Document:

Unassociated Document

    
      

    

    EXHIBIT
10.7

       

    
      GUARANTOR
SECURITY AGREEMENT

       

      THIS
GUARANTOR SECURITY AGREEMENT (this “Security Agreement”)
is made as of August 16, 2010 by and between each of the undersigned (each a
“Debtor” and
collectively, the “Debtors”), and Vicis
Capital Master Fund (“Vicis”), a sub-trust
of Vicis Capital Series Master Trust, a unit trust organized and existing under
the laws of the Cayman Islands.

        

      R E C I T A L
S

       

      WHEREAS,
Debtor is a wholly owned subsidiary of The Amacore Group, Inc., a Delaware
corporation (“Issuer”).

       

      WHEREAS,
pursuant to a Securities Purchase Agreement of even date herewith by and between
Vicis and Issuer (as amended or modified from time to time, the “Purchase Agreement”),
Vicis has made or will make an investment (the “Investment”) in
Issuer’s 15% Senior Secured Convertible Notes due June 30, 2011 (the “Acquired
Notes”).

       

      WHEREAS,
it is a condition precedent to Vicis’s investment in the Acquired Notes that
each Debtor execute and deliver to Vicis a security agreement in the form
hereof.

       

      WHEREAS,
this is the Guarantor Security Agreement referred to in the Purchase
Agreement.

       

      NOW,
THEREFORE, in consideration of the recitals and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each Debtor hereby agrees with Vicis as follows:

       

      ARTICLE
I

      DEFINITIONS

       

      Capitalized
terms not defined herein shall have the respective meanings ascribed to them in
the Purchase Agreement.  Capitalized terms not otherwise defined
herein and defined in the UCC shall have, unless the context otherwise requires,
the meanings set forth in the UCC as in effect on the date hereof (except that
the term “document” shall only
have the meaning set forth in the UCC for purposes of clause (d) of the
definition of Collateral), the recitals and as follows:

       

      1.1   Accounts.  “Accounts”
shall mean all accounts, including without limitation all rights to payment for
goods sold or services rendered that are not evidenced by instruments or chattel
paper, whether or not earned by performance, and any associated rights
thereto.

       

      1.2   Collateral.  “Collateral”
shall mean all personal properties and assets of a Debtor, wherever located,
whether tangible or intangible, and whether now owned or hereafter acquired or
arising, including without limitation:

       

      (a)   all
Inventory and documents relating to Inventory;

       

      (b)   all
Accounts and documents relating to Accounts;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (c)   all
equipment, fixtures and other goods, including without limitation machinery,
furniture, vehicles and trade fixtures;

       

      (d)   all
general intangibles (including without limitation, payment intangibles,
software, customer lists, sales records and other business records, contract
rights, causes of action, and licenses, permits, franchises, patents,
copyrights, trademarks, and goodwill of the business in which the trademark is
used, trade names, or rights to any of the foregoing), promissory notes, chattel
paper, documents, letter-of-credit rights and instruments;

       

      (e)   all motor
vehicles;

       

      (f)   (i) all
deposit accounts and (ii) all cash and cash equivalents deposited with or
delivered to Vicis from time to time and pledged as additional security for the
Obligations;

       

      (g)   all
investment property;

       

      (h)   all
commercial tort claims; and

       

      (i)   all
additions and accessions to, all spare and repair parts, special tools,
equipment and replacements for, and all supporting obligations, proceeds and
products of, any and all of the foregoing assets described in Sections (a)
through (h), inclusive, above.

       

      1.3   Event of
Default.  “Event of Default” shall have the meaning specified
in the Purchase Agreement.

       

      1.4   Inventory.  “Inventory”
shall mean all inventory, including without limitation all goods held for sale,
lease or demonstration or to be furnished under contracts of service, goods
leased to others, trade-ins and repossessions, raw materials, work in process
and materials used or consumed in a Debtor’s business, including, without
limitation, goods in transit, wheresoever located, whether now owned or
hereafter acquired by a Debtor, and shall include such property the sale or
other disposition of which has given rise to Accounts and which has been
returned to or repossessed or stopped in transit by a Debtor.

       

      1.5   Obligations.  “Obligations”
shall mean all debts, liabilities, obligations, covenants and agreements of a
Debtor contained in the Guaranty, dated of even date herewith, by such Debtor in
favor of Vicis.

       

      1.6   Person.  “Person”
shall mean and include an individual, partnership, corporation, trust,
unincorporated association and any unit, department or agency of
government.

       

      1.7   Security
Agreement.  “Security Agreement” shall mean this Guarantor
Security Agreement, together with the schedules attached hereto, as the same may
be amended, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

       

      1.8   Security
Interest.  “Security Interest” shall mean the security interest
of Vicis in the Collateral granted by Debtor pursuant to this Security
Agreement.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      1.9   UCC.  “UCC”
shall mean with respect to a Debtor the Uniform Commercial Code as adopted in
state in which such Debtor was organized and in effect from time to
time.

       

      ARTICLE
II

      THE
SECURITY INTEREST; REPRESENTATIONS AND WARRANTIES

       

      2.1   The Security
Interest.  To secure the full and complete payment and
performance when due (whether at stated maturity, by acceleration, or otherwise)
of each of the Obligations, each Debtor hereby grants to Vicis a first-priority
security interest in all of such Debtor’s right, title and interest in and to
the Collateral.

       

      2.2   Representations and
Warranties.  Each Debtor hereby represents and warrants to
Vicis that:

       

      (a)   The
records of such Debtor with respect to the Collateral are presently located only
at the address(es) listed on Schedule 1 attached
to this Security Agreement.

       

      (b)   The
Collateral of such Debtor is presently located only at the location(s) listed on
Schedule 1
attached to this Security Agreement.

       

      (c)   The chief
executive office and chief place(s) of business of such Debtor are presently
located at the address(es) listed on Schedule 1 to this
Security Agreement.

       

      (d)   Such
Debtor is an entity organized under the law identified in Schedule 1, and its
exact legal name is set forth therein.  The organization
identification number of such Debtor is listed on Schedule 1 to this
Security Agreement.

       

      (e)   All of
such Debtor’s present patents and trademarks, if any, including those that have
been registered with, or for which an application for registration has been
filed in, the United States Patent and Trademark Office are listed on Schedule 2 attached
to this Security Agreement.  All of such Debtor’s present copyrights
registered with, or for which an application for registration has been filed in,
the United States Copyright Office or any similar office or agency of any state
or any other country are listed on Schedule 2 attached
to this Security Agreement.

       

      (f)   Such
Debtor has good title to, or valid leasehold interest in, all of the Collateral,
and there are no Liens on any of the Collateral except Permitted
Liens.

       

      2.3   Authorization to File
Financing Statements.  Each Debtor hereby irrevocably authorizes
Vicis at any time and from time to time to file in any UCC jurisdiction any
initial financing statements and amendments thereto that (a) indicate the
Collateral (i) as all assets of such Debtor or words of similar effect,
regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the UCC or such other jurisdiction, or (ii) as
being of an equal or lesser scope or with greater detail, and (b) contain any
other information required by part 5 of Article 9 of the UCC for the sufficiency
of filing office acceptance of any financing statement or amendment, including
whether such Debtor is an organization, the type of organization and any state
or federal organization identification number issued to such
Debtor.  Each Debtor agrees to furnish any such information to Vicis
promptly upon request.  Each Debtor also ratifies its authorization
for Vicis to have filed in any UCC jurisdiction any like initial financing
statements or amendments thereto if filed prior to the date hereof.

       

      
        
           

        

        
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      ARTICLE
III

      AGREEMENTS
OF DEBTOR

       

      From and
after the date of this Security Agreement, and until all of the Obligations are
paid in full, each Debtor shall:

       

      3.1   Sale of
Collateral.  Not sell, lease, transfer or otherwise dispose of
Collateral or any interest therein, except as provided for in the Purchase
Agreement and for sales of Inventory in the ordinary course of
business.

       

      3.2   Maintenance of Security
Interest.

         

      (a)   At the
expense of such Debtor, defend the Security Interest against any and all claims
of any Person adverse to Vicis and take such action and execute such financing
statements and other documents as Vicis may from time to time request to
maintain the perfected status of the Security Interest.  Such Debtor
shall not further encumber or grant a security interest in any of the Collateral
except as provided for in the Purchase Agreement.

       

      (b)   Such
Debtor further agrees to take any other action reasonably requested by Vicis to
ensure the attachment, perfection and first priority of, and the ability of
Vicis to enforce its security interest in any and all of the Collateral
including, without limitation, (i) executing, delivering and, where appropriate,
filing financing statements and amendments relating thereto under the UCC, to
the extent, if any, that such Debtor’s signature thereon is required therefor,
(ii) complying with any provision of any statute, regulation or treaty of the
United States as to any Collateral if compliance with such provision is a
condition to attachment, perfection or priority of, or ability of Vicis to
enforce, its security interest in such Collateral, (iii) taking all actions
required by any earlier versions of the UCC (to the extent applicable) or by
other law, as applicable in any relevant UCC jurisdiction, or by other law as
applicable in any foreign jurisdiction, and (iv) obtaining waivers from
landlords where any portion of the tangible Collateral is located in form and
substance satisfactory to Vicis.

       

      3.3   Locations.  Give
Vicis at least thirty (30) days prior written notice of such Debtor’s intention
to relocate the tangible Collateral (other than Inventory in transit) or any of
the records relating to the Collateral from the locations listed on Schedule 1 attached
to this Security Agreement, in which event Schedule 1 shall be
deemed amended to include the new location.  Any additional filings or
refilings requested by Vicis as a result of any such relocation in order to
maintain the Security Interest in such Collateral shall be at such Debtor’s
expense.

       

      3.4   Insurance.  Keep
the Collateral consisting of tangible personal property insured against loss or
damage to the Collateral under a policy or policies covering such risks as are
ordinarily insured against by similar businesses, but in any event including
fire, lightning, windstorm, hail, explosion, riot, riot attending a strike,
civil commotion, damage from aircraft, smoke and uniform standard extended
coverage and vandalism and malicious mischief endorsements, limited only as may
be provided in the standard form of such endorsements at the time in use in the
applicable state.  Such insurance shall be for amounts not less than
the actual replacement cost of the Collateral.

       

      
        
           

        

        
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      No policy
of insurance shall be so written that the proceeds thereof will produce less
than the minimum coverage required by the preceding sentence, by reason of
co-insurance provisions or otherwise, without the prior consent thereto in
writing by Vicis.  Such Debtor will obtain lender’s loss payable
endorsements on applicable insurance policies in favor of Vicis and will provide
to Vicis certificates of such insurance or copies thereof. Such Debtor shall use
cause each insurer to agree, by endorsement on the policy or policies or
certificates of insurance issued by it or by independent instrument furnished to
Vicis, that such insurer will give thirty (30) days written notice to Vicis
before such policy will be altered or canceled. No settlement of any insurance
claim shall be made without Vicis’s prior consent. In the event of any insured
loss, such Debtor shall promptly notify Vicis thereof in writing, and, after an
Event of Default shall have occurred and be continuing, such Debtor hereby
authorizes and directs any insurer concerned to make payment of such loss
directly to Vicis as its interest may appear. Vicis is authorized, in the name
and on behalf of such Debtor, to make proof of loss and to adjust, compromise
and collect, in such manner and amounts as it shall determine, all claims under
all policies; and Debtor agrees to sign, on demand of Vicis, all receipts,
vouchers, releases and other instruments which may be necessary in aid of this
authorization. After an Event of Default shall have occurred and be continuing,
the proceeds of any insurance from loss, theft, or damage to the Collateral
shall be held in a segregated account established by Vicis and disbursed and
applied at the discretion of Vicis, either in reduction of the Obligations or
applied toward the repair, restoration or replacement of the
Collateral.

       

      3.5   Name; Legal
Status.  (a) Without providing at least 30 days prior written
notice to Vicis, such Debtor will not change its name, its place of business or,
if more than one, chief executive office, or its mailing address or
organizational identification number if it has one, (b) if such Debtor does not
have an organizational identification number and later obtains one, such Debtor
shall forthwith notify Vicis of such organizational identification number, and
(c) such Debtor will not change its type of organization or jurisdiction of
organization.

         

      ARTICLE
IV

      RIGHTS
AND REMEDIES

       

      4.1   Right to
Cure.  In case of failure by a Debtor to procure or maintain
insurance, or to pay any fees, assessments, charges or taxes arising with
respect to the Collateral, Vicis shall have the right, but shall not be
obligated, to effect such insurance or pay such fees, assessments, charges or
taxes, as the case may be, and, in that event, the cost thereof shall be payable
by such Debtor to Vicis immediately upon demand, together with interest at an
annual rate of 10% from the date of disbursement by Vicis to the date of payment
by such Debtor.

       

      4.2   Rights of
Parties.  Upon the occurrence and during the continuance of an
Event of Default, in addition to all the rights and remedies provided in the
Transaction Documents or in Article 9 of the UCC and any other applicable
law, Vicis may (but is under no obligation so to do):

       

      (a)   require
each Debtor to assemble the Collateral at a place designated by Vicis, which is
reasonably convenient to the parties; and

       

      
        
           

        

        
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      (b)   take
physical possession of Inventory and other tangible Collateral and of each
Debtor’s records pertaining to all Collateral that are necessary to properly
administer and control the Collateral or the handling and collection of
Collateral, and sell, lease or otherwise dispose of the Collateral in whole or
in part, at public or private sale, on or off the premises of such Debtor;
and

       

      (c)   collect
any and all money due or to become due and enforce in each Debtor’s name all
rights with respect to the Collateral; and

       

      (d)   settle,
adjust or compromise any dispute with respect to any Account; and

       

      (e)   receive
and open mail addressed to each Debtor; and

       

      (f)   on behalf
of each Debtor, endorse checks, notes, drafts, money orders, instruments or
other evidences of payment.

       

      4.3   Power of
Attorney.  Upon the occurrence and during the continuance of an
Event of Default, each Debtor does hereby constitute and appoint Vicis as such
Debtor’s true and lawful attorney with full power of substitution for such
Debtor in Debtor’s name, place and stead for the purposes of performing any
obligation of such Debtor under this Security Agreement and taking any action
and executing any instrument which Vicis may deem necessary or advisable to
perform any obligation of such Debtor under this Security Agreement, which
appointment is irrevocable and coupled with an interest, and shall not terminate
until the Obligations are paid in full.

       

      4.4   Right to Collect
Accounts.  Upon the occurrence and during the continuance of an
Event of Default, and without limiting any Debtor’s obligations under the
Transaction Documents:  (a) each Debtor authorizes Vicis to notify any
and all debtors on the Accounts to make payment directly to Vicis (or to such
place as Vicis may direct); (b) each Debtor agrees, on written notice from
Vicis, to deliver to Vicis promptly after receipt thereof, in the form in which
received (together with all necessary endorsements), all payments received by
such Debtor on account of any Account; (c) Vicis may, at its option, apply all
such payments against the Obligations or remit all or part of such payments to
any Debtor; and (d) Vicis may take any actions in accordance with Section 4.7 of this
Agreement..

       

      4.5   Reasonable
Notice.  Written notice, when required by law, sent in
accordance with the provisions of Section 10.6 of the Purchase Agreement and
given at least ten (10) business days (counting the day of sending) before the
date of a proposed disposition of the Collateral shall be reasonable
notice.

       

      4.6   Limitation on Duties
Regarding Collateral.  The sole duty of Vicis with respect to
the custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the UCC or otherwise, shall be to deal with
it in the same manner as Vicis deals with similar property for its own
account.  Neither Vicis nor any of its directors, officers, employees
or agents, shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of a Debtor or
otherwise.

       

      
        
           

        

        
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      4.7   Lock Box; Collateral
Account.  This Section 4.7 shall be effective only upon the
occurrence and during the continuance of an Event of Default.  If
Vicis so requests in writing, each Debtor will direct each of its debtors on the
Accounts to make payments due under the relevant Account or chattel paper
directly to a special lock box to be under the control of Vicis.  Each
Debtor hereby authorizes and directs Vicis to deposit into a special collateral
account to be established and maintained by Vicis all checks, drafts and cash
payments received in said lock box.  All deposits in said collateral
account shall constitute proceeds of Collateral and shall not constitute payment
of any Obligation until so applied.  At its option, Vicis may, at any
time, apply finally collected funds on deposit in said collateral account to the
payment of the Obligations, in the order of application selected in the sole
discretion of Vicis, or permit any Debtor to withdraw all or any part of the
balance on deposit in said collateral account.  If a collateral
account is so established, each Debtor agrees that it will promptly deliver to
Vicis, for deposit into said collateral account, all payments on Accounts and
chattel paper received by it.  All such payments shall be delivered to
Vicis in the form received (except for a Debtor’s endorsement where
necessary).  Until so deposited, all payments on Accounts and chattel
paper received by a Debtor shall be held in trust by such Debtor for and as the
property of Vicis and shall not be commingled with any funds or property of such
Debtor.

       

      4.8   Application of
Proceeds.  Vicis shall apply the proceeds resulting from any
sale or disposition of the Collateral in the following order:

       

      (a)   to the
costs of any sale or other disposition;

       

      (b)   to the
expenses incurred by Vicis in connection with any sale or other disposition,
including attorneys’ fees;

       

      (c)   to the
payment of the Obligations then due and owing in any order selected by Vicis;
and

       

      (d)   to the
applicable Debtor.

       

      4.9   Other
Remedies.  No remedy herein conferred upon Vicis is intended to
be exclusive of any other remedy, and each and every such remedy shall be
cumulative and shall be in addition to every other remedy given under this
Security Agreement and the Transaction Documents now or hereafter existing at
law or in equity or by statute or otherwise.  No failure or delay on
the part of Vicis in exercising any right or remedy hereunder shall operate as a
waiver thereof nor shall any single or partial exercise of any right hereunder
preclude other or further exercise thereof or the exercise of any other right or
remedy.

       

      ARTICLE
V

      MISCELLANEOUS

       

      5.1   Expenses and Attorneys’
Fees.  Each Debtor shall pay all fees and expenses incurred by
Vicis, including the fees of counsel, in connection with the protection,
administration and enforcement of the rights of Vicis under this Security
Agreement or with respect to the Collateral, including without limitation the
protection and enforcement of such rights in any bankruptcy.

       

      
        
           

        

        
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      5.2   Setoff.  Each
Debtor agrees that, upon the occurrence and during the continuance of an Event
of Default, Vicis shall have all rights of setoff and bankers’ lien provided by
applicable law.

       

      5.3   Assignability;
Successors.  Each Debtor’s rights and liabilities under this
Security Agreement are not assignable or delegable, in whole or in part, without
the prior written consent of Vicis.  The provisions of this Security
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the parties.

       

      5.4   Survival.  All
agreements, representations and warranties made in this Security Agreement or in
any document delivered pursuant to this Security Agreement shall survive the
execution and delivery of this Security Agreement, and the delivery of any such
document.

       

      5.5   Governing
Law.  This Security Agreement and the rights of the parties
hereunder shall be governed in all respects by the laws of the State of New York
wherein the terms of this Security Agreement were negotiated, without regard to
the conflicts of laws thereof.

       

      5.6   Execution;
Headings.  This Security Agreement 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 transmission, 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 facsimile
signature page were an original thereof.  The article and section
headings in this Security Agreement are inserted for convenience of reference
only and shall not constitute a part hereof.

       

      5.7   Notices.  All
communications or notices required or permitted by this Security Agreement shall
be given to a Debtor (to be delivered care of Issuer) in accordance with Section
10.6 of the Purchase Agreement.

       

      5.8   Amendment; No Waiver;
Cumulative Remedies.  No amendment of this Security Agreement
shall be effective unless in writing and signed by each Debtor and
Vicis.  Vicis shall not by any act (except by a written instrument
signed by Vicis), delay, indulgence, omission or otherwise be deemed to have
waived any right or remedy hereunder or to have acquiesced in any Event of
Default or in any breach of any of the terms and conditions
hereof.  No failure to exercise, nor any delay in exercising, on the
part of Vicis, any right, power or privilege hereunder shall operate as a waiver
thereof.  No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  A waiver by Vicis of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which Vicis would otherwise have on any future
occasion.  The rights and remedies herein provided are cumulative, may
be exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

       

      5.9   Severability.  Any
provision of this Security Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions of this Security Agreement in such jurisdiction or affecting the
validity or enforceability of any provision in any other
jurisdiction.

       

      
        
           

        

        
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      5.10   WAIVER OF RIGHT TO JURY
TRIAL.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF ANY CONTROVERSY THAT MAY ARISE UNDER THIS SECURITY
AGREEMENT.

       

      5.11   Submission to
Jurisdiction.

       

      (a)    EACH DEBTOR
HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
THE STATE AND FEDERAL COURTS LOCATED THE CITY AND STATE OF NEW YOUR FOR PURPOSES
OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT.  EACH DEBTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION THAT SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURTS AND ANY
CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURTS HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

       

      (b)    EACH OF THE
DEBTORS HEREBY CONSENTS TO SERVICE OF PROCESS BY NOTICE IN THE MANNER SPECIFIED
IN SECTION 10.6 OF THE PURCHASE AGREEMENT AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION SUCH PARTY MAY NOW OR HEREAFTER
HAVE TO SERVICE OF PROCESS IN SUCH MANNER.  EACH DEBTOR AGREES THAT
SERVICE OF PROCESS MAY BE DELIVERED CARE OF ISSUER.

      

       

      (signature
page follows)

       

      
        
           

        

        
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      IN
WITNESS WHEREOF, this Guarantor Security Agreement has been executed as of the
day and year first above written.

         

      
        
          	
                  AMACORE
      DIRECT MARKETING, INC.

                   

                  By:
      _____________________________

                        
      Name:

                        
      Title:

                	
                  US
      HEALTH BENEFITS GROUP, INC.

                   

                  By:
      _____________________________

                        
      Name:

                        
      Title:

                
	 	 
	
                  ON
      THE PHONE, INC.

                   

                  By:
      _____________________________

                        
      Name:

                        
      Title:

                	
                  US
      HEALTHCARE PLANS, INC.

                   

                  By:
      _____________________________

                        
      Name:

                        
      Title:

                
	 	 
	
                  JRM
      BENEFITS CONSULTANTS, LLC

                   

                  By:
      _____________________________

                        
      Name:

                        
      Title:

                	
                  LIFEGUARD
      BENEFIT SERVICES, INC.

                     

                  By:
      _____________________________

                        
      Name:

                        
      Title:

                

        

        

      

       

       

      VICIS
CAPITAL MASTER FUND

          By:
Vicis Capital LLC

      

      

      By:
_____________________________

      Name:

      Title:

       

       

       

      Signature
Page to Security Agreement

       

      
        
           

        

        
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      SCHEDULE 1 TO SECURITY
AGREEMENT

        

      Locations
of Collateral

       

      Organizational
ID:      

      

      

      Address of Debtor’s records
of Collateral and chief executive office:

      

      

      Collateral
Locations:

       

       

       

       

       

       

      
 

      
        
           

        

        
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      SCHEDULE 2 TO SECURITY
AGREEMENT

       

      Intellectual
Property

       

      Organizational
ID:

      

      

      Patents

      

      

      Trademarks

      

      

      Copyrights

      

      

       

      
 

       

       

        

      12Unassociated Document

    
      
        

      

    

    EXHIBIT
10.8

       

    REGISTRATION
RIGHTS AGREEMENT

    
       

      REGISTRATION
RIGHTS AGREEMENT made this 16th day of August, 2010 by and between The Amacore
Group, Inc., a Delaware corporation (the “Company”), and Vicis Capital Master
Fund, a trust formed under the laws of the Cayman Islands (the “Holder”), a
series of the Vicis Capital Master Trust, a trust formed under the laws of the
Cayman Islands.

       

      R E C I T A L
S:

       

      WHEREAS,
simultaneously herewith, the Company and the Holder are entering into a
Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which the
Company may, pursuant to the teems thereof, issue to the Holder up
to $5,000,000 in principal amount of its 15% Senior Secured Convertible
Notes due June 30, 2011 (each an “Acquired Note” and collectively, the “Acquired
Notes”), which are convertible into shares of the Company’s Class A Common
Stock, par value $.001 per share (“Class A Common Stock”).

       

      WHEREAS,
the execution and delivery of this Agreement is a condition to the closing of
the Purchase Agreement.

       

      NOW
THEREFORE, in consideration of the agreements set forth herein the parties agree
as follows:

       

      1.   Definitions. As used
in this Agreement, the following terms shall have the following respective
meanings:

       

      (a)   “Common
Stock” means the Class A Common Stock, $.001 par value per share, of the Company
and any equity securities issued or issuable with respect to the Class A Common
Stock in connection with a reclassification, recapitalization, merger,
consolidation or other reorganization.

       

      (b)   “Conversion
Shares” means the shares of Common Stock or other equity securities issued or
issuable upon conversion of the Acquired Notes.

       

      (c)   “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any similar
Federal statute, and the rules and regulations of the Commission issued under
such Act, as they each may, from time to time, are in effect.

       

      (d)   “Holder”
shall have the meaning set forth in the Preamble and any of such Holder’s
successors or assigns.

       

      (e)   “Person”
means any individual, corporation, limited liability company, limited or general
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political
subdivisions thereof.

       

      (f)   “Registration
Statement” means a registration statement filed by the Company with the
Commission for a public offering and sale of securities of the Company (other
than a registration statement on Form S-8 or Form S-4, or their
successors, or any other form for a limited purpose, or any registration
statement covering only securities proposed to be issued in exchange for
securities or assets of another corporation or in connection with a merger,
consolidation or acquisition).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (g)   “Registration
Expenses” means the expenses described in Section 4.

       

      (h)   “Registrable
Securities” means any (i) Conversion Shares and (ii) shares of Common
Stock issued or issuable, directly or indirectly, with respect to the Common
Stock referenced above.  As to any particular Registrable Securities,
such securities shall cease to be Registrable Securities when (x) a
registration statement with respect to the sale of such securities shall have
been declared effective under the Securities Act and such securities shall have
been disposed of in accordance with such registration statement, or
(y) such securities shall have been sold (other than in a privately
negotiated sale) pursuant to Rule 144 (or any successor provision) under the
Securities Act, or (z) the Acquired Notes have been redeemed in
full.

       

      (i)   “SEC”
means the Securities and Exchange Commission.

       

      (j)   “Securities
Act” means the Securities Act of 1933, as amended, or any similar Federal
statute, and the rules and regulations of the Commission issued under such Act,
as they each may from time to time, be in effect.

       

      2.   Piggyback
Registration.  If, at any time, the Company proposes or is
required to register any of its equity securities or securities convertible or
exchangeable for equity securities under the Securities Act pursuant to a
Registration Statement, other than a Registration Statement on Form S-8, whether
or not for its own account, the Company shall give prompt written notice of its
intention to do so to each Holder of record of Registrable
Securities.  Upon the written request of any Holder, made within 10
days following the receipt of any such written notice (which request shall
specify the maximum number of Registrable Securities intended to be disposed of
by such Holder and the intended method of distribution thereof), the Company
shall use its best efforts to cause all such Registrable Securities, each Holder
of which have so requested the registration thereof, to be registered under the
Securities Act (with the securities which the Company at the time proposes to
register) to permit the sale or other disposition by each Holder (in accordance
with the intended method of distribution thereof) of the Registrable Securities
to be so registered.  There is no limitation on the number of
piggyback registrations pursuant to the preceding sentence which the Company is
obligated to effect.

       

      3.   Registration
Procedures.

       

      (a)   If and
whenever the Company is required by the provisions of this Agreement to use its
best efforts to effect the registration of any of the Registrable Securities
under the Securities Act, the Company shall:

       

      (i)   file with
the Commission a Registration Statement with respect to such Registrable
Securities and use its best efforts to cause that Registration Statement to
become and remain effective;

       

      (ii)   as
expeditiously as possible prepare and file with the Commission any amendments
and supplements to the Registration Statement and the prospectus included in the
Registration Statement as may be necessary to keep the Registration Statement
effective for a period of not less than nine months from the effective
date;

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (iii)   as
expeditiously as possible furnish to Holder such reasonable numbers of copies of
the prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as the selling
Stockholder may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities owned by the selling Stockholder
and promptly notify the selling stockholder at any time when a prospectus is
required to be delivered under the Securities Act, of the happening of any event
as a result of which the prospectus would include an untrue statement of
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing; and

       

      (iv)   as
expeditiously as possible use its best efforts to register or qualify the
Registrable Securities covered by the Registration Statement under the
securities or Blue Sky laws of such states as the selling stockholders shall
reasonably request, and do any and all other acts and things that may be
necessary or desirable to enable the selling stockholders to consummate the
public sale or other disposition in such states of the Registrable Securities
owned by the selling stockholder; provided, however, that the Company shall not
be required in connection with this Section 3(a) to qualify as a foreign
corporation or execute a general consent to service of process in any
jurisdiction.

       

      (b)   If the
Company has delivered preliminary or final prospectuses to the Holder and, after
having done so, the prospectus is amended to comply with the requirements of the
Securities Act, the Company shall promptly notify the Holder and, if requested,
the Holder shall immediately cease making offers of Registrable Securities and
return all prospectuses to the Company.  The Company shall promptly
provide the Holder with revised prospectuses and, following receipt of the
revised prospectuses, the Holder shall be free to resume making offers of the
Registrable Securities.

       

      4.   Allocation of
Expenses.  The Company will pay all Registration Expenses of
all registrations under this Agreement.  For purposes of this Section,
the term “Registration Expenses” shall mean all expenses incurred by the Company
in complying with this Agreement, including, without limitation, all
registration and filing fees, exchange listing fees, printing expenses, fees and
disbursements of counsel for the Company state Blue Sky fees and expenses, and
the expense of any special audits incident to or required by any such
registration, but excluding underwriting discounts, selling commissions and the
fees and expenses of Holder's own counsel.

       

      5.   Indemnification and
Contribution.

       

      (a)   In the
event of any registration of any of the Registrable Securities under the
Securities Act pursuant to this Agreement, the Company will indemnify and hold
harmless the seller of such Registrable Securities, and its directors and
officers, each underwriter of such Registrable Securities, and each other
person, if any, who controls such seller or underwriter within the meaning of
the Securities Act or the Exchange Act against any losses, claims, damages or
liabilities, joint or several, to which such seller, underwriter or controlling
person may become subject under the Securities Act, the Exchange Act, state
securities or Blue Sky laws or otherwise, in so far as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any Registration Statement under which such Registrable Securities
were registered under the Securities Act, any preliminary prospectus or final
prospectus contained in the Registration Statement,

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      or any
amendment or supplement to such Registration Statement, and any document
incorporated therein by reference or arise out of or are based upon the omission
or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading; and the Company will
reimburse such seller, underwriter and each such controlling person for any
legal or any other expenses reasonably incurred by such seller, underwriter or
controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company will not
be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any untrue statement or omission made
in such Registration Statement, preliminary prospectus or prospectus, or any
such amendment or supplement, in reliance upon and in conformity with
information furnished to the Company, in writing, by or on behalf of such
seller, underwriter or controlling person specifically for use in the
preparation thereof.

       

      (b)   In the
event of any registration of any of the Registrable Securities under the
Securities Act pursuant to this Agreement, each seller of Registrable
Securities, severally and not jointly, will indemnify and hold harmless the
Company, each of its directors, and officers and each underwriter (if any) and
each person, if any, who controls the Company or any such underwriter within the
meaning of the Securities Act or the Exchange Act, against any losses, claims,
damages or liabilities, joint or several, to which the Company, such directors
and officers, underwriters or controlling person may become subject under the
Securities Act, Exchange Act, state securities or Blue Sky laws or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement under which
such Registrable Securities were registered under the Securities Act, any
preliminary prospectus or final prospectus contained in the Registration
Statement, or any amendment or supplement to the Registration Statement, or
arise out of or are based upon any omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, if the statement or omission was made in reliance upon
and in conformity with information furnished in writing to the Company by or on
behalf of such seller, specifically for use in connection with the preparation
of such Registration Statement, prospectus, amendment or supplement; provided,
however, that the obligations of such seller hereunder shall be limited to an
amount equal to the net proceeds to such seller from Registrable Securities sold
as contemplated herein.

       

      (c)   Each
party entitled to Indemnification under this Section 5 (the “Indemnified
Party”) shall give notice to the party required to provide indemnification (the
“Indemnifying Party”) promptly after such Indemnified Party has actual knowledge
of any claim as to which indemnity may be sought, and shall permit the
Indemnifying Party to assume the defense of any such claim or any litigation
resulting therefrom; providing, that counsel for the Indemnifying Party, who
shall conduct the defense of such claim or litigation, shall be approved by the
Indemnified Party (whose approval shall not be unreasonably withheld); and,
provided, further, that the failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations
under this Agreement, except to the extent the Indemnifying Party is actually
prejudiced by the failure to give notice.  The Indemnified Party may
participate in such defense at such party's expense; provided, however, that the
Indemnifying Party shall pay such expense if representation of such Indemnified
Party by the counsel retained by the Indemnifying Party would be inappropriate
due to actual or potential differing interests between the Indemnified Party and
any other party represented by such counsel in such proceeding.  No
Indemnifying Party, in the defense of any such claim or litigation shall, except
with the consent of each Indemnified Party, consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a
release from all liability in respect of such claim or litigation, and no
Indemnified Party shall consent to entry of any judgment or settle such claim or
litigation without the prior written consent of the Indemnifying
Party.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (d)   If the
indemnification provided for herein is unavailable to or insufficient to hold
harmless an Indemnified Party hereunder, then each Indemnifying Party shall
contribute to the amount paid or payable by such Indemnified Party as a result
of the losses, claims, damages or liabilities (or actions or proceedings in
respect thereof) referred to herein in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one hand and the
Indemnified Party on the other in connection with the statements, omissions,
actions, or inactions which resulted in such losses, claims, damages or
liabilities.  The relative fault of the Indemnifying Party and the
Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Indemnifying Party or the Indemnified Party, any action or
inaction by any such party, and the parties' relative intent, knowledge, access
to information, and opportunity to correct or prevent such statement, omission,
action, or inaction.  No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.  Promptly after receipt by an Indemnified Party
hereunder of written notice of the commencement of any action, suit, proceeding,
investigation, or threat thereof with respect to which a claim for contribution
may be made against an Indemnifying Party hereunder, such Indemnified Party
shall, if a claim for contribution in respect thereto is to be made against an
Indemnifying Party, give written notice to the Indemnifying Party of the
commencement thereof (if the notice specified herein has not been given with
respect to such action); provided, however, that the
failure to so notify the Indemnifying Party shall not relieve it from any
obligation to provide contribution which it may have to any Indemnified Party
hereunder, except to the extent that the Indemnifying Party is actually
prejudiced by the failure to give notice.  The parties hereto agree
that it would not be just and equitable if contribution pursuant hereto were
determined by pro rata allocation or by any other method of allocation which
does not take account of equitable considerations referred to
herein.

       

      (e)   The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5 were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5, contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities pursuant to
such Registration Statement.

       

      (f)   If
indemnification is available hereunder, the Indemnifying Parties shall indemnify
each Indemnified Party to the fullest extent provided herein, without regard to
the relative fault of said Indemnifying Party or Indemnified Party or any other
equitable consideration provided for herein.  The provisions hereof
shall be in addition to any other rights to indemnification or contribution
which any Indemnified Party may have pursuant to law or contract, shall remain
in full force and effect regardless of any investigation made by or on behalf of
any Indemnified Party, and shall survive the transfer of securities by any such
party.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      6.   Underwritten
Offering.

       

      (a)   In the
case of any registration effected pursuant to this Agreement, the Company shall
have the right to designate the managing underwriter in any underwritten
offering with the consent of the Holder, which shall not be unreasonably
withheld.

       

      (b)   In the
event that Registrable Securities are sold pursuant to a Registration Statement
in an underwritten offering, the Company agrees to enter into an underwriting
agreement containing customary representations and warranties with respect to
the business and operations of an issuer of the securities being registered and
customary covenants and agreements to be performed by such issuer, including
without limitation customary provisions with respect to indemnification by the
Company of the underwriters of such offering.

       

      7.   SEC Reports. With a
view to making available to the Holder the benefits of Rule 144 promulgated
under the Securities Act or any other similar rule or regulation of the SEC that
may at any time permit the Holder to sell securities of the Company to the
public without registration ("Rule 144"), the Company agrees to: (a) make and
keep public information available, as those terms are understood and defined in
Rule 144; (b) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
so long as the Company remains subject to such requirements and the filing of
such reports and other documents is required for the applicable provisions of
Rule 144; (c) furnish to each Holder so long as such Holder owns Registrable
Securities, promptly upon request, (i) a written statement by the Company, if
true, that it has complied with the reporting requirements of Rule 144, the
Securities Act and the Exchange Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to
permit the Holder to sell such securities pursuant to Rule 144 without
registration; and (d) so long as the Holder owns any Registrable Securities, if
the Company is not required to file reports and other documents under the
Securities Act and the Exchange Act, it will make available other information as
required by, and so long as necessary to permit sales of Registrable Securities
pursuant to, Rule 144.

       

      8.   Governing
Law.  This Agreement and the rights of the parties hereunder
shall be governed in all respects by the laws of the State of New York wherein
the terms of this Agreement were negotiated, without regard to the conflicts of
laws thereof.

       

      9.   Consent to Jurisdiction;
Waiver of Jury Trial.  EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
THE STATE AND FEDERAL COURTS LOCATED THE STATE AND COUNTY OF NEW YORK FOR
PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT
AND THE TRANSACTION DOCUMENTS.  EACH OF THE PARTIES TO THIS AGREEMENT
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN ANY SUCH COURTS AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN ANY SUCH COURTS HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY SUCH LEGAL
PROCEEDING.  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY CONSENTS TO
SERVICE OF PROCESS BY NOTICE IN THE MANNER SPECIFIED IN SECTION 7.6 OF THE
PURCHASE AGREEMENT AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION SUCH PARTY MAY NOW OR HEREAFTER HAVE TO SERVICE OF PROCESS IN
SUCH MANNER.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      10.   Amendment.  This
Agreement may not be amended, discharged or terminated (or any provision hereof
waived) without the written consent of the Company and the Holder.

       

      11.   Successors and
Assigns.  Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon and
enforceable by and against, the successors, assigns, heirs, executors and
administrators of the parties hereto.  The Holder may assign its
rights hereunder, and the Company may not assign its rights or obligations
hereunder without the consent of the Holder or any of its successors, assigns,
heirs, executors and administrators.

       

      12.   Further
Assurances.  The parties agree to execute and deliver all such
further documents, agreements and instruments and take such other and further
action as may be necessary or appropriate to carry out the purposes and intent
of this Agreement.

       

      13.   Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one
instrument.

       

      

       

      

       

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands to this
instrument, as of the date first above written.

         

      
        
          	 	THE
      AMACORE GROUP, INC.	 
	 	 	 	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Jay
      Shafer                                                      	 
	 	 	      
                  Jay
      Shafer

                  Chief
      Executive OfficerName 

                	 
	 	 	 	 
	 	 	 	 
	 	HOLDER:	 
	 	 	 
	 	      
                  VICIS
      CAPITAL MASTER FUND

                  By:
      Vicis Capital LLC

                	 
	 	 	 
	 	 	 
	 	_____________________________________	 

        

      

       

       

       

          

      8

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