or
    18 months if his termination occurs within one year
    following an Approved Sale), payable in equal installments in
    accordance with our regular payroll practices;
•
in the case of Mr. New, an amount equal to two times the
    average of his previous three annual bonuses, payable in
    installments in accordance with our regular payroll practices;
•
any unpaid bonus for the previous fiscal year and a pro rata
    portion of his bonus for the then current fiscal year; and
•
in the case of Mr. New, continued health care coverage for
    a period of 24 months.
Cause generally means the executive's (i) conviction
    or plea of no contest for or indictment on a felony or a crime
    involving moral turpitude or the commission of any other act or
    omission involving dishonesty or fraud, which involves a
    material matter, with respect to us or any of our customers or
    suppliers, (ii) substantial and repeated failure to perform
    his duties, (iii) gross negligence or willful misconduct
    that is harmful to us, (iv) conduct tending to bring us
    into substantial public disgrace or disrepute (not applicable to
    Mr. Null) and (v) breach of the restrictive covenants
    in the employment agreement.
Good Reason generally means, without the executive's prior
    written consent, (i) a reduction in, or failure to pay when
    due, the executive's base salary, (ii) a material
    diminution in the executive's titles or duties inconsistent
    with his position, (iii) failure to pay any annual bonus
    when due and, in the case of Mr. New, any reduction in his
    annual bonus opportunity, (iv) a material reduction in the
    employee benefits offered to the executive that is not also
    applicable to our other executive employees and (v) a
    change in the executive's principal office to a location
    more than 50 miles from Palm Beach Gardens, Florida.
Restrictive Covenants.
Each of the agreements
    contains confidentiality and customer and employee
    nonsolicitation covenants that apply during the executive's
    employment with us and for a certain period of time after his
    termination of employment (24 months in the case of
    Mr. New, and 12 months in the case of
    Messrs. Marsh, Stefanelli, Ferrara and Null).
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The following table summarizes the approximate value of the
    termination payments and benefits that each of our named
    executive officers would receive if he had terminated employment
    at the close of business on December 31, 2009. The table
    does not include certain amounts that the named executive
    officer would be entitled to receive under certain plans or
    arrangements that do not discriminate in scope, terms or
    operation, in favor of our executive officers and that are
    generally available to all salaried employees, such as our
    401(k) plan.
Summary
    of Termination Payments and Benefits
In Connection
with a
Before Change
Change in
in Control
Control
Termination
Termination
For Cause/
w/o Cause or for
w/o Cause or for
Voluntary
Name
Benefit
Good Reason ($)
Good Reason ($)
Termination ($)
Death ($)
Disability ($)
Mr. New
Continued Base
    Salary
(1)
800,000
800,000
—
—
—
Continued Health and Dental
    Coverage
(2)
53,044
53,044
—
—
—
2x Average
    Bonus
(3)
360,667
360,667
—
—
—
Pro-Rated
    Bonus
(4)
381,000
381,000
—
—
—
Total
1,594,711
1,594,711
—
—
—
Mr. Marsh
Continued Base
    Salary
(1)
294,000
441,000
—
—
—
Pro-Rated
    Bonus
(4)
233,000
233,000
—
—
—
Approved Sale
    Payment
(5)
—
220,500
—
—
—
Total
527,000
894,500
—
—
—
Mr. Ferrara
Continued Base
    Salary
(1)
222,600
222,600
—
—
—
Pro-Rated
    Bonus
(4)
81,000
81,000
—
—
—
Total
303,600
303,600
—
—
—
Mr. Null
Continued Base
    Salary
(1)
225,750
225,750
—
—
—
Pro-Rated
    Bonus
(4)
72,000
72,000
—
—
—
Total
297,750
297,750
—
—
—
Mr. Stefanelli
Continued Base
    Salary
(1)
315,000
315,000
—
—
—
Pro-Rated
    Bonus
(4)
225,000
225,000
—
—
—
Total
540,000
540,000
—
—
—
(1)
Reflects an amount equal to the
    applicable multiple of the executive's then-current base
    salary, payable in installments over 24 months, in the case
    of Mr. New, or 12 months, in the case of
    Messrs. Marsh, Stefanelli, Ferrara and Null.
    Mr. Marsh's multiple of salary is 1x, in the event of
    his termination of employment prior to an Approved Sale, or
    1.5x, in the event of his termination of employment within one
    year following the effective date of an Approved Sale.
(2)
Reflects Company-paid Consolidated
    Omnibus Budget Reconciliation Act of 1986, or COBRA, payments
    for medical and dental coverage based on 2009 rates for
    24 months.
(3)
Reflects an amount equal to two
    times the average of the bonuses Mr. New received in 2006
    (on an annualized basis), 2007 and 2008, payable in installments
    over 24 months.
(4)
Reflects a pro-rated bonus for the
    year in which the executive terminates employment. The
    pro-ration is based on the executive's and our performance
    relative to the pre-approved objectives.
(5)
Reflects 50 percent of the sum
    of Mr. Marsh's current annual base salary plus his
    current target bonus, payable in a lump sum.
Potential
    Payments upon Change in Control
In connection with an Approved Sale, Mr. Marsh would be
    entitled to receive a lump sum payment equal to 50 percent
    of the sum of his then-current annual base salary plus his
    then-current target bonus, regardless of whether his employment
    was terminated. If an Approved Sale had occurred on
    December 31, 2009, his Approved Sale payment would have
    been $220,500. Approved Sale generally means either (i) the
    sale or other disposition of all or substantially all of our
    assets and the assets of our subsidiaries, taken as a whole, or
    (ii) a transaction or series of
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related transactions the result of which is that the holders of
    our outstanding voting securities immediately prior to such
    transaction are (after giving effect to such transaction) no
    longer, in the aggregate, the "beneficial owners" (as
    such term is defined in
Rule 13d-3
and
Rule 13d-5
promulgated under the Exchange Act) of more than 50 percent
    of the voting power of our outstanding voting securities, and
    Summit Partners and the KRG Capital Partners, in the aggregate,
    are no longer entitled to appoint a majority of the managers to
    the board of managers of Aurora Holdings (excluding a public
    offering and certain other issuances by us). This benefit will
    terminate immediately prior to this offering. None of our other
    named executive officers would have received any payments if a
    change in control had occurred on December 31, 2009, absent
    their termination of employment.
Equity
    Incentive Plan
We maintain our New Plan, which provides for grants of
    Class D units of Aurora Holdings to our employees. The
    terms of the Class D units of Aurora Holdings were governed
    by the Aurora Holdings LLC Agreement and, generally, the
    Class D units of Aurora Holdings are entitled to
    distributions following distributions to which the Class A,
Class A-1,
Class B and Class C units of Aurora Holdings are
    entitled. Our Board of Directors administers the New Plan. The
    Class D units generally vest over a period of time, subject
    to the employee's continued employment with us. We will not
    grant any further awards under the New Plan. In connection with
    the Reorganization Transactions, the Class D units of
    Aurora Holdings held by our employees will either be exchanged
    for shares of our Class A common stock or cancelled without
    consideration. See "Prospectus Summary —
    Reorganization Transactions" and "Organizational
    Structure — Reorganization Transactions."
Director
    Compensation
The members of our Board of Directors did not receive any cash,
    equity or any other compensation for services rendered during
    2009.
Risk
    Assessment
Prior to the commencement of this offering, we will conduct a
    risk assessment of our compensation policies and practices for
    all employees, including non-executive officers, to determine
    whether such policies and practices create risks that are
    reasonably likely to have a material adverse effect on us.
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Table of Contents
PRINCIPAL
    AND SELLING STOCKHOLDERS
The following table sets forth information regarding the
    beneficial ownership of our Class A common stock and
    Class B common stock, as
    of          2010,
    after giving effect to the Reorganization Transactions but prior
    to this offering, by the following individuals or groups:
•
each of our directors;
•
each of our named executive officers;
•
all of our directors and executive officers as a group;
•
each person, or group of affiliated persons, whom we know
    beneficially owns more than 5 percent of our outstanding
    common stock; and
•
each selling stockholder.
See "Prospectus Summary — Reorganization
    Transactions" and "Organizational
    Structure — Reorganization Transactions."
Based on an assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus, we intend to use $      of
    the proceeds from this offering, along with TRA Rights, to
    purchase          
    Aurora Holdings Units
    and           shares
    of our Class B common stock held by the Aurora Holdings
    Continuing Members (or $     
    and          
    Aurora Holdings Units
    and           shares
    of our Class B common stock if the underwriters exercise
    their over-allotment option in full). The beneficial ownership
    after the completion of this offering reflects this application
    of proceeds.
We have determined beneficial ownership in accordance with the
    rules of the SEC. Except as indicated by the footnotes below, we
    believe, based on the information furnished to us, that the
    persons and entities named in the table below have sole voting
    and investment power with respect to all shares of Class A
    common stock and Class B common stock that they
    beneficially own, subject to applicable community property laws.
    We have based our calculation of the percentage of beneficial
    ownership
    on           shares
    of our Class A common stock outstanding as
    of          ,
    which assumes:
•
the Reorganization Transactions;
•
an initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus; and
•
the application of the net proceeds we will receive from this
    offering.
The following table assumes the underwriters'
    over-allotment option is not exercised:
Percent of Combined
Class A Common
    Stock
(1)
Class B Common
    Stock
(1)
Voting
    Power
(2)
Number
of
Number of
Shares
Shares
Percent
After
Number of
Percent
Number
Number
Prior to
Prior to
Number
this
Percent
Shares
Prior to
of
of Shares
Percent
Prior to
After
this
this
of Shares
Offering
After this
Prior to this
this
Shares
After this
After this
this
this
Name and Address of Beneficial
    Owner
(3)(4)
Offering
(1)
Offering
Offered
(1)
Offering
Offering
(1)
Offering
Offered
Offering
(1)
Offering
Offering
Offering
Summit Ventures
VI-A,
L.P.
(5)
%
%
%
%
%
%
Summit Ventures
VI-B,
L.P.
(5)
Summit Partners VI (GP),
    L.P.
(5)
Summit VI Entrepreneurs Fund,
    L.P.
(5)
Summit VI Advisors Fund,
    L.P.
(5)
Summit Investors VI,
    L.P.
(5)
Summit Partners Private Equity Fund
VII-A,
L.P.
(5)
Summit Partners Private Equity Fund
VII-B,
L.P.
(5)
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Table of Contents
Percent of Combined
Class A Common
    Stock
(1)
Class B Common
    Stock
(1)
Voting
    Power
(2)
Number
of
Number of
Shares
Shares
Percent
After
Number of
Percent
Number
Number
Prior to
Prior to
Number
this
Percent
Shares
Prior to
of
of Shares
Percent
Prior to
After
this
this
of Shares
Offering
After this
Prior to this
this
Shares
After this
After this
this
this
Name and Address of Beneficial
    Owner
(3)(4)
Offering
(1)
Offering
Offered
(1)
Offering
Offering
(1)
Offering
Offered
Offering
(1)
Offering
Offering
Offering
Summit Partners PE VII,
    L.P.
(5)
KRG Capital Fund IV,
    L.P.
(6)
KRG Capital Fund
IV-A,
L.P.
(6)
KRG Capital Fund IV (PA),
    L.P.
(6)
KRG Capital Fund IV (FF),
    L.P.
(6)
KRG Co-Investment,
    L.L.C.
(6)
Directors and Executive Officers:
James C. New
Martin J. Stefanelli
Fred Ferrara
Michael Null
Gregory A. Marsh
All Directors and Executive Officers as a group (5 persons)
*
Less than 1 percent.
(1)
The Summit Partners Equityholders
    and the Management Equityholders each hold Aurora Holdings Units
    and an equal number of shares of Class B common stock. Each
    of the Summit Partners Equityholders and the Management
    Equityholders has the right at any time to exchange any Aurora
    Holdings Units (and a corresponding number of shares of
    Class B common stock) for shares of Class A common
    stock on a
one-for-one
basis. See "Description of Capital Stock."
(2)
Percentage of total voting power
    represents voting power with respect to all shares of our
    Class A common stock and Class B common stock, voting
    together as a single class. Our Class B common stock does
    not have any of the economic rights (including rights to
    dividends and distributions upon liquidation, but excluding the
    return of par value upon liquidation) associated with our
    Class A common stock. See "Description of Capital
    Stock."
(3)
Unless otherwise specified, the
    address of each beneficial owner listed in the table below is
c/o Aurora
Diagnostics, Inc. 11025 RCA Center Drive, Suite 300, Palm
    Beach Gardens, FL 33410.
(4)
Beneficial ownership is determined
    in accordance with
Rule 13d-3
of the Exchange Act and generally includes voting and investment
    power with respect to securities, subject to community property
    laws, where applicable.
(5)
Represents
    (a)           shares
    of Class B common stock held by Summit Ventures VI-A, L.P.;
    (b)           shares
    of Class A common stock held by Summit Ventures VI-B, L.P.;
    (c)           shares
    of Class A common stock held by Summit Partners VI (GP),
    L.P.;
    (d)           shares
    of Class B common stock held by Summit VI Entrepreneurs
    Fund, L.P.;
    (e)           shares
    of Class B common stock held by Summit VI Advisors Fund,
    L.P.;
    (f)           shares
    of Class B common stock held by Summit Investors VI, L.P.;
    (g)           shares
    of Class B common stock held by Summit Partners Private
    Equity
Fund VII-A,
L.P.;
    (h)           shares
    of Class A common stock held by Summit Partners Private
    Equity
Fund VII-B,
L.P.; and
    (i)           shares
    of Class A common stock held by Summit Partners PE VII,
    L.P. Summit Partners, L.P. is the managing member of Summit
    Partners VI (GP), LLC, which is the general partner of Summit
    Partners VI (GP), L.P., which is the general partner of each of
    Summit Ventures VI-A, L.P., Summit Ventures VI-B, L.P., Summit
    VI Advisors Fund, L.P., Summit VI Entrepreneurs Fund, L.P. and
    Summit Investors VI, L.P. Summit Partners, L.P. is also the
    managing member of Summit Partners PE VII, LLC, which is the
    general partner of Summit Partners PE VII, L.P., which is the
    general partner of each of Summit Partners Private Equity
Fund VII-A,
L.P. and Summit Partners Private Equity
Fund VII-B,
L.P. Summit Partners, L.P., through an investment committee
    currently composed of Bruce R. Evans and Martin J. Mannion, has
    voting and dispositive authority over the shares held by each of
    these entities and therefore beneficially owns such shares.
    Decisions of the investment committee are made by a majority
    vote of its members. Gregory M. Avis, John R. Carroll, Peter Y.
    Chung, Scott C. Collins, Christopher J. Dean, Bruce R. Evans,
    Charles J. Fitzgerald, Craig D. Frances, Walter G. Kortschak,
    Sotiris T.F. Lyritzis, Martin J. Mannion, Harrison B. Miller,
    Kevin P. Mohan, Thomas S. Roberts, E. Roe Stamps, Joseph F.
    Trustey and Stephen G. Woodsum are the members of Summit Master
    Company, LLC, which is the general partner of Summit Partners,
    L.P., and each disclaims beneficial ownership of the shares held
    by Summit Partners. The address of each of the Summit Partners
    entities is 222 Berkeley Street, 18th Floor, Boston, MA 02116.
(6)
Represents
    (a)           shares
    of Class A common stock held by KRG Capital Fund IV,
    L.P.;
    (b)           shares
    of Class A common stock held by KRG Capital
Fund IV-A,
L.P.;
    (c)           shares
    of Class A common stock held by KRG Capital Fund IV
    (PA), L.P.;
    (d)           shares
    of Class A common stock held by KRG Capital Fund IV
    (FF), L.P.; and
    (e)           shares
    of Class A common stock held by KRG Co-Investment, L.L.C.
    KRG Capital Management, L.P. is the general partner of each of
    KRG Capital Fund IV, L.P., KRG Capital
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Table of Contents
Fund IV-A,
L.P., KRG Capital Fund IV (PA), L.P. and KRG Capital
    Fund IV (FF), L.P. KRG Capital Management, L.P., through an
    eleven (11) person investment committee with respect to the
    Class IV series of funds, including Mark M. King,
    Christopher J. Bock and Blair J. Tikker, has voting and
    dispositive authority over the shares held by each of KRG
    Capital Fund IV, L.P., KRG Capital
Fund IV-A,
L.P., KRG Capital Fund IV (PA), L.P., KRG Capital
    Fund IV (FF), L.P. and KRG Co-Investment L.L.C. and,
    therefore, beneficially owns such shares. Decisions of the
    investment committee are made by a vote of the majority of its
    members and no individual member of the investment committee has
    voting or dispositive authority over the shares. Mark M. King,
    Christopher J. Bock and Blair J. Tikker are members of KRG
    Capital, LLC with respect to the Class IV series of funds,
    which is the general partner of KRG Capital Management, L.P.,
    and each disclaims beneficial ownership of the shares held by
    KRG Capital Management, L.P. Affiliates of Mark M. King and
    Christopher J. Bock, individually, are members of KRG
    Co-Investment, LLC, and each disclaims beneficial ownership of
    the shares held by KRG Capital Management, L.P. The address of
    each of the KRG Capital Partners entities is 1515 Arapahoe
    Street, Tower 1, Suite 1500, Denver, CO 80202.
The following table assumes the underwriters'
    over-allotment option is exercised:
Percent of Combined
Class A Common
    Stock
(1)
Class B Common
    Stock
(1)
Voting
    Power
(2)
Number
of
Number of
Shares
Shares
Percent
After
Number of
Percent
Number
Number
Prior to
Prior to
Number
this
Percent
Shares
Prior to
of
of Shares
Percent
Prior to
After
this
this
of Shares
Offering
After this
Prior to this
this
Shares
After this
After this
this
this
Name and Address of Beneficial
    Owner
(3)(4)
Offering
(1)
Offering
Offered
(1)
Offering
Offering
(1)
Offering
Offered
Offering
(1)
Offering
Offering
Offering
Summit Ventures VI-A,
    L.P.
(5)
%
%
%
%
%
%
Summit Ventures VI-B,
    L.P.
(5)
Summit Partners VI (GP),
    L.P.
(5)
Summit VI Entrepreneurs Fund,
    L.P.
(5)
Summit VI Advisors Fund,
    L.P.
(5)
Summit Investors VI,
    L.P.
(5)
Summit Partners Private Equity Fund VII-A,
    L.P.
(5)
Summit Partners Private Equity Fund VII-B,
    L.P.
(5)
Summit Partners PE VII,
    L.P.
(5)
KRG Capital Fund IV,
    L.P.
(6)
KRG Capital Fund IV-A,
    L.P.
(6)
KRG Capital Fund IV(PA),
    L.P.
(6)
KRG Capital Fund IV(FF),
    L.P.
(6)
KRG Co-Investment,
    L.L.C.
(6)
Directors and Executive Officers:
James C. New
Martin J. Stefanelli
Fred Ferrara
Michael Null
Gregory A. Marsh
All Directors and Executive Officers as a group (5 persons)
*
Less than 1 percent.
(1)
The Summit Partners Equityholders
    and the Management Equityholders each hold Aurora Holdings Units
    and an equal number of shares of Class B common stock. Each
    of the Summit Partners Equityholders and the Management
    Equityholders has the right at any time to exchange any Aurora
    Holdings Units (and a corresponding number of shares of
    Class B common stock) for shares of Class A common
    stock on a
one-for-one
basis. See "Description of Capital Stock."
(2)
Percentage of total voting power
    represents voting power with respect to all shares of our
    Class A common stock and Class B common stock, voting
    together as a single class. Our Class B common stock does
    not have any of the economic rights (including rights to
    dividends and distributions upon liquidation, but excluding the
    return of par value upon liquidation) associated with our
    Class A common stock. See "Description of Capital
    Stock."
(3)
Unless otherwise specified, the
    address of each beneficial owner listed in the table below is
c/o Aurora
Diagnostics, Inc. 11025 RCA Center Drive, Suite 300, Palm
    Beach Gardens, FL 33410.
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(4)
Beneficial ownership is determined
    in accordance with
Rule 13d-3
of the Exchange Act and generally includes voting and investment
    power with respect to securities, subject to community property
    laws, where applicable.
(5)
Represents
    (a)           shares
    of Class B common stock held by Summit Ventures VI-A, L.P.;
    (b)           shares
    of Class A common stock held by Summit Ventures VI-B, L.P.;
    (c)           shares
    of Class A common stock held by Summit Partners VI (GP),
    L.P.;
    (d)           shares
    of Class B common stock held by Summit VI Entrepreneurs
    Fund, L.P.;
    (e)           shares
    of Class B common stock held by Summit VI Advisors Fund,
    L.P.;
    (f)           shares
    of Class B common stock held by Summit Investors VI, L.P.;
    (g)           shares
    of Class B common stock held by Summit Partners Private
    Equity
Fund VII-A,
L.P.;
    (h)           shares
    of Class A common stock held by Summit Partners Private
    Equity
Fund VII-B,
L.P.; and
    (i)           shares
    of Class A common stock held by Summit Partners PE VII,
    L.P. Summit Partners, L.P. is the managing member of Summit
    Partners VI (GP), LLC, which is the general partner of Summit
    Partners VI (GP), L.P., which is the general partner of each of
    Summit Ventures VI-A, L.P., Summit Ventures VI-B, L.P., Summit
    VI Advisors Fund, L.P., Summit VI Entrepreneurs Fund, L.P. and
    Summit Investors VI, L.P. Summit Partners, L.P. is also the
    managing member of Summit Partners PE VII, LLC, which is the
    general partner of Summit Partners PE VII, L.P., which is the
    general partner of each of Summit Partners Private Equity
Fund VII-A,
L.P. and Summit Partners Private Equity
Fund VII-B,
L.P. Summit Partners, L.P., through an investment committee
    currently composed of Bruce R. Evans and Martin J. Mannion, has
    voting and dispositive authority over the shares held by each of
    these entities and therefore beneficially owns such shares.
    Decisions of the investment committee are made by a majority
    vote of its members. Gregory M. Avis, John R. Carroll, Peter Y.
    Chung, Scott C. Collins, Christopher J. Dean, Bruce R. Evans,
    Charles J. Fitzgerald, Craig D. Frances, Walter G. Kortschak,
    Sotiris T.F. Lyritzis, Martin J. Mannion, Harrison B. Miller,
    Kevin P. Mohan, Thomas S. Roberts, E. Roe Stamps, Joseph F.
    Trustey and Stephen G. Woodsum are the members of Summit Master
    Company, LLC, which is the general partner of Summit Partners,
    L.P., and each disclaims beneficial ownership of the shares held
    by Summit Partners. The address of each of the Summit Partners
    entities is 222 Berkeley Street, 18th Floor, Boston, MA 02116.
(6)
Represents
    (a)           shares
    of Class A common stock held by KRG Capital Fund IV,
    L.P.;
    (b)           shares
    of Class A common stock held by KRG Capital
Fund IV-A,
L.P.;
    (c)           shares
    of Class A common stock held by KRG Capital Fund IV
    (PA), L.P.;
    (d)           shares
    of Class A common stock held by KRG Capital Fund IV
    (FF), L.P.; and
    (e)           shares
    of Class A common stock held by KRG Co-Investment, L.L.C.
    KRG Capital Management, L.P. is the general partner of each of
    KRG Capital Fund IV, L.P., KRG Capital
Fund IV-A,
L.P., KRG Capital Fund IV (PA), L.P. and KRG Capital
    Fund IV (FF), L.P. KRG Capital Management, L.P., through an
    eleven (11) person investment committee with respect to the
    Class IV series of funds, including Mark M. King,
    Christopher J. Bock and Blair J. Tikker, has voting and
    dispositive authority over the shares held by each of KRG
    Capital Fund IV, L.P., KRG Capital
Fund IV-A,
L.P., KRG Capital Fund IV (PA), L.P., KRG Capital
    Fund IV (FF), L.P. and KRG Co-Investment L.L.C. and,
    therefore, beneficially owns such shares. Decisions of the
    investment committee are made by a vote of the majority of its
    members and no individual member of the investment committee has
    voting or dispositive authority over the shares. Mark M. King,
    Christopher J. Bock and Blair J. Tikker are members of KRG
    Capital, LLC with respect to the Class IV series of funds,
    which is the general partner of KRG Capital Management, L.P.,
    and each disclaims beneficial ownership of the shares held by
    KRG Capital Management, L.P. Affiliates of Mark M. King and
    Christopher J. Bock, individually, are members of KRG
    Co-Investment, LLC, and each disclaims beneficial ownership of
    the shares held by KRG Capital Management, L.P. The address of
    each of the KRG Capital Partners entities is 1515 Arapahoe
    Street, Tower 1, Suite 1500, Denver, CO 80202.
Relationship
    with Selling Stockholders
All of the shares offered by the selling stockholders were
    issued to them in the Reorganization Transactions. For
    additional information with respect to the selling stockholders
    and their relationship with us please see "Certain
    Relationships and Related Party Transactions,"
    "Prospectus Summary — Reorganization
    Transactions" and "Organizational
    Structure — Reorganization Transactions."
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CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
In addition to the cash and equity compensation arrangements of
    our directors and executive officers discussed above under
    "Executive Compensation — Compensation Discussion
    and Analysis," the following is a description of
    transactions since January 1, 2007, to which we have been a
    party in which the amount involved exceeded or will exceed
    $120,000 and in which any of our directors, executive officers,
    beneficial holders of more than 5 percent of our capital
    stock, or entities affiliated with them, had or will have a
    direct or indirect material interest.
Reorganization
    Agreement
In connection with the Reorganization Transactions, we and ARDX
    Sub will enter into a reorganization agreement with Aurora
    Holdings and our Principal Equityholders which governs the
    Reorganization Transactions. In addition, under the
    reorganization agreement, the Aurora Holdings Continuing Members
    will subscribe for a number of shares of our Class B common
    stock equal to the number of Aurora Holdings Units they own, at
    price equal to the par value per share of Class B common
    stock. For further information, see "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions."
Second
    Amended and Restated Aurora Holdings Limited Liability Company
    Agreement
In connection with the Reorganization Transactions, the Aurora
    Holdings Continuing Members, ARDX Sub and Aurora Holdings will
    enter into the Second Amended and Restated Aurora Holdings LLC
    Agreement. In consideration for agreeing to enter into the
    Second Amended and Restated Aurora Holdings LLC Agreement, the
    Aurora Holdings Continuing Members will receive rights to
    distributions that are calculated in a manner that is similar to
    the TRA Rights. As a result of the Reorganization Transactions
    and in accordance with the terms of the Second Amended and
    Restated Aurora Holdings LLC Agreement, we will indirectly
    operate our business through Aurora Holdings and its
    subsidiaries. With ARDX Sub as the sole managing member of
    Aurora Holdings, we will indirectly have all business and
    operational control over Aurora Holdings. As such, we, through
    our officers and directors, will be responsible for all business
    and operational decisions of Aurora Holdings and the
day-to-day
management of Aurora Holdings' and its subsidiaries'
    business.
The holders of Aurora Holdings Units, including ARDX Sub, will
    generally incur U.S. federal, state, local and foreign
    income taxes on their proportionate share of any net taxable
    income of Aurora Holdings. Net profits and net losses of Aurora
    Holdings will generally be allocated to its members pro rata in
    accordance with the percentages of their respective Aurora
    Holdings Units, though certain non-pro rata adjustments will be
    made to reflect tax depreciation, amortization and other
    allocations. The Second Amended and Restated Aurora Holdings LLC
    Agreement will provide for cash distributions to Aurora
    Holdings' members if the taxable income of Aurora Holdings
    will give rise to taxable income for any of its members.
    Generally, these tax distributions will be computed based on our
    estimate of the highest amount of net taxable income of Aurora
    Holdings allocable to any such holder of Aurora Holdings Units
    multiplied by an assumed tax rate equal to the highest effective
    marginal combined U.S. federal, state and local income tax
    rate prescribed for an individual or corporate resident in New
    York, New York (taking into account the non-deductibility of
    certain expenses and the character of our income), with a pro
    rata amount distributed to each holder of Aurora Holdings Units.
    These tax distributions indirectly received by us will be used
    to pay our taxes.
In addition, to the extent permitted under our debt agreements,
    Aurora Holdings may make distributions indirectly to us, without
    pro rata distributions to other Aurora Holdings members, in
    order to pay:
•
consideration, if any, for redemption, repurchase or other
    acquisition of Aurora Holdings Units to the extent such cash is
    used to redeem, repurchase or otherwise acquire our Class B
    common stock;
•
operating, administrative and other similar costs incurred by
    us, including payments on indebtedness and preferred stock
    issued by us, to the extent we use the proceeds from the
    issuance to pay expenses (in either case only to the extent
    economically equivalent indebtedness or preferred stock were not
    issued by Aurora Holdings to us);
•
payments representing interest with respect to payments not made
    when due under the terms of the Tax Receivable
    Agreement; and
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•
other payments related to:
•
legal, tax, accounting and other professional fees and expenses;
•
judgments, settlements, penalties, fines or other costs and
    expenses in respect of any claims involving us; and
•
other fees and expenses related to the maintenance of our
    existence or any securities offering, investment or acquisition
    transaction authorized by our Board of Directors.
The Second Amended and Restated Aurora Holdings LLC Agreement
    will provide that, except as otherwise determined by us, and, at
    any time we issue a share of our Class A common stock or
    any other equity security, other than pursuant to an employee
    benefit plan or shareholder rights plan, the net proceeds
    received by us with respect to such issuance, if any, shall be
    concurrently invested indirectly in Aurora Holdings (unless such
    shares were issued by us solely to fund our ongoing operations
    or the purchase of Aurora Holdings Units or to pay our expenses
    or other obligations), and Aurora Holdings shall issue to ARDX
    Sub one Aurora Holdings Unit or other economically equivalent
    equity interest. Conversely, if at any time, any shares of our
    Class A common stock are redeemed, repurchased or otherwise
    acquired, Aurora Holdings shall redeem, repurchase or otherwise
    acquire an equal number of Aurora Holdings Units held by ARDX
    Sub, upon the same terms and for the same price, as the shares
    of our Class A common stock are redeemed, repurchased or
    otherwise acquired.
In accordance with the terms of the Second Amended and Restated
    Aurora Holdings  LLC Agreement, the Aurora Holdings Continuing
    Members will generally have the right to exchange their Aurora
    Holdings Units (and corresponding shares of our Class B
    common stock) with Aurora Holdings for shares of our
    Class A common stock on a
one-for-one
basis or, in certain circumstances, an equivalent amount of
    cash, subject to customary conversion rate adjustments for stock
    splits, stock dividends and reclassifications. As the Aurora
    Holdings Continuing Members exchange their Aurora Holdings
    Units, our membership interests in Aurora Holdings will be
    correspondingly increased. In connection with any proposed
    exchange by an Aurora Holdings Continuing Member, we may, in
    certain circumstances, elect to directly or indirectly through
    ARDX Sub purchase and acquire the applicable Aurora Holdings
    Units and corresponding Class B common stock by paying
    either:
•
cash in an amount equal to the fair market value (determined by
    the volume weighted average price of the shares of Class A
    common stock on the date of purchase (ignoring the price paid in
    connection with any block trades of 100,000 or more shares) of
    the shares of Class A common stock the Aurora Holdings
    Continuing Member would have received in the proposed
    exchange; or
•
the number of shares of Class A common stock the member
    would have received in the proposed exchange.
Unless we make such an election, we have no obligation to the
    exchanging member or Aurora Holdings with respect to the
    proposed exchange, other than to ensure Aurora Holdings has
    shares of our Class A common stock to deliver to the
    exchanging Aurora Holdings Continuing Member.
Under the Second Amended and Restated Aurora Holdings LLC
    Agreement, the members have agreed that our Principal
    Equityholders
and/or
one
    or more of their respective affiliates are permitted to engage
    in business activities or invest in or acquire businesses which
    may compete with our business or do business with any client of
    ours.
Under the Second Amended and Restated Aurora Holdings LLC
    Agreement, Aurora Holdings will indemnify all of its members,
    including us, against any and all losses and expenses related
    thereto incurred by reason of the fact that such person was a
    member of Aurora Holdings. In the event that losses are incurred
    as a result of a member's fraud or willful misconduct, such
    member is not entitled to indemnification under the Second
    Amended and Restated Aurora Holdings LLC Agreement.
Aurora Holdings may be dissolved only upon the first to occur of:
•
the sale of substantially all of its assets, or
•
the voluntary agreement of us and our Principal Equityholders.
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Upon dissolution, Aurora Holdings will be liquidated and the
    proceeds from any liquidation will be applied and distributed in
    the following manner:
•
first, to creditors (including to the extent permitted by law,
    creditors who are members) in satisfaction of the liabilities of
    Aurora Holdings;
•
second, to establish cash reserves for contingent or unforeseen
    liabilities; and
•
third, to the members in proportion of their interests in Aurora
    Holdings.
For further information, see "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions."
Tax
    Receivable Agreement
Prior to this offering, we intend to complete the Reorganization
    Transactions described under "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions." Also, as described under "Use of
    Proceeds," we intend to use a portion of the proceeds from
    this offering to purchase Aurora Holdings Units from certain of
    our Principal Equityholders. The purchases of these Aurora
    Holdings Units are likely to result in tax basis adjustments to
    the assets of Aurora Holdings, and these tax basis adjustments
    will be allocated to us. In addition, the Aurora Holdings Units
    held by the Aurora Holdings Continuing Members will be
    exchangeable in the future for cash or shares of our
    Class A common stock. These future exchanges are likely to
    result in tax basis adjustments to the assets of Aurora
    Holdings, which adjustments would also be allocated to us. Both
    the existing tax basis and the anticipated tax basis adjustments
    are expected to reduce the amount of tax that we would otherwise
    be required to pay in the future.
Aurora Diagnostics, Inc. will enter into the Tax Receivable
    Agreement with ARDX Sub and the Tax Receivable Entity. The Tax
    Receivable Agreement will generally provide for the annual
    payment by Aurora Diagnostics, Inc. to the Tax Receivable Entity
    of 85 percent of certain cash tax savings, if any, in
    U.S. federal, state, local and foreign income tax realized
    by Aurora Diagnostics, Inc. after the completion of this
    offering as a result of:
•
favorable tax attributes associated with amortizable goodwill
    and other intangibles held by Aurora Holdings and created by its
    previous acquisitions;
•
any
step-up
in tax basis in our share of Aurora Holdings' assets
    resulting from:
•
the acquisition by us of Aurora Holdings Units from the Aurora
    Holdings Continuing Members in exchange for shares of our
    Class A common stock or cash, or
•
payments under the Tax Receivable Agreement to the Tax
    Receivable Entity; and
•
tax benefits related to imputed interest deemed to be paid by us
    as a result of the Tax Receivable Agreement.
The actual increase in tax basis, as well as the amount and
    timing of any payments under the Tax Receivable Agreement, will
    vary depending upon a number of factors, including the timing of
    exchanges by the Aurora Holdings Continuing Members, as
    applicable, the price of our Class A common stock at the
    time of the exchange, the extent to which such exchanges are
    taxable, the amount and timing of the taxable income we generate
    in the future and the tax rate then applicable, and our use of
    the portion of our payments under the Tax Receivable Agreement
    constituting imputed interest or amortizable tax basis. We
    expect that, as a result of the amount of the increases in the
    tax basis of the tangible and intangible assets of Aurora
    Holdings, assuming no material changes in the relevant tax law
    and that we earn sufficient taxable income to realize in full
    the potential tax benefit described above, future payments under
    the Tax Receivable Agreement in respect of tax attributes
    resulting from past acquisitions described above as well as from
    the Reorganization Transactions will aggregate
    $      million and range from
    approximately $      million to
    $      million per year over the
    next     years. These amounts reflect
    only certain cash tax savings attributable to current tax
    attributes resulting from past acquisitions described above as
    well as from the Reorganization Transactions. It is possible
    that future transactions or events could increase or decrease
    the actual tax benefits realized and the corresponding Tax
    Receivable Agreement payments from these tax attributes. Future
    payments under the Tax Receivable Agreement in respect of
    subsequent acquisitions of Aurora
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Holdings Units would be in addition to these amounts and would,
    if such exchanges took place at the initial public offering
    price, be of comparable magnitude.
Although we do not believe that the IRS would challenge the tax
    basis increases or other benefits arising under the Tax
    Receivable Agreement, the Tax Receivable Entity will not
    reimburse or indemnify us for any payments previously made if
    such tax basis increases or other tax benefits are subsequently
    disallowed or for any other claims made by the IRS, except that
    excess payments made to the Tax Receivable Entity will be netted
    against payments otherwise to be made, if any, after our
    determination of such excess. As a result, in such
    circumstances, we could make payments under the Tax Receivable
    Agreement that are greater than our actual cash tax savings.
Because we are a holding company with no operations of our own,
    our ability to make payments under the Tax Receivable Agreement
    is dependent on the ability of Aurora Holdings and its
    subsidiaries to make distributions to us. Our debt agreements
    will restrict the ability of our subsidiaries to make
    distributions to us, which could affect our ability to make
    payments under the Tax Receivable Agreement. To the extent that
    we are unable to make payments under the Tax Receivable
    Agreement because of such restrictions, such payments will be
    deferred and will accrue interest until paid.
Rights to receive payments under the Tax Receivable Agreement
    may be terminated by the Tax Receivable Entity if, as the result
    of an actual or proposed change in law, the existence of the
    agreement would cause recognition of ordinary income (instead of
    capital gain) in connection with future exchanges of Aurora
    Holdings Units for cash or shares of Class A common stock
    or would otherwise have material adverse tax consequences to the
    Tax Receivable Entity or its owners. There have been legislative
    proposals in the U.S. Congress that, if enacted, may result in
    such ordinary income recognition. Further, in the event of such
    a termination, the Tax Receivable Entity would have the right,
    subject to the delivery of an appropriate tax opinion, to
    require us to pay a lump sum amount in lieu of the payments
    otherwise provided under the agreement. That lump sum amount
    would be calculated by increasing the portion of the tax savings
    retained by us to 30 percent (from 15 percent) and by
    calculating a present value for the total amount that would
    otherwise be payable under the agreement, using a discount rate
    and assumptions as to income tax rates and as to our ability to
    utilize the tax benefits (including the assumption that we will
    have sufficient taxable income to fully utilize the tax
    benefits). If the assumptions used in this calculation turn out
    not to be true, we may pay more or less than the specified
    percentage of our actual cash tax savings. This lump sum amount
    is subordinate to amounts payable under our senior credit
    agreements and may be paid in cash or be deferred until all
    amounts payable under our senior credit agreements in existence
    as of the date of termination of the Tax Receivable Agreement
    have been paid and the deferred amount will bear interest at a
    rate of      per annum. In view of the
    foregoing changes in the calculation of our obligations, we do
    not expect that the net impact of any such acceleration upon our
    overall financial condition would be materially adverse as
    compared to our obligations if laws do not change and the
    obligations are not accelerated. It is also possible that the
    net impact of such an acceleration would be beneficial to our
    overall financial condition. The ultimate impact of a decision
    to accelerate will depend on what the ongoing payments would
    have been under the Tax Receivable Agreement absent
    acceleration, which will depend on various factors.
We also have the right (with the consent of our independent
    directors) to terminate the Tax Receivable Agreement. If we
    exercise this right, then the Tax Receivable Entity would be
    entitled to a lump sum amount in lieu of the payments otherwise
    provided under the agreement. That lump sum amount would be
    calculated by determining a present value for the total amount
    that would otherwise be payable under the agreement, using a
    discount rate and assumptions as to income tax rates and as to
    our ability to utilize the tax benefits (including the
    assumption that we will have sufficient taxable income to fully
    utilize the tax benefits and the assumption that all exchanges
    that have not taken place will take place as of the date of the
    termination, which will increase the amount of the lump sum
    payment). If the assumptions used in this calculation turn out
    not to be true, we may pay more or less than the specified
    percentage of certain cash tax savings realized by us after the
    completion of this offering. This lump sum amount must be paid
    in cash. Any such acceleration can occur only at our election.
    Should we elect to terminate the Tax Receivable Agreement, we do
    not expect that the net impact of any such acceleration upon our
    overall financial condition would be materially adverse as
    compared to our existing obligations. The ultimate impact of a
    decision to accelerate will depend on what the ongoing payments
    would have been under the Tax Receivable Agreement absent
    acceleration, which will in turn depend on the various factors
    mentioned above.
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If we default on any of our material obligations under the Tax
    Receivable Agreement, then, unless the Tax Receivable Entity
    seeks specific performance of the Tax Receivable Agreement, the
    Tax Receivable Entity has the option to accelerate payments due
    under the Tax Receivable Agreement and require us to make a lump
    sum payment representing all past due and future payments under
    the Tax Receivable Agreement, discounted to present value.
In addition, the Tax Receivable Agreement provides that, upon
    certain mergers, asset sales or other forms of business
    combination or certain other changes of control, our or our
    successor's obligations with respect to tax benefits would
    be based on certain assumptions, including that we or our
    successor would have sufficient taxable income to fully utilize
    the deductions arising from the increased tax deductions and tax
    basis and other benefits covered by the Tax Receivable
    Agreement. As a result, upon a change of control, we could be
    required to make payments under the Tax Receivable Agreement
    that are greater than or less than the specified percentage of
    our cash tax savings.
For further information, see "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions."
Purchase
    of Aurora Holdings Units and Class B Common Stock
Immediately following the completion of this offering, we will
    use approximately
    $           million
    of the net proceeds that we will receive from this offering to
    purchase      Aurora Holdings Units
    (and a corresponding number of shares of Class B common
    stock) from certain of our Principal Equityholders.
For further information, see "Prospectus
    Summary — Reorganization Transactions" and
    "Organizational Structure — Reorganization
    Transactions."
Loans to
    Related Parties
On November 17, 2006, we entered into master promissory
    notes with each of James C. New, our Chairman, Chief Executive
    Officer and President, Martin J. Stefanelli, our Chief Operating
    Officer, Vice President and Secretary, Michael Null, our Vice
    President-Sales and Marketing, and Fred Ferrara, our Chief
    Information Officer, under which these executive officers were
    obligated to repay us, as of March 31, 2010, an amount in
    aggregate of approximately $1.9 million plus accrued
    interest. These arrangements were entered into to facilitate the
    purchases of Class C Aurora Holdings Units by these
    executive officers and were secured by a pledge of such units,
    as evidenced by a pledge agreement between us and these
    executive officers.
On March 7, 2008, we entered into promissory notes with
    each of the same executive officers, under which these executive
    officers were obligated to repay us, as of March 31, 2010,
    an amount in aggregate of approximately $350,000 plus accrued
    interest. These notes were secured by a pledge of Class X
    capital of Aurora Holdings then held by each these executive
    officers, which was evidenced by a pledge agreement between us
    and these executive officers. These arrangements were entered
    into to facilitate the purchases of Aurora Holdings'
    Class X capital by these executive officers.
In accordance with the terms of these promissory notes, we
    required the prepayment of all amounts due thereunder from our
    executive officers in connection with or prior to this offering.
    All such amounts were prepaid by the executive officers on
    April 28, 2010.
In connection with our employment of Michael Null, our Vice
    President-Sales and Marketing, we entered into a letter
    agreement with Mr. Null in May 2008 and a related
    promissory note issued by Mr. Null on October 21,
    2008, in the aggregate amount of $100,000, to facilitate
    Mr. Null's relocation to our corporate headquarters.
    Pursuant to the letter agreement, a portion of the principal and
    interest under the note was forgiven each month, and
    Mr. Null was entitled to a
gross-up
for
    taxes accruing as a result thereof. The balance of the note and
    all accrued interest were forgiven on April 28, 2010.
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Registration
    Agreement
We are party to a Registration Agreement with certain of our
    Principal Equityholders. Under the Registration Agreement, our
    Principal Equityholders have certain registration rights with
    respect to our Class A common stock.
Indemnification
    of Officers and Directors
Our certificate of incorporation and bylaws provide that we will
    indemnify each of our directors and officers to the fullest
    extent permitted by the Delaware General Corporation Law.
Further, in connection with this offering, we expect to enter
    into indemnification agreements with each of our directors and
    officers, and we have purchased a policy of directors' and
    officers' liability insurance that insures our directors
    and officers against the cost of defense, settlement or payment
    of a judgment under certain circumstances. For further
    information, see "Management and Board of
    Directors — Indemnification of Officers and Directors
    and Limitation of Liability."
Board of
    Directors
Prior to the completion of this offering, entities affiliated
    with the Summit Partners Equityholders had the right to appoint
    three of our directors and the KRG Equityholders had the right
    to appoint three of our directors. These rights terminate upon
    the closing of this offering, and while the nominees of the
    Summit Partners Equityholders and the KRG Equityholder will
    remain on our Board of Directors following the completion of
    this offering, we will have no contractual obligation to retain
    them.
Related
    Person Transaction Review Procedures
Our Board of Directors has adopted a written policy and
    procedures, effective upon completion of this offering, for
    review and approval or ratification of transactions involving us
    and "related persons" (our directors and executive
    officers and their immediate family members or our shareholders
    owning five percent or greater of our outstanding Class A
    common stock and their immediate family members). The policy
    covers any related person transaction that meets the minimum
    threshold for disclosure in a proxy statement under the
    SEC's rules. Upon completion of this offering, a copy of
    our procedures may be found on our Web site, www.auroradx.com.
Related person transactions must be approved in advance by our
    nominating and corporate governance committee whenever possible
    or ratified as promptly as possible thereafter. We will disclose
    in our proxy statement any transactions that are found to be
    directly or indirectly material to a related person.
Prior to entering into a transaction with us, a related person
    must provide the details of the transaction to our Chief
    Financial Officer, including the relationship of the person to
    us, the dollar amount involved, and whether the related person
    or his or her family member has or will have a direct or
    indirect interest in the transaction. Our Chief Financial
    Officer will evaluate the transaction to determine if we or the
    related person has a direct or indirect material interest in the
    transaction. If so, then our Chief Financial Officer will notify
    our Chief Executive Officer and submit the facts of the
    transaction to our nominating and corporate governance committee
    for its review. Our nominating and corporate governance
    committee may approve a transaction only if these review
    procedures have been followed and our nominating and corporate
    governance committee determines that the transaction is not
    detrimental to us and does not violate our policies.
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DESCRIPTION
    OF CAPITAL STOCK
The following description of our capital stock and provisions of
    our certificate of incorporation and bylaws are summaries.
    Because these are only summaries, they do not contain all the
    information that may be important to you. For a complete
    description, you should refer to our certificate of
    incorporation and bylaws, copies of which have been filed with
    the SEC as exhibits to our registration statement, as well as
    the relevant portions of the Delaware General Corporation Law.
    The description of our capital stock reflects changes to our
    capital structure that will occur upon the completion of this
    offering.
Capital
    Stock
Our authorized capital stock consists
    of           shares
    of Class A common stock, par value $0.01 per
    share,           shares
    of Class B common stock, par value $0.01 per share,
    and           shares
    of preferred stock, par value $0.01 per share. In connection
    with the Reorganization Transactions, we will amend our
    certificate of incorporation as part of the Reorganization
    Transactions so as to provide for the appropriate number of
    authorized shares of Class A common stock and Class B
    common stock to complete this offering and the Reorganization
    Transactions.
Immediately following the Reorganization Transactions, we will
    have approximately      holders of
    record of our Class A common stock
    and      holders of record of our
    Class B common stock. Of the authorized shares of our
    capital stock,      shares of our
    Class A common stock will be issued and
    outstanding,           shares
    of our Class B common stock will be issued and outstanding
    and no shares of preferred stock will be issued and outstanding,
    based on an assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus.
After the completion of this offering and the application of the
    net proceeds that we will receive from this offering, we expect
    to
    have           shares
    of our Class A common stock
    outstanding,           shares
    of our Class B common stock outstanding, and no shares of
    preferred stock outstanding, based on an assumed initial public
    offering price of $      per share,
    which is the midpoint of the price range set forth on the cover
    page of this prospectus.
Common
    Stock
Voting.
Holders of our Class A common stock and Class B common
    stock are entitled to one vote on all matters submitted to
    stockholders for their vote or approval. The holders of our
    Class A common stock and Class B common stock vote
    together as a single class on all matters submitted to
    stockholders for their vote or approval, except with respect to
    the amendment of certain provisions of our certificate of
    incorporation that would alter or change the powers, preferences
    or special rights of the Class B common stock so as to
    affect them adversely, which amendments must be approved by a
    majority of the votes entitled to be cast by the holders of the
    shares affected by the amendment, voting as a separate class, or
    as otherwise required by applicable law.
Upon completion of this offering and the application of the net
    proceeds that we will receive from this offering, our Principal
    Equityholders will control
    approximately      percent of the
    combined voting power of our common stock. Accordingly, our
    Principal Equityholders can exercise significant influence over
    our business policies and affairs and can control any action
    requiring the general approval of our stockholders, including
    the adoption of amendments to our certificate of incorporation
    and bylaws and the approval of mergers or sales of substantially
    all of our assets. The concentration of ownership and voting
    power of our Principal Equityholders may also delay, defer or
    even prevent an acquisition by a third party or other change of
    control of our company and may make some transactions more
    difficult or impossible without the support of our Principal
    Equityholders, even if such events are in the best interests of
    noncontrolling stockholders.
Dividends.
The holders of Class A common stock are entitled to receive
    dividends when, as, and if declared by our Board of Directors
    out of legally available funds. The holders of our Class B
    common stock will not have any right to
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receive dividends other than dividends consisting of shares of
    our Class B common stock paid proportionally with respect
    to each outstanding share of our Class B common stock.
Liquidation
    or Dissolution.
Upon our liquidation or dissolution, the holders of our
    Class A common stock will be entitled to share ratably in
    those of our assets that are legally available for distribution
    to stockholders after payment of liabilities and subject to the
    prior rights of any holders of preferred stock then outstanding.
    The holders of our Class B common stock will not have any
    right to receive a distribution upon a liquidation or
    dissolution of our company other than the par value of their
    Class B common stock.
Transferability
    and Exchange.
Subject to the terms of the Second Amended and Restated Aurora
    Holdings LLC Agreement, the Aurora Holdings Continuing Members
    may exchange their Aurora Holdings Units (and corresponding
    shares of our Class B common stock) with Aurora Holdings
    for shares of our Class A common stock. Each such exchange
    will be on a
one-for-one
basis, subject to customary conversion rate adjustments for
    stock splits, stock dividends and reclassifications. In
    connection with any proposed exchange by an Aurora Holdings
    Continuing Member, we may, with the agreement of the exchanging
    Aurora Holdings Continuing Member, elect to acquire (or cause
    ARDX Sub to acquire) the applicable Aurora Holdings Units and
    corresponding Class B common stock by paying cash in an
    amount equal to the fair market value (determined by the volume
    weighted average price of the shares of Class A common
    stock on the date of the exchange) the member would have
    received in the proposed exchange.
Other
    Provisions.
None of the Class A common stock or Class B common
    stock has any pre-emptive or other subscription rights. There
    will be no redemption or sinking fund provisions applicable to
    the Class A common stock or Class B common stock. Upon
    the completion of this offering, all outstanding shares of
    Class A common stock and Class B common stock will be
    validly issued, fully paid and non-assessable. When no Aurora
    Holdings Units remain exchangeable into shares of our
    Class A common stock, our Class B common stock will be
    cancelled.
Preferred
    Stock
We are authorized to issue up
    to           shares
    of preferred stock. Our Board of Directors is authorized,
    subject to limitations prescribed by Delaware law and our
    certificate of incorporation, to determine the terms and
    conditions of the preferred stock, including whether the shares
    of preferred stock will be issued in one or more series, the
    number of shares to be included in each series and the powers,
    designations, preferences and rights of the shares. Our Board of
    Directors is also authorized to designate any qualifications,
    limitations or restrictions on the shares without any further
    vote or action by the stockholders. The issuance of preferred
    stock may have the effect of delaying, deferring or preventing a
    change in control of our company and may adversely affect the
    voting and other rights of the holders of our Class A
    common stock and Class B common stock, which could have an
    adverse impact on the market price of our Class A common
    stock. We have no current plan to issue any shares of preferred
    stock following the completion of this offering.
Corporate
    Opportunity
Our certificate of incorporation provides that the doctrine of
    "corporate opportunity" will not apply against certain
    of our Principal Equityholders, or any of our directors who are
    employees of such Principal Equityholders, in a manner that
    would prohibit them from investing in competing businesses or
    doing business with our clients. In addition, under the Second
    Amended and Restated Aurora Holdings LLC Agreement, we have
    agreed that the Aurora Holdings Continuing Members
and/or
one
    or more of their respective affiliates are permitted to engage
    in business activities or invest in or acquire businesses which
    may compete with our business or do business with any client of
    ours.
In the event that any Principal Equityholder acquires knowledge
    of a potential transaction or matter which may be a corporate
    opportunity for itself and us, we do not have any expectancy in
    that corporate opportunity, and the
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Principal Equityholder does not have any duty to communicate or
    offer that corporate opportunity to us and may pursue or acquire
    that corporate opportunity for itself or direct that opportunity
    to another person. In addition, if a director or officer of our
    company who is also a director, officer, member, manager or
    employee of any Principal Equityholder acquires knowledge of a
    potential transaction or matter which may be a corporate
    opportunity for us and a Principal Equityholder, we will not
    have any expectancy in that corporate opportunity unless that
    corporate opportunity is expressly offered to such person solely
    in his or her capacity as a director or officer of our company.
In recognition that we may engage in material business
    transactions with the Principal Equityholders
and/or
one
    or more of their respective affiliates from which we are
    expected to benefit, our amended and restated certificate of
    incorporation will provide that any of our directors or officers
    who are also directors, officers, stockholders, members,
    managers
and/or
employees of any Principal Equityholder will have fully
    satisfied and fulfilled his or her fiduciary duty to us and our
    stockholders with respect to such transaction, if:
•
the transaction was approved, after being made aware of the
    material facts of the relationship between us and the Principal
    Equityholder and the material terms and facts of the
    transaction, by (i) an affirmative vote of a majority of
    the members of our Board of Directors who do not have a material
    financial interest in the transaction ("Interested
    Persons") or (ii) an affirmative vote of a majority of
    the members of a committee of our Board of Directors consisting
    of members who are not Interested Person;
•
the transaction was fair to us at the time we entered into the
    transaction; or
•
the transaction was approved by an affirmative vote of the
    holders of a majority of shares of our common stock.
See "Risk Factors — We are controlled by our
    Principal Equityholders whose interest in our business may be
    different than yours, and certain statutory provisions afforded
    to stockholders are not applicable to us."
Anti-Takeover
    Effects of Provisions of our Certificate of Incorporation and
    Bylaws and Delaware Law
Some provisions of Delaware law, our certificate of
    incorporation and our bylaws contain provisions that could make
    the following transactions more difficult: an acquisition of us
    by means of a tender offer; an acquisition of us by means of a
    proxy contest or otherwise; or the removal of our incumbent
    officers and directors. It is possible that these provisions
    could make it more difficult to accomplish, or could deter,
    transactions that stockholders may otherwise consider to be in
    their best interest or in our best interests, including
    transactions that might result in a premium over the market
    price for our shares.
These provisions, summarized below, are intended to discourage
    coercive takeover practices and inadequate takeover bids. These
    provisions are also designed to encourage persons seeking to
    acquire control of us to first negotiate with our Board of
    Directors. We believe that the benefits of the increased
    protection of our potential ability to negotiate with the
    proponent of an unfriendly or unsolicited proposal to acquire or
    restructure us outweigh the disadvantages of discouraging these
    proposals because negotiation of these proposals could result in
    an improvement of their terms.
Undesignated Preferred Stock.
Our Board of
    Directors has the ability to authorize undesignated shares of
    our preferred stock, which allows our Board of Directors to
    issue shares of our preferred stock with voting or other rights
    or preferences that could impede the success of any unsolicited
    attempt to change control of our company. This ability may have
    the effect of deferring hostile takeovers or delaying changes in
    control or management of our company.
Stockholder Meetings.
Our bylaws provide that
    a special meeting of stockholders may be called only by our
    Chairman, Chief Executive Officer or President, or by a
    resolution adopted by a majority of our Board of Directors.
Requirements for Advance Notification of Stockholder
    Nominations and Proposals.
Our bylaws establish
    advance notice procedures with respect to stockholder proposals
    and the nomination of candidates for election as directors,
    other than nominations made by or at the direction of our Board
    of Directors or a committee of our Board of Directors.
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Elimination of Stockholder Action by Written
    Consent.
Our certificate of incorporation and
    bylaws eliminate the right of stockholders to act by written
    consent without a meeting.
Election and Removal of Directors.
Our Board
    of Directors is divided into three classes. The directors in
    each class will serve for a three-year term, with one class
    being elected each year by our stockholders. Once elected,
    directors may be removed only for cause and only by the
    affirmative vote of at least 66.67 percent of our
    outstanding common stock. For more information, see
    "Management and Board of Directors — Board
    Composition and Election of Directors." This system of
    electing and removing directors may discourage a third party
    from making a tender offer or otherwise attempting to obtain
    control of us because it generally makes it more difficult for
    stockholders to replace a majority of the directors.
Delaware Anti-Takeover Statute.
We have opted
    out of Section 203 of the Delaware General Corporation Law,
    which prohibits persons deemed "interested
    stockholders" from engaging in a "business
    combination" with a Delaware corporation for three years
    following the date these persons become interested stockholders.
    Generally, an "interested stockholder" is a person
    who, together with affiliates and associates, owns, or within
    three years prior to the determination of interested stockholder
    status did own, 15 percent or more of a corporation's
    voting stock. Generally, a "business combination"
    includes a merger, asset or stock sale, or other transaction
    resulting in a financial benefit to the interested stockholder.
Amendment of Certain Provisions in Our Organizational
    Documents.
The amendment of any of the above
    provisions, except for the provision relating to undesignated
    shares of our preferred stock, would require approval by holders
    of at least 66.67 percent of our then outstanding common
    stock.
The provisions of the Delaware General Corporation Law and our
    certificate of incorporation and bylaws could have the effect of
    discouraging others from attempting hostile takeovers and, as a
    consequence, they may also inhibit temporary fluctuations in the
    market price of our Class A common stock that often result
    from actual or rumored hostile takeover attempts. Such
    provisions may also have the effect of preventing changes in our
    management. It is possible that these provisions could make it
    more difficult to accomplish transactions that stockholders may
    otherwise deem to be in their best interests.
Limitations
    of Liability and Indemnification Matters
We have adopted provisions in our certificate of incorporation
    and bylaws that limit the liability of our directors for
    monetary damages for breach of their fiduciary duties, except
    for liability that cannot be eliminated under the Delaware
    General Corporation Law. Delaware law provides that directors of
    a corporation will not be personally liable for monetary damages
    for breach of their fiduciary duties as directors, except
    liability for any of the following: any breach of their duty of
    loyalty to the corporation or the stockholders; acts or
    omissions not in good faith or that involve intentional
    misconduct or a knowing violation of law; unlawful payments of
    dividends or unlawful stock repurchases or redemptions as
    provided in Section 174 of the Delaware General Corporation
    Law; or any transaction from which the director derived an
    improper personal benefit. This limitation of liability does not
    apply to liabilities arising under the federal securities laws
    and does not affect the availability of equitable remedies such
    as injunctive relief or rescission.
Our certificate of incorporation and bylaws also provide that we
    will indemnify our directors and executive officers, and that we
    may indemnify our other officers and employees and other agents,
    to the fullest extent permitted by law. We believe that
    indemnification under our bylaws covers at least negligence and
    gross negligence on the part of indemnified parties. Our bylaws
    also permit us to secure insurance on behalf of any officer,
    director, employee or other agent for any liability arising out
    of his or her actions in such capacity, regardless of whether
    our bylaws would permit indemnification. Upon completion of this
    offering, we expect that we will have entered into separate
    indemnification agreements with our directors and executive
    officers, in addition to the indemnification provided for in our
    charter documents. These agreements, among other things, provide
    for indemnification of our directors and executive officers for
    expenses, judgments, fines and settlement amounts incurred by
    any such person in any action or proceeding arising out of such
    person's services as a director or executive officer or at
    our request.
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Transfer
    Agent and Registrar
The transfer agent and registrar for our Class A common
    stock is     .
NASDAQ
    Global Market
We intend to apply to have our Class A common stock the
    NASDAQ Global Market under the symbol ''ARDX."
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SHARES ELIGIBLE
    FOR FUTURE SALE
Prior to this offering, there has been no market for our
    Class A common stock, and we cannot assure you that a
    liquid trading market for our Class A common stock will
    develop or be sustained after this offering. Future sales of
    substantial amounts of our Class A common stock, in the
    public market after this offering, or the anticipation of those
    sales, could adversely affect market prices prevailing from time
    to time and could impair our ability to raise capital through
    sales of our equity securities. These factors could also make it
    more difficult to raise funds through future offerings of
    Class A common stock.
Sales of
    Restricted Shares
Upon the completion of this offering, we will have outstanding
    an aggregate of
    approximately           shares
    of our Class A common stock, based on an assumed initial
    public offering price of $      per
    share, which is the midpoint of the price range set forth on the
    cover page of this prospectus. Of these
    shares,           shares
    of our Class A common stock to be sold in this offering,
    or           shares
    if the underwriters exercise their over-allotment option in
    full, will be freely tradable without restriction or further
    registration under the Securities Act, unless the shares are
    held by any of our affiliates, as that term is defined in
    Rule 144 of the Securities Act. All remaining shares were
    issued and sold by us in private transactions and are eligible
    for public sale only if registered under the Securities Act or
    sold in accordance with Rule 144 or Rule 701, each of
    which is discussed below.
In addition, upon the completion of this offering and the
    application of the net proceeds that we will receive from this
    offering, the Aurora Holdings Continuing Members will own an
    aggregate of      Aurora Holdings Units
    and      shares of our
    Class B common stock. Pursuant to the terms of the Second
    Amended and Restated Aurora Holdings LLC Agreement and our
    certificate of incorporation, the Aurora Holdings Continuing
    Members could from time to time exchange their Aurora Holdings
    Units (and corresponding shares of our Class B common
    stock) with Aurora Holdings for shares of our Class A
    common stock on a
one-for-one
basis. In connection with any proposed exchange by an Aurora
    Holdings Continuing Member, we may, in certain circumstances,
    elect to acquire (or cause ARDX Sub to acquire) the applicable
    Aurora Holdings Units and corresponding Class B common
    stock by paying either:
•
cash in an amount equal to the fair market value on the date of
    the exchange (determined by the volume weighted average price of
    the shares of Class A common stock on the date of the
    exchange) of the shares of Class A common stock the member
    would have received in the proposed exchange; or
•
the number of shares of Class A common stock the member
    would have received in the proposed exchange.
Shares of our Class A common stock issuable to the Aurora
    Holdings Continuing Members upon an exchange of Aurora Holdings
    Units would be considered "restricted securities," as
    that term is defined in Rule 144.
Except with respect to shares of our Class A common stock
    offered by our selling stockholders in this offering, and Aurora
    Holdings Units that we will purchase with the proceeds received
    by us in the offering, including shares of our Class A
    common stock to be sold by the selling stockholders and Aurora
    Holdings Units that we will purchase if the underwriters
    exercise their over-allotment option, all of our officers and
    directors and substantially all of our stockholders are subject
    to
lock-up
agreements under which they have agreed not to transfer or
    dispose of, directly or indirectly, any shares of our
    Class A common stock or any securities convertible into or
    exercisable or exchangeable for shares of our Class A
    common stock (including Aurora Holdings Units), for a period of
    180 days after the date of this prospectus, which is
    subject to extension in some circumstances, as discussed below.
As a result of the
lock-up
agreements described below and the provisions of Rule 144
    and Rule 701 under the Securities Act, the shares of our
    Class A common stock (excluding the shares to be sold in
    this offering) will be available for sale in the public market
    as follows, based on an assumed initial public offering price of
    $      per share, which is the midpoint
    of the price range set forth on the cover page of this
    prospectus:
•
shares
    will be eligible for sale on the date of this
    prospectus; and
•
shares
    will be eligible for sale as more particularly and except as
    described below, beginning after expiration of the
lock-up
period pursuant to Rule 144 or Rule 701.
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We expect the
    remaining           shares
    to become eligible for future sale in the public market pursuant
    to Rule 144 at varying times after 180 days from the
    date of this prospectus.
Rule 144
In general, under Rule 144, beginning 90 days after
    the date of this prospectus, a person who is not our affiliate
    and has not been our affiliate for the previous three months,
    and who has beneficially owned shares of our Class A common
    stock for at least six months, may sell all such shares. An
    affiliate or a person who has been our affiliate within the
    previous 90 days, and who has beneficially owned shares of
    our Class A common stock for at least six months, may sell
    within any three-month period a number of shares that does not
    exceed the greater of:
•
one percent of the number of shares of our Class A
    common stock then outstanding, which will equal
    approximately           shares
    immediately after this offering; and
•
the average weekly trading volume of our Class A common
    stock on the NASDAQ Global Market during the four calendar weeks
    preceding the filing of a notice on Form 144 with respect
    to the sale.
All sales under Rule 144 are subject to the availability of
    current public information about us. Sales under Rule 144
    by affiliates or persons who have been affiliates within the
    previous 90 days are also subject to manner of sale
    provisions and notice requirements. Upon completion of the
180-day
lock-up
period, subject to any extension of the
lock-up
period under circumstances described below,
    approximately           shares
    our outstanding restricted securities will be eligible for sale
    under Rule 144.
Rule 701
In general, under Rule 701 of the Securities Act, any of
    our employees, consultants or advisors who purchased shares from
    us in connection with a qualified compensatory stock plan or
    other written agreement are eligible to resell those shares
    90 days after the effective date of this offering in
    reliance on Rule 144, but without compliance with the
    holding period contained in Rule 144, and, in the case of
    non-affiliates, without the availability of current public
    information. Subject to the
lock-up
period,
    approximately           shares
    of our Class A common stock will be eligible for sale in
    accordance with Rule 701.
Lock-up
Agreements
We, the selling stockholders, all of our directors and officers
    and the holders of
    approximately      percent of our
    outstanding stock on a fully diluted basis immediately prior to
    this offering have agreed to enter into
lock-up
agreements as described below under "Underwriters."
Registration
    Agreement
We are party to a Registration Agreement with certain of our
    Principal Equityholders that grants registration rights to such
    Principal Equityholders. Under certain circumstances, these
    persons can require us to file registrations statements that
    permit them to re-sell their shares. See "Certain
    Relationships and Related Party Transactions —
    Registration Agreement."
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CERTAIN
    U.S. FEDERAL INCOME AND ESTATE TAX CONSEQUENCES TO
NON-U.S.
HOLDERS OF COMMON STOCK
General
The following is a general discussion of certain material
    U.S. federal income and estate tax consequences of the
    ownership and disposition of our Class A common stock that
    may be relevant to you if you are a
non-U.S. holder
(as defined below) that acquires our Class A common stock
    pursuant to this offering. This discussion is limited to
non-U.S. holders
who hold our Class A common stock as a capital asset within
    the meaning of Section 1221 of the Internal Revenue Code of
    1986, as amended, which we refer to as the Internal Revenue Code.
This discussion does not address all aspects of
    U.S. federal income and estate taxation that may be
    relevant to you in light of your particular circumstances, and
    does not address any foreign, state or local tax consequences.
    Furthermore, this discussion does not consider specific facts
    and circumstances that may be relevant to a particular
non-U.S. holder's
tax position, specific rules that may apply to certain
non-U.S. holders,
including banks, insurance companies, or other financial
    institutions, partnerships or other pass-through entities,
    holders of 10 percent or more of our common stock,
    U.S. expatriates, dealers and traders in securities, or
    special tax rules that may apply to a
non-U.S. holder
that holds our Class A common stock as part of a straddle,
    hedge or conversion transaction. This discussion is based on
    provisions of the Internal Revenue Code, Treasury regulations
    and administrative and judicial interpretations as of the date
    of this prospectus. All of these are subject to change, possibly
    with retroactive effect, or different interpretations. If you
    are considering buying our Class A common stock, you should
    consult your own tax advisor about current and possible future
    tax consequences of owning and disposing of our Class A
    common stock in your particular situation.
For purposes of this discussion, a
"non-U.S. holder"
is a beneficial owner of our Class A common stock if that
    person is any of the following for U.S. federal income tax
    purposes:
•
a nonresident alien individual within the meaning of
    Section 7701(b) of the Internal Revenue Code;
•
a foreign corporation within the meaning of Section 7701(a)
    of the Internal Revenue Code or other foreign entity taxable as
    a foreign corporation under U.S. federal income tax
    law; or
•
a foreign estate or trust within the meaning of
    Section 7701(a) of the Internal Revenue Code.
If an entity treated as a partnership for U.S. federal
    income tax purposes holds shares of our Class A common
    stock, the tax treatment of a partner generally will depend on
    the status of the partner and upon the activities of the
    partnership. If you are a partner of a partnership holding
    shares of our Class A common stock, we suggest you consult
    your own tax advisor.
Distributions
If distributions are paid on the shares of our Class A
    common stock, these distributions generally will constitute
    dividends for U.S. federal income tax purposes to the
    extent paid from our current or accumulated earnings and
    profits, as determined under U.S. federal income tax
    principles, and then will constitute a return of capital that is
    applied against your tax basis in our Class A common stock
    to the extent these distributions exceed those earnings and
    profits. Distributions in excess of our current and accumulated
    earnings and profits and your tax basis in our Class A
    common stock (determined on a share by share basis) will be
    treated as a gain from the sale or exchange of our Class A
    common stock, the treatment of which is discussed below.
    Dividends paid to a
non-U.S. holder
that are not effectively connected with the conduct of a
    U.S. trade or business of the
non-U.S. holder
will be subject to U.S. federal withholding tax at a
    30 percent rate or, if an income tax treaty applies and
    certain information reporting requirements are satisfied, a
    lower rate specified by the treaty.
Non-U.S. holders
should consult their tax advisors regarding their entitlement to
    benefits under a relevant tax treaty.
The U.S. federal withholding tax generally is imposed on
    the gross amount of a distribution, regardless of whether we
    have sufficient earnings and profits to cause the distribution
    to be a dividend for U.S. federal income tax purposes.
    However, we may elect to withhold on less than the gross amount
    of the distribution if we determine that the distribution is not
    paid out of our current or accumulated earnings and profits,
    based on our reasonable estimates.
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A
non-U.S. holder
eligible for a reduced rate of U.S. federal withholding tax
    under a tax treaty may establish entitlement to the benefit of a
    reduced rate of withholding under such tax treaty by timely
    filing a properly completed IRS
Form W-8BEN
(or a successor form) with us prior to the payment of a
    dividend. A
non-U.S. holder
eligible for a reduced rate of U.S. federal withholding tax
    under a tax treaty may obtain a refund of any excess amounts
    withheld by filing an appropriate claim for a refund together
    with the required information with the IRS.
Dividends that are effectively connected with a
non-U.S. holder's
conduct of a trade or business within the United States and, if
    an applicable tax treaty so provides, are also attributable to a
non-U.S. holder's
U.S. permanent establishment, are exempt from
    U.S. federal withholding tax if the
non-U.S. holder
furnishes to us or our paying agent a properly completed IRS
Form W-8ECI
(or successor form) containing the
non-U.S. holder's
taxpayer identification number. However, dividends exempt from
    U.S. federal withholding tax because they are
    "effectively connected" or attributable to a
    U.S. permanent establishment under an applicable tax treaty
    are subject to U.S. federal income tax on a net income
    basis at the regular graduated U.S. federal income tax
    rates. Any such effectively connected dividends received by a
    foreign corporation may, under certain circumstances, be subject
    to an additional "branch profits tax" at a
    30 percent rate or a lower rate if specified by an
    applicable tax treaty.
Gain on
    Disposition of our Class A Common Stock
A
non-U.S. holder
generally will not be subject to U.S. federal income tax or
    withholding tax with respect to gain recognized on a sale or
    other disposition of our Class A common stock unless one of
    the following applies:
•
The gain is effectively connected with a
non-U.S. holder's
conduct of a trade or business within the United States and, if
    an applicable tax treaty so provides, the gain is also
    attributable to a
non-U.S. holder's
U.S. permanent establishment. In such a case, unless an
    applicable tax treaty provides otherwise, the
non-U.S. holder
generally will be taxed on its net gain derived from the sale at
    regular graduated U.S. federal income tax rates, and in the
    case of a foreign corporation, may also be subject to an
    additional branch profits tax as described in "—
    Distributions" above.
•
A
non-U.S. holder
who is an individual holds our Class A common stock as a
    capital asset and is present in the United States for 183 or
    more days in the taxable year of the sale or other disposition,
    and certain other conditions are met. In such a case, the
non-U.S. holder
will be subject to a flat 30 percent tax on the gain
    derived from the sale, which may be offset by certain
    U.S. capital losses realized in the taxable year of the
    sale or other disposition.
•
At any time during the shorter of the
5-year
period ending on the date of a sale or other disposition of our
    stock or the period that the
non-U.S. holder
held our Class A common stock, our company is classified as
    a United States Real Property Holding Corporation and, if our
    Class A common stock is treated as "regularly traded
    on an established securities market," only if the
non-U.S. holder
owns or is treated as owning more than 5 percent of our
    Class A common stock at any time within such period. A
    United States Real Property Holding Corporation is generally
    defined as a corporation, the fair market value of whose real
    property interests equals or exceeds 50 percent of the fair
    market value of its U.S. real property interests, its
    interests in real property located outside the United States and
    any other of its assets used or held for use in a trade or
    business. Our company believes it is not and does not anticipate
    becoming a United States Real Property Holding Corporation for
    U.S. federal income tax purposes.
Information
    Reporting and Backup Withholding Tax
We must report annually to the IRS and to each
non-U.S. holder
the amount of dividends paid to that holder and the tax withheld
    with respect to those dividends. These information reporting
    requirements apply even if withholding was not required.
    Pursuant to an applicable tax treaty or other agreement, copies
    of the information returns reporting those dividends and
    withholding may also be made available to the tax authorities in
    the country in which the
non-U.S. holder
resides.
Under certain circumstances, Treasury regulations require
    information reporting and backup withholding (currently at a
    rate of 28 percent), on certain payments on common stock. A
non-U.S. holder
of our Class A common stock that fails to certify its
non-U.S. holder
status in accordance with applicable Treasury regulations or
    otherwise
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establish an exemption may be subject to information reporting
    and this backup withholding tax on payments of dividends.
Payment of the proceeds of a sale of our Class A common
    stock by or through a U.S. office of a broker is subject to
    both information reporting and backup withholding unless the
non-U.S. holder
certifies to the payor in the manner required as to its
non-U.S. status
under penalties of perjury or otherwise establishes an
    exemption. As a general matter, information reporting and backup
    withholding will not apply to a payment of the proceeds of a
    sale of our Class A common stock by or through a foreign
    office of a foreign broker effected outside the United States.
    However, information reporting requirements, but not backup
    withholding, will apply to payment of the proceeds of a sale of
    our Class A common stock by or through a foreign office of
    a broker effected outside the United States if that broker is:
•
a U.S. person,
•
a foreign person that derives 50 percent or more of its
    gross income for specified periods from the conduct of a trade
    or business in the United States,
•
a "controlled foreign corporation" as defined in the
    Internal Revenue Code, or
•
a foreign partnership that at any time during its tax year
    either (1) has one or more U.S. persons that, in the
    aggregate, own more than 50 percent of the income or
    capital interests in the partnership or (2) is engaged in
    the conduct of a trade or business in the United States.
Information reporting requirements will not apply to the payment
    of the proceeds of a sale of our Class A common stock if
    the broker receives a statement from the owner, signed under
    penalty of perjury, certifying such owner's
non-U.S. status
or an exemption is otherwise established (generally, such
    certification is made on IRS Form W-8BEN).
Non-U.S. holders
should consult their own tax advisors regarding the application
    of the information reporting and backup withholding rules to
    them.
Amounts withheld under the backup withholding rules do not
    constitute a separate U.S. federal income tax. Rather, any
    amounts withheld under the backup withholding rules will be
    refunded or allowed as a credit against the holder's
    U.S. federal income tax liability, if any, provided the
    required information and appropriate claim for refund is timely
    filed with the IRS.
Recently-Enacted Federal Tax Legislation
On March 18, 2010, President Obama signed the "Hiring
    Incentives to Restore Employment (HIRE) Act," or the HIRE
    Act. The HIRE Act includes a revised version of a bill
    introduced in late October 2009 in both the House and the
    Senate, the "Foreign Account Tax Compliance Act of
    2009" or the FATCA Bill.
Under the HIRE Act, foreign financial institutions (which
    include hedge funds, private equity funds, mutual funds,
    securitization vehicles and any other investment vehicles
    regardless of their size) must comply with new information
    reporting rules with respect to their U.S. account holders and
    investors (which would include certain equity and debt holders
    of such institutions, as well as certain account holders that
    foreign entities with U.S. owners) or confront a new withholding
    tax on U.S.-source payments made to them. A foreign financial
    institution or other foreign entity that does not comply with
    the HIRE Act's reporting requirements generally will be
    subject to a new 30 percent withholding tax with respect to any
    "withholdable payments" made after December 31,
    2012. For this purpose, withholdable payments are U.S.-source
    payments otherwise subject to nonresident withholding tax
    (including dividends paid on our Class A common stock) and
    also include the entire gross proceeds from the sale of any
    equity or debt instruments of U.S. issuers (including the gross
    proceeds from the disposition of our Class A common stock).
    The new HIRE Act's withholding tax will apply regardless of
    whether the payment would otherwise be exempt from U.S.
    nonresident withholding tax (e.g., under the portfolio interest
    exemption or as capital gain). The U.S. Treasury is authorized
    to provide rules for implementing the HIRE Act's
    withholding regime with the existing nonresident withholding tax
    rules. The HIRE Act also imposes new information reporting
    requirements and increases related penalties for U.S. persons.
Absent any applicable exception, this legislation also generally
    will impose a withholding tax of 30 percent on dividend income
    from our Class A common stock paid to a foreign entity that
    is not a foreign financial institution
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unless such entity provides the withholding agent with a
    certification identifying the substantial U.S. owners of
    the entity, which generally includes any United States persons
    who directly or indirectly own more than 10 percent of the
    entity.
Withholding under the HIRE Act will not apply to withholdable
    payments made directly to foreign governments, international
    organizations, foreign central banks of issue and individuals,
    and the U.S. Treasury is authorized to provide additional
    exceptions.
As noted above, the new HIRE Act's withholding and
    information reporting requirements generally will apply to
    withholdable payments made after December 31, 2012. You are
    urged to consult with your tax advisors regarding these new
    provisions.
U.S.
    Federal Estate Tax
Common stock owned or treated as owned by an individual who is
    not a citizen or resident, as defined for U.S. federal
    estate tax purposes, of the United States at the time of death
    will be included in that individual's gross estate for
    U.S. federal estate tax purposes and may be subject to
    U.S. federal estate tax, unless an applicable estate tax
    treaty provides otherwise.
The foregoing discussion is a summary of certain material
    U.S. federal income and estate tax consequences of the
    ownership and disposition of our Class A common stock by
non-U.S. holders.
You are urged to consult your own tax advisor with respect to
    the particular tax consequences to you of ownership and
    disposition of our Class A common stock, including the
    effect of any state, local,
non-U.S. or
other tax laws.
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UNDERWRITERS
Under the terms and subject to the conditions contained in an
    underwriting agreement dated the date of this prospectus, the
    underwriters named below, for whom Morgan Stanley &
    Co. Incorporated, UBS Securities LLC, and Barclays Capital Inc.
    are serving as the representatives and joint book-running
    managers, have severally agreed to purchase, and the selling
    stockholders have agreed to sell to them, severally, the number
    of shares indicated below:
Number of
Underwriter
Shares
Morgan Stanley & Co. Incorporated
UBS Securities LLC
Barclays Capital Inc.
RBC Capital Markets Corporation
BMO Capital Markets Corp.
Lazard Capital Markets LLC
Total
The underwriters and the representatives are collectively
    referred to as the "underwriters" and the
    "representatives," respectively. The underwriters are
    offering the shares of Class A common stock subject to
    their acceptance of the shares from us and the selling
    stockholders and subject to prior sale. The underwriting
    agreement provides that the obligations of the several
    underwriters to pay for and accept delivery of the shares of
    Class A common stock offered by this prospectus are subject
    to the approval of certain legal matters by their counsel and to
    certain other conditions. The underwriters are obligated to take
    and pay for all of the shares of Class A common stock
    offered by this prospectus if any such shares are taken.
    However, the underwriters are not required to take or pay for
    the shares covered by the underwriters' over-allotment
    option described below. If an underwriter defaults, the
    underwriting agreement provides that the purchase commitments of
    the non-defaulting underwriters may be increased.
The underwriters initially propose to offer part of the shares
    of Class A common stock directly to the public at the
    initial public offering price listed on the cover page of this
    prospectus and part to certain dealers at a price that
    represents a concession not in excess of
    $      a share under the initial public
    offering price. Any underwriter may allow a concession not in
    excess of $      a share to other
    underwriters or to certain dealers. After the initial offering
    of the shares of Class A common stock, the offering price
    and other selling terms may from time to time be varied by the
    representatives.
We and the selling stockholders have granted to the underwriters
    an option, exercisable for 30 days from the date of this
    prospectus, to purchase up
    to          
    additional shares of our Class A common stock at the
    initial public offering price listed on the cover page of this
    prospectus, less underwriting discounts and commissions. The
    underwriters may exercise this option solely for the purpose of
    covering over-allotments, if any, made in connection with the
    offering of the shares of Class A common stock offered by
    this prospectus. To the extent the option is exercised, each
    underwriter will become obligated, subject to certain
    conditions, to purchase about the same percentage of the
    additional shares of Class A common stock as the number
    listed next to the underwriter's name in the preceding
    table bears to the total number of shares of Class A common
    stock listed next to the names of all underwriters in the
    preceding table. If the underwriters' option is exercised
    in full, the total price to the public would be
    $     , the total underwriters'
    discounts and commissions paid by us would be
    $     , and the total proceeds to us
    would be $     .
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The following table shows the per share and total underwriting
    discounts and commissions that we and the selling stockholders
    are to pay to the underwriters in connection with this offering.
    These amounts are shown assuming both no exercise and full
    exercise of the underwriters' option to purchase additional
    shares of our Class A common stock.
Per Share
Total
No
Full
No
Full
Exercise
Exercise
Exercise
Exercise
Underwriting discounts and commissions paid by us
$
$
$
$
Underwriting discounts and commissions paid by the selling
    stockholders
$
$
$
$
Total
$
$
$
$
The expenses of this offering payable by us, not including
    underwriting discounts and commissions, are estimated to be
    approximately $     , which includes
    legal, accounting and printing costs and various other fees
    associated with the registration and listing of our Class A
    common stock, giving effect to the reimbursement of certain
    expenses by the selling stockholders and the underwriters. The
    underwriters and the selling stockholders have agreed to
    reimburse us for a portion of our expenses.
The underwriters have informed us and the selling stockholders
    that they do not intend sales to discretionary accounts to
    exceed five percent of the total number of shares of
    Class A common stock offered by them.
We intend to apply to have our Class A common stock listed
    on the NASDAQ Global Market under the symbol "ARDX."
We, the selling stockholders, all of our directors and officers
    and the holders of
    approximately           percent
    of our outstanding Class A common stock and Aurora Holdings
    Units on a fully diluted basis immediately prior to this
    offering have agreed that, subject to certain exceptions,
    without the prior written consent of Morgan Stanley &
    Co. Incorporated, UBS Securities LLC, and Barclays Capital Inc.
    on behalf of the underwriters, we and they will not, during the
    period ending 180 days after the date of this prospectus:
•
offer, pledge, sell, contract to sell, sell any option or
    contract to purchase, purchase any option or contract to sell,
    grant any option, right or warrant to purchase, lend, or
    otherwise transfer or dispose of, directly or indirectly, any
    shares of Class A common stock or any securities
    convertible into or exercisable or exchangeable for Class A
    common stock or any Aurora Holdings Units;
•
enter into any swap or other arrangement that transfers to
    another, in whole or in part, any of the economic consequences
    of ownership of the Class A common stock or any securities
    convertible into or exercisable or exchangeable for the
    Class A common stock or any Aurora Holdings Units; or
•
file any registration statement with the SEC relating to the
    offering of any shares of Class A common stock or any
    securities convertible into or exercisable or exchangeable for
    Class A common stock or any Aurora Holdings Units;
whether any such transaction described in the first two bullet
    points above is to be settled by delivery of Class A common
    stock, Aurora Holdings Units or such other securities, in cash
    or otherwise. In addition, we and each such person agrees that,
    without the prior written consent of Morgan Stanley &
    Co. Incorporated, UBS Securities LLC, and Barclays Capital Inc.
    on behalf of the underwriters, we and they will not, during the
    period ending 180 days after the date of this prospectus,
    make any demand for, or exercise any right with respect to, the
    registration of any shares of Class A common stock or any
    security convertible into or exercisable or exchangeable for
    Class A common stock.
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Subject to certain exceptions, the
lock-up
restrictions described in the immediately preceding paragraph do
    not apply to us or the holders referenced above, as follows:
•
the sale of shares Class A common stock to the underwriters;
•
the issuance by us of shares of Class A common stock upon
    the exercise of an option or warrant, or the conversion of a
    security outstanding on the date of this prospectus, of which
    the underwriters have been advised in writing;
•
transactions by such holders relating to shares of Class A
    common stock, Aurora Holdings Units or other securities acquired
    in open market transactions after the completion of the offering
    of the shares;
•
the transfer of shares of Class A common stock or any
    security convertible into or exercisable or exchangeable for
    Class A common stock as a bona fide gift;
•
distributions by such holders of shares of Class A common
    stock or any security convertible into Class A common stock
    to limited partners or stockholders of the transferor and
    transfers of shares of Class A common stock to an affiliate
    (as defined under the Securities Act);
•
the transfer of shares of Class A common stock that occur
    pursuant to a will, other testamentary document or applicable
    laws of descent;
•
transfers of shares of Class A common stock pursuant to a
    qualified domestic order or in connection with a divorce
    settlement;
•
the establishment of a trading plan pursuant to
Rule 10b5-1
under the Exchange Act for the transfer of shares of our
    Class A common stock, provided that such plan does not
    provide for the transfer of Class A common stock during
    this
180-day
restricted period;
•
any issuance or transfer in connection with the Reorganization
    Transactions;
•
any sale of Aurora Holdings Units (along with a corresponding
    number of shares of Class B common stock) to us for cash
    using the net proceeds we will receive in this offering; or
•
any exchange of Aurora Holdings Units and a corresponding number
    of shares of Class B common stock for shares of
    Class A common stock, or exercise by us of our related
    purchase right;
provided that, in the case of each of the fourth, fifth, sixth,
    seventh and ninth types of transactions described above, each
    recipient or transferee agrees to be subject to the restrictions
    described in the preceding paragraph and that no filing under
    Section 16(a) of the Exchange Act, reporting a change in
    beneficial ownership of shares of Class A common stock, is
    required or voluntarily made in connection with these
    transactions during this
180-day
restricted period. In addition, in the case of each of the third
    and eleventh types of transactions described above, no filing
    under Section 16(a) of the Exchange Act is required or
    voluntarily made in connection with these transactions during
    this 180-restricted period.
Notwithstanding the foregoing, in the event that any
    Class A common stock or Aurora Holdings Units held by
    either the Summit Partners Equityholders or the KRG
    Equityholders are released from such
lock-up
restrictions by the representatives, a pro rata portion of
    shares of the Class A common stock or Aurora Holdings Units
    held by the other of the Summit Partners Equityholders or the
    KRG Equityholders will be immediately and fully released from
    any remaining
lock-up
restrictions.
The
180-day
restricted period described in the preceding paragraphs will be
    extended if:
•
during the last 17 days of the
180-day
restricted period, we issue an earnings release or material news
    or a material event relating to our company occurs; or
•
prior to the expiration of the
180-day
restricted period, we announce that we will release earnings
    results during the
16-day
period beginning on the last day of the
180-day
period;
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in which case the restrictions described in the preceding
    paragraphs will continue to apply until the expiration of the
18-day
period beginning on the issuance of the earnings release or the
    occurrence of the material news or material event.
In order to facilitate this offering of the Class A common
    stock, the underwriters may engage in transactions that
    stabilize, maintain or otherwise affect the price of the
    Class A common stock. Specifically, the underwriters may
    sell more shares than they are obligated to purchase under the
    underwriting agreement, creating a short position. A short sale
    is covered if the short position is no greater than the number
    of shares available for purchase by the underwriters under the
    over-allotment option. The underwriters can close out a covered
    short sale by exercising the over-allotment option or purchasing
    shares in the open market. In determining the source of shares
    to close out a covered short sale, the underwriters will
    consider, among other things, the open market price of shares
    compared to the price available under the over-allotment option.
    The underwriters may also sell shares in excess of the
    over-allotment option, creating a naked short position. The
    underwriters must close out any naked short position by
    purchasing shares in the open market. A naked short position is
    more likely to be created if the underwriters are concerned that
    there may be downward pressure on the price of the Class A
    common stock in the open market after pricing that could
    adversely affect investors who purchase in this offering. In
    addition, to stabilize the price of the Class A common
    stock, the underwriters may bid for, and purchase, shares of
    Class A common stock in the open market. Finally, the
    underwriting syndicate may reclaim selling concessions allowed
    to an underwriter or a dealer for distributing the Class A
    common stock in this offering if the syndicate repurchases
    previously distributed Class A common stock to cover
    syndicate short positions or to stabilize the price of the
    Class A common stock. These activities may raise or
    maintain the market price of the Class A common stock above
    independent market levels or prevent or retard a decline in the
    market price of the Class A common stock. The underwriters
    are not required to engage in these activities and may end any
    of these activities at any time.
We, the selling stockholders and the underwriters have agreed to
    indemnify each other against certain liabilities, including
    liabilities under the Securities Act, or to contribute to
    payments the underwriters may be required to make in connection
    with such liabilities.
A prospectus in electronic format may be made available on the
    websites maintained by one or more underwriters. The
    underwriters may agree to allocate a number of shares to
    underwriters for sale to their online brokerage account holders.
    Internet distributions will be allocated by Morgan
    Stanley & Co. Incorporated to underwriters that may
    make Internet distributions on the same basis as other
    allocations.
European
    Economic Area
In relation to each Member State of the European Economic Area
    which has implemented the Prospectus Directive, from and
    including the date on which the Prospectus Directive is
    implemented in that Member State, each representative and
    underwriter has not made and will not make an offer of our
    Class A common stock to the public in that Member State,
    except that it may, with effect from and including such date,
    make an offer of our Class A common stock to the public in
    that Member State:
•
at any time to legal entities which are authorized or regulated
    to operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities;
•
at any time to any legal entity which has two or more of
    (1) an average of at least 250 employees during the
    last financial year; (2) a total balance sheet of more than
    €43,000,000 and (3) an annual net turnover of more
    than €50,000,000, as shown in its last annual or
    consolidated accounts; or
•
at any time in any other circumstances which do not require the
    publication by us of a prospectus pursuant to Article 3 of
    the Prospectus Directive.
For the purposes of the above, the expression an "offer of
    our Class A common stock to the public" in relation to
    any shares of Class A common stock in any Member State
    means the communication in any form and by any means of
    sufficient information on the terms of the offer and the
    Class A common stock to be offered so as to enable an
    investor to decide to purchase or subscribe shares of the
    Class A common stock, as the same may be varied in that
    Member State by any measure implementing the Prospectus
    Directive in that Member State, and the expression
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Prospectus Directive means Directive 2003/71/EC and includes any
    relevant implementing measure in that Member State.
United
    Kingdom
Each representative and underwriter has only communicated or
    caused to be communicated and will only communicate or cause to
    be communicated an invitation or inducement to engage in
    investment activity (within the meaning of Section 21 of
    the Financial Services and Markets Act of 2000) in
    connection with the issue or sale of shares of the Class A
    common stock in circumstances in which Section 21(1) of
    such Act does not apply to us, and it has complied and will
    comply with all applicable provisions of such Act with respect
    to anything done by it in relation to any shares of the
    Class A common stock in, from or otherwise involving the
    United Kingdom.
Certain
    Relationships
From time to time, certain of the underwriters
and/or
their
    respective affiliates have directly and indirectly engaged in
    various financial advisory, investment banking and commercial
    banking services for us and our affiliates, for which they
    received customary compensation, fees and expense reimbursement.
    In particular, affiliates of Morgan Stanley & Co.
    Incorporated, UBS Securities LLC, Barclays Capital Inc.,
    RBC Capital Markets Corporation and BMO Capital
    Markets Corp., underwriters in this offering, have provided
    commitments to us to refinance our existing senior secured
    credit facility. Our senior secured credit facility was
    negotiated on an arms' length basis and contains customary
    terms pursuant to which the lenders receive customary fees. In
    addition, from time to time, certain of the underwriters and
    their affiliates may effect transactions for their own account
    or the account of customers, and hold on behalf of themselves or
    their customers, long or short positions in our debt or equity
    securities or loans, and may do so in the future.
Lazard Frères & Co. referred this transaction to
    Lazard Capital Markets LLC and will receive a referral fee from
    Lazard Capital Markets LLC in connection with this referral.
Pricing
    of the Offering
Prior to this offering, there has been no public market for our
    Class A common stock. The initial public offering price
    will be determined by negotiations among us, the selling
    stockholders and the representatives of the underwriters. Among
    the factors to be considered in determining the initial public
    offering price will be our future prospects and those of our
    industry in general, our sales, earnings and certain other
    financial and operating information in recent periods, and the
    price to earnings ratios, price to sales ratios and market
    prices of securities and certain financial and operating
    information of companies engaged in activities similar to ours.
    The estimated initial public offering price range set forth on
    the cover page of this preliminary prospectus is subject to
    change as a result of market conditions and other factors.
LEGAL
    MATTERS
Alston & Bird LLP will pass upon the legality of the
    shares of our Class A common stock to be issued in this
    offering. Shearman & Sterling LLP will pass upon legal
    matters in connection with this offering on behalf of the
    underwriters.
EXPERTS
The consolidated financial statements of Aurora Holdings, at
    December 31, 2008 and 2009 and for the three years ended
    December 31, 2009, appearing in this prospectus and
    registration statement have been audited by
    McGladrey & Pullen, LLP, independent registered public
    accounting firm, as set forth in their report thereon appearing
    elsewhere herein, and are included in reliance on their report
    given on their authority as experts in accounting and auditing.
The consolidated financial statements of South Texas
    Dermatopathology Laboratory, P.A. and Subsidiaries at
    November 20, 2009 and for the period from January 1,
    2009 through November 20, 2009 appearing in this
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prospectus and registration statement have been audited by
    McGladrey & Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
The financial statements of Twin Cities Dermatopathology, P.A.
    at March 7, 2008 and December 31, 2007 and for the
    period from January 1, 2008 through March 7, 2008 and
    for the year ended December 31, 2007 appearing in this
    prospectus and registration statement have been audited by
    McGladrey & Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
The financial statements of Laboratory Medicine Consultants,
    Ltd. at December 10, 2007 and for the period from
    January 1, 2007 through December 10, 2007 appearing in
    this prospectus and registration statement have been audited by
    McGladrey & Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
The consolidated financial statements of Greensboro Pathology
    Associates, P.A. and Subsidiary at October 4, 2007 and for
    the period from January 1, 2007 through October 4,
    2007 appearing in this prospectus and registration statement
    have been audited by McGladrey & Pullen, LLP,
    independent accountants, as set forth in their report thereon
    appearing elsewhere herein, and are included in reliance on
    their report given on their authority as experts in accounting
    and auditing.
The consolidated financial statements of Mark &
    Kambour, M.D., P.A. and Subsidiary at October 11, 2007
    and for the period from January 1, 2007 through
    October 11, 2007 appearing in this prospectus and
    registration statement have been audited by
    McGladrey & Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
The financial statements of Cunningham Pathology, LLC at
    April 30, 2007 and for the period from January 1, 2007
    through April 30, 2007 appearing in this prospectus and
    registration statement have been audited by
    McGladrey & Pullen, LLP, independent accountants, as
    set forth in their report thereon appearing elsewhere herein,
    and are included in reliance on their report given on their
    authority as experts in accounting and auditing.
WHERE YOU
    CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on
Form S-1
under the Securities Act with respect to our Class A common
    stock offered hereby. This prospectus, which forms part of the
    registration statement, does not contain all of the information
    set forth in the registration statement and the exhibits and
    schedules to the registration statement. Some items are omitted
    in accordance with the rules and regulations of the SEC. For
    further information about us and our Class A common stock,
    we refer you to the registration statement and the exhibits and
    schedules to the registration statement filed as part of the
    registration statement. Statements contained in this prospectus
    as to the contents of any contract or other document filed as an
    exhibit are qualified in all respects by reference to the actual
    text of the exhibit. You may read and copy the registration
    statement, including the exhibits and schedules to the
    registration statement, at the SEC's Public Reference Room
    at 100 F Street, N.E., Washington, D.C. 20549.
    You can obtain information on the operation of the Public
    Reference Room by calling the SEC at
1-800-SEC-0330.
In addition, the SEC maintains an Internet site at
www.sec.gov
that contains reports, proxy and information
    statements and other information regarding issuers that file
    electronically with the SEC and from which you can
    electronically access the registration statement, including the
    exhibits and schedules to the registration statement.
As a result of the offering, we will become subject to the full
    informational requirements of the Securities Exchange Act of
    1934, as amended. We will fulfill our obligations with respect
    to such requirements by filing periodic reports and other
    information with the SEC. We intend to furnish our stockholders
    with annual reports containing financial statements certified by
    an independent registered public accounting firm. We also
    maintain an Internet site at
www.auroradx.com.
Our
    internet site is not a part of this prospectus.
142
Table of Contents
INDEX TO
    FINANCIAL STATEMENTS
Aurora
    Diagnostics Holdings, LLC
Consolidated Financial Statements
Page
Report of Independent Registered Public
    Accounting Firm
F-3
Consolidated Balance Sheets as of
    December 31, 2008 and 2009
F-4
Consolidated Statements of Operations for the
    years ended December 31, 2007, 2008, and 2009
F-5
Consolidated Statement of Members' Equity
    and Comprehensive Income for the years ended December 31,
    2007, 2008, and 2009
F-6
Consolidated Statements of Cash Flows for the
    years ended December 31, 2007, 2008, and 2009
F-7
Notes to Consolidated Financial Statements
F-8
South
    Texas Dermatopathology Laboratory, P.A. and Subsidiaries
Consolidated Financial Statements
Independent Auditor's Report
F-28
Consolidated Balance Sheet as of
    November 20, 2009
F-29
Consolidated Statement of Operations for the
    period from January 1, 2009 through November 20,
    2009
F-30
Consolidated Statement of Stockholders'
    Equity for the period from January 1, 2009 through
    November 20, 2009
F-31
Consolidated Statement of Cash Flows for the
    period from January 1, 2009 through November 20,
    2009
F-32
Notes to Consolidated Financial Statements
F-33
Twin
    Cities Dermatopathology, P.A.
Financial Statements
Independent Auditor's Report
F-39
Balance Sheets as of March 7, 2008 and
    December 31, 2007
F-40
Statements of Operations for the period from
    January 1, 2008 through March 7, 2008 and for the year
    ended December 31, 2007
F-41
Statement of Stockholders' Equity for the
    period from January 1, 2008 through March 7, 2008 and
    for the year ended December 31, 2007
F-42
Statement of Cash Flows for the period from
    January 1, 2008 through March 7, 2008 and for the year
    ended December 31, 2007
F-43
Notes to Financial Statements
F-44
F-1
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Financial Statements
Page
Independent Auditor's Report
F-48
Balance Sheet as of December 10, 2007
F-49
Statement of Operations for the period from
    January 1, 2007 through December 10, 2007
F-50
Statement of Stockholders' Deficit for the
    period from January 1, 2007 through December 10,
    2007
F-51
Statement of Cash Flows for the period from
    January 1, 2007 through December 10, 2007
F-52
Notes to Financial Statements
F-53
Greensboro
    Pathology Associates, P.A. and Subsidiary
Consolidated Financial Statements
Independent Auditor's Report
F-58
Consolidated Balance Sheet as of October 4,
    2007
F-59
Consolidated Statement of Operations for the
    period from January 1, 2007 through October 4, 2007
F-60
Consolidated Statement of Stockholders'
    Equity for the period from January 1, 2007 through
    October 4, 2007
F-61
Consolidated Statement of Cash Flows for the
    period from January 1, 2007 through October 4, 2007
F-62
Notes to Consolidated Financial Statements
F-63
Mark &
    Kambour, M.D., P.A. and Subsidiary
Consolidated Financial Statements
Independent Auditor's Report
F-68
Consolidated Balance Sheet as of October 11,
    2007
F-69
Consolidated Statement of Operations for the
    period from January 1, 2007 through October 11,
    2007
F-70
Consolidated Statement of Stockholders'
    Equity for the period from January 1, 2007 through
    October 11, 2007
F-71
Consolidated Statement of Cash Flows for the
    period from January 1, 2007 through October 11,
    2007
F-72
Notes to Consolidated Financial Statements
F-73
Cunningham
    Pathology, LLC
Financial Statements
Independent Auditor's Report
F-77
Balance Sheet as of April 30, 2007
F-78
Statement of Operations and Members' Equity
    for the period from January 1, 2007 through April 30,
    2007
F-79
Statement of Cash Flows for the period from
    January 1, 2007 through April 30, 2007
F-80
Notes to Financial Statements
F-81
Schedule II — Valuation and
    Qualifying Accounts
F-85
F-2
Table of Contents
Report of
    Independent Registered Public Accounting Firm
To the Members
Aurora Diagnostic Holdings, LLC
We have audited the accompanying consolidated balance sheets of
    Aurora Diagnostic Holdings, LLC as of December 31, 2009 and
    2008, and the related consolidated statements of operations,
    members' equity and comprehensive income, and cash flows
    for each of the three years in the period ended
    December 31, 2009. Our audits also included the financial
    statement schedule of Aurora Diagnostic Holdings, LLC. These
    financial statements and financial statement schedule are the
    responsibility of the Company's management. Our
    responsibility is to express an opinion on these financial
    statements based on our audits.
We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Aurora Diagnostic Holdings, LLC as of
    December 31, 2009 and 2008 and the results of its
    operations and its cash flows for each of the three years in the
    period ended December 31, 2009, in conformity with
    U.S. generally accepted accounting principles. Also, in our
    opinion, the related financial statement schedule, when
    considered in relation to the basic consolidated financial
    statements taken as a whole, presents fairly in all material
    respects the information set forth therein.
As discussed in Note 2 of the consolidated financial
    statements, Aurora Diagnostics Holding, LLC changed its method
    of accounting for business combinations during the year ended
    December 31, 2009.
/s/ McGladrey & Pullen, LLP
Ft. Lauderdale, Florida
March 26, 2010
F-3
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Consolidated
    Balance Sheets
December 31,
2008
2009
($ in thousands)
Assets
Current Assets
Cash and cash equivalents
$
7,278
$
27,424
Accounts receivable, net
15,256
16,106
Prepaid expenses and other assets
1,894
2,031
Prepaid income taxes
—
133
Deferred tax assets
2,099
2,026
Total current assets
26,527
47,720
Property and Equipment, net
6,702
7,580
Other Assets:
Deferred debt issue costs, net
5,022
3,932
Deposits and other noncurrent assets
215
17,149
Goodwill
250,340
271,725
Intangible assets, net
126,710
114,638
382,287
407,444
$
415,516
$
462,744
Liabilities and Members' Equity
Current Liabilities
Current portion of long-term debt
$
10,010
$
11,596
Current portion of fair value of contingent consideration
—
804
Accounts payable and accrued expenses
3,042
4,850
Accrued compensation
5,319
7,124
Accrued interest
3,442
3,047
Current portion of acquisition related liability
1,456
592
Fair value of derivative
—
125
Income taxes payable
164
—
Total current liabilities
23,433
28,138
Long-term debt, net of current portion
217,303
205,056
Acquisition related liability, net of current portion
656
—
Deferred tax liabilities, net
10,375
10,190
Fair value of contingent consideration, net of current portion
—
2,296
Fair value of derivative
2,573
—
Commitments and Contingencies
Members' Equity
161,176
217,064
$
415,516
$
462,744
See Notes to Consolidated Financial Statements.
F-4
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Consolidated
    Statements of Operations
Years
    Ended December 31, 2007, 2008 and 2009
2007
2008
2009
($ in thousands)
Net Revenues
$
63,451
$
157,850
$
171,565
Operating costs and expenses:
Cost of services
27,480
66,382
71,778
Selling, general and administrative expenses
15,172
33,194
36,854
Provision for doubtful accounts
2,378
8,037
9,488
Intangible asset amortization expense
5,721
14,308
14,574
Management fees
644
1,559
1,778
Impairment of goodwill and other intangible assets
—
—
8,031
Acquisition and business development costs
374
676
1,074
Equity based compensation expense
—
1,164
—
Total operating costs and expenses
51,769
125,320
143,577
Income from operations
11,682
32,530
27,988
Other income (expense):
Interest expense
(7,114
)
(21,577
)
(18,969
)
Write-off of deferred debt issue costs
(3,451
)
—
—
Other income
124
125
28
Total other expense, net
(10,441
)
(21,452
)
(18,941
)
Income before income taxes
1,241
11,078
9,047
Provision for income taxes
762
408
45
Net income
$
479
$
10,670
$
9,002
See Notes to Consolidated Financial Statements.
F-5
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Consolidated
    Statement of Members' Equity and Comprehensive
    Income
Years
    Ended December 31, 2007, 2008 and 2009
Accumulated
Member
Other
Equity
Retained
Total
Member
Contributions
Comprehensive
Transaction
(Deficit)
Members'
Units
(Distributions)
Income (Loss)
Costs
Earnings
Equity
($ in thousands)
Balance, December 31, 2006
100,000
$
32,564
$
—
$
—
$
(1,230
)
$
31,334
Member contributions
—
116,705
—
—
—
116,705
Equity transaction costs
—
—
—
(2,000
)
—
(2,000
)
Member notes receivable
—
(1,441
)
—
—
—
(1,441
)
Net income
—
—
—
—
479
479
Balance, December 31, 2007
100,000
147,828
—
(2,000
)
(751
)
145,077
Member contributions
—
7,379
—
—
—
7,379
Adjustment to equity transaction costs
—
—
—
250
—
250
Equity compensation
10,000
1,164
—
—
—
1,164
Fair value of derivative
—
—
(2,573
)
—
—
(2,573
)
Member notes receivable
—
(379
)
—
—
—
(379
)
Tax distributions
—
(412
)
—
—
—
(412
)
Net income
—
—
—
—
10,670
10,670
Balance, December 31, 2008
110,000
155,580
(2,573
)
(1,750
)
9,919
161,176
Contributions from members
21,382
50,322
—
—
—
50,322
Equity transaction costs
—
—
—
(3,075
)
—
(3,075
)
Fair value of derivative
—
—
2,448
—
—
2,448
Tax distributions
—
(2,809
)
—
—
—
(2,809
)
Net income
—
—
—
—
9,002
9,002
Balance, December 31, 2009
131,382
$
203,093
$
(125
)
$
(4,825
)
$
18,921
$
217,064
See Notes to Consolidated Financial Statements.
F-6
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Consolidated
    Statements of Cash Flows
Years
    Ended December 31, 2007, 2008 and 2009
2007
2008
2009
($ in thousands)
Cash Flows From Operating Activities
Net income
$
479
$
10,670
$
9,002
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation and amortization
6,386
16,137
17,060
Amortization of deferred debt issue costs
224
978
1,090
Amortization of original issue discount on debt
22
274
305
Deferred income taxes
(885
)
(1,094
)
(1,568
)
Equity based compensation
—
1,164
—
Write-off of deferred debt issue costs
3,451
—
—
Impairment of goodwill and other intangible assets
—
—
8,031
Changes in assets and liabilities, net of working capital
    acquired in business combinations:
(Increase) decrease in:
Accounts receivable
(113
)
(1,048
)
(287
)
Prepaid expenses
(1,110
)
(256
)
64
Increase (decrease) in:
Accounts payable and accrued expenses
(1,481
)
401
1,815
Accrued compensation
(485
)
1,445
1,544
Accrued interest
1,796
1,566
(395
)
Taxes payable
1,543
(1,267
)
(298
)
Net cash provided by operating activities
9,827
28,970
36,363
Cash Flows From Investing Activities
Purchase of property and equipment
(2,135
)
(2,746
)
(2,961
)
Increase in deposits and other noncurrent assets
(60
)
31
(16,934
)
Payment of contingent notes
(1,929
)
(12,531
)
(12,668
)
Businesses acquired, net of cash acquired
(299,357
)
(31,026
)
(16,698
)
Net cash used in investing activities
(303,481
)
(46,272
)
(49,261
)
Cash Flows From Financing Activities
Borrowings under former term loan facility
128,835
—
—
Repayments under former term loan facility
(135,385
)
—
—
Repayments of subordinated notes payable
(327
)
(2,916
)
(3,045
)
Net borrowings under revolver
25
(24
)
(1
)
Borrowings under new term loan facilities
201,300
22,100
—
Repayments under new term loan facilities
—
(7,800
)
(8,200
)
Equity transaction costs
—
(1,750
)
(3,075
)
Payment of deferred debt issuance and public offering costs
(9,244
)
(176
)
(148
)
Contributions from members, net of tax distributions
115,264
6,588
47,513
Net cash provided by financing activities
300,468
16,022
33,044
Net increase (decrease) in cash
6,814
(1,280
)
20,146
Cash and cash equivalents, beginning
1,744
8,558
7,278
Cash and cash equivalents, ending
$
8,558
$
7,278
$
27,424
Supplemental Disclosures of Cash Flow Information
Cash interest payments
$
5,184
$
20,736
$
17,857
Cash tax payments, including member tax distributions
$
163
$
3,325
$
4,577
Supplemental Schedule of Noncash Investing and Financing
    Activities
Notes receivable for membership interests
$
1,441
$
379
$
—
Capital lease obligations
$
—
$
—
$
280
See Notes to Consolidated Financial Statements.
F-7
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial
    Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
Aurora Diagnostics
    Holdings, LLC and subsidiaries (the "Company") was
    organized in the State of Delaware as a limited liability
    company on June 2, 2006 to operate as a diagnostic services
    company. The practices provide physician-based general anatomic
    and clinical pathology, dermapathology, molecular diagnostic
    services and other esoteric testing services to physicians,
    hospitals, clinical laboratories and surgery centers. The
    Company's operations consist of one reportable segment.
Summary
    of Significant Accounting Policies
Principles of Consolidation
:
The
    accompanying consolidated financial statements of the Company
    include the accounts of Aurora Diagnostics Holdings, LLC, and
    its wholly-owned subsidiaries. All accounts and transactions
    between the entities have been eliminated in consolidation.
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair Value of Financial Instruments
:
On
    January 1, 2008, the Company adopted a new standard related
    to the accounting for financial assets and liabilities and items
    that are recognized or disclosed at fair value in the financial
    statements on a recurring basis, at least annually.
On January 1, 2009, the Company adopted authoritative
    guidance for its nonfinancial assets and liabilities that are
    measured at fair value on a nonrecurring basis. The adoption of
    the guidance did impact the Company's disclosure
    requirements related to the Company's 2009 acquisition as
    described in Note 2 and the impairment of the
    Company's intangible assets and goodwill described in
    Note 5.
In August 2009, the Financial Accounting Standards Board
    ("FASB") issued an amendment to the accounting
    standards related to the measurement of liabilities that are
    recognized or disclosed at fair value. This standard clarifies
    how a company should measure the fair value of liabilities and
    that restrictions preventing the transfer of a liability should
    not be considered as a factor in the measurement of liabilities
    within the scope of this standard. This standard became
    effective October 1, 2009. The adoption of this standard
    did not have a material impact on the Company's
    consolidated financial statements.
The fair value accounting standards clarify the definition of
    fair value, prescribes methods for measuring fair value,
    establishes a fair value hierarchy based on the inputs used to
    measure fair value, and expands disclosures about fair value
    measurements. The three-tier fair value hierarchy, which
    prioritizes the inputs used in the valuation methodologies, is
    described below with Level 1 having the highest priority
    and Level 3 having the lowest.
Level 1:
Quoted prices in active markets
    for identical assets or liabilities.
Level 2:
Quoted prices for similar assets
    or liabilities in active markets, quoted prices for identical or
    similar instruments in markets that are not active, and
    model-derived valuations in which all significant inputs are
    observable in active markets.
Level 3:
Valuations derived from
    valuation techniques in which one or more significant inputs are
    unobservable.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related
F-8
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
services are rendered and adjusted in future periods as final
    settlements are determined. The provision for doubtful accounts
    and the related allowance are adjusted periodically, based upon
    an evaluation of historical collection experience with specific
    payors for particular services, anticipated collection levels
    with specific payors for new services, industry reimbursement
    trends, and other relevant factors. Changes in these factors in
    future periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations, financial position and cash flows. In
    2007, 2008 and 2009, approximately 28%, 28% and 25%,
    respectively, of the Company's consolidated net revenues
    were generated by Medicare and Medicaid programs.
Segment Reporting
:
The Company operates
    throughout the United States in one reportable segment, the
    medical laboratory industry. Medical laboratories offer a broad
    range of testing services to the medical profession. The
    Company's testing services are categorized based upon the
    nature of the test: general anatomic pathology,
    dermatopathology, molecular diagnostic services and other
    esoteric testing services to physicians, hospitals, clinical
    laboratories and surgery centers. Our revenues consist of
    payments or reimbursements for these services. Revenues from
    private insurance, including managed care organizations and
    commercial payors, Medicare and Medicaid and physicians and
    individual patients represented approximately 61%, 25%, and 14%,
    respectively, of revenue for the year ended December 31,
    2009.
Cash and Cash Equivalents
:
The Company
    considers deposits and investments that have original maturities
    of less than three months, when purchased, to be cash
    equivalents. The Company maintains its cash balances at high
    quality financial institutions. The Company's balances in
    its accounts may periodically exceed amounts insured by the
    Federal Deposit Insurance Corporation, of up to $250,000 at
    December 31, 2008 and 2009. The Company does not believe it
    is exposed to any significant credit risk and has not
    experienced any losses.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 15 years.
    Leasehold improvements are amortized over the shorter of the
    term of the related lease, or the useful life of the asset.
Goodwill
:
Goodwill represents the
    excess of cost over the fair value of net tangible and
    identifiable intangible assets acquired. The Company reviews
    goodwill for impairment at the reporting unit level annually or,
    when events or circumstances dictate, more frequently. The
    impairment review for goodwill consists of a two- step process
    of first determining the fair value of the reporting unit and
    comparing it to the carrying value of the net assets allocated
    to the reporting unit. If the fair value of the reporting unit
    exceeds the carrying value, no further analysis or write-down of
    goodwill is required. If the fair value of the reporting unit is
    less than the carrying value of the net assets, the implied fair
    value of the reporting unit is allocated to all the underlying
    assets and liabilities, including both recognized and
    unrecognized tangible and intangible assets, based on their fair
    value. If necessary, goodwill is then written down to its
    implied fair value.
Intangible Assets
:
Intangible assets,
    acquired as the result of a business combination, are recognized
    at fair value, as an asset apart from goodwill if the asset
    arises from contractual or other legal rights, or if it is
    separable. Intangible assets, principally representing the fair
    value of customer relationships, health care facility agreements
    and non-competition agreements acquired, are capitalized and
    amortized on the straight-line method over their expected useful
    life, which generally ranges from 4 to 18 years.
Long-Lived Assets
:
The Company
    recognizes impairment losses for long-lived assets when events
    or changes in circumstances indicate the carrying amount of an
    asset may not be recoverable. The Company continually assesses
    whether an impairment in the carrying value of the intangible
    assets has occurred. If the undiscounted future cash flows over
    the remaining amortization period of an intangible asset
    indicate the value assigned to the intangible asset may not be
    recoverable, the Company reduces the carrying value of the
    intangible asset. The Company would determine the amount of any
    such impairment by comparing anticipated discounted future cash
    flows from acquired businesses with the carrying value of the
    related assets. In performing this analysis,
F-9
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
the Company considers such factors as current results, trends
    and future prospects, in addition to other relevant factors.
Distributions to Members and Allocation of Profits and
    Losses
:
Profits and losses are allocated to
    the members in accordance with certain provisions contained in
    the Company's Amended and Restated Limited Liability
    Company Agreement, dated June 12, 2009 (the "LLC
    Agreement"). Distributions are also made in accordance with
    the terms of the LLC Agreement.
Equity-Based Compensation
:
During 2008,
    the Company adopted a new Equity Incentive Plan (the "New
    Plan") to replace the Company's original Equity
    Incentive Plan. The original Equity Incentive Plan for the grant
    of membership options to key employees, directors and
    consultants to purchase Class A membership interests was
    cancelled upon adoption of the New Plan. No options had been
    issued under the original plan. This New Plan provides awards of
    membership interest units in the Company. These interests are
    denominated as
Class D-1,
Class D-2,
and
Class D-3 units.
During 2008, the Company authorized and issued 4,000
    D-1 units; 3,000 D-2 units; and 3,000 D-3 units.
    Compensation expense for awards and related tax effects are
    recognized as they vest. All membership interest units issued in
    2008 were fully vested as of December 31, 2008.
The fair value of each membership interest unit granted is
    valued using a Black-Scholes-Merton pricing model at the time
    the units are granted. That amount is fully amortized at the
    time the units vest. The valuation technique incorporates
    assumptions for the expected volatility of the unit price, the
    expected term of the unit, expected dividends, forfeitures and
    risk-free interest rate for the expected term of the unit.
    Expected volatility is based on historical volatility of an
    appropriate industry sector index. An appropriate industry
    sector index is one that is representative of the industry
    sector in which the nonpublic entity operates. The expected term
    of the unit is based on historical experience and represents the
    time periods units actually remain outstanding. The risk-free
    interest rate takes into account the time-value of money. The
    risk-free rate for periods within the contractual life of the
    option is based on the U.S. Treasury yield curve in effect
    at time of grant. The Company estimated forfeitures based on
    historical experience and shall revise this estimate in
    subsequent periods if actual forfeitures differ from those
    estimated.
The fair value of each membership interest unit granted in 2008
    was estimated using the following assumptions:
2008
Expected life
3 years
Volatility percentage
20.2%
Interest rate
3.1%
Dividends
—
Forfeiture rate
—
There were no membership interest units granted or forfeited
    during the year ended December 31, 2009.
Deferred Debt Issue Costs
:
During 2007,
    the Company incurred approximately $2.9 million of debt
    issue costs associated with the former term loan facility and
    $0.4 million in costs paid to the former lender in
    connection with the new term loan facility. In December 2007,
    the Company obtained a new term loan facility and used a portion
    of the proceeds to pay off and terminate the former term loan
    facilities. As a result, the Company wrote off $3.5 million
    of unamortized deferred debt issue costs.
During 2007 and 2008, the Company incurred approximately
    $5.9 million and $0.2 million, respectively, of debt
    issue costs in connection with its new term loan facilities.
    These deferred debt issue costs are being amortized to interest
    expense using the effective interest method. Amortization
    expense was $0.2 million, $1.0 million and
    $1.1 million for the years ended December 31, 2007,
    2008 and 2009, respectively.
F-10
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Deferred debt issue costs as of December 31, 2008 and 2009
    consist of the following (in thousands):
2008
2009
Deferred debt issue costs
$
6,080
$
6,080
Less accumulated amortization
(1,058
)
(2,148
)
Deferred debt issue costs, net
$
5,022
$
3,932
Income Taxes
:
The Company is a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes, the income attributable to the limited
    liability company is distributed to the members in accordance
    with the terms of the operating agreement. In addition, tax
    distributions related to the income allocated to each member are
    paid out quarterly. However, certain of the Company's
    subsidiaries are structured as corporations, file separate
    returns, and therefore are subject to federal and state income
    taxes. The provision for income taxes, for these subsidiaries,
    is reflected in the Company's consolidated financial
    statements and includes federal and state taxes currently
    payable and changes in deferred tax assets and liabilities
    excluding the establishment of deferred tax assets and
    liabilities related to the acquisitions. Deferred income taxes
    represent the estimated future tax effects resulting from
    temporary difference between financial statements carrying
    values and the tax reporting basis of the related assets and
    liabilities. The Company does not recognize a tax benefit,
    unless the Company concludes that it is more likely than not
    that the benefit will be sustained on audit by the taxing
    authority based solely on the technical merits of the associated
    tax position. If the recognition threshold is met, the Company
    recognizes a tax benefit measured at the largest amount of the
    tax benefit that the Company believes is greater than 50% likely
    to be realized. The Company records interest and penalties in
    income tax expense.
Derivative Financial Instruments
:
The
    Company uses derivative financial instruments to manage its
    interest rate risk. The Company records derivatives as either an
    asset or liability measured at its fair value. The fair value is
    based upon quoted market prices obtained from third-party
    institutions. Changes in fair value of derivatives are recorded
    each period in current earnings or other comprehensive income,
    depending on whether a derivative is designated as part of a
    hedge transaction and, if it is, the type of hedge transaction
    based on the specific qualifying conditions as prescribed by the
    FASB standards on accounting for derivative instruments and
    hedging activities. If it is determined the derivative ceases to
    be a highly effective hedge, the Company discontinues hedge
    accounting and any deferred gains or losses are recorded in the
    consolidated statements of operations.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    The Company's policy is to place cash in highly-rated
    financial institutions. Concentration of credit risk with
    respect to accounts receivable is mitigated by the diversity of
    the Company's payers and their dispersion across many
    different geographic regions. While the Company has receivables
    due from federal and state governmental agencies, the Company
    does not believe such receivables represent a credit risk since
    the related healthcare programs are funded by federal and state
    governments, and payment is primarily dependent on submitting
    appropriate documentation.
Reclassifications
:
Certain prior year
    amounts have been reclassified to conform to the 2009
    presentation. The results of these reclassifications had no
    effect on consolidated members' equity or net income.
New Accounting Standards
:
On
    January 1, 2009, the Company adopted a new accounting
    standard issued by the FASB related to accounting for business
    combinations using the acquisition method of accounting
    (previously referred to as the purchase method). Among the
    significant changes, this standard requires a redefining of the
    measurement date of a business combination, expensing direct
    transaction costs as incurred, capitalizing in-process research
    and development costs as an intangible asset and recording a
    liability for contingent consideration at the measurement date
    with subsequent re-measurements recorded in the results of
    operations. This standard also requires costs for business
    restructuring and exit activities related to the acquired
    company to be included in the post-combination financial results
    of operations and also provides new guidance for the recognition
    and
F-11
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
measurement of contingent assets and liabilities in a business
    combination. In addition, this standard requires several new
    disclosures, including the reasons for the business combination,
    the factors that contribute to the recognition of goodwill, the
    amount of acquisition related third-party expenses incurred, the
    nature and amount of contingent consideration, and a discussion
    of pre-existing relationships between the parties. The
    application of this standard was material for business
    combinations completed in 2009, as further described in
    Note 2. The standard is likely to have a significant effect
    on the way the Company allocates the purchase price of certain
    future business combinations, including the recognition and
    measurement of assets acquired and liabilities assumed and the
    expensing of direct transaction costs and costs to integrate the
    acquired business.
On January 1, 2009, the Company adopted a new accounting
    standard issued by the FASB related to the disclosure of
    derivative instruments and hedging activities. This standard
    expanded the disclosure requirements about an entity's
    derivative financial instruments and hedging activities,
    including qualitative disclosures about objectives and
    strategies for using derivatives, quantitative disclosures about
    fair value amounts of and gains and losses on derivative
    instruments, and disclosures about credit-risk-related
    contingent features in derivative instruments.
Effective June 30, 2009, the Company adopted a newly issued
    accounting standard related to accounting for and disclosure of
    subsequent events in its consolidated financial statements. This
    standard provides the authoritative guidance for subsequent
    events that was previously addressed only in United States
    auditing standards. This standard establishes general accounting
    for and disclosure of events that occur after the balance sheet
    date but before financial statements are issued or are available
    to be issued and requires the Company to disclose that it has
    evaluated subsequent events through the date of the filing or
    issue date. This standard does not apply to subsequent events or
    transactions that are within the scope of other applicable GAAP
    that provide different guidance on the accounting treatment for
    subsequent events or transactions. The adoption of this standard
    did not have a material impact on the Company's
    consolidated financial statements.
In June 2009, the FASB issued the FASB Accounting Standards
    Codification (the "ASC"). The ASC has become the
    single source of non-governmental accounting principles
    generally accepted in the United States of America
    ("GAAP") recognized by the FASB in the preparation of
    financial statements. The Company adopted the ASC as of
    July 1, 2009. The ASC does not change GAAP and did not have
    an effect on the Company's financial position, results of
    operations or cash flows.
In June 2009, the FASB issued new accounting guidance on when an
    entity should be included in consolidated financial statements.
    The new guidance amends the evaluation criteria to identify the
    primary beneficiary of a variable interest entity, or
    "VIE", and requires ongoing reassessment of whether an
    enterprise is the primary beneficiary of the VIE. The new
    guidance significantly changes the consolidation rules for VIEs
    including the consolidation of common structures, such as joint
    ventures, equity-method investments, and collaboration
    arrangements. The guidance is applicable to all new and existing
    VIEs. This standard is effective for the Company as of
    January 1, 2010 and the Company does not expect the impact
    of its adoption to be material to its consolidated financial
    statements.
In January 2010, the FASB issued an amendment to the accounting
    standards related to the disclosures about an entity's use
    of fair value measurements. Among these amendments, entities
    will be required to provide enhanced disclosures about transfers
    into and out of the Level 1(fair value determined based on
    quoted prices in active markets for identical assets and
    liabilities) and Level 2 (fair value determined based on
    significant other observable inputs) classifications, provide
    separate disclosures about purchases, sales, issuances and
    settlements relating to the tabular reconciliation of beginning
    and ending balances of the Level 3 (fair value determined
    based on significant unobservable inputs) classification and
    provide greater disaggregation for each class of assets and
    liabilities that use fair value measurements. Except for the
    detailed Level 3 roll-forward disclosures, the new standard
    is effective for the Company for interim and annual reporting
    periods beginning after December 31, 2009. The requirement
    to provide detailed disclosures about the purchases, sales,
    issuances and settlements in the roll-forward activity for
    Level 3 fair value measurements is effective for the
    Company for interim and annual reporting periods beginning
F-12
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
after December 31, 2010. The Company does not expect that
    the adoption of this new standard will have a material impact on
    its consolidated financial statements.
Subsequent Events
:
The Company has
    evaluated all subsequent events through the date of issuance of
    the consolidated financial statements.
Note 2.
Acquisitions
2007
    Acquisitions
During 2007, the Company acquired substantially all of the
    assets of six pathology practices, and 100% of the equity of two
    pathology practices for an aggregate purchase price (including
    acquisition costs) of $319.8 million and additional
    consideration in the form of contingent notes. The aggregate
    purchase price included cash of $306.1 million and
    subordinated unsecured notes payable of $13.7 million. The
    cash portion of the purchase price was funded primarily with
    proceeds from member contributions and the Company's
    current and former term loan facilities of $115.3 million
    and $190.8 million, respectively.
In connection with one acquisition in 2007, the Company agreed
    to assume up to $4.0 million to be paid to four retired
    physicians. The obligation is to be paid over three to five
    years. As of December 31, 2009, this acquisition related
    liability has a remaining balance of approximately
    $0.6 million. During 2008 and 2009, the Company paid
    $1.9 million and $1.5 million, respectively, related
    to this liability.
2008
    Acquisitions
During 2008, the Company acquired substantially all of the
    assets of one pathology practice, for an aggregate purchase
    price (including acquisition costs) of $27.3 million and
    additional consideration in the form of contingent notes. The
    purchase price was funded primarily with proceeds from the
    issuance of Class A, C, and X membership interests of
    $7.3 million and the Company's new term loan facility
    of $20.0 million.
During 2008, the Company finalized its allocation of the
    purchase price for the 2008 acquisition and 2007 acquisitions
    resulting in an adjustment to goodwill of approximately
    $1.1 million related to professional fees and other
    acquisition costs.
2009
    Acquisitions
On December 31, 2009, the Company paid cash totaling
    $17.0 million to acquire 100% of the equity of two
    pathology practices. These acquisitions were consummated on
    January 1, 2010 and therefore, the cash paid totaling
    $17.0 million was included in Deposits and other
    non-current assets in the accompanying consolidated balance
    sheet as of December 31, 2009.
In November 2009, the Company acquired 100% of the equity of one
    pathology practice for an aggregate cash purchase price of
    $15.3 million. In addition, the Company issued contingent
    consideration, payable over three years based on the
    acquiree's future performance. The Company has estimated
    the fair value of the contingent consideration and recorded a
    related liability in the accompanying consolidated balance
    sheets as of December 31, 2009 of $3.1 million. The
    cash portion of the purchase price was funded primarily with
    proceeds from the issuance of
Class A-1
membership interests. The estimated fair value of the assets
    acquired and liabilities assumed in connection with the 2009
    acquisition are preliminary and are expected to be finalized in
    2010.
On January 1, 2009, the Company adopted a new accounting
    standard issued by the FASB related to accounting for business
    combinations using the acquisition method of accounting
    (previously referred to as the purchase method). In connection
    with this adoption, during 2009, the Company has expensed
    $0.6 million of transaction costs associated with its
    completed acquisitions and business development costs in the
    accompanying consolidated statements of operations.
F-13
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
The following table summarizes the consideration for the
    acquisitions made in 2007, 2008 and 2009. Total consideration
    for 2009 acquisitions excludes contingent consideration payable,
    with a fair value of approximately $3.1 million (in
    thousands):
Date
Cash
Subordinated
Total
Location
Acquired
Paid
Notes Issued
Consideration
Michigan
February 2, 2007
$
16,319
$
—
$
16,319
Georgia
March 21, 2007
2,925
897
3,822
Alabama
April 30, 2007
43,320
12,761
56,081
Michigan
May 30, 2007
16,723
—
16,723
North Carolina
October 4, 2007
144,663
—
144,663
Florida
October 11, 2007
18,704
—
18,704
Nevada
December 10, 2007
49,336
—
49,336
Florida
December 10, 2007
14,126
—
14,126
Total 2007 Acquisitions
$
306,116
$
13,658
$
319,774
Minnesota
March 7, 2008
27,301
—
27,301
Total 2008 Acquisitions
$
27,301
$
—
$
27,301
Texas
November 20, 2009
15,340
—
15,340
Total 2009 Acquisitions
$
15,340
$
—
$
15,340
Contingent
    Consideration
In connection with the acquisitions, the Company has agreed to
    pay additional consideration in future periods, based upon the
    attainment of stipulated levels of operating earnings by each of
    the acquired entities, as defined in their respective
    agreements. For all acquisitions prior to January 1, 2009,
    the Company does not accrue contingent consideration obligations
    prior to the attainment of the objectives and the amount owed
    becomes fixed and determinable. For the years ended
    December 31, 2007, 2008 and 2009, the Company paid
    consideration under contingent notes of $1.9 million,
    $12.5 million and $12.7 million, respectively.
As of December 31, 2009, assuming the practices, including
    the one acquired in November 2009, achieve the maximum level of
    stipulated operating earnings, the maximum principal amount of
    contingent consideration payable, over the next three to five
    years is approximately $101 million. A lesser amount will
    be paid for earnings below the maximum level of stipulated
    earnings or no payments will be made if the practices do not
    achieve the minimum level of stipulated earnings as outlined in
    their respective agreements. Any such payments in the future for
    acquisitions completed prior to January 1, 2009 would be
    accounted for as additional purchase price and increase
    goodwill. For acquisitions completed during 2009, future
    payments will be reflected in the change in the fair value of
    the contingent consideration.
F-14
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
The following tables summarize the estimated aggregate fair
    value of the assets acquired and liabilities assumed in
    connection with the acquisitions in 2008 and 2009 (in thousands):
2008
2009
Cash
$
531
$
162
Accounts receivable
622
563
Other assets
23
73
Property and equipment
108
125
Intangible assets
9,610
3,922
Goodwill
17,275
15,327
Assets acquired
28,169
20,172
Accounts payable and accrued expenses
254
12
Accrued compensation
614
264
Fair value of contingent consideration
—
3,100
Deferred tax liabilities
—
1,456
Liabilities assumed
868
4,832
Net assets acquired
$
27,301
$
15,340
Net assets acquired
$
27,301
$
15,340
Less:
Cash acquired
(531
)
(162
)
Cash paid for acquisitions, net of cash acquired
26,770
15,178
Acquisition costs and acquisition-related liability paid
4,256
1,520
Total businesses acquired and related costs, net of cash acquired
$
31,026
$
16,698
Pro-Forma
    Information (Unaudited)
The accompanying consolidated financial statements include the
    results of operations of the acquisitions from the date acquired
    through December 31, 2009.
The following unaudited pro forma information presents the
    consolidated results of the Company's operations and the
    results of the 2009 acquisition for the years ended
    December 31, 2008 and 2009, after giving effect to
    amortization, depreciation, interest, income tax, and the
    reduced level of certain specific operating expenses (primarily
    compensation and related expenses attributable to former owners)
    as if the acquisition had been consummated on January 1,
    2008. Such unaudited pro forma information is based on
    historical unaudited financial information with respect to the
    2009 acquisition and does not include operational or other
    changes which might have been effected by the Company. The
    unaudited pro forma information for the years ended
    December 31, 2008
F-15
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
and 2009 presented below is for illustrative purposes only and
    is not necessarily indicative of results which would have been
    achieved or results which may be achieved in the future (in
    thousands):
Pro Forma December 31,
2008
2009
Net Revenues
$
165,282
$
178,849
Net Income
$
11,847
$
10,662
The following unaudited pro forma information presents the
    consolidated results of the Company's operations and the
    results of the 2008 acquisition for the years ended
    December 31, 2007 and 2008, after giving effect to
    amortization, depreciation, interest, income tax, and the
    reduced level of certain specific operating expenses (primarily
    compensation and related expenses attributable to former owners)
    as if the acquisition had been consummated on January 1,
    2007. Such unaudited pro forma information is based on
    historical unaudited financial information with respect to the
    2008 acquisition and does not include operational or other
    changes which might have been effected by the Company. The
    unaudited pro forma information for the years ended
    December 31, 2007 and 2008 presented below is for
    illustrative purposes only and is not necessarily indicative of
    results which would have been achieved or results which may be
    achieved in the future (in thousands):
Pro Forma December 31,
2007
2008
Net Revenues
$
72,032
$
159,252
Net Income
$
3,041
$
11,076
Note 3.
Property
    and Equipment
Property and equipment as of December 31, 2008 and 2009
    consists of the following (in thousands):
Estimated Useful
Life (Years)
2008
2009
Laboratory, office and data processing equipment
5
$
4,026
$
5,524
Building and leasehold improvements
5 – 15
2,626
3,009
Furniture and fixtures
5
478
550
Software
3
1,714
2,504
Vehicles
3
331
431
9,175
12,018
Less accumulated depreciation
(2,506
)
(4,993
)
6,669
7,025
Construction in progress
33
555
$
6,702
$
7,580
Depreciation expense was $0.7 million, $1.8 million
    and $2.5 million for the years ended December 31,
    2007, 2008 and 2009, respectively.
F-16
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Note 4.
Accounts
    Receivable
Accounts receivable consist of the following as of
    December 31, 2008 and 2009 (in thousands):
2008
2009
Accounts receivable
$
23,453
$
24,659
Less: Allowance for doubtful accounts
(8,197
)
(8,553
)
Accounts receivable, net
$
15,256
$
16,106
Note 5.
Goodwill
    and Intangible Assets
The following table presents adjustments to goodwill during 2008
    and 2009 (in thousands):
2008
2009
Goodwill, beginning of period
$
219,429
$
250,340
Acquisitions
17,275
15,327
Contingent notes*
12,531
12,668
Goodwill impairment
—
(6,610
)
Other acquisition costs
1,105
—
Goodwill, end of period
$
250,340
$
271,725
*
Related to acquisitions completed
    prior to January 1, 2009.
Intangible assets as of December 31, 2008 and 2009 and the
    related accumulated amortization are set forth in the table
    below (in thousands):
Weighted
Average
Amortization
December 31, 2008
Range
Period
Accumulated
(Years)
(Years)
Cost
Amortization
Net
Amortizing intangible assets:
Customer relationships
7 – 10
9
$
102,810
$
(14,796
)
$
88,014
Health care facility agreements
4 – 18
15
41,370
(4,642
)
36,728
Noncompete agreements
5
5
3,030
(1,062
)
1,968
Total intangible assets
$
147,210
$
(20,500
)
$
126,710
F-17
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Weighted
Average
Amortization
December 31, 2008
Range
Period
Accumulated
(Years)
(Years)
Cost
Amortization
Net
Amortizing intangible assets:
Customer relationships
7 – 10
9
$
103,089
$
(23,414
)
$
79,675
Health care facility agreements
4 – 18
14
41,370
(7,951
)
33,419
Noncompete agreements
4 – 5
5
3,098
(1,554
)
1,544
Total intangible assets
$
147,557
$
(32,919
)
$
114,638
Amortization expense related to intangible assets was
    $5.7 million, $14.3 million and $14.6 million for
    the years ended December 31, 2007, 2008 and 2009,
    respectively.
For purposes of testing goodwill for impairment each of the
    Company's acquired practices is considered a separate
    reporting unit. To estimate the fair value of the reporting
    units, the Company utilizes a discounted cash flow model as the
    primary approach to value supported by a market approach
    guideline public company method (the "GPC Method")
    which is used as a reasonableness test. The Company believes
    that a discounted cash flow analysis is the most appropriate
    methodology to test the recorded value of long-term assets with
    a demonstrated long-lived value. The results of the discounted
    cash flow provide reasonable estimates of the fair value of the
    reporting units because this approach is based on each
    respective unit's actual results and reasonable estimates
    of future performance, and also takes into consideration a
    number of other factors deemed relevant by management, including
    but not limited to, expected future market revenue growth and
    operating profit margins. The Company has consistently used
    these approaches in determining the value of goodwill. The
    Company considers the GPC Method as an adequate reasonableness
    test which utilizes market multiples of industry participants to
    corroborate the discounted cash flow analysis. The Company
    believes this methodology is consistent with the approach that
    any strategic market participant would utilize if they were to
    value one of the Company's reporting units.
The following assumptions were made by management in determining
    the fair value of the reporting units and related intangibles as
    of September 30, 2009: (a) the discount rates ranged
    between 13.0% and 15.0%, based on relative size and perceived
    risk of the reporting unit (b) an average compound annual
    growth rate ("CAGR") of 7.5% during the five year
    forecast period; and (c) earnings before interest, taxes,
    depreciation, and amortization ("EBITDA"), with an
    average reporting unit level margin of 38.9%. These assumptions
    are based on: (a) the actual historical performance of the
    reporting units and (b) management's estimates of
    future performance of the reporting units.
The Company also considers the economic outlook for the
    healthcare services industry and various other factors during
    the testing process, including hospital and physician contract
    changes, local market developments, changes in third-party payor
    payments, and other publicly available information.
As of September 30, 2009, the Company tested goodwill and
    intangible assets for potential impairment and recorded a
    non-cash impairment expense of $8.0 million resulting from
    a write down of $6.6 million in the carrying value of
    goodwill and a write down of $1.4 million in the carrying
    value of intangible assets. The write down of the goodwill and
    intangible assets related to one reporting unit. Regarding this
    reporting unit, the Company believes events occurred and
    circumstances changed that more likely than not reduced the fair
    value of the intangible assets and goodwill below their carrying
    amounts. These events during 2009 consisted primarily of the
    loss of significant customers present at the acquisition date,
    which adversely affected the current year and expected future
    revenues and operating profit of the reporting unit.
F-18
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
As of December 31, 2009, estimated future amortization
    expense is as follows (in thousands):
Year Ending
December 31,
2010
$
14,999
2011
14,683
2012
13,829
2013
13,411
2014
12,430
Thereafter
45,286
$
114,638
Note 6.
Accounts
    Payable and Accrued Expenses
Accounts payable and accrued expenses as of December 31,
    2008 and 2009 consist of the following (in thousands):
2008
2009
Accounts payable
$
837
$
2,945
Accrued management fees
560
430
Other accrued expenses
1,645
1,475
$
3,042
$
4,850
Note 7.
Long-Term
    Debt
In 2006, the Company entered into its former term loan facility
    with a related party (the "Former Lender") with total
    available borrowings up to $145.0 million. The agreement
    was executed on June 2, 2006, and had a maturity date of
    June 2, 2013. The agreement called for the Former Lender to
    provide financing in connection with the operations and certain
    business acquisitions by the Company. The Former Lender extended
    credit in the form of: (a) term loans in aggregate
    principal amounts not in excess of $140.0 million, and
    (b) revolving loans, in aggregate principal amounts not in
    excess of $5.0 million. The agreement was collateralized by
    substantially all of the Company's assets and guaranteed by
    all of the Company's subsidiaries. Interest was paid in
    arrears at LIBOR plus 3.75%. The interest rate was determined at
    the date of funding the term notes and was fixed for a period of
    three to six months at the option of the Company. After this
    initial interest rate period, the loan converted to a variable
    rate note at the greater of prime rate or the Federal
    funds' effective rate plus 0.50% plus a factor of 2.75%.
    Principal payments on the loans were due as net cash proceeds
    from either the sale of assets or the sale of equity was
    available. During 2007, the Company borrowed an additional
    $128.8 million under this facility.
In December 2007, the Company entered into a new term loan
    facility with a syndicate of lenders (the "Lenders")
    providing for a loan commitment up to $255.0 million. The
    agreement called for the Lenders to provide financing to repay
    the outstanding balance of the former term loan facility, fund
    working capital and make acquisitions of certain businesses. The
    Lenders' commitment includes: (a) a revolver loan, not
    in excess of $5.0 million and (b) a term loan, with a
    first and second lien, not in excess of $165.0 million and
    $85.0 million, respectively. The Lenders' unfunded
    term loan commitment expired on April 30, 2008. As of
    December 31, 2009, the Company has $132.6 million and
    $76.5 million outstanding under the first lien and second
    lien, respectively. The funded, first lien term loan, balance as
    of April 30, 2008 was subject to quarterly principal
    payments beginning
F-19
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
on September 30, 2008 through September 30, 2012.
    Total principal paid for the years ended December 31, 2008
    and 2009 was $7.8 and $8.2 million, respectively, including
    mandatory and voluntary payments.
All loans under the new term loan facility mature in December
    2012. The new term loan facility is collateralized by
    substantially all of the Company's assets and guaranteed by
    all of the Company's subsidiaries. For the revolver and
    first lien term loan, interest is at the prime rate plus 3.25%
    or LIBOR plus 4.25%. For the second lien term loan, interest is
    at the prime rate plus 6.75% or LIBOR plus 7.75%. As of
    December 31, 2009, the effective interest rates were 4.5%
    and 8.0% for the first lien and second lien, respectively. Other
    principal payments on the term loans may be due from time to
    time from annual excess cash flow and net cash proceeds from
    either the sale of assets or equity. The proceeds from this term
    loan facility were used to refinance the Company's former
    term loan facility and acquire two businesses in December 2007
    and one business in March 2008.
The new term loan facility was issued with an original issue
    discount of $1.7 million. The original issue discount is
    being amortized into loan interest expense using the effective
    interest method. For the years ended December 31, 2008 and
    2009, the Company recorded $0.3 million and
    $0.3 million, respectively, of amortization as interest
    expense.
The new term loan facility requires the Company to comply on a
    quarterly basis with certain financial covenants, including a
    fixed charge coverage ratio calculation, a maximum total
    leverage ratio calculation, a maximum senior debt leverage ratio
    calculation and minimum level of earnings before interest,
    taxes, depreciation and amortization, ("EBITDA") which
    become more restrictive over time. In addition, the new term
    loan facility includes negative covenants restricting or
    limiting the Company's ability to, without prior approval
    of the lenders, among other things, incur, assume or permit to
    exist additional indebtedness or guarantees; incur liens and
    engage in sale leaseback transactions; make loans and
    investments; declare dividends, make payments or redeem or
    repurchase capital stock; engage in mergers, acquisitions and
    other business combinations; prepay, redeem or purchase certain
    indebtedness; amend or otherwise alter terms of our
    indebtedness; sell assets; transaction with affiliates and alter
    the business it conducts. As of December 31, 2009, the
    Company is in compliance with all loan covenants.
On March 21, 2007 in conjunction with an acquisition
    transaction, the Company entered into a subordinated, unsecured
    contingent note with a prior owner of one of the Company's
    acquired practices. The payment amount is determined by the
    practice's cumulative EBITDA over a three-year period, with
    a minimum payment not to be less than $1.0 million and a
    maximum payment not to exceed $2.0 million. Payment amounts
    include a 5.5% interest rate factor, thus the Company has
    recorded the contingent note in the original purchase price at
    its minimum payment amount, discounted by the interest rate
    factor of 5.5%. The original discount of $0.1 million is
    being amortized into interest expense over the term of the
    contingent note using the interest method.
On April 30, 2007 in conjunction with an acquisition
    transaction, the Company entered into a subordinated, unsecured
    contingent note with prior owners of one of the Company's
    acquired practices. The payment amount is determined by the
    practice's cumulative EBITDA over a five-year period, with
    a minimum payment not to be less than $15.0 million and a
    maximum payment not to exceed $30.0 million. Payment
    amounts include a 5.5% interest rate factor, thus the Company
    recorded the contingent note in the original purchase price at
    its minimum payment amount, discounted by the interest rate
    factor of 5.5%. The original discount of $2.2 million will
    be amortized into interest expense over the term of the
    contingent note using the interest method.
On November 17, 2006, the Company entered into a
    subordinated, unsecured note payable with a prior owner of one
    of the Company's acquired practices with the principal
    amount of $1.0 million to assist in the financing of an
    acquisition. The note had a three-year term and principal
    payments were due in equal quarterly installments of
    $0.08 million. Interest was paid quarterly at the prime
    rate.
F-20
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Long-term debt consists of the following as of December 31,
    2008 and 2009 (in thousands):
2008
2009
Term loan, first lien
$
140,766
$
132,566
Term loan, second lien
76,534
76,534
Revolver loan
1
—
Subordinated unsecured contingent note dated March 21, 2007
614
316
Subordinated unsecured contingent note dated April 30, 2007
10,481
8,072
Subordinated unsecured note payable dated November 17, 2006
320
—
Capital lease obligations
—
262
228,716
217,750
Less:
Original issue discount, net
(1,403
)
(1,098
)
Current portion
(10,010
)
(11,596
)
Long-term debt, net of current portion
$
217,303
$
205,056
As of December 31, 2009, future maturities of long-term
    debt are as follows (in thousands):
Year Ending
December 31,
2010
$
11,596
2011
13,145
2012
192,899
2013
64
2014
46
$
217,750
Interest
    Rate
    Derivative
:
In January 2008, the Company entered into a
2-year
interest rate swap transaction which involves the exchange of
    floating for fixed rate interest payments without the exchange
    of the underlying principal amount. The interest rate swap has a
    notional amount of $125.0 million and a fixed rate of
    interest of 3.57%. The swap resets every 90 days and ended
    on January 10, 2010. The Company receives interest on the
    notional amount if the LIBOR rate exceeds 3.57% and pays
    interest if the LIBOR rate is below 3.57%. For the years ended
    December 31, 2008 and 2009, the interest settlement amount
    was $0.09 million and $3.3 million, respectively,
    which is reflected in interest expense in the consolidated
    statement of operations. The change in fair value of the
    derivative instrument of $2.6 million and
    $2.4 million, for the years ended December 31, 2008
    and 2009, respectively, is recognized in other comprehensive
    income. Accrued interest includes a swap receivable of
    $0.3 million and a swap payable of $0.9 million as of
    December 31, 2008 and 2009, respectively.
Note 8.
Related
    Party Transactions
Acquisition Target Consulting
    Agreement
:
On June 2, 2006, and as
    subsequently amended on August 1, 2009, the Company and an
    entity owned by two members of the Company entered into a
    professional services agreement to provide certain acquisition
    target identification consulting services to the Company. In
    exchange for
F-21
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
these services, the entity will be paid a monthly retainer of
    $0.02 million, plus reimbursable expenses. The entity also
    earns a success fee of $0.05 million for each identified
    acquisition consummated by the Company. During the years ended
    December 31, 2007, 2008 and 2009, a total of approximately
    $0.5 million, $0.3 million and $0.3 million
    respectively, was paid to the entity. There was a remaining
    payable of $0.02 million as of December 31, 2009.
Management and Financial Advisory
    Agreement
:
On June 2, 2006, the Company,
    through its wholly-owned subsidiary, and two members of the
    Company entered into a management services agreement (the
    "Agreement"). On June 12, 2009 the Agreement was
    amended to substitute a new member for one of the original
    members. The Agreement calls for the members and their
    affiliates to provide certain financial and management advisory
    services in connection with the general business planning and
    forecasting and acquisition and divestiture strategies of the
    Company. In exchange for the services, the Company will pay an
    annual fee equal to 1.0% of revenues, plus expenses to the
    members ("Management Fees").
As of December 31, 2008 and 2009, $0.6 million and
    $0.4 million, respectively, of these Management Fees are
    reflected in accounts payable and accrued expenses in the
    accompanying consolidated balance sheets. The consolidated
    statement of operations includes Management Fees of
    $0.6 million, $1.6 million and $1.8 million for
    the respective years ended December 31, 2007, 2008 and
    2009. During 2007, 2008 and 2009, the Company paid management
    fees totaling $0.4 million, $1.3 million and
    $1.9 million, respectively.
Facilities Lease Agreements
:
The
    Company leases five of its facilities from entities owned by
    physician employees or affiliated physicians who are also former
    owners of the acquired practices. The leases provide for monthly
    aggregate payments of $0.07 million and expire in August
    and September 2011, March 2012, December 2013, and April 2017.
    Rent expense incurred and paid to the related entities was
    $0.3 million, $0.6 million and $0.7 million for
    the years ended December 31, 2007, 2008 and 2009,
    respectively.
Former Term Loan Facility
:
The
    Company's former term loan facility, as described in
    Note 7, was with a financial entity owned by a member of
    the Company. The rates and terms of the former term loan
    facility were comparable with arms' length third party
    transactions.
Unsecured Promissory Note
:
On
    October 21, 2008, the Company entered into an unsecured
    promissory note with an officer and member of the Company. The
    note is a two-year note and accrues interest at 3.2%. The
    remaining balance of the note receivable at December 31,
    2009 was $0.04 million.
Note 9.
Members'
    Equity
The Company has multiple classes of membership interests,
    including A,
A-1,
B, C,
    X, D-1, D-2 and D-3 units. Profits and losses are generally
    allocated among the members in accordance with the methodology
    for computing capital accounts as described in the
    Company's LLC Agreement. Proceeds distributable to the
    members in connection with the liquidation, or payable in
    connection with a sale, of the Company are distributed or paid
    based on the number and class of units and interests held by
    each member. The various interests and units share in the
    proceeds for a liquidation
and/or
sale
    in different relative amounts based on the aggregate amount of
    the distributions
and/or
payments. The Class A,
A-1,
C and X
    interests receive priority distributions
and/or
payments equal to the amount of their original contributed
    capital. Following these priority distributions, any amounts
    that are distributed or payable to the various membership
    interests is based on the allocations set forth in the LLC
    Agreement.
As of December 31, 2009, the Company has authorized 85,000
    Class A membership units, all of which are issued and
    outstanding; 10,000 Class B membership units, all issued
    and outstanding; and 5,000 Class C membership units, all
    issued and outstanding. In connection with the acquisition
    during 2008, the Company issued Class X capital for total
    consideration of $7.1 million. As discussed in
    Note 13, during 2008, the Company issued 10,000 equity
    incentive interests in the classes of D-1, D-2, and D-3. During
    2009, the Company issued 21,382
A-1
class
    membership interests for total consideration of
    $50.3 million. In connection with the A -1 issuance the
    Company incurred $3.1 million of costs which were recorded
    as a reduction in members' equity.
F-22
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Pursuant to subscription agreements with certain executives of
    the Company, 5,000 Class C membership units were issued
    during 2006 at $6.8376 per unit, for a total initial capital
    contribution of $0.03 million. During 2007, the executives
    made total capital contributions of $2.9 million, of which
    $1.4 million was paid in cash, with the remaining balances
    to be paid under promissory notes from the executives. These
    notes receivable for membership interests bear interest at 5%,
    are collateralized by the membership units and have a due date
    of June 2, 2011. During 2008, the executives made total
    capital contributions of $0.8 million, of which
    $0.4 million was paid in cash, with the remaining balances
    to be paid under promissory notes from the executives. These
    notes receivable for membership interests bear interest at 5%,
    are collateralized by the membership units and have a due date
    of March 7, 2013. Interest of $0.05 million,
    $0.1 million, and $0.1 million on the executive notes
    receivable was credited to contributed capital as earned during
    the years ended December 31, 2007, 2008 and 2009,
    respectively.
During 2007, the Company accrued $2.0 million of equity
    transaction costs in connection with the member contributions
    for the A membership interests. During 2008, the Company
    renegotiated and paid $1.75 million to settle this
    liability. The $0.25 million revision of the original
    estimate was recorded as an increase to members' equity
    during 2008.
The following is a table detailing the changes in members'
    equity by type of membership interest for the years ended
    December 31, 2007, 2008 and 2009 (in thousands):
Class A
Class A-1
Class B
Class C
Class D-1
Class X
Members' Equity
Balance, December 31, 2006
$
32,162
$
—
$
—
$
402
$
—
$
—
$
32,564
Member contributions
113,823
—
—
2,882
—
—
116,705
Member notes receivable
—
—
—
(1,441
)
—
—
(1,441
)
Balance, December 31, 2007
145,985
—
—
1,843
—
—
147,828
Member contributions
265
—
—
54
1,164
7,060
8,543
Member notes receivable
—
—
—
(27
)
—
(352
)
(379
)
Tax distributions
—
—
(412
)
—
—
—
(412
)
Balance, December 31, 2008
146,250
—
(412
)
1,870
1,164
6,708
155,580
Contributions from members
—
50,322
—
—
—
—
50,322
Tax distributions
—
(40
)
(1,921
)
—
(848
)
—
(2,809
)
Balance, December 31, 2009
$
146,250
$
50,282
$
(2,333
)
$
1,870
$
316
$
6,708
$
203,093
Note 10.
Commitments
    and Contingencies
During the ordinary course of business, the Company has become
    and may in the future become subject to pending and threatened
    legal actions and proceedings. The Company may have liability
    with respect to its employees and its pathologists. Medical
    malpractice claims are generally covered by insurance. While the
    Company believes the outcome of any such pending legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company's medical malpractice
    insurance coverage will be adequate to cover any such liability.
    The Company may also, from time to time, be involved with legal
    actions related to the acquisition of and affiliation with
    physician practices, the prior conduct of such practices, or the
    employment (and restriction on competition of ) physicians.
    There can be no assurance any costs or liabilities for which the
    Company becomes responsible in connection with such claims or
    actions will not be material or will not exceed the limitations
    of any applicable indemnification provisions or the financial
    resources of the indemnifying parties. During 2009, the Company
    received a claim for a refund in the amount of $0.2 million
    related to payments received for services provided. The Company
    believes that the claim is without merit and intends to
    vigorously defend its position. The ultimate outcome of this
    claim cannot presently be determined, however in
    Management's opinion, the likelihood of a material adverse
    outcome is remote.
F-23
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Accordingly, adjustments, if any, that might result from the
    resolution of this matter have not been reflected in the
    consolidated financial statements as of December 31, 2009.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Employment Agreements
:
The Company has
    employment agreements with its executive officers and certain
    physician employees, the terms of which expire at various times
    through December 2014. Such agreements provide for minimum
    salary levels that may be adjusted annually for
cost-of-living
changes, and may contain incentive bonuses that are payable if
    specified management goals are attained. Under certain of the
    agreements, in the event employment is terminated (other than
    voluntarily by the employee or the Company for cause or upon the
    death of the employee), the Company is committed to pay certain
    benefits, including specified monthly severance for periods from
    six months to two years from the date of termination. Certain
    employment agreements were modified in 2008 for the equity
    incentive awards described in Note 13.
Self-Insured Health Benefits
:
Effective
    June 1, 2009, the Company began providing health care
    benefits to the majority of its employees through a partially
    self-insured plan. The Company records its estimate of the
    ultimate cost of, and reserves for, health care benefits based
    on computations using the Company's loss history as well as
    industry statistics. In determining its reserves, the Company
    includes reserves for estimated claims incurred but not
    reported. The amount reserved for estimated claims was
    $0.8 million as of December 31, 2009. The ultimate
    cost of health care benefits will depend on actual costs
    incurred to settle the claims and may differ from the amounts
    reserved by the Company for those claims.
Operating Leases
:
The Company leases
    various office and medical laboratory facilities and equipment
    under non-cancelable lease agreements with terms ranging from
    two to ten years and expiring through April 2017. The terms of
    some of the facility leases call for the Company to pay for
    certain taxes or common utility charges. Rent expense including
    these taxes and common utility charges was $1.1 million,
    $2.5 million, and $2.7 million for the years ended
    December 31, 2007, 2008, and 2009, respectively. Rent
    expense associated with operating leases that include scheduled
    rent increases and tenant incentives are recorded on a
    straight-line basis over the term of the lease.
Aggregate future minimum annual rentals under the lease
    agreements as of December 31, 2009 are as follows (in
    thousands):
Year Ending
December 31,
2010
$
2,389
2011
2,300
2012
1,974
2013
1,657
2014
1,239
Thereafter
6,219
$
15,778
F-24
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
Note 11.
Fair
    Value of Financial Instruments
Recurring
    Fair Value Measurements
The fair value of the Company's interest rate swap
    agreements was recorded as a liability of approximately
    $2.6 million and $0.1 million, as of December 31,
    2008 and 2009, respectively. The interest rate swap is the only
    derivative financial instrument. The fair value of the
    derivative instrument was estimated by obtaining quotations from
    the financial institution that is a counter party to the
    instrument. The LIBOR swap rate is observable at commonly quoted
    intervals for the full term of the swap and therefore is
    considered a Level 2 item. The fair value is an estimate of
    the net amount that the Company would have to pay on
    December 31, if the agreements were canceled or transferred
    to other parties.
Non-Recurring
    Fair Value Measurements
Certain assets that are measured at fair value on a
    non-recurring basis, including property and equipment and
    intangible assets, are adjusted to fair value only when the
    carrying values are greater than their fair values. As described
    in Note 5, Goodwill and Intangible Assets, the Company
    completed its annual impairment evaluation and recorded a write
    off of goodwill and intangibles related to one reporting unit to
    reflect its current estimated fair value. The fair value was
    derived with fair value models utilizing unobservable inputs
    that therefore is considered a Level 3 item.
As of December 31, 2008 and 2009 the carrying amounts of
    cash, accounts receivable, accounts payable, accrued interest
    and accrued expenses approximate fair value based on the short
    maturity of these instruments.
2008
2009
Long-term debt (including current portion of long-term debt)
$
228,716
$
217,750
The Company uses quoted market prices and yields for the same or
    similar types of borrowings in active markets when available to
    determine the fair value of the Company's debt. The fair
    values of all other debt were estimated using the present value
    of expected future cash flows which incorporates the
    Company's risk profile. These fair values are considered
    Level 2 items.
Note 12.
Income
    Taxes
The provision for income taxes for certain of the Company's
    subsidiaries structured as corporations for the years ended
    December 31, 2007, 2008 and 2009 consist of the following
    (in thousands):
2007
2008
2009
Current:
Federal
$
1,496
$
1,143
$
1,074
State
151
359
539
Total current provision
1,647
1,502
1,613
Deferred:
Federal
(885
)
(1,053
)
(1,458
)
State
—
(41
)
(110
)
Total deferred benefit
(885
)
(1,094
)
(1,568
)
Total provision for income taxes
$
762
$
408
$
45
F-25
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
A reconciliation of the provision for income taxes with amounts
    determined by applying the statutory U.S. federal income
    tax rate to income before income taxes for four of the
    Company's subsidiaries structured as corporations consists
    primarily of state income taxes and permanent differences.
The following is a summary of the Company's deferred tax
    assets and liabilities as of December 31, 2008 and 2009,
    respectively (in thousands):
2008
2009
Accrued wages
$
18
$
25
Allowance for doubtful accounts
1,586
1,809
Acquisition related liability
495
192
Current deferred tax assets:
$
2,099
$
2,026
Noncurrent deferred tax assets:
Acquisition related liability
223
9
Noncurrent deferred tax liabilities:
Property and equipment
(163
)
(225
)
Change from cash to accrual basis of accounting by the
    businesses acquired
(783
)
(517
)
Intangible assets acquired
(9,652
)
(9,457
)
Noncurrent deferred tax liabilities, net
$
(10,375
)
$
(10,190
)
Total deferred tax liabilities, net
$
(8,276
)
$
(8,164
)
Note 13.
Equity
    Based Compensation
During 2008, the Company issued equity incentive units
    ("Units") in accordance with the new Equity Incentive
    Plan. The units represent the right of the holder to receive a
    portion of proceeds in the event of liquidation of the company
    as defined in the LLC Agreement. The 10,000 units issued in
    July 2008 were fully vested as of December 31, 2008. The
    units have no exercise price and no expiration. Compensation
    cost of $1.2 million has been recognized in the results of
    operations as of December 31, 2008. The weighted average
    value is $120 per unit. During 2009, no equity incentive units
    were issued or forfeited.
Note 14.
Defined
    Contribution Plan
Effective March 1, 2007, the Company established a salary
    deferral plan under Section 401(k) of the Internal Revenue
    Code. The plan allows eligible employees to defer up to 100% of
    their compensation in accordance with IRS guidelines. Such
    deferrals accumulate on a tax deferred basis until the employee
    withdraws the funds. The Company is required to match a portion
    of the employees' contribution. For 2007, 2008 and 2009,
    the rate of Company match was 25%, up to $1,000 per
    participating employee. Total expense recorded for the
    Company's match was $0.06 million for 2007,
    $0.1 million for 2008 and $0.1 million for 2009. Also,
    in connection with certain acquisitions, the Company assumed the
    responsibility under certain defined contribution plans. Total
    expense recorded for the Company's match to these plans was
    $0.4 million for 2007, $0.06 million for 2008 and
    $0.08 million for 2009.
Note 15.
Subsequent
    Events
On March 12, 2010, the Company issued Class Z capital
    to existing members for total consideration of
    $8.5 million. In the event the Company completes a
    qualifying capital raise or debt refinancing within six months,
    the Class Z interests will receive a preferred return equal
    to the members' initial contribution plus interest.
    Interest
F-26
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Notes to Consolidated Financial Statements —
    (Continued)
accrues at an annual rate of 12% for the first three months and
    16% for the next three months and is payable upon a qualifying
    capital raise or debt refinancing. In the event the Company does
    not complete a qualifying capital raise or debt refinancing
    within six months, the Class Z membership interests will
    convert to
Class A-1
membership interests at the same valuation as the original
Class A-1
membership interests.
Subsequent to year end, the Company paid contingent note amounts
    of $6.3 million related to acquisitions completed prior to
    January 1, 2009. These contingent note payments resulted in
    increases to goodwill.
On January 1, 2010, the Company acquired 100% of the equity
    of two pathology practices for an aggregate cash purchase price
    of $17.0 million. These acquisitions were consummated on
    January 1, 2010 and therefore, the cash paid totaling
    $17.0 million was included in Deposits and other
    non-current assets as of December 31, 2009. On
    March 12, 2010 the Company acquired 100% of the membership
    interests of a pathology practice for an aggregate cash purchase
    price of $22.5 million. In each transaction, the Company
    issued contingent consideration payable over three to five years
    based on the acquirees' future performance. The maximum
    amount of the deferred contingent cash consideration is
    $32.8 million payable over three to five years. The Company
    funded the cash portion of the acquisitions using
    $31.0 million cash primarily related to
Class A-1
member contributions and an additional $8.5 million related
    to Class Z member contributions. The Company will estimate
    the fair value of the contingent consideration and record a
    related liability as of the date of each acquisition, once the
    estimated fair values of the assets acquired and liabilities
    assumed in connection with these acquisitions are finalized.
F-27
Table of Contents
Independent
    Auditor's Report
To the Members
Aurora Diagnostics Holdings, LLC
Palm Beach Gardens, Florida
We have audited the accompanying consolidated balance sheet of
    South Texas Dermatopathology Laboratory, P.A. and Subsidiaries
    as of November 20, 2009, and the related consolidated
    statement of operations, stockholders' equity and cash
    flows for the period from January 1, 2009 to
    November 20, 2009. These financial statements are the
    responsibility of the Company's management. Our
    responsibility is to express an opinion on these financial
    statements based on our audit.
We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of South Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries as of November 20, 2009, and the results of
    their consolidated operations and their cash flows for the
    period from January 1, 2009 to November 20, 2009 in
    conformity with accounting principles generally accepted in the
    United States of America.
West Palm Beach, Florida
April 9, 2010
F-28
Table of Contents
South
    Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries
Consolidated
    Balance Sheet
November 20, 2009
($ in thousands)
Assets
Current Assets
Cash
$
162
Accounts receivable, net
563
Cash surrender value of life insurance
195
Other assets
67
Total current assets
987
Property and Equipment, net
1,034
$
2,021
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable
$
967
Accounts payable
14
Accrued compensation
205
Income tax payable
139
Deferred tax liabilities, current portion
143
Total current liabilities
1,468
Deferred Income Taxes, less current portion
321
Commitments and Contingencies
Stockholders' Equity
Common Shares, $1 par value per share, 100,000 shares
    authorized and 1,000 shares issued and outstanding
1
Additional paid-in capital
3
Retained earnings
228
Total stockholders' equity
232
$
2,021
See Notes to Consolidated Financial Statements.
F-29
Table of Contents
South
    Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries
Consolidated
    Statement of Operations
For the Period From January 1, 2009
    through November 20, 2009
($ in thousands)
Net Revenues
$
7,328
Operating costs and expenses:
Cost of services
5,127
Selling, general and administrative expenses
1,482
Depreciation expense
73
Total operating costs and expenses
6,682
Income from operations
646
Interest expense
(52
)
Income before income taxes
594
Provision for income taxes
215
Net income
$
379
See Notes to Consolidated Financial Statements.
F-30
Table of Contents
South
    Texas Dermatopathology Laboratory, P.A. and
    Subsidiaries
Consolidated
    Statement of Stockholders' Equity
For the Period From January 1, 2009
    through November 20, 2009
Common Stock
Outstanding
Additional
Total
Par
Paid-In
Retained
Shareholders'
Shares
Value
Capital
Earnings
Equity
($ in thousands, except shares)
Balance, December 31, 2008
1,000
$
1
$
3
$
(151
)
$
(147
)
Net income
—
—
—
379
379
Balance, November 20, 2009
1,000
$
1
$
3
$
228
$
232
See Notes to Consolidated Financial Statements.
F-31
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and
    Subsidiaries
Consolidated
    Statement of Cash Flows
For the period from January 1, 2009
    through November 20, 2009
($ in thousands)
Cash Flows From Operating Activities
Net income
$
379
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation
73
Deferred income taxes
66
Changes in assets and liabilities:
Increase in:
Accounts receivable
(81
)
Other assets
(46
)
Increase in:
Income tax payable
139
Accounts payable
14
Accrued compensation
22
Net cash provided by operating activities
566
Cash Flows From Investing Activities
Purchase of property and equipment
(54
)
Net cash used in investing activities
(54
)
Cash Flows From Financing Activities
Repayment of debt
(412
)
Net cash used in financing activities
(412
)
Net increase in cash
100
Cash:
Beginning
62
Ending
$
162
Supplemental Disclosures of Cash Flow Information
Cash interest payments
$
52
Cash tax payments
$
10
See Notes to Consolidated Financial Statements.
F-32
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries
Notes
    to Consolidated Financial Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
South Texas
    Dermatopathology Laboratory, P.A. (the "Company") was
    organized in the State of Texas as a professional business
    corporation in 1983, to operate as a pathology laboratory
    company.
The Company engages in the business of providing anatomic
    pathology and cytology services to physicians.
A summary of the Company's significant accounting policies
    follows:
Principles of Consolidation
:
The
    accompanying consolidated financial statements of the Company
    include the accounts of South Texas Dermatopathology Laboratory,
    P.A., S&D Texas Holdings, LLC, and STD Capital, L.P. All
    accounts and transactions between the entities have been
    eliminated in consolidation.
S & D Texas Holdings, LLC ("S &
    D") has been consolidated based on S & D being a
    variable interest entity ("VIE") and the Company being
    the primary beneficiary. S & D owns commercial real
    estate in Texas which is held for lease. Accounting principles
    generally accepted in the United States of America requires an
    entity to consolidate a VIE under certain conditions having to
    do with the VIE's activities, related risks and rewards,
    and the equity investment of its owners. Management of the
    Company has determined that the conditions requiring
    consolidation of a VIE have been met. As of November 20,
    2009, total assets and total liabilities of S & D were
    approximately $925,000 and approximately $1,057,000,
    respectively. The Company will reconsider its determination of
    whether an entity is a VIE and who the primary beneficiary is if
    certain events occur that are likely to cause a change in the
    original determinations.
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair value of Financial Instruments
:
On
    January 1, 2008, the Company adopted a new standard related
    to the accounting for financial assets and liabilities and items
    that are recognized or disclosed at fair value in the financial
    statements on a recurring basis, at least annually.
On January 1, 2009, the Company adopted authoritative
    guidance for its nonfinancial assets and liabilities that are
    measured at fair value on a nonrecurring basis. The adoption of
    the guidance did not materially impact the Company's
    disclosure requirements.
In August 2009, the Financial Accounting Standards Board
    ("FASB") issued an amendment to the accounting
    standards related to the measurement of liabilities that are
    recognized or disclosed at fair value.
This standard clarifies how a company should measure the fair
    value of liabilities and that restrictions preventing the
    transfer of a liability should not be considered as a factor in
    the measurement of liabilities within the scope of this
    standard. This standard became effective October 1, 2009.
    The adoption of this standard did not have a material impact on
    the Company's consolidated financial statements.
The fair value accounting standards clarify the definition of
    fair value, prescribes methods for measuring fair value,
    establishes a fair value hierarchy based on the inputs used to
    measure fair value, and expands disclosures about fair value
    measurements. The three-tier fair value hierarchy, which
    prioritizes the inputs used in the valuation methodologies, is
    described below with Level 1 having the highest priority
    and Level 3 having the lowest.
Level 1:
Quoted prices in active markets
    for identical assets or liabilities.
Level 2:
Quoted prices for similar assets
    or liabilities in active markets, quoted prices for identical or
    similar instruments in markets that are not active, and
    model-derived valuations in which all significant inputs are
    observable in active markets.
F-33
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries
Notes to
    Consolidated Financial
    Statements — (Continued)
Level 3:
Valuations derived from
    valuation techniques in which one or more significant inputs are
    unobservable.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ended November 20, 2009, Medicare and BlueCross/Blue Shield
    provided approximately 45% and 18% of the Company's net
    revenues, respectively.
Cash
:
The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation's ("FDIC"). These amounts
    are guaranteed by the FDIC up to $250,000 as of
    November 20, 2009. The Company has not experienced any
    losses on such accounts.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 39 years.
Income Taxes
:
Deferred taxes are
    provided on the liability method whereby deferred tax assets are
    recognized for deductive temporary differences, and deferred tax
    liabilities are recognized for taxable temporary differences.
    Temporary differences are the differences between the reported
    amounts of assets and liabilities and their tax bases. Deferred
    tax assets are reduced by a valuation allowance when, in the
    opinion of management, it is more likely than not that some
    portion of all of the deferred tax assets will be realized.
    Deferred tax assets and liabilities are adjusted for the effects
    of changes in taxes laws and rates on the date of enactment. The
    Company does not recognize a tax benefit, unless the Company
    concludes that it is more likely than not that the benefit will
    be sustained on audit by the taxing authority based solely on
    the technical merits of the associated tax position. If the
    recognition threshold is met, the Company recognizes a tax
    benefit measured at the largest amount of the tax benefit that
    the Company believes is greater than 50% likely to be realized.
    The Company records interest and penalties in income tax expense.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company's payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
New Accounting Standards
:
Effective
    June 30, 2009, the Company adopted a newly issued
    accounting standard related to accounting for and disclosure of
    subsequent events in its consolidated financial statements. This
    standard provides the authoritative guidance for subsequent
    events that was previously addressed only in United States
    auditing standards. This standard establishes general accounting
    for and disclosure of events that occur after the balance sheet
    date but before financial statements are issued or are available
    to be issued and requires the Company to disclose that it has
    evaluated subsequent events through the date of the filing or
    issue date. This standard does not apply to subsequent events or
    transactions that are within the scope of other applicable GAAP
    that
F-34
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries
Notes to
    Consolidated Financial
    Statements — (Continued)
provide different guidance on the accounting treatment for
    subsequent events or transactions. The adoption of this standard
    did not have a material impact on the Company's
    consolidated financial statements.
In June 2009, the FASB issued the FASB Accounting Standards
    Codification (the "ASC"). The ASC has become the
    single source of non-governmental accounting principles
    generally accepted in the United States of America
    ("GAAP") recognized by the FASB in the preparation of
    financial statements. The Company adopted the ASC as of
    July 1, 2009. The ASC does not change GAAP and did not have
    an effect on the Company's consolidated financial position,
    results of operations or cash flows.
In June 2009, the FASB issued new accounting guidance on when an
    entity should be included in consolidated financial statements.
    The new guidance amends the evaluation criteria to identify the
    primary beneficiary of a variable interest entity, or
    "VIE," and requires ongoing reassessment of whether an
    enterprise is the primary beneficiary of the VIE. The new
    guidance significantly changes the consolidation rules for VIEs
    including the consolidation of common structures, such as joint
    ventures, equity-method investments, and collaboration
    arrangements. The guidance is applicable to all new and existing
    VIEs. This standard is effective for the Company as of
    January 1, 2010 and the Company does not expect the impact
    of its adoption to be material to its consolidated financial
    statements.
Subsequent Events
:
The Company has
    evaluated all subsequent events through April 9, 2010, the
    date of issuance of the consolidated financial statements.
Note 2.
Accounts
    Receivable
Accounts receivable consist of the following as of
    November 20, 2009 (in thousands):
Accounts receivable and unbilled receivables
$
843
Less: allowance for bad debt
(280
)
Accounts receivable, net
$
563
Note 3.
Property
    and Equipment
Property and equipment as of November 20, 2009 consist of
    the following (in thousands):
Estimated Useful
Life (Years)
Buildings and improvements
5 – 39
$
954
Vehicles
5 – 7
31
Furniture and fixtures
7
158
Laboratory, office and data processing equipment
3 – 5
631
Software
3
47
1,821
Less accumulated depreciation
(984
)
837
Land
197
$
1,034
Depreciation expense was approximately $73,000 for the period
    from January 1, 2009 to November 20, 2009.
F-35
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries
Notes to
    Consolidated Financial
    Statements — (Continued)
Note 4.
Notes
    Payable
On April 25, 2005, the Company entered into a mortgage note
    for the purchase of its building and land. The agreement was
    collateralized by substantially all of the Company's assets
    and guaranteed by owners of the Company. Interest was paid in
    arrears at 5.5%, and the note's original maturity date was
    April 25, 2020. In December 2009, the physician employee
    stockholders paid off the mortgage note in full.
Note 5.
Related
    Party Transactions
The Company has employment agreements with certain of its
    stockholders who are physician employees which expire at various
    times. Bonuses are discretionary and are based upon the
    reasonable value of the physicians' contribution. Under
    certain of the agreements, in the event employment is terminated
    due to death, retirement or disability, the employee will
    receive an additional compensation for up to 60 days. For
    the period from January 1, 2009 through November 20,
    2009, the Company paid salaries and bonuses to stockholders who
    are physician employees of approximately $1.24 million and
    $2.16 million, respectively.
Note 6.
Commitments
    and Contingencies
During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company's medical malpractice
    insurance coverage will be adequate to cover any such liability.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Note 7.
Fair
    Value of Financial Instruments
Certain assets that are measured at fair value on a
    non-recurring basis, including property and equipment are
    adjusted to fair value only when the carrying values are greater
    than their fair values.
As of November 20, 2009 the carrying amounts of cash,
    accounts receivable, accounts payable, and accrued compensation
    approximate their fair value based on the short maturity of
    these instruments.
F-36
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries
Notes to
    Consolidated Financial
    Statements — (Continued)
Note 8.
Income
    Taxes
The provision for income taxes for the period ended
    November 20, 2009 consists of the following (in thousands):
Current:
Federal
$
139
State
10
Total current provision
149
Deferred:
Federal
65
State
1
Total deferred benefit
66
Total provision for income taxes
$
215
Temporary differences between the financial statement carrying
    amounts and tax basis of assets and liabilities that give rise
    to significant portions of the deferred tax assets and
    liabilities are summarized below as of November 20, 2009:
Accrued wages
$
72
Allowance for doubtful accounts
(197
)
Other
(18
)
Current deferred tax liabilities, net
(143
)
Non current deferred tax liabilities:
Property and equipment
$
(321
)
Noncurrent deferred tax liabilities, net
—
(321
)
Total deferred tax liabilities, net
$
(464
)
Note 9.
Employee
    Benefit Plan
The Company has a profit sharing 401(k) Plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. Contributions are based on the sole discretion
    of the Company. During the year ended November 20, 2009,
    the Company contributed approximately $4,500 to the plan on
    behalf of its employees.
F-37
Table of Contents
South
    Texas Dermatopathology, Laboratory P.A. and Subsidiaries
Notes to
    Consolidated Financial
    Statements — (Continued)
Note 10.
Cash
    Surrender Value Life Insurance
The Company purchased insurance on the lives of its two
    physician stockholders. As beneficiary, the Company receives the
    cash surrender value if the policy is terminated and, upon death
    of the insured, receives all of the benefits payable. The cash
    value of the life insurance policies was approximately $195,000
    as of November 20, 2009. Subsequent to November 2009, the
    policies were terminated and the cash surrender value was
    distributed to the physician employee stockholders.
Note 11.
Subsequent
    Event
On November 20, 2009, the Company was acquired from its
    stockholders by Aurora Diagnostics Holdings, LLC.
F-38
Table of Contents
Independent
    Auditor's Report
To the Members
Aurora Diagnostics Holdings, LLC
Palm Beach Gardens, Florida
We have audited the accompanying balance sheets of Twin Cities
    Dermatopathology, P.A. as of March 7, 2008 and
    December 31, 2007, and the related statements of
    operations, stockholder's equity, and cash flows for the
    period from January 1, 2008 through March 7, 2008 and
    for the year ended December 31, 2007. These financial
    statements are the responsibility of the Company's
    management. Our responsibility is to express an opinion on these
    financial statements based on our audits.
We conducted our audits in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of Twin Cities Dermatopathology, P.A. as of March 7, 2008
    and December 31, 2007 and, the results of its operations
    and its cash flows for the period January 1, 2008 through
    March 7, 2008 and for the year then ended December 31,
    2007 in conformity with accounting principles generally accepted
    in the United States of America.
West Palm Beach, Florida
April 9, 2010
F-39
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Balance
    Sheets
March 7, 2008
December 31,
    2007
($ in thousands)
Assets
Current Assets
Cash
$
892
$
1,413
Accounts receivable, net
620
565
Prepaid expenses
9
9
Total current assets
1,521
1,987
Property and Equipment, net
106
95
$
,1,627
$
2,082
Liabilities and Stockholder's Equity
Current Liabilities
Accounts payable
$
81
$
53
Accrued compensation
249
228
Total current liabilities
330
281
Stockholder's Equity
Common Shares, $ .01 par value per share, 5,000 shares
    authorized and 500 shares issued and outstanding
—
—
Retained earnings
1,297
1,801
Total stockholder's equity
1,297
1,801
$
1,627
$
2,082
See Notes to Financial Statements.
F-40
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Statements of Operations
Period from January 1, 2008 through March 7, 2008
and For the Year Ended December 31, 2007
January 1, 2008
Through
Year Ended
March 7, 2008
December 31,
    2007
($ in thousands)
Net Revenues
$
1,293
$
8,409
Operating costs and expenses:
Cost of services
562
2,633
Selling, general and administrative expenses
98
411
Depreciation expense
7
88
Total operating costs and expenses
667
3,132
Income from operations
626
5,277
Interest income
3
23
Net income
$
629
$
5,300
See Notes to Financial Statements.
F-41
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Statement of Stockholder's
    Equity
For the period from January 1, 2008 through March 7,
    2008
and For the Year Ended December 31, 2007
Common Stock Outstanding
Total
Par
Retained
Stockholder's
Shares
Value
Earnings
Equity
($ in thousands, except shares)
Balance, December 31, 2006
500
$
—
$
1,550
$
1,550
Distributions
—
—
(5,049
)
(5,049
)
Net income
—
—
5,300
5,300
Balance, December 31, 2007
500
—
1,801
1,801
Distributions
—
—
(1,133
)
(1,133
)
Net income
—
—
629
629
Balance, March 7, 2008
500
$
—
$
1,297
$
1,297
See Notes to Financial Statements.
F-42
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Statements of Cash Flows
For the period from January 1, 2008 through March 7,
    2008
and For the Year Ended December 31, 2007
January 1, 2008
Through
Year Ended
March 7, 2008
December 31,
    2007
($ in thousands)
Cash Flows From Operating Activities
Net income
$
629
$
5,300
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation
7
88
Allowance for bad debt
67
16
Changes in assets and liabilities:
(Increase) Decrease in:
Accounts receivable
(122
)
(11
)
Prepaid expenses
—
8
Increase in:
Accounts payable
28
20
Accrued compensation
21
32
Net cash provided by operating activities
630
5,453
Cash Flows From Investing Activities
Purchase of property and equipment
(18
)
(42
)
Net cash used in investing activities
(18
)
(42
)
Cash Flows From Financing Activities
Distributions
(1,133
)
(5,049
)
Net cash used in financing activities
(1,133
)
(5,049
)
Net increase (decrease) in cash
(521
)
362
Cash, beginning
1,413
1,051
Cash, ending
$
892
$
1,413
See Notes to Financial Statements.
F-43
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Notes
    to Financial Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
Twin Cities
    Dermatopathology, P.A. (the "Company") was organized
    in the State of Minnesota as a professional business corporation
    in January 1990 to operate as a pathology laboratory.
The Company engages in the business of providing anatomic
    pathology and cytology services to physicians in the state of
    Minnesota.
A summary of the Company's significant accounting policies
    follows:
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair value of Financial
    Instruments
:
The Company's financial
    instruments consist mainly of cash, accounts receivable, and
    accounts payable. The carrying amounts of the Company's
    cash, accounts receivable, and accounts payable approximate fair
    value due to the short-term nature of these instruments.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ended March 7, 2008 and year ended December 31, 2007,
    Medicare provided 15% and 20% of net revenues, respectively, and
    Blue Cross/Blue Shield, provided 15% of net revenues in each
    period, respectively.
Cash
:
The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest-bearing accounts with a
    financial institution that guaranteed by the Federal Deposit
    Insurance Corporation's ("FDIC") up to $100,000
    as of March 7, 2008. The Company has not experienced any
    losses on such accounts.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 10 years.
    Leasehold improvements are amortized over the shorter of the
    term of the related lease, or the useful life of the asset.
Income Taxes
:
The Company is a
    subchapter S Corporation for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes. The income attributable to the Company
    is distributed to the stockholder.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company's payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
F-44
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Notes to
    Financial Statements — (Continued)
Recent Accounting Pronouncements
:
In
    July 2006, the FASB issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes — an
    interpretation of FASB Statement 109
("FIN 48").
    FIN 48 clarifies the accounting for uncertainty in income
    taxes recognized in an enterprise's financial statements in
    accordance with SFAS 109,
Accounting for Income
    Taxes
. FIN 48 prescribes a comprehensive model for
    recognizing, measuring, presenting and disclosing in the
    financial statements tax positions taken or expected to be taken
    on a tax return. If there are changes in net assets as a result
    of application of FIN 48, these will be accounted for as an
    adjustment to the opening balance of retained earnings.
    Additional disclosures about the amounts of such liabilities
    will also be required. In October 2008, the FASB delayed the
    effective date of FIN 48 for certain nonpublic enterprises
    to annual financial statements for fiscal years beginning after
    December 15, 2008. The Company was not required to adopt
    FIN 48 for these financial statements. The Company does not
    expect the adoption of this statement will materially impact its
    financial statements.
In September 2006, Statement of Financial Accounting Standards
    No. 157,
Fair Value Measurements
("SFAS 157") applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS 157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position ("FSP")
No. 157-2,
Effective Date of FASB Statement No. 157
, which
    deferred the effective date of SFAS 157 for one year for
    non-financial assets and non-financial liabilities, except for
    items recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November 15, 2008.
SFAS 157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
a.
Level 1:
Quoted market prices in
    active markets for identical assets or liabilities.
b.
Level 2:
Observable market based
    inputs or unobservable inputs corroborated by market data.
c.
Level 3:
Unobservable inputs not
    corroborated by market data.
The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
Note 2.
Accounts
    Receivable
Accounts receivable consist of the following as of (in
    thousands):
March 7, 2008
December 31,
    2007
Accounts receivable and unbilled receivables
$
818
$
696
Less: allowance for bad debts
(198
)
(131
)
Accounts receivable, net
$
620
$
565
F-45
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Notes to
    Financial Statements — (Continued)
Note 3.
Property
    and Equipment
Property and equipment consist of the following as of (in
    thousands):
Estimated Useful
March 7,
December 31,
Life (Years)
2008
2007
Laboratory, office and data processing equipment
5
$
686
$
669
Leasehold improvements
10
34
34
Furniture and fixtures
5
70
69
Software
3
181
181
971
953
Less accumulated depreciation
(865
)
(858
)
$
106
$
95
Depreciation expense was approximately $7,000 for the period
    from January 1, 2008 to March 7, 2008 and $88,000 for
    the year ended December 31, 2007.
Note 4.
Related
    Party Transactions
The Company has an employment agreement with its sole
    stockholder, who is also a physician employee, the terms of
    which renew automatically for consecutive twelve-month periods.
    The agreement provides for a minimum salary level, adjusted
    annually for
cost-of-living
changes. For the period from January 1, 2008 through
    March 7, 2008 and year ended December 31, 2007, the
    Company paid salaries of approximately $67,000 and $373,000,
    respectively, under this agreement.
Note 5.
Commitments
    and Contingencies
During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company's medical malpractice
    insurance coverage will be adequate to cover any such liability.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Operating Leases
:
The Company leases
    office and medical laboratory facilities and equipment under
    non-cancelable lease agreements with terms ranging from two to
    ten years and expiring through 2011. The terms of some of the
    facility leases call for the Company to pay for certain taxes or
    common utility charges. Rent expense including these taxes and
    common utility charges was approximately $9,200 for the period
    from January 1, 2008 through March 7, 2008 and $55,000
    for the year ended December 31, 2007. Rent expense
    associated with operating leases that include scheduled rent
    increases and tenant incentives is recorded on a straight-line
    basis over the term of the lease.
F-46
Table of Contents
Twin
    Cities Dermatopathology, P.A.
Notes to
    Financial Statements — (Continued)
Aggregate future minimum annual rentals under the lease
    agreements are as of March 7, 2008 are as follows (in
    thousands):
2009
$
55
2010
55
2011
55
2012
14
$
179
Note 6.
Employee
    Benefit Plan
The Company has a defined contribution plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The Company may elect to make a matching contribution based on a
    percentage determined by the Company of the employee's
    annual elective contributions or a percentage of the
    employee's annual compensation. The Company contributed
    approximately $1,200 and $114,000 for the period from
    January 1, 2008 to March 7, 2008 and for the year
    ended December 31, 2007, respectively, to the plan.
Note 7.
Subsequent
    Events
On March 7, 2008, the Company was acquired from its
    stockholder by Aurora Diagnostics Holdings, LLC.
F-47
Table of Contents
Independent
    Auditor's Report
To the Members
Aurora Diagnostics Holdings, LLC
Palm Beach Gardens, Florida
We have audited the accompanying balance sheet of Laboratory
    Medicine Consultants, LTD. (the "Company") as of
    December 10, 2007, and the related statement of operations
    and stockholders' deficit and cash flows for the period
    from January 1, 2007 to December 10, 2007. These
    financial statements are the responsibility of the
    Company's management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of Laboratory Medicine Consultants, LTD. as of December 10,
    2007, and the results of its operations and its cash flows for
    the period from January 1, 2007 to December 10, 2007
    in conformity with accounting principles generally accepted in
    the United States of America.
West Palm Beach, Florida
April 9, 2010
F-48
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Balance
    Sheet
December 10, 2007
($ in thousands)
Assets
Current Assets
Cash
$
56
Accounts receivable, net
3,258
Total current assets
3,314
Property and Equipment, net
490
Deferred Tax Assets
2,308
$
6,112
Liabilities and Members' Equity
Current Liabilities
Notes payable
$
—
Accounts payable
309
Post employment obligation, current portion
1,888
Accrued compensation
150
Income taxes payable
51
Deferred tax liabilities
951
Total current liabilities
3,349
Post employment obligation, less current portion
5,146
Commitments and Contingencies
Stockholders' Deficit
Common Shares, $10.00 par value, 3,225 shares
    authorized;
25
2,500 shares issued and outstanding
Retained earnings
(2,408
)
Total stockholders' deficit
(2,383
)
$
6,112
See Notes to Financial Statements.
F-49
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Statement
    of Operations
For the period from January 1, 2007 through
    December 10, 2007
($ in thousands)
Net Revenues
$
17,562
Operating costs and expenses:
Cost of services
14,272
Selling, general and administrative expenses
1,314
Depreciation expense
191
Total operating costs and expenses
15,777
Income from operations
1,785
Interest expense
14
Income before income taxes
1,771
Provision for income taxes
650
Net income
$
1,121
See Notes to Financial Statements.
F-50
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Statement
    of Stockholders' Deficit
For the period from January 1, 2007 through
    December 10, 2007
Common Stock
Outstanding
Par
Accumulated
Total Stockholders'
Shares
Value
Deficit
Deficit
($ in thousands, except shares)
Balance, December 31, 2006
2,500
$
25
$
(3,529
)
$
(3,504
)
Net income
—
—
1,121
1,121
Balance, December 10, 2007
2,500
$
25
$
(2,408
)
$
(2,383
)
See Notes to Financial Statements.
F-51
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Statement
    of Cash Flows
For the period from January 1, 2007 through
    December 10, 2007
($ in thousands)
Cash Flows From Operating Activities
Net income
$
1,121
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation
191
Deferred income taxes
599
Changes in assets and liabilities:
Increase in:
Accounts receivable
411
Increase (decrease) in:
Accounts payable
(636
)
Post employment obligation
(687
)
Accrued compensation
(123
)
Income taxes payable
51
Net cash provided by operating activities
927
Cash Flows From Investing Activities
Purchase of property and equipment
(99
)
Net cash used in investing activities
(99
)
Cash Flows From Financing Activities
Repayment of notes payable
(908
)
Net cash used in financing activities
(908
)
Net decrease in cash
(80
)
Cash:
Beginning
136
Ending
$
56
Supplemental Disclosures of Cash Flow Information
Cash interest payments
$
14
Cash tax payments
$
—
See Notes to Financial Statements.
F-52
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Notes
    to Financial Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
The Company is an
    independent multi-specialty anatomic and clinical pathology
    laboratory located in Las Vegas, Nevada. As an independent
    laboratory, in operation since 1969, the Company serves
    independent physicians and hospitals throughout Nevada.
The Company is organized under Nevada law as a C corporation for
    tax purposes.
A summary of the Company's significant accounting policies
    follows:
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair Value of Financial
    Instruments
:
The Company's financial
    instruments consist mainly of cash, accounts receivable and
    accounts payable. The carrying amounts of the Company's
    cash, accounts receivable and accounts payable approximate fair
    value due to the short-term nature of these instruments.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending December 10, 2007, Medicare and Cigna provided 15%
    and 12% of the Company's net revenues, respectively.
Cash
:
The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation's ("FDIC"). These amounts
    are guaranteed by the FDIC up to $100,000 as of
    December 10, 2007. The Company has not experienced any
    losses on such accounts.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 5 to 8 years. Leasehold
    improvements are amortized over the shorter of the term of the
    related lease, or the useful life of the asset.
Income Taxes
:
Deferred taxes are
    provided on the liability method whereby deferred tax assets are
    recognized for deductive temporary differences, and deferred tax
    liabilities are recognized for taxable temporary differences.
    Temporary differences are the differences between the reported
    amounts of assets and liabilities and their tax bases. Deferred
    tax assets are reduced by a valuation allowance when, in the
    opinion of management, it is more likely than not that some
    portion of all of the deferred tax assets will be realized.
    Deferred tax assets and liabilities are adjusted for the effects
    of changes in taxes laws and rates on the date of enactment.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company's payors.
    While the Company has receivables due from federal and state
F-53
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Notes to
    Financial Statements — (Continued)
governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
Recent Pending Accounting
    Pronouncements
:
In July 2006, the FASB issued
    Interpretation No. 48,
Accounting for Uncertainty in
    Income Taxes — an interpretation of FASB Statement 109
("FIN 48"). FIN 48 clarifies the
    accounting for uncertainty in income taxes recognized in an
    enterprise's financial statements in accordance with
    SFAS 109,
Accounting for Income Taxes
. FIN 48
    prescribes a comprehensive model for recognizing, measuring,
    presenting and disclosing in the financial statements tax
    positions taken or expected to be taken on a tax return. If
    there are changes in net assets as a result of application of
    FIN 48, these will be accounted for as an adjustment to the
    opening balance of retained earnings. Additional disclosures
    about the amounts of such liabilities will also be required. In
    October 2008, the FASB delayed the effective date of FIN 48
    for certain nonpublic enterprises to annual financial statements
    for fiscal years beginning after December 15, 2008. The
    Company was not required to adopt FIN 48 for these
    financial statements. The Company does not expect the adoption
    of this statement will have a material impact on its financial
    statements.
In September 2006, the Statement of Financial Accounting
    Standards No. 157,
Fair Value Measurements
("SFAS 157"), applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS 157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position ("FSP")
No. 157-2,
Effective Date of FASB Statement No. 157
, which
    defers the effective date of SFAS 157 for one year for
    non-financial assets and non-financial liabilities, except for
    items recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November 15, 2008.
SFAS 157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
•
Level 1:
Quoted market prices in active
    markets for identical assets or liabilities.
•
Level 2:
Observable market based inputs
    or unobservable inputs corroborated by market data.
•
Level 3:
Unobservable inputs not
    corroborated by market data.
The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
Note 2.
Accounts
    Receivable
Accounts receivable as of December 10, 2007 consists of the
    following (in thousands):
Accounts receivable and unbilled receivables
$
4,863
Less: allowance for doubtful accounts
(1,605
)
Accounts receivable, net
$
3,258
F-54
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Notes to
    Financial Statements — (Continued)
Note 3.
Property
    and Equipment
Property and equipment as of December 10, 2007 consists of
    the following (in thousands):
Estimated Useful
Life (Years)
Laboratory, office and data processing equipment
5-7
$
1,138
Leasehold improvements
8
224
Furniture and fixtures
5
169
1,531
Less accumulated depreciation
(1,041
)
$
490
Depreciation expense was approximately $191,000 for the period
    ended December 10, 2007.
Note 4.
Post
    Employment Obligation
As of December 10, 2007, the Company has a salary
    continuation program with its four retired former stockholders
    and remaining active stockholders. Under the terms of the
    Company's Amended and Restated Stockholders Agreement, the
    stockholders, upon retirement, death or other specified events,
    are entitled to 25% of a full stockholder salary and
    distribution, 1.75% of the Company's adjusted gross annual
    revenues, health insurance, and malpractice "tail"
    insurance coverage for four years following retirement. The
    equity stockholders are eligible for the benefit after
    completing their sixth year as a stockholder and are fully
    vested after the tenth year. The Company calculates the present
    value of these future payments based on average stockholder
    salary and distribution levels, longevity and a discount rate
    (7.35% as of December 10, 2007). The Company accrued an
    aggregate of $7 million related to this post employment
    benefit as of December 10, 2007, of which $1.9 million
    is payable within one year.
Note 5.
Notes
    Payable
During the period ended December 10, 2007, the Company paid
    in full and terminated a $700,000 line of credit with a bank and
    a $207,872 commercial term loan. Total interest expense for the
    period ended December 10, 2007 was approximately $24,000.
    These debt agreements were secured by substantially all of the
    Company's assets.
Note 6.
Employee
    Benefit Plan
The Company has a defined contribution plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. The qualified matching contribution is the
    lesser of a percentage determined by the Company of the
    participant's elective contributions for that plan year or
    a percentage of the employee's compensation for that plan
    year. For the period ended December 10, 2007, the Company
    did not make any contributions towards the defined contribution
    plan.
Note 7.
Commitments
    and Contingencies
During the ordinary course of business, the Company has become
    and may in the future become subject to pending and threatened
    legal actions and proceedings. The Company may have liability
    with respect to its employees and its pathologists. Medical
    malpractice claims are generally covered by insurance. While the
    Company believes the outcome of any such pending legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the
F-55
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Notes to
    Financial Statements — (Continued)
Company is ultimately found liable under any medical malpractice
    claims, there can be no assurance the Company's medical
    malpractice insurance coverage will be adequate to cover any
    such liability.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Employment Agreements
:
The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels including various benefits, as well as for
    discretionary bonus compensations. Under certain of the
    agreements, in the event employment is terminated, the employee
    is entitled to receive only the compensation accrued but unpaid
    as of the date of termination. The Company paid bonuses of
    approximately $61,000 to its employees for the period ended
    December 10, 2007, under the agreements.
Self-Insured Health Benefits
:
During
    2007, the Company provided health care benefits to the majority
    of its employees through a partially self-insured plan. The
    Company records its estimate of the ultimate cost of, and
    reserves for, health care benefits based on computations using
    the Company's loss history as well as industry statistics.
    In determining its reserves, the Company includes reserves for
    estimated claims incurred but not reported. The amount reserved
    for estimated claims was $69,583 as of December 10, 2007
    which is included in accounts payable in the accompanying
    balance sheet. The ultimate cost of health care benefits will
    depend on actual costs incurred to settle the claims and may
    differ from the amounts reserved by the Company for those claims.
Operating Leases
:
The Company leases
    its laboratory and business office from an unrelated entity
    under a 20 year lease that began in October 2000 and ends
    on May 31, 2020. Rent expense including taxes and common
    utility charges was approximately $220,000 for the period ended
    December 10, 2007.
Aggregate future minimum annual rentals under the lease
    agreements as of December 10, 2007 are as follows (in
    thousands):
Year Ended
December 10,
2008
$
202
2009
202
2010
202
2011
202
2012
202
Thereafter
1,617
$
2,627
F-56
Table of Contents
Laboratory
    Medicine Consultants, LTD.
Notes to
    Financial Statements — (Continued)
Note 8.
Income
    Taxes
The provision for income taxes for the period ended
    December 10, 2007 consists of the following:
Current:
Federal
$
51
State
—
Total current provision
51
Deferred:
Federal
599
State
—
Total deferred provision
599
Total provision for income taxes
$
650
Temporary differences between the financial statement carrying
    amounts and tax basis of assets and liabilities that give rise
    to significant portions of the deferred tax assets and
    liabilities are summarized below as of December 10, 2007:
Allowance for doubtful accounts
$
(1,108
)
Accrued wages
75
Accounts payable
82
Current deferred tax liabilities, net
(951
)
Property and equipment
(84
)
Post-employment obligation
2,392
Noncurrent deferred tax assets, net
2,308
Total deferred tax assets, net
$
1,357
Note 9.
Subsequent
    Events
On December 10, 2007, the Company was acquired from its
    stockholders by Aurora Diagnostics Holdings, LLC. In conjunction
    with the sale to Aurora Diagnostics Holdings, LLC, the portion
    of the Company's post employment benefit program for active
    (non-retired) stockholders, and its related obligation of
    $3.3 million, was terminated.
Subsequent to December 10, 2007, the Company was notified
    of claims made by certain retired stockholders relating to the
    Company's post-employment benefit program and the sale of
    the Company to Aurora Diagnostics Holdings, LLC. The Company
    intends to vigorously defend its position. The ultimate outcome
    of this litigation cannot presently be determined. Accordingly,
    adjustments, if any, that might result from the resolution of
    this matter have not been reflected in the accompanying
    financial statements.
F-57
Table of Contents
Independent
    Auditor's Report
To the Members
Aurora Diagnostics Holdings, LLC
Palm Beach Gardens, Florida
We have audited the accompanying consolidated balance sheet of
    Greensboro Pathology Associates, P.A. and Subsidiary as of
    October 4, 2007, and the related consolidated statement of
    operations, stockholders' equity and cash flows for the
    period from January 1, 2007 to October 4, 2007. These
    financial statements are the responsibility of the
    Company's management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Greensboro Pathology Associates, P.A. and Subsidiary
    as of October 4, 2007, and the results of their operations
    and their cash flows for the period from January 1, 2007 to
    October 4, 2007 in conformity with accounting principles
    generally accepted In the United States of America.
West Palm Beach, Florida
April 9, 2010
F-58
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Consolidated
    Balance Sheet
October 4, 2007
($ in thousands)
Assets
Current Assets
Cash
$
2,386
Accounts receivable, net
4,069
Other assets
73
Total current assets
6,528
Property and Equipment, net
2,163
$
8,691
Liabilities and Stockholders' Equity
Current Liabilities
Note payable
$
2,566
Accounts payable
460
Accrued compensation
1,913
Total current liabilities
4,939
Commitments and Contingencies
Stockholders' Equity
Common Shares, $10.00 par value per share,
    10,000 shares authorized; 80 shares issued and
    outstanding
1
Additional paid-in capital
7
Retained earnings
3,744
Total stockholders' equity
3,752
$
8,691
See Notes to Consolidated Financial Statements.
F-59
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Consolidated
    Statement of Operations
For the
    Period From January 1, 2007 through October 4,
    2007
($ in thousands)
Net Revenues
$
25,968
Operating costs and expenses:
Cost of service
19,478
Selling, general and administrative expenses
2,185
Depreciation expense
422
Total operating costs and expenses
22,085
Income from operations
3,883
Interest expense
(139
)
Net income
$
3,744
See Notes to Consolidated Financial Statements.
F-60
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Consolidated
    Statement of Stockholders' Equity
For the
    Period From January 1, 2007 through October 4,
    2007
Additional
Total
Common Stock Outstanding
Paid-In
Retained
Stockholders'
Shares
Par Value
Capital
Earnings
Equity
($ in thousands, except shares)
Balance, December 31, 2006
80
$
1
$
7
$
3,240
$
3,248
Distributions
—
—
—
(3,240
)
(3,240
)
Net income
—
—
—
3,744
3,744
Balance, October 4, 2007
80
$
1
$
7
$
3,744
$
3,752
See Notes to Consolidated Financial Statements.
F-61
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Consolidated
    Statement of Cash Flows.
For the
    period from January 1, 2007 through October 4,
    2007
($ in thousands)
Cash Flows From Operating Activities
Net income
$
3,744
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation
422
Allowance for bad debt
1,213
Changes in assets and liabilities:
Increase (decrease) in:
Accounts receivable
(893
)
Other assets
23
Increase (decrease) in:
Accounts payable
(283
)
Accrued compensation
1,141
Net cash provided by operating activities
5,367
Cash Flows From Investing Activities
Purchase of property and equipment
(188
)
Net cash used in investing activities
(188
)
Cash Flows From Financing Activities
Repayment of debt
(367
)
Distribution
(3,240
)
Net cash used in financing activities
(3,607
)
Net increase in cash
1,572
Cash:
Beginning
814
Ending
$
2,386
Supplemental Disclosures of Cash Flow Information
Cash interest payments
$
137
See Notes to Consolidated Financial Statements.
F-62
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Notes
    to Consolidated Financial Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
Greensboro
    Pathology Associates, P.A. and Subsidiary (the
    "Company") was organized in the State of North
    Carolina as a professional business corporation during February
    1998 to operate as a pathology laboratory. During 2004, the
    Company elected to be treated as an S-Corporation.
The Company engages in the business of providing anatomic
    pathology and cytology services to physicians in the State of
    North Carolina.
A summary of the Company's significant accounting policies
    follows:
Principles of Consolidation
:
The
    accompanying consolidated financial statements of the Company
    include the accounts of Greensboro Pathology Associates, P.A.
    and its wholly-owned subsidiary. All accounts and transactions
    between the entities have been eliminated in consolidation.
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair Value of Financial
    Instruments
:
The Company's financial
    instruments consist mainly of cash, accounts receivable,
    accounts payable and note payable. The carrying amounts of the
    Company's cash, accounts receivable and accounts payable
    approximate fair value due to the short-term nature of these
    instruments.
At October 4, 2007, approximately $2.6 million of the
    Company's note payable bears interest at a variable market
    rate, and thus, the carrying amounts approximate fair value. As
    of October 4, 2007, $2.1 million of the note payable
    outstanding was subjected to an interest rate swap agreement
    (derivative) which is reflected at fair value in the financial
    statements of approximately $19,000 included in other assets on
    the accompanying consolidated balance sheet as of
    October 4, 2007. The interest rate swap agreement was
    terminated subsequent to October 4, 2007, in conjunction
    with the repayment of the note payable as further discussed in
    Notes 4 and 8.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending October 4, 2007, Medicare and BlueCross/Blue Shield
    provided 19% and 28% of the Company's net revenues,
    respectively.
Cash
:
The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation's ("FDIC"). These amounts
    are guaranteed by the FDIC up to $100,000 as of October 4,
    2007. The Company has not experienced any losses on such
    accounts.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated
F-63
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
on a straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 11 years.
    Leasehold improvements are amortized over the shorter of the
    term of the related lease, or the useful life of the asset.
Income Taxes
:
The Company is a
    subchapter S Corporation for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes. The income attributable to the Company
    is distributed to the stockholders in accordance with their
    proportionate share of earnings.
Derivative Financial Instruments
:
The
    Company utilizes FASB Statement No. 133,
Accounting for
    Derivative Instruments and Hedging Activities.
This
    Statement requires that an entity recognize all derivatives as
    either assets or liabilities in the balance sheet and measure
    those instruments at fair value. During 2007, the Company
    entered into an interest rate swap agreement with the bank to
    eliminate the impact of changes in interest rates on its debt.
    The Company has recorded the fair value of the swap agreement in
    other assets on the accompanying consolidated balance sheet as
    of October 4, 2007, and as additional financing expense
    related to the changes in the carrying amount of the swap
    agreement in the accompanying consolidated statement of income
    for the period from January 1, 2007 through October 4,
    2007.
Provided that the Company does not default on its financing
    arrangements, continues its schedule of debt service payments
    through the loan maturity dates and does not settle the interest
    rate swap agreement, there will be no future cash outlay or
    recovery for the fair value of the swap agreement.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company's payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
Recent Accounting Pronouncements
:
In
    July 2006, the FASB issued Interpretation No. 48,
Accounting
    for Uncertainty in Income Taxes — an interpretation of
    FASB Statement 109
("FIN 48"). FIN 48
    clarifies the accounting for uncertainty in income taxes
    recognized in an enterprise's financial statements in
    accordance with SFAS 109, Accounting for Income Taxes.
    FIN 48 prescribes a comprehensive model for recognizing,
    measuring, presenting and disclosing in the financial statements
    tax positions taken or expected to be taken on a tax return. If
    there are changes in net assets as a result of application of
    FIN 48, these will be accounted for as an adjustment to the
    opening balance of retained earnings. Additional disclosures
    about the amounts of such liabilities will also be required. In
    October 2008, the FASB delayed the effective date of FIN 48
    for certain nonpublic enterprises to annual financial statements
    for fiscal years beginning after December 15, 2008. The
    Company was not required to adopt FIN 48 for these
    consolidated financial statements. The Company does not expect
    the adoption of this statement will impact its financial
    statements.
In September 2006, Statement of Financial Accounting Standards
    No. 157,
Fair Value Measurements
("SFAS 157") applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS 157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position ("FSP")
No. 157-2,
Effective Date of FASB Statement No. 157, which defers the
    effective date of SFAS 157 for one year for non-financial
    assets and non-financial liabilities, except for items
    recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November 15, 2008.
F-64
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
SFAS 157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
•
Level 1:
Quoted market prices in active
    markets for identical assets or liabilities.
•
Level 2:
Observable market based inputs
    or unobservable inputs corroborated by market data.
•
Level 3:
Unobservable inputs not
    corroborated by market data.
The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
Note 2.
Accounts
    Receivable
Accounts receivable consists of the following as of
    October 4, 2007 (in thousands):
Accounts receivable and unbilled receivables
$
7,932
Less: allowance for bad debt
(3,863
)
Accounts receivable, net
$
4,069
Note 3.
Property
    and Equipment
Property and equipment as of October 4, 2007 consists of
    the following (in thousands):
Estimated Useful
Life (Years)
Leasehold improvements
11
$
1,646
Furniture and fixtures
7
3,934
Laboratory, office and data processing equipment
3 – 5
1,217
Software
3
320
7,117
Less accumulated depreciation
(4,954
)
$
2,163
Depreciation expense was approximately $422,000 for the period
    from January 1, 2007 to October 4, 2007.
Note 4.
Note
    Payable
In 2002, the Company entered into a note payable with a
    financial institution. The note was secured by all tangible
    assets of the Company and accrued interest at LIBOR plus 2%. In
    July 2004, the Company entered into an interest rate swap
    agreement with a fixed effective rate of 6.42%. Principal and
    fixed rate interest were paid monthly. The note was paid in full
    with proceeds from the sale of the Company to Aurora Diagnostics
    Holdings, LLC as further discussed in Note 8.
Note 5.
Related
    Party Transactions
The Company has employment agreements with certain of its
    stockholders' who are physician employees which expire at
    various times. Bonuses are discretionary and may be paid to make
    total annual compensation equal to the reasonable value of the
    physicians' contribution. Under certain of the agreements,
    in the event employment is terminated due to death, retirement
    or disability, the employee will receive an additional
    compensation for up to one
F-65
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
year. For the period from January 1, 2007 through
    October 4, 2007, the Company paid salaries and bonuses of
    approximately $2.4 million and $6.2 million,
    respectively.
Note 6.
Commitments
    and Contingencies
During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company's medical malpractice
    insurance coverage will be adequate to cover any such liability.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Operating Leases
:
The Company leases an
    office and medical laboratory facility under a non-cancelable
    lease agreement maturing December 31, 2012. The terms of
    the facility lease calls for the Company to pay for certain
    taxes or common utility charges. Rent expense including these
    taxes and common utility charges was approximately $454,000 for
    the period ended October 4, 2007. Rent expense associated
    with operating leases that include scheduled rent increases and
    tenant incentives is recorded on a straight-line basis over the
    term of the lease.
Aggregate future minimum annual rentals under the lease
    agreements as of October 4, 2007 are as follows (in
    thousands):
Year Ending
October 4,
2008
$
630
2009
639
2010
654
2011
674
2012
869
$
3,466
Employment Agreements
:
The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels determined by the board of directors.
    Bonuses are discretionary and may be paid to make total annual
    compensation equal to the reasonable value of the
    physicians' contribution. Under certain of the agreements,
    in the event employment is terminated due to death, retirement
    or disability, the employee will receive an additional
    compensation for up to one year.
Note 7.
Employee
    Benefit Plan
The Company has a profit sharing 401(K) Plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. The
F-66
Table of Contents
Greensboro
    Pathology Associates, P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
Company guarantees 3% of compensation to each employee under the
    401(K) Plan. The profit sharing contribution is discretionary by
    the Company. For the period from January 1, 2007 to
    October 4, 2007, the Company contributed approximately
    $651,000 towards the profit sharing 401 (K).
Note 8.
Subsequent
    Event
On October 4, 2007, the Company was acquired from its
    stockholders' by Aurora Diagnostics Holdings, LLC.
F-67
Table of Contents
Independent
    Auditor's Report
To the Members
Aurora Diagnostics Holdings, LLC
Palm Beach Gardens, Florida
We have audited the accompanying consolidated balance sheet of
    Mark & Kambour, M.D., P.A. and Subsidiary as of
    October 11, 2007, and the related consolidated statement of
    operations, stockholders' equity and cash flows for the
    period from January 1, 2007 to October 11, 2007. These
    financial statements are the responsibility of the
    Company's management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Mark & Kambour, M. D., P.A. and Subsidiary
    as of October 11, 2007, and the results of their operations
    and their cash flows for the period from January 1, 2007 to
    October 11, 2007 in conformity with accounting principles
    generally accepted in the United States of America.
West Palm Beach, Florida
April 9, 2010
F-68
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Consolidated
    Balance Sheet
October 11, 2007
($ in thousands)
Assets
Current Assets
Cash
$
992
Accounts receivable, net
1,754
Other assets
72
Total current assets
2,818
Deposits
23
Property and Equipment, net
321
$
3,162
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable
$
—
Accounts payable
214
Accrued compensation
204
Total current liabilities
418
Commitments and Contingencies
Stockholders' Equity
Common shares, $1.00 par value per share, 1,000 shares
    authorized; 1,000 shares issued and outstanding
1
Additional paid-in capital
14
Retained earnings
2,729
Total stockholders' equity
2,744
$
3,162
See Notes to Consolidated Financial Statements.
F-69
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Consolidated
    Statement of Operations
For the Period From January 1, 2007 through
    October 11, 2007
($ in thousands)
Net Revenues
$
8,284
Operating costs and expenses:
Cost of services
4,596
Selling, general and administrative expenses
523
Depreciation expense
76
Total operating costs and expenses
5,195
Income from operations
3,089
Interest expense
10
Net income
$
3,079
See Notes to Consolidated Financial Statements.
F-70
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Consolidated
    Statement of Stockholders' Equity
For the Period From January 1, 2007 through
    October 11, 2007
Common Stock
Outstanding
Additional
Total
Par
Paid-In
Retained
Shareholders'
Shares
Value
Capital
Earnings
Equity
($ in thousands, except shares)
Balance, December 31, 2006
1,000
$
1
$
14
$
1,074
$
1,089
Distributions
—
—
—
(1,424
)
(1,424
)
Net income
—
—
—
3,079
3,079
Balance, October 11, 2007
1,000
$
1
$
14
$
2,729
$
2,744
See Notes to Consolidated Financial Statements.
F-71
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Consolidated
    Statement of Cash Flows
For the period from January 1, 2007
    through October 11, 2007
($ in thousands)
Cash Flows From Operating Activities
Net income
$
3,079
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation
76
Allowance for bad debt
152
Changes in assets and liabilities:
Increase in:
Accounts receivable
(843
)
Other assets
(34
)
Deposits
(20
)
Increase in:
Accounts payable
120
Accrued compensation
127
Net cash provided by operating activities
2,657
Cash Flows From Investing Activities
Purchase of property and equipment
(67
)
Net cash used in investing activities
(67
)
Cash Flows From Financing Activities
Repayment of note payable
(224
)
Distributions
(1,424
)
Net cash used in financing activities
(1,648
)
Net increase in cash
942
Cash:
Beginning
50
Ending
$
992
Supplemental Disclosures of Cash Flow Information
Cash interest payments
$
10
See Notes to Consolidated Financial Statements.
F-72
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Notes
    to Consolidated Financial Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
Mark &
    Kambour, M.D., P.A. and Subsidiary (the
    "Company") was organized in the State of Florida as a
sub-chapter S corporation
during May 1989 to operate as a pathology laboratory company.
The Company engages in the business of providing anatomic
    pathology services to physicians in the State of Florida.
A summary of the Company's significant accounting policies
    follows:
Principles of Consolidation
:
The
    accompanying consolidated financial statements of the Company
    include the accounts of Mark & Kambour M.D., P.A., and
    its wholly-owned subsidiary, MA Courier Services, Inc. All
    accounts and transactions between the entities have been
    eliminated in consolidation.
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair Value of Financial
    Instruments
:
The Company's financial
    instruments consist mainly of cash, accounts receivable and
    accounts payable. The carrying amounts of the Company's
    cash, accounts receivable and accounts payable approximate fair
    value due to the short-term nature of these instruments.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending October 11, 2007, Medicare and BlueCross/Blue Shield
    provided 22% and 13% of the Company's net revenues,
    respectively.
Cash
:
The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in noninterest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation's ("FDIC"). These amounts
    are guaranteed by the FDIC up to $100,000 as of October 11,
    2007. The Company has not experienced any losses on such
    accounts.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 7 years.
Income Taxes
:
The Company is a
    subchapter S Corporation for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes. The income attributable to the Company
    is distributed to the stockholders in accordance with their
    proportionate share of earnings.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company's payors.
    While the Company has receivables due from federal and state
F-73
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
government agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
Recent Accounting Pronouncements
:
In
    July 2006, the FASB issued Interpretation No. 48,
Accounting
    for Uncertainty in Income Taxes — an interpretation of
    FASB Statement 109
("FIN 48"). FIN 48
    clarifies the accounting for uncertainty in income taxes
    recognized in an enterprise's financial statements in
    accordance with SFAS 109, Accounting for Income Taxes.
    FIN 48 prescribes a comprehensive model for recognizing,
    measuring, presenting and disclosing in the financial statements
    tax positions taken or expected to be taken on a tax return. If
    there are changes in net assets as a result of application of
    FIN 48, these will be accounted for as an adjustment to the
    opening balance of retained earnings. Additional disclosures
    about the amounts of such liabilities will also be required. In
    October 2008, the FASB delayed the effective date of FIN 48
    for certain nonpublic enterprises to annual financial statements
    for fiscal years beginning after December 15, 2008. The
    Company was not required to adopt FIN 48 for these
    consolidated financial statements. The Company does not expect
    the adoption of this statement will impact its financial
    statements.
In September 2006, Statement of Financial Accounting Standards
    No. 157,
Fair Value Measurements
("SFAS 157") applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS 157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position ("FSP")
No. 157-2,
Effective Date of FASB Statement No. 157, which defers the
    effective date of SFAS 157 for one year for non-financial
    assets and non-financial liabilities, except for items
    recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November 15, 2008.
SFAS 157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
•
Level 1:
Quoted market prices in active
    markets for identical assets or liabilities.
•
Level 2:
Observable market based inputs
    or unobservable inputs corroborated by market data.
•
Level 3:
Unobservable inputs not
    corroborated by market data.
The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
Note 2.
Accounts
    Receivable
Accounts receivable as of October 11, 2007 consist of the
    following (in thousands):
Accounts receivable and unbilled receivables
$
2,139
Less: Allowance for bad debt
(386
)
Accounts receivable, net
$
1,754
F-74
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
Note 3.
Property
    and Equipment
Property and equipment as of October 11, 2007 consist of
    the following (in thousands):
Estimated Useful
Life (Years)
Furniture and fixtures
7
$
12
Laboratory, office and data processing equipment
5 – 7
578
Software
3
78
669
Less accumulated depreciation
(348
)
$
321
Depreciation expense was approximately $76,000 for the period
    from January 1, 2007 to October 11, 2007.
Note 4.
Note
    Payable
During the period ended October 11, 2007, the Company paid
    in full a commercial term loan with outstanding balance of
    $224,016. Interest expense for the period ended October 11,
    2007 was approximately $9,700. The note payable was secured by
    substantially all the Company's assets.
Note 5.
Related
    Party Transaction
The Company has employment agreements with certain of its
    stockholders' who are physician employees of which expire
    at various times. Bonuses are discretionary and may be paid
    based upon the reasonable value of the physicians'
    contribution. For the period from January 1, 2007 through
    October 11, 2007, the Company paid salaries and bonuses to
    these physicians of approximately $475,000.
Note 6.
Commitments
    and Contingencies
During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company's medical malpractice
    insurance coverage will be adequate to cover any such liability.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Employment Agreements
:
The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels determined by the board of directors.
    Bonuses are discretionary and may be paid based upon the
    reasonable value of the physicians' contribution. Under
    certain of the agreements, in the event employment is terminated
    due to death, retirement or disability, the employee will
    receive additional compensation for up to one year.
F-75
Table of Contents
Mark &
    Kambour, M.D., P.A. and Subsidiary
Notes to
    Consolidated Financial
    Statements — (Continued)
Operating Leases
:
As of
    October 11, 2007, the Company leases an office and medical
    laboratory facility under a
month-to-month
agreement until a new facility is completed. On May 29,
    2007, the Company entered into a construction agreement with a
    contractor for a new leased facility in Coral Gables, FL. Total
    costs are expected to be approximately $425,000. Through
    October 11, 2007, no payments have been made by the Company
    under the agreement.
In May 2007, the Company executed a non-cancelable lease to
    begin September 21, 2007, maturing September 30, 2012
    for the new facility. The terms of the facility lease call for
    the Company to pay for certain taxes or common utility charges.
    Rent expense including these taxes and common utility charges
    was approximately $48,000 for the period ended October 11,
    2007.
Aggregate future minimum annual rentals under the lease
    agreements as of October 11, 2007 are as follows (in
    thousands):
Year Ending
October 11,
2008
$
117
2009
121
2010
126
2011
127
2012
95
$
586
Note 7.
Subsequent
    Event
On October 11, 2007, the Company was acquired from its
    stockholders' by Aurora Diagnostics Holdings, LLC.
F-76
Table of Contents
Independent
    Auditor's Report
To the Members
Aurora Diagnostics Holdings, LLC
Palm Beach Gardens, Florida
We have audited the accompanying balance sheet of Cunningham
    Pathology, LLC as of April 30, 2007, and the related
    statement of operations and members' equity and cash flows
    for the period from January 1, 2007 to April 30, 2007.
    These financial statements are the responsibility of the
    Company's management. Our responsibility is to express an
    opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
    generally accepted in the United States of America. Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audit provides a
    reasonable basis for our opinion.
The Company has excluded the financial statements of the
    Cunningham Investment Group, LLC from these financial statements
    as discussed in Note 1. Accounting principles generally
    accepted in the United States of America require the
    consolidation of the financial statements of a variable interest
    entity ("VIE") with the financial statements of its
    primary beneficiary. The effects on the accompanying financial
    statements of not consolidating the financial statements of
    Cunningham Investment Group, LLC have not been determined.
In our opinion, except for the effects on the financial
    statements of not consolidating the variable interest entity as
    discussed in the preceding paragraph, the financial statements
    referred to above present fairly, in all material respects, the
    financial position of Cunningham Pathology, LLC as of
    April 30, 2007, and the results of its operations and its
    cash flows for the period from January 1, 2007 through
    April 30, 2007 in conformity with accounting principles
    generally accepted in the United States of America.
West Palm Beach, Florida
April 9, 2010
F-77
Table of Contents
Cunningham
    Pathology, LLC
Balance Sheet
April 30, 2007
($ in thousands)
Assets
Current Assets
Cash
$
642
Accounts receivable, net
1,558
Prepaid expenses
93
Total current assets
2,293
Property and Equipment, net
1,004
Deposits
18
$
3,315
Liabilities and Members' Equity
Current Liabilities
Accounts payable
$
252
Accrued compensation
272
Line of credit
—
Total current liabilities
524
Commitments and Contingencies
Members' Equity
2,791
$
3,315
See Notes to Financial Statements.
F-78
Table of Contents
Cunningham
    Pathology, LLC
Statement of Operations and Members'
    Equity
For the period from January 1, 2007
    through April 30, 2007
($ in thousands)
Net Revenues
$
7,520
Operating costs and expenses:
Cost of services
4,806
Selling, general and administrative expenses
703
Depreciation expense
166
Total operating costs and expenses
5,675
Income from operations
1,845
Other income (expense):
Interest expense
(7
)
Other income
5
Total other expense
(2
)
Net income
1,843
Members' Equity, Beginning of Year
2,164
Distributions
(1,216
)
Members' Equity, End of Year
$
2,791
See Notes to Financial Statements.
F-79
Table of Contents
Cunningham
    Pathology, LLC
Statement of Cash Flows
For the period from January 1, 2007
    through April 30, 2007
($ in thousands)
Cash Flows From Operating Activities
Net income
$
1,843
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation
166
Allowance for bad debt
13
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable
(332
)
Prepaid expenses
247
Increase in:
Accounts payable
35
Accrued compensation
129
Net cash provided by operating activities
2,101
Cash Flows From Investing Activities
Purchase of property and equipment
(45
)
Net cash used in investing activities
(45
)
Cash Flows From Financing Activities
Repayment of line of credit
(205
)
Distributions paid
(1,210
)
Net cash used in financing activities
(1,415
)
Net increase in cash
641
Cash:
Beginning
1
Ending
$
642
Supplemental Schedule of Noncash Investing and Financing
    Activities
Member distribution of property
$
6
Interest paid
$
9
See Notes to Financial Statements.
F-80
Table of Contents
Cunningham
    Pathology, LLC
Notes
    to Financial Statements
Note 1.
Nature of
    Business and Significant Accounting Policies
Nature of Business
:
Cunningham
    Pathology, LLC (the "Company") was organized in the
    State of Delaware as a limited liability company on
    December 10, 1998 to operate as a pathology laboratory
    company.
The Company engages in the business of providing anatomic
    pathology and cytology services to physicians in the state of
    Alabama.
A summary of the Company's significant accounting policies
    follows:
Variable Interest Entity and Departure from Generally
    Accepted Accounting Principles
:
Accounting
    principles generally accepted in the United States of America
    require the consolidation of the financial statements of a
    variable interest entity ("VIE") with the financial
    statements of its primary beneficiary. These consolidation
    requirements apply to the Company; however, management of the
    Company has elected not to adopt the guidance . This accounting
    policy is not in accordance with accounting principles generally
    accepted in the United States of America. An entity is
    considered a VIE when equity investors in the entity do not have
    the characteristics of a controlling financial interest or when
    the equity at risk is not sufficient for the entity to finance
    its activities without additional subordinated financial
    support. The primary beneficiary of a VIE is the entity that is
    subject to a majority of the risk of loss or entitled to receive
    a majority of the VIE's residual returns, or both. In
    determining whether it is the primary beneficiary of a VIE, a
    company with a variable interest must also treat a variable
    interest held by a related party the same as its own interest.
    The Company has not consolidated the financial statements of
    Cunningham Investment Group, LLC, the entity from which the
    Company leases certain of its facilities, in the accompanying
    financial statements as required by this guidance based on the
    Company being the primary beneficiary. The effects on the
    accompanying financial statements of not consolidating the
    financial statements of Cunningham Investment Group, LLC have
    not been determined.
Accounting Estimates
:
The preparation
    of financial statements in conformity with accounting principles
    generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities, disclosure of
    contingent assets and liabilities and the reported amounts of
    revenues and expenses. Due to the inherent uncertainties in this
    process, actual results could differ from those estimates.
Fair Value of Financial
    Instruments
:
The Company's financial
    instruments consist mainly of cash, accounts receivable and
    accounts payable. The carrying amounts of the Company's
    cash, accounts receivable and accounts payable approximate fair
    value due to the short-term nature of these instruments.
Revenue Recognition and Accounts
    Receivable
:
The Company recognizes revenue at
    the time services are performed. Unbilled receivables are
    recorded for services rendered during, but billed subsequent to,
    the reporting period. Revenue is reported at the estimated
    realizable amounts from patients, third-party payors and others
    for services rendered. Revenue under certain third-party payor
    agreements is subject to audit and retroactive adjustments.
    Provisions for estimated third-party payor settlements and
    adjustments are estimated in the period the related services are
    rendered and adjusted in future periods as final settlements are
    determined. The provision for doubtful accounts and the related
    allowance are adjusted periodically, based upon an evaluation of
    historical collection experience with specific payors for
    particular services, anticipated collection levels with specific
    payors for new services, industry reimbursement trends, and
    other relevant factors. Changes in these factors in future
    periods could result in increases or decreases in the
    Company's provision for doubtful accounts and impact its
    results of operations and financial position. For the period
    ending April 30, 2007, Medicare and BlueCross/Blue Shield
    provided 19% and 57% of the Company's net revenues,
    respectively.
Cash
:
The Company considers deposits
    and investments that have original maturities of less than three
    months, when purchased, to be cash equivalents. Daily bank
    deposits are held in non-interest bearing accounts with a
    financial institution that are insured by the Federal Deposit
    Insurance Corporation ("FDIC"). These amounts are
F-81
Table of Contents
Cunningham
    Pathology, LLC
Notes to
    Financial Statements — (Continued)
guaranteed by the FDIC up to $100,000 as of April 30, 2007.
    The Company has not experienced any losses on such accounts.
Property and Equipment
:
Property and
    equipment is stated at cost. Routine maintenance and repairs are
    charged to expense as incurred, while costs of betterments and
    renewals are capitalized. Depreciation is calculated on a
    straight-line basis, over the estimated useful lives of the
    respective assets, which range from 3 to 7 years. Leasehold
    improvements are amortized over the shorter of the term of the
    related lease, or the useful life of the asset.
Income Taxes
:
The Company is a Delaware
    limited liability company for federal and state income tax
    purposes, in accordance with the applicable provisions of the
    Internal Revenue Code. Accordingly, the Company is generally not
    subject to income taxes, the income attributable to the limited
    liability company is distributed to the members in accordance
    with the terms of the operating agreement.
Concentration of Credit Risk
:
Financial
    instruments that potentially subject the Company to
    concentrations of credit risk are cash and accounts receivable.
    Concentration of credit risk with respect to accounts receivable
    is mitigated by the diversity of the Company's payors.
    While the Company has receivables due from federal and state
    governmental agencies, the Company does not believe such
    receivables represent a credit risk since the related healthcare
    programs are funded by federal and state governments and payment
    is primarily dependent on submitting appropriate documentation.
Recent Accounting Pronouncements
:
In
    July 2006, the FASB issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes — an
    interpretation of FASB Statement 109
("FIN 48").
    FIN 48 clarifies the accounting for uncertainty in income
    taxes recognized in an enterprise's financial statements in
    accordance with SFAS 109,
Accounting for Income
    Taxes
. FIN 48 prescribes a comprehensive model for
    recognizing, measuring, presenting and disclosing in the
    financial statements tax positions taken or expected to be taken
    on a tax return. If there are changes in net assets as a result
    of application of FIN 48, these will be accounted for as an
    adjustment to the opening balance of retained earnings.
    Additional disclosures about the amounts of such liabilities
    will also be required. In October 2008, the FASB delayed the
    effective date of FIN 48 for certain nonpublic enterprises
    to annual financial statements for fiscal years beginning after
    December 15, 2008. The Company was not required to adopt
    FIN 48 for these financial statements. The Company does not
    expect the adoption of this statement will have a material
    impact on its financial statements.
In September 2006, the Statement of Financial Accounting
    Standards No. 157,
Fair Value Measurements
("SFAS 157"), applies to all assets and
    liabilities being measured and reported on a fair value basis.
    SFAS 157 requires new disclosure that establishes a
    framework for measuring fair value in GAAP, and expands
    disclosure about fair value measurements. In February 2008, the
    FASB issued FASB Staff Position ("FSP")
No. 157-2,
Effective Date of FASB Statement No. 157
, which
    defers the effective date of SFAS 157 for one year for
    non-financial assets and non-financial liabilities, except for
    items recognized or disclosed at fair value in the financial
    statements on a recurring basis for fiscal years beginning after
    November 15, 2008.
SFAS 157 establishes a hierarchy ranking the quality and
    reliability of the information used to determine fair values.
    The statement requires assets and liabilities carried at fair
    value will be classified and disclosed in one of the three
    following categories:
•
Level 1:
Quoted market prices in active
    markets for identical assets or liabilities.
•
Level 2:
Observable market based inputs
    or unobservable inputs corroborated by market data.
•
Level 3:
Unobservable inputs not
    corroborated by market data.
The Company does not expect the adoption of this Statement will
    have a material impact on its financial position or results of
    operations.
F-82
Table of Contents
Cunningham
    Pathology, LLC
Notes to
    Financial Statements — (Continued)
Note 2.
Accounts
    Receivable
Accounts receivable as of April 30, 2007 consist of the
    following (in thousands):
Accounts receivable and unbilled receivables
$
3,938
Less: allowance for doubtful accounts
(2,380
)
Accounts receivable, net
$
1,558
Note 3.
Property
    and Equipment
Property and equipment as of April 30, 2007 consists of the
    following (in thousands):
Estimated Useful
Life (Years)
Laboratory, office and data processing equipment
5–7
$
2,869
Leasehold improvements
8
293
Furniture and fixtures
5
188
Software
3
230
Vehicles
5
194
3,774
Less accumulated depreciation
(2,770
)
$
1,004
Depreciation expense was approximately $166,000 for the
    four-month period ended April 30, 2007.
Note 4.
Line of
    Credit
During June 2006, the Company entered into a $1 million
    line of credit with a bank with interest at LIBOR plus 2%. On
    March 15, 2007, the outstanding balance of approximately
    $205,000 under the line of credit was paid in full and the line
    was terminated.
Note 5.
Employee
    Benefit Plan
The Company has a defined contribution plan covering
    substantially all of its employees. Eligible participants may
    elect to defer a percentage of their compensation not to exceed
    the maximum amount of elective contribution determined by law.
    The employer may elect to make a qualified matching contribution
    for a plan year. The qualified matching contribution is the
    lesser of a percentage determined by the Company of the
    participant's elective contributions for that plan year or
    a percentage of the employee's compensation for that plan
    year. For the period ended April 30, 2007, the Company
    contributed approximately $536,000 toward the defined
    contribution plan.
Note 6.
Related
    Party Transactions
The Company leases office space from Cunningham Investment Group
    LLC, which is owned by the physician employees. The lease
    provides for monthly aggregate minimum payments of approximately
    $18,000 and will expire in April 2009. Rent expense incurred and
    paid to the related entity was approximately $72,000 for the
    period ending April 30, 2007.
F-83
Table of Contents
Cunningham
    Pathology, LLC
Notes to
    Financial Statements — (Continued)
Note 7.
Commitments
    and Contingencies
During the ordinary course of business, the Company may become
    subject to legal actions and proceedings. The Company may have
    liability with respect to its employees and its pathologists.
    Medical malpractice claims are generally covered by insurance.
    While the Company believes the outcome of any such legal actions
    and proceedings, individually or in the aggregate, will not have
    a material adverse effect on the Company's financial
    condition, results of operations or liquidity, if the Company is
    ultimately found liable under any medical malpractice claims,
    there can be no assurance the Company's medical malpractice
    insurance coverage will be adequate to cover any such liability.
Healthcare Regulatory Environment
:
The
    healthcare industry, in general, and the services the Company
    provides, are subject to extensive federal and state laws and
    regulations. Additionally, a portion of the Company's
    revenue is from payments by government-sponsored health
    programs, including Medicare, and is subject to audit and
    adjustments by applicable regulatory agencies. Failure to comply
    with any of these laws or regulations, the results of increased
    regulatory audits and adjustments, or change in the
    interpretation of the coding of services or the amounts payable
    for the Company's services under these programs could have
    a material adverse effect on the Company's financial
    position and results of operations.
Employment Agreements
:
The Company has
    employment agreements with its physician employees, the terms of
    which expire at various times. Such agreements provide for
    minimum salary levels including various benefits, as well as for
    discretionary bonus compensations. Under certain of the
    agreements, in the event employment is terminated (other than
    voluntarily by the employee or the Company for cause or upon the
    death of the employee), the Company is committed to pay a full
    monthly salary for a period of three months. The Company paid
    bonuses of approximately $275,000 to its physician employees for
    the period ended April 30, 2007.
Operating Leases
:
The Company leases
    various office and medical laboratory facilities and equipment
    under non-cancelable lease agreements with terms ranging from
    two to ten years and expiring through 2010. The terms of the
    facility leases call for the Company to pay for certain taxes or
    common utility charges. Rent expense including these taxes and
    common utility charges was approximately $119,000 for the period
    ended April 30, 2007. Rent expense associated with
    operating leases that include scheduled rent increases and
    tenant incentives is recorded on a straight-line basis over the
    term of the lease.
Aggregate future minimum annual rentals under the lease
    agreements as of April 30, 2007 are as follows (in
    thousands):
Year Ended
    April 30,
2008
$
251
2009
242
2010
12
$
505
Note 8.
Subsequent
    Events
On April 30, 2007, the Company was acquired from its
    members by Aurora Diagnostics Holdings, LLC. Payments in excess
    of the guaranteed minimum under the promissory notes are
    contingent on the performance of the Company.
F-84
Table of Contents
Aurora
    Diagnostics Holdings, LLC
Schedule II — Valuation and Qualifying
    Accounts
Years Ended December 31, 2007, 2008 and 2009
(in thousands)
Charged to
Net
Beginning
Statement of
Other
Write Offs and
Ending
Description
Balance
Operations
Increases(1)
Other Adjustments
Balance
Allowance for Doubtful Accounts:
Year ended December 31, 2007
$
421
$
2,378
$
4,743
$
(1,256
)
$
6,286
Year ended December 31, 2008
$
6,286
$
8,037
$
81
$
(6,207
)
$
8,197
Year ended December 31, 2009
$
8,197
$
9,488
$
240
$
(9,372
)
$
8,553
(1)
Represents the Allowance for Doubtful Accounts recorded in
    connection with the application of acquisition accounting for
    the 2007, 2008 and 2009 acquisitions.
F-85
Table of Contents
Shares
Class A Common
    Stock
Prospectus
, 2010
Joint Book-Running Managers
Morgan Stanley
UBS Investment Bank
Barclays Capital
Co-Managers
RBC Capital Markets
BMO Capital Markets
Lazard Capital
    Markets
Until          ,
    2010 all dealers that buy, sell or trade the common stock may be
    required to deliver a prospectus, regardless of whether they are
    participating in this offering. This is in addition to the
    dealers' obligation to deliver a prospectus when acting as
    underwriters and with respect to their unsold allotments or
    subscriptions.
Table of Contents
PART II
INFORMATION
    NOT REQUIRED IN PROSPECTUS
Item 13.
Other
    Expenses of Issuance and Distribution.
Estimated expenses payable in connection with the sale of the
    common stock in this offering are as follows:
SEC registration fee
$
10,695
FINRA filing fee
15,500
Listing fee
*
Printing and engraving expenses
*
Legal fees and expenses
*
Accounting fees and expenses
*
Transfer agent and registrar fees and expenses
*
Blue Sky fees and expenses
*
Miscellaneous
*
Total
*
*
To be filed by Amendment.
We will bear all of the expenses shown above.
Item 14.
Indemnification
    of Directors and Officers.
We are incorporated under the laws of the State of Delaware.
    Section 145 of the Delaware General Corporation Law
    provides that a Delaware corporation may indemnify any persons
    who are, or are threatened to be made, parties to any
    threatened, pending or completed action, suit or proceeding,
    whether civil, criminal, administrative or investigative (other
    than an action by or in the right of such corporation), by
    reason of the fact that such person was an officer, director,
    employee or agent of such corporation, or is or was serving at
    the request of such person as an officer, director, employee or
    agent of another corporation or enterprise. The indemnity may
    include expenses (including attorneys' fees), judgments,
    fines and amounts paid in settlement actually and reasonably
    incurred by such person in connection with such action, suit or
    proceeding, provided that such person acted in good faith and in
    a manner he or she reasonably believed to be in or not opposed
    to the corporation's best interests and, with respect to
    any criminal action or proceeding, had no reasonable cause to
    believe that his or her conduct was illegal. A Delaware
    corporation may indemnify any persons who are, or are threatened
    to be made, a party to any threatened, pending or completed
    action or suit by or in the right of the corporation by reason
    of the fact that such person was a director, officer, employee
    or agent of such corporation, or is or was serving at the
    request of such corporation as a director, officer, employee or
    agent of another corporation or enterprise. The indemnity may
    include expenses (including attorneys' fees) actually and
    reasonably incurred by such person in connection with the
    defense or settlement of such action or suit provided such
    person acted in good faith and in a manner he or she reasonably
    believed to be in or not opposed to the corporation's best
    interests except that no indemnification is permitted without
    judicial approval if the officer or director is adjudged to be
    liable to the corporation. Where an officer or director is
    successful on the merits or otherwise in the defense of any
    action referred to above, the corporation must indemnify him or
    her against the expenses which such officer or director has
    actually and reasonably incurred. Our certificate of
    incorporation and bylaws provide for the indemnification of our
    directors and officers to the fullest extent permitted under the
    Delaware General Corporation Law. We currently maintain a
    directors' and officers' liability insurance policy.
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Section 102(b)(7) of the Delaware General Corporation Law
    permits a corporation to provide in its certificate of
    incorporation that a director of the corporation shall not be
    personally liable to the corporation or its stockholders for
    monetary damages for breach of fiduciary duties as a director,
    except for liability for any:
•
transaction from which the director derives an improper personal
    benefit;
•
act or omission not in good faith or that involves intentional
    misconduct or a knowing violation of law;
•
unlawful payment of dividends or redemption of shares; or
•
breach of a director's duty of loyalty to the corporation
    or its stockholders.
Our certificate of incorporation and bylaws include such a
    provision. Expenses incurred by any officer or director in
    defending any such action, suit or proceeding in advance of its
    final disposition shall be paid by us upon delivery to us of an
    undertaking, by or on behalf of such director or officer, to
    repay all amounts so advanced if it shall ultimately be
    determined that such director or officer is not entitled to be
    indemnified by us.
Section 174 of the Delaware General Corporation Law
    provides, among other things, that a director, who willfully or
    negligently approves of an unlawful payment of dividends or an
    unlawful stock purchase or redemption, may be held liable for
    such actions. A director who was either absent when the unlawful
    actions were approved, or dissented at the time, may avoid
    liability by causing his or her dissent to such actions to be
    entered in the books containing minutes of the meetings of the
    Board of Directors at the time such action occurred or
    immediately after such absent director receives notice of the
    unlawful acts.
As permitted by the Delaware General Corporation Law, we expect
    to enter into indemnity agreements with each of our directors
    and executive officers, that require us to indemnify such
    persons against any and all expenses (including attorneys'
    fees), witness fees, damages, judgments, fines, settlements and
    other amounts incurred (including expenses of a derivative
    action) in connection with any action, suit or proceeding,
    whether actual or threatened, to which any such person may be
    made a party by reason of the fact that such person is or was a
    director, an officer or an employee of our company or any of its
    affiliated enterprises. Under these agreements, we would not be
    required to provide indemnification for matters including:
•
indemnification for any proceeding with respect to the unlawful
    payment of remuneration to the director or officer;
•
indemnification for proceedings involving a final judgment that
    the director or officer is required to disgorge profits from the
    purchase or sale of our securities or a final judgment that the
    director's or officer's conduct was in bad faith,
    knowingly fraudulent or deliberately dishonest or constituted
    willful misconduct or a breach of his or her duty of loyalty;
•
indemnification for proceedings or claims brought by an officer
    or director against us or any of our directors, officers,
    employees or agents, except for claims to establish a right of
    indemnification or proceedings or claims approved by our Board
    of Directors or required by law;
•
indemnification for settlements the director or officer enters
    into without our written consent; or
•
indemnification in violation of any undertaking required by the
    Securities Act or in any registration statement that we file.
The indemnification agreements also set forth procedures that
    will apply in the event of a claim for indemnification
    thereunder.
At present, there is no pending litigation or proceeding
    involving any of our directors or executive officers as to which
    indemnification is required or permitted, and we are not aware
    of any threatened litigation or proceeding that may result in a
    claim for indemnification.
We have an insurance policy covering our officers and directors
    with respect to liabilities, including liabilities arising under
    the Securities Act or otherwise.
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We plan to enter into an underwriting agreement which provides
    that the underwriters are obligated, under some circumstances,
    to indemnify our directors, officers and controlling persons
    against specified liabilities, including liabilities under the
    Securities Act.
Reference is made to the following documents filed as exhibits
    to this registration statement regarding relevant
    indemnification provisions described above and elsewhere in this
    prospectus:
•
Form of Certificate of Incorporation of Aurora Diagnostics,
    Inc.; and
•
Form of By-laws of Aurora Diagnostics, Inc.
Item 15.
Recent
    Sales of Unregistered Securities.
Set forth below is information regarding shares of common stock
    issued by us within the past three years. Also included is the
    consideration, if any, received by us for such shares and
    information relating to the section of the Securities Act, or
    rule of the SEC, under which we claimed an exemption from
    registration.
(a)
Issuances of Capital Stock
On April 23, 2010, we issued 100 shares of our common
    stock to James C. New, our Chairman, Chief Executive Officer and
    President, for nominal consideration. No underwriters were
    involved in the foregoing sale of securities. The securities
    described in this paragraph of Item 15 were issued to a
    U.S. investor in reliance upon the exemption from the
    registration requirements of the Securities Act, as set forth in
    Section 4(2) under the Securities Act and Rule 506 of
    Regulation D promulgated thereunder relating to sales by an
    issuer not involving any public offering, to the extent an
    exemption from such registration was required. The purchaser of
    shares of our common stock described above represented to us in
    connection with their purchase that he was an accredited
    investor and was acquiring the shares for investment and not
    distribution, that he could bear the risks of the investment and
    could hold the securities for an indefinite period of time. The
    purchaser received written disclosures that the securities had
    not been registered under the Securities Act and that any resale
    must be made pursuant to a registration or an available
    exemption from such registration.
Item 16.
Exhibits
    and Financial Statement Schedules.
(a)
Exhibits:
The list of exhibits is set
    forth immediately following the signature pages to this
    Registration Statement and is incorporated herein by reference.
(b)
Financial Statements
    Schedules:
Schedule II—Valuation and
    Qualifying Accounts on
page F-85
is incorporated herein by reference.
Item 17.
Undertakings.
* (f) The undersigned registrant hereby undertakes to
    provide to the underwriters at the closing specified in the
    underwriting agreement, certificates in such denominations and
    registered in such names as required by the underwriters to
    permit prompt delivery to each purchaser.
* (h) Insofar as indemnification for liabilities arising
    under the Securities Act of 1933 may be permitted to
    directors, officers and controlling persons of the registrant
    pursuant to the foregoing provisions, or otherwise, the
    registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
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* (i) The undersigned registrant hereby undertakes that:
•
For purposes of determining any liability under the Securities
    Act of 1933, the information omitted from the form of prospectus
    filed as part of this registration statement in reliance upon
    Rule 430A and contained in a form of prospectus filed by
    the registrant pursuant to Rule 424(b)(1) or (4) or
    497(h) under the Securities Act shall be deemed to be part of
    this registration statement as of the time it was declared
    effective.
•
For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this registration statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized in the City of Palm Beach Gardens, State of Florida
    on April 29, 2010.
AURORA DIAGNOSTICS, INC.
/s/
Gregory
    A. Marsh
By: Gregory A. Marsh, its Chief Financial Officer
SIGNATURES
    AND POWER OF ATTORNEY
We, the undersigned officers and directors of Aurora
    Diagnostics, Inc., hereby severally constitute and appoint
    Gregory A. Marsh and James C. New (with full power to act
    alone), our true and lawful attorney-in-fact and agent, with
    full power of substitution and resubstitution for him and in his
    name, place and stead, and in any and all capacities, to sign
    any and all amendments (including post-effective amendments) to
    this Registration Statement, and any other registration
    statement for the same offering pursuant to Rule 462(b)
    under the Securities Act of 1933, and to file the same, with all
    exhibits thereto and other documents in connection therewith,
    with the Securities and Exchange Commission, granting unto said
    attorney-in-fact and agent full power and authority to do and
    perform each and every act and thing requisite or necessary to
    be done in and about the premises, as full to all intents and
    purposes as he might or could do in person, hereby ratifying and
    confirming all that said attorney-in-fact and agent, or his
    substitute or substitutes, may lawfully do or cause to be done
    by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as
    amended, this registration statement has been signed below by
    the following persons in the capacities and on the dates
    indicated.
Name
Title
Date
/s/
James
    C. New
James
    C. New
Chief Executive Officer and
Director (principal executive officer)
April 29, 2010
/s/
Gregory
    A. Marsh
Gregory
    A. Marsh
Chief Financial Officer
(principal financial and accounting officer)
April 29, 2010
/s/
Thomas
    S. Roberts
Thomas
    S. Roberts
Director
April 29, 2010
/s/
Christopher
    Dean
Christopher
    Dean
Director
April 29, 2010
/s/
Peter
    J. Connolly
Peter
    J. Connolly
Director
April 29, 2010
/s/
Mark
    M. King
Mark
    M. King
Director
April 29, 2010
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Name
Title
Date
/s/
Christopher
    J. Bock
Christopher
    J. Bock
Director
April 29, 2010
/s/
Blair
    Tikker
Blair
    Tikker
Director
April 29, 2010
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EXHIBIT INDEX
Exhibit
Number
Description
1.1*
—
Form of Underwriting Agreement
3.1*
—
Certificate of Incorporation of Aurora Diagnostics, Inc.
3.2*
—
Bylaws of Aurora Diagnostics, Inc.
4.1*
—
Specimen Stock Certificate of Aurora Diagnostics, Inc.'s
    Class A Common Stock, par value $0.01 per share
5.1*
—
Opinion of Alston & Bird LLP
10.1*
—
Form of Registration Agreement of Aurora Diagnostics, Inc., by
    and among Aurora Diagnostics, Inc. and the other parties named
    therein
10.2*
—
Form of Tax Receivable Agreement, among Aurora Diagnostics,
    Inc., ARDX Sub, Inc. and the other parties named therein
10.3*
—
Form of Second Amended and Restated Limited Liability Company
    Agreement of Aurora Diagnostics Holdings, LLC, by and among
    Aurora Diagnostics Holdings, LLC and the other parties named
    therein
10.4*
—
Form of Reorganization Agreement, by and among Aurora
    Diagnostics Holdings, LLC, Aurora Diagnostics, Inc. and the
    other parties named therein
21*
—
List of subsidiaries of Registrant
23.1
—
Consent of McGladrey & Pullen, LLP
23.2
—
Consent of McGladrey & Pullen, LLP
24.1
—
Power of Attorney (included in Part II of this registration
    statement)
*
To be filed by amendment.