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Exhibit 10.4
 
FIRST AMENDMENT TO ESCROW AGREEMENT

This FIRST AMENDMENT TO ESCROW AGREEMENT (this “Amendment”), dated as of June 2,
2011, amends that certain Escrow Agreement (the “Escrow Agreement”) dated as of
August 16, 2010, between The Amacore Group, Inc., a Delaware corporation (the
“Company”), and Vicis Capital Master Fund, a series of the Vicis Capital Master
Trust, a trust formed under the laws of the Cayman Islands (the “Purchaser”),
and Quarles & Brady LLP, as escrow agent (“Escrow Agent”). Capitalized terms
used in this Amendment without definition shall have the respective meanings
ascribed to them in the Escrow Agreement.

R E C I T A L S
 
WHEREAS, Purchaser and Company are parties to a Securities Purchase Agreement
dated June 2, 2011 (the “June Purchase Agreement”), whereby the Company agrees
to sell to the Purchaser up to $2,500,000 in principal amount of its 15% Senior
Secured Convertible Notes due June 30, 2012, in exchange for up to $2,500,000
cash (the “Purchase Price”).
 
WHEREAS, the parties wish to have the Escrow Agent hold the Purchase Price in an
escrow account and to release funds held in such account in accordance with the
terms hereof.
 

NOW, THEREFORE, the Purchaser and Company, intending to be legally bound, hereby
agree as follows:

 
1.
Additional Deposit into Escrow.  In accordance with Section 1.4(a) of the June
Purchase Agreement, the Purchaser shall deposit into the Escrow Account an
aggregate of $2,500,000 cash in accordance with the terms of Section 3 of the
Escrow Agreement (which $2,500,000 cash shall be in addition to the $2,500,000
cash previously deposited by the Purchaser in the Escrow Account pursuant to the
Purchase Agreement).

 
2.
Extension of Termination Date.  Section 6 of the Escrow Agreement shall be
deleted and replaced in its entirety by the following:

6.           Termination and Release of Escrow.  This Escrow Agreement shall
terminate upon the earlier of (the “Termination Date”):
 
(a)           the resignation of the Escrow Agent by providing written notice to
the parties hereto of the same; or
 
(b)           June 30, 2012.
 
All funds remaining in the Escrow Account upon the Escrow Agent’s resignation
shall be delivered to any successor escrow agent mutually agreed to by the
Purchaser and Company. All funds held in the Escrow Account after June 30, 2012,
shall be distributed to the Purchaser by check or wire transfer to an account
designated by the Purchaser.

 
 

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3.
Joint Disbursement Instructions.  Exhibit A to the Escrow Agreement shall be
deleted and replaced in its entirety by Exhibit A to this Amendment.

 
4.
Execution.  This Amendment may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event that any signature is delivered by
facsimile or in other electronic form, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such signature page were an
original thereof.

 
5.
Governing Law.  The validity, construction and effect of this Amendment shall be
governed by the internal laws of the State of New York (without giving effect to
principles of conflicts of law).

 
6.
Ratification.  Except as expressly amended pursuant to this Amendment, all terms
and conditions of the Escrow Agreement are hereby ratified and confirmed in all
respects and shall continue in full force and effect.  All references to the
Escrow Agreement shall hereafter refer to such Escrow Agreement, as amended
hereby.

 
7.
Conflict.  In the event of any conflict between the Escrow Agreement and this
Amendment, the terms of this Amendment shall govern.

 
[Signature Page Follows]

 
2

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IN WITNESS WHEREOF, the parties have caused this First Amendment to Escrow
Agreement to be duly executed by their duly authorized rep­resentatives as of
the day and year first above written.

 

 
COMPANY:
 
THE AMACORE GROUP, INC.
 
/s/ Jay Shafer 

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Name:  Jay Shafer
Title:  Chief Executive Officer
 
PURCHASER:
 
VICIS CAPITAL MASTER FUND
By: Vicis Capital LLC
 
/s/ Keith W. Hughes

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Name:  Keith W. Hughes
Title:  Chief Financial Officer
                    Vicis Capital, LLC
 
ESCROW AGENT:
 
QUARLES & BRADY LLP
 
By:  /s/ Hoyt R. Stastney                            
         Hoyt R. Stastney, Partner

 

 

 

 

 
3

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Exhibit A

JOINT DISBURSEMENT INSTRUCTION

Quarles & Brady LLP
411 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
Attn: Matthew C. Vogel
Fax: 414-978-8899
Email: matthew.vogel@quarles.com

Date: ______________

RE:  Joint Disbursement Instruction

This Joint Disbursement Instruction is made pursuant to that certain Escrow
Agreement (the “Escrow Agreement”), dated August 16, 2010, as amended, by and
among Vicis Capital Master Fund, The Amacore Group, Inc. and Quarles & Brady
LLP, as escrow agent.  Capitalized terms used but not defined herein shall have
the respective meanings ascribed to them in the Escrow Agreement.

Please transfer $_________________ from the Escrow Account to the account
specified below:

Name:                                                                                                                                         
 
Routing
Number:                                                                                                                                         
 
Bank Account
Number:                                                                                                                                         
 
Other Instructions (please
specify):                                                                                                                               
 

 
THE AMACORE GROUP, INC.
 
 

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Name:
Title:
 
VICIS CAPITAL MASTER FUND
   By: Vicis Capital LLC
 

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Name:
Title: