Document:

jrcc_8k-ex1001.htm

    
      
        

      

    

    Exhibit
10.1

     

    [EXECUTION
COPY]

     

    

    FOURTH
AMENDMENT

    TO

    REVOLVING
CREDIT AGREEMENT

     

    THIS FOURTH AMENDMENT TO REVOLVING
CREDIT AGREEMENT (this “Agreement”), is made and
entered into as of November 12, 2009 (the “Effective Date”), by and among
James River Coal Company, a corporation organized under the laws of Virginia
(“JRCC”), and certain of
JRCC’s Subsidiaries identified on the signature pages hereof, as borrowers (such
Subsidiaries, together with JRCC, are referred to hereinafter each individually
as a “Borrower”, and
collectively, jointly and severally, as the “Borrowers”), and the other
credit parties hereto, identified on the signature pages hereof as Guarantors
(together, the Borrowers and Guarantors, the “Credit Parties”), the Lenders
(as hereinafter defined) party hereto, General Electric Capital Corporation
(“GECC”), a corporation
formed under the laws of Delaware, as co-lead arranger and administrative agent
for the Lenders (in such capacity, together with its successors and assigns, if
any, the “Administrative
Agent”) and as collateral agent for the Lenders (in such capacity, the
“Collateral Agent”),
with Morgan Stanley Senior Funding, Inc., having acted as co-lead arranger for
the Lenders with GECC.

     

    W I T N E S S E T
H:

    

    WHEREAS, the Borrowers, the
other Credit Parties signatory thereto, the financial institutions from time to
time party thereto as lenders (collectively, the “Lenders”), the L/C Issuers
from time to time party thereto, and the Administrative Agent are parties to
that certain Revolving Credit Agreement, dated as of February 26, 2007 (as
amended, restated, supplemented and revised from time to time, the “Credit Agreement”), pursuant
to which the Lenders and the L/C Issuers have committed to make certain loans
and other extensions of credit to the Borrowers upon the terms and conditions
set forth therein; and

     

    WHEREAS, the Borrowers have
requested that the undersigned Lenders and the Administrative Agent agree to
amend certain of the terms and provisions of the Credit Agreement, as
specifically set forth in this Agreement; and

    

    WHEREAS, the undersigned
Lenders and the Administrative Agent are prepared to amend the Credit Agreement
on the terms, subject to the conditions and in reliance on the representations
set forth herein.

     

    NOW, THEREFORE, in
consideration of the premises, the covenants and agreements contained herein,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as
follows:

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    1.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meanings given to such terms in the Credit
Agreement.

     

    2.           Amendments
to the Credit Agreement.

     

     
(a)       
      Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by inserting the following new definitions in the appropriate
alphabetical order:

     

    “Convertible Note
Debt” means unsecured Indebtedness under the Senior Convertible
Notes.

     

    “Convertible Note Debt
Documents” means the Senior Convertible Notes Indenture and all other
agreements, instruments and documents executed in connection with the Senior
Convertible Notes.

     

    “Fourth Amendment”
means the Fourth Amendment to Revolving Credit Agreement, dated as of November
12, 2009, by and among the Borrowers, the other Credit Parties party thereto,
the Administrative Agent, the Collateral Agent and the Lenders party
thereto.

     

    “Rolling Letters of
Credit” means, at any time after the termination of the “Commitments”
(including, without limitation, the “Term Letter of Credit Commitment”) under
and as defined in the Term Credit Agreement, (a) letters of credit issued by The
Bank of New York Mellon or such other letter of credit issuer reasonably
acceptable to the Administrative Agent for the account of any Borrower or any of
their Subsidiaries, which letters of credit are issued as replacement or
substitution letters of credit for any existing Term Letter of Credit, (b) any
existing Term Letter of Credit that is continued by The Bank of New York Mellon
or any other issuer thereof after the termination of the “Commitments”
(including, without limitation, the “Term Letter of Credit Commitment”) under
and as defined in the Term Credit Agreement, in each case, pursuant to
arrangements (including, without limitation, cash collateral arrangements)
reasonably satisfactory to the Administrative Agent, or (c) any existing Term
Letter of Credit that is continued under  and in accordance with the
Term Credit Agreement after the termination of the “Commitments” (including,
without limitation, the “Term Letter of Credit Commitment”) under and as defined
in the Term Credit Agreement, pursuant to arrangements (including, without
limitation, cash collateral arrangements) reasonably satisfactory to the
Administrative Agent.

     

    “Senior Convertible
Notes” means, collectively, the senior convertible notes issued by JRCC
on the terms set forth in the Senior Convertible Notes Offering
Memorandum.

     

    “Senior Convertible Notes
Indenture” means the indenture pursuant to which the Senior Convertible
Notes are issued and having substantially the same terms as the terms of the
indenture described in the Senior Convertible Notes Offering
Memorandum.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    “Senior Convertible Notes
Offering Memorandum” means the preliminary offering memorandum for the
Senior Convertible Notes which is attached as Exhibit A to the Fourth Amendment,
as the same may be updated to reflect pricing terms attached hereto as Exhibit B
to the Fourth Amendment.

     

    “Term Letters of
Credit” means each of the letters of credit which was, on its original
date of issuance, issued for the account of any Borrower or any of their
Subsidiaries under the Term Credit Agreement prior to the termination of the
“Commitments” (including, without limitation, the “Term Letter of Credit
Commitment”) under and as defined in the Term Credit Agreement.

     

     
(b)             The
definition of the term “Equity Interests” contained in Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by inserting the following new sentence immediately following the
last sentence of such definition:

     

    “Notwithstanding
the foregoing to the contrary, the Senior Convertible Notes, prior to the
conversion thereof, shall not constitute Equity Interests in JRCC for purposes
of this Agreement (it being understood that upon the conversion in whole or in
part of any such Senior Convertible Notes into capital stock of JRCC or
warrants, options or any other rights for the purchase or other acquisition from
JRCC of shares of capital stock of JRCC, such shares of capital stock, warrants,
options or such other rights issued in connection with such conversion shall
constitute Equity Interests in JRCC).”

     

     
(c)             The
definition of the term “Letter of Credit” contained in Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by deleting the provisos at the end of such definition and
inserting the following new provisos:

     

    “; provided, however, the term
shall not include any Term Letters of Credit issued pursuant to the Term Credit
Agreement or any Rolling Letters of Credit and provided, further,
that the aggregate face amount of all Letters of Credit shall not exceed the L/C
Sublimit.”

     

    (d)           The
definition of the term “Permitted Encumbrances” contained in Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by:

     

    (i)        
    deleting the word “and” appearing at the end of clause
(h) of such definition;

     

    (ii)       
    deleting the period (“.”) at the end of clause (i) of
such definition and inserting in lieu thereof the text “; and”; and

     

    (iii)           inserting
the following new clause (j) immediately following existing clause (i) of such
definition (as amended hereby):

     

    “(j)           Liens
in favor of (x) the issuer of any Rolling Letter of Credit or (y) the Term Loan
Agent or the collateral agent under the Term Credit Agreement, in respect of
Rolling Letters of Credit described in clause (c) of the definition thereof, on
cash collateral (which may consist of cash or Cash Equivalents) provided by the
Borrowers or any Subsidiary of any Borrower to secure the reimbursement and
other obligations of such Person in respect of such Rolling Letter of Credit;
provided that
the aggregate amount of cash collateral so provided shall in no event exceed
105% of aggregate amount available to be drawn under such Rolling Letter of
Credit.”

     

    
      
         

      

      
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    (e)           The
definition of the term “Permitted Indebtedness” contained in Section 1.01 of the
Credit Agreement, Definitions, is
hereby amended by:

     

    (i)        
    deleting the word “and” appearing at the end of clause
(j) of such definition;

     

    (ii)        
   restating clause (k) of such definition as
follows:

     

    “(k)           Convertible
Note Debt in an aggregate principal amount not to exceed $175,000,000 at any
time outstanding minus the aggregate
amount of principal payments in respect thereof; provided that (i) the
final maturity of such Indebtedness shall not occur prior to December 1, 2014,
(ii) there shall be no scheduled amortization or mandatory prepayments in cash
(including, without limitation, any full or partial mandatory prepayments in
cash in connection with any conversion or other settlement of any Senior
Convertible Notes) or mandatory repayments in cash (including, without
limitation, any full or partial mandatory repayments in cash in connection with
any conversion or other settlement of any Senior Convertible Notes) of such
Indebtedness prior to December 1, 2014, except, in each case, the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this Agreement,
(iii) the Administrative Agent shall have received not less than five (5)
Business Days prior written notice of the incurrence of such Indebtedness
(including copies of the Senior Convertible Notes Indenture and such other
Convertible Note Debt Documents that the Administrative Agent may reasonably
request in “draft” form not less than three (3) Business Days prior to the
incurrence thereof and final copies of the Senior Convertible Notes Indenture
and such other Convertible Note Debt Documents so requested by the
Administrative Agent upon the closing of such Convertible Note Debt), (iv) the
net proceeds from the issuance of such Indebtedness is applied, in part, to the
repayment in full of the outstanding Term Loan Obligations and to cash
collateralize all “Term Letter of Credit Obligations” under and as defined in
the Term Credit Agreement, such that each outstanding Term Letter of Credit
shall be continued as a Rolling Letter of Credit, (v) all excess net proceeds
from the issuance of such Indebtedness, after the repayment of the Term Loan
Obligations and the provision of cash collateral for the Term Letters of Credit,
in each case pursuant to clause (iv) above, shall be maintained in a Cash
Management Account, (vi) both before and after giving effect to the Convertible
Debt Documents, no Default or Event of Default shall exist and (vii) prior to or
concurrently with the consummation of the transactions contemplated under the
Convertible Note Debt Documents, the Administrative Agent shall have received
(A) an officer’s certificate (in form and substance reasonably satisfactory to
the Administrative Agent) from a Senior Officer of the Borrowers certifying that
the conditions set forth in this clause (k) are satisfied and (B) evidence,
reasonably satisfactory to the Administrative Agent that (x) the “Commitments”
(including, without limitation, the “Term Letter of Credit Commitment”) under
and as defined in the Term Credit Agreement has been, or concurrently with the
consummation of the transactions contemplated under the Convertible Note Debt
Documents is being, terminated and that all Liens under the Term Credit
Agreement shall secure only those reimbursement, letter of credit fee or other
obligations related solely to those Term Letters of Credit being continued as
Rolling Letters of Credit pursuant to clauses (b) and (c) of the definition of
Rolling Letters of Credit, (y) upon the termination of the “Commitments”
(including, without limitation, the “Term Letter of Credit Commitment”) under
and as defined in the Term Credit Agreement, each of the Term Letters of Credit
are either being continued, replaced or cash collateralized as Rolling Letters
of Credit in a manner reasonably satisfactory to the Administrative Agent and
(z) all consents, licenses and approvals required in connection with the
consummation by the Credit Parties of the transactions contemplated by the
Convertible Debt Documents (including without limitation, any consent or
approval required under the Term Credit Agreement) shall be in full force and
effect;”

     

    
      
         

      

      
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    (iii)           Inserting
the following new clauses (l) and (m) immediately following existing clause (k)
(as amended hereby) of such definition:

     

    “(l)           At
any time after the repayment in full of the outstanding Term Loan Obligations
and the termination of the Term Credit Agreement, Indebtedness of the Credit
Parties in respect of Rolling Letters of Credit with a stated face amount not to
exceed $60,000,000 at any time outstanding; and

     

    (m)           any
Permitted Refinancing of any of the foregoing.”

     

     
(f)          
   The definition of the term “Senior Funded Indebtedness”
contained in Section
1.01 of the Credit Agreement, Definitions, is
hereby amended by amending and restating such definition in its
entirety:

     

    “Senior Funded
Indebtedness” means the Loans (including any outstanding Letter of Credit
hereunder) and the amount of the Term Loan Obligations (as that term is defined
in the Term Credit Agreement in effect as of the date hereof), provided, however, that Senior
Funded Indebtedness shall exclude (a) any outstanding Letter of Credit issued
hereunder to the extent that such outstanding Letter of Credit is Cash
Collateralized in a manner contemplated under and in accordance with the terms
and conditions set forth in this Agreement, and (b) any outstanding Term Letter
of Credit (as that term is defined in the Term Credit Agreement in effect as of
the date hereof) or any Rolling Letter of Credit to the extent that such
outstanding Term Letter of Credit or Rolling Letter of Credit, as applicable, is
cash collateralized in a manner contemplated under and in accordance with the
terms and conditions set forth in the Term Credit Agreement or, in the case of
Rolling Letters of Credit, this Agreement.

     

    
      
         

      

      
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     (g)       
      Article VIII of the
Credit Agreement, Affirmative
Covenants, is hereby amended by inserting the following new Section 8.24,
Convertible Note Debt
Documents, following existing Section 8.23, Pledged Security
Interests:

     

    “SECTION
8.24       Convertible Note Debt
Documents.  Promptly upon the consummation of the transactions
relating to the Convertible Note Debt, and in any event within three (3)
Business Days thereafter, JRCC shall deliver to the Administrative Agent, copies
certified by a Senior Officer of JRCC as complete and correct (with such
certification to be in such Person’s capacity a Senior Officer of an Obligor and
not in such Person’s individual capacity) of each of the Convertible Note Debt
Documents, including, without limitation, any legal opinions of JRCC and counsel
for JRCC delivered in connection therewith and upon which the Administrative
Agent may rely.”

     

    (h)           Section
9.02 of the Credit Agreement, Indebtedness; Voluntary
Prepayments, is hereby amended by restating the second sentence contained
in such Section 9.02 in its entirety as follows:

     

    “The
Credit Parties shall not (a) voluntarily prepay the principal of the Term Loan
Obligations or reduce the Term Letter of Credit Commitment (as defined in the
Term Credit Agreement as in effect on the date hereof) unless (i) such
prepayment or reduction is made in connection with the repayment in full of the
outstanding Term Loan Obligations solely with the net proceeds of the
Convertible Note Debt or (ii) on a pro forma basis after giving effect to such
prepayment the Credit Parties shall have Availability in excess of twenty
million Dollars ($20,000,000), (b) voluntarily prepay the principal of the
Senior Notes (except pursuant to a Permitted Refinancing), or (c) voluntarily
prepay, repurchase, redeem, defease, or effect any settlement, in each case, in
whole or in part, of the principal of, or make any payment in respect of any
conversion of, the Convertible Note Debt, in each case, in cash (other than the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this
Agreement), unless, in each case, immediately prior to the making of any such
payment, the Administrative Agent shall have received a certificate of a Senior
Officer of the Borrowers, in form and substance satisfactory to the
Administrative Agent, certifying and attaching calculations and projections
demonstrating that, on a pro forma basis after giving effect to such payment,
the Credit Parties shall have Availability (calculated based on trade payables
being paid currently in accordance with usual and customary standards for the
coal mining industry, expenses and liabilities being paid in the ordinary course
of business and without any deterioration of working capital and acceleration of
sales) in excess of twenty million Dollars ($20,000,000) for the period of
ninety (90) consecutive days after the making of such payment.”

     

    
      
         

      

      
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(i)         
     Section 9.05 of the Credit Agreement, Limitation on Issuance of
Equity Interests, is hereby amended by (i) deleting the word “or”
appearing at the end of clause (d) of such Section 9.05, (ii) deleting the
period (“.”) at the end of clause (e) of such Section 9.05 and inserting in lieu
thereof the following “, or (f) the issuance of (i) Securities consisting of
Senior Convertible Notes pursuant to and in accordance with the Convertible Note
Debt Documents and (ii) Equity Interests (other than any Disqualified Equity
Interest) of JRCC to the Holder of any Senior Convertible Notes in connection
with the conversion thereof in accordance with the terms of the Convertible Note
Debt Documents.”

     

     
(j)         
     Section 9.12 of the Credit Agreement, Modification of
Indebtedness, Organizational Documents and Certain Other Agreements, is
hereby amended by (i) deleting the word “or” appearing at the end of clause (c)
of such Section 9.12, (ii) deleting the period (“.”) at the end of clause (d) of
such Section 9.12 and inserting in lieu thereof the following “, or (e) the
Convertible Note Debt Documents (including, without limitation, the Senior
Convertible Notes), except any such amendments, modifications or changes
pursuant to this clause (e) that either individually or in the aggregate would
not be materially less favorable to the interests of the Administrative Agent,
any Lender, or any Credit Party,.”.

     

     
(k)          
    Section 9.15 of the Credit Agreement, Securities Accounts; Deposit
Accounts, is hereby amended by deleting the period (“.”) at the end of
the first sentence of such section and inserting in lieu thereof the following
“, or (D) with respect to any Deposit Account, Securities Account or other
account in which cash collateral for the Rolling Letters of Credit is
maintained, provided, that the
aggregate amount of cash or Cash Equivalents maintained in all such accounts at
any time does not exceed 105% of the aggregate amount available to be drawn
under all such Rolling Letters of Credit then outstanding.”

     

     
(l)         
     Section 11.01 of the Credit Agreement, Events of Default, is
hereby amended by inserting the following new paragraph (p) immediately
following existing paragraph (o):

     

    “(p)           Mandatory Repurchase of
Senior Convertible Notes.  Any event shall occur or other
condition shall exist under any Convertible Note Debt Document or otherwise, if
the effect thereof (with or without the giving of notice or lapse of time or
both) is to permit or require an acceleration, mandatory prepayment, redemption,
defeasance or other required repurchase or other payment of principal on account
of or in respect of all or any portion of the Convertible Note Debt, in each
case, in cash (other than the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this Agreement)
or permit any holder of the Convertible Note Debt to accelerate the maturity of
the Convertible Note Debt or require the prepayment, redemption, defeasance or
other repurchase of all or any portion of the Convertible Note Debt, in each
case, in cash (other than the payment of cash in
lieu of the issuance of any fractional shares upon the conversion of any Senior
Convertible Note to the holder of such Senior Convertible Note, provided, that the
aggregate amount of all such payments of cash in lieu of the issuance of any
fractional shares shall not exceed $2,000,000 during the term of this
Agreement).”

     

    
      
         

      

      
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(m)          
  Clause (c)(iii) of Annex A of the Credit Agreement, Letters of Credit, is
hereby amended by deleting the term “Term Letter of Credit Usage” in such clause
and inserting “Letter of Credit Usage”.

    

     
(n)             The
first sentence of clause (c)(iv) of Annex A of the Credit Agreement, Letters of Credit, is
hereby amended by deleting the term “Term Letters of Credit” and inserting
“Letters of Credit”.

     

     
(o)         
   Clause (d) of Annex A of the Credit Agreement, Letters of Credit, is
hereby amended by deleting the reference to “Term Letter of Credit” in the last
sentence of such Clause and inserting in lieu thereof “Letter of
Credit”.

     

    3.           Affirmation
and Acknowledgment of the Borrowers.  The Borrowers hereby
ratify and confirm all of their Obligations to the Lenders, including, without
limitation, the Loans, and the Borrowers hereby affirm their absolute and
unconditional promise to pay to the Lenders all indebtedness, obligations and
liabilities in respect of the Loans, the Letters of Credit, and all other
amounts due under the Credit Agreement and the other Loan Documents as amended
hereby.  The Borrowers hereby confirm that the Obligations are and
remain secured pursuant to the Loan Documents and pursuant to all other
instruments and documents executed and delivered by the Borrowers as security
for the Obligations.

     

    4.           No Other
Waivers, Amendments or Consents.

     

     
Except for the amendments expressly set forth and referred to in Section 2 hereof, the
Credit Agreement shall remain unchanged and in full force and
effect.  Nothing in this Agreement is intended or shall be construed
to be a novation of any Obligations or any part of the Credit Agreement or any
of the other Loan Documents or to affect, modify or impair the continuity or
perfection of the Administrative Agent’s Liens under the Credit Agreement and
Loan Documents.

     

    5.           Representations,
Warranties and Covenants.  To induce the undersigned Lenders to
enter into this Agreement, the Credit Parties hereby warrant, represent and
covenant to and with to the Lenders and the Administrative Agent that: (a) this
Agreement has been duly authorized, executed and delivered by the Credit
Parties; (b) this Agreement and the Credit Agreement as amended hereby
constitute legal, valid and binding obligations of the Credit Parties,
enforceable in accordance with their respective terms; (c) after giving effect
to this Agreement, no Default or Event of Default has occurred and is continuing
as of this date; (d) no approval or consent of, or filing with, any governmental
agency or authority is required to make valid and legally binding the execution,
delivery or performance by the Credit Parties of this Agreement or the Credit
Agreement as amended hereby; and (e) after giving effect to this Agreement, all
of the representations and warranties made by the Credit Parties in the Credit
Agreement are true and correct in all material respects on and as of the date of
this Agreement (except to the extent that any such representations or warranties
expressly referred to a specific prior date and except for changes therein
expressly permitted or expressly contemplated by the Credit Agreement or the
other Loan Documents).  Any breach by the Credit Parties of any of its
representations, warranties and covenants contained in this Section 5 shall be an
Event of Default under the Credit Agreement.

     

    
      
         

      

      
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    6.           Conditions
to Effectiveness.  This Agreement shall not become effective
unless and until the Administrative Agent has received (a) one or more
counterparts of this Agreement, duly executed, completed and delivered by the
Borrowers, the other Credit Parties and the Required Lenders and (b) one or more
counterparts of the fee letter, dated as of the date hereof (the “Fourth Amendment Fee Letter”),
duly executed, completed and delivered by the Borrowers and the Administrative
Agent.

     

    7.           Reimbursement
of Expenses.  The Borrowers hereby agree to reimburse the
Administrative Agent on demand for all reasonable fees and reasonable
out-of-pocket costs and expenses (including without limitation the reasonable
and actual fees and expenses of its counsel) incurred by the Administrative
Agent in connection with the negotiation, documentation and consummation of this
Agreement and the other documents executed in connection herewith and the
transactions contemplated hereby.

     

    8.           Governing
Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK FOR CONTRACTS TO BE PERFORMED
ENTIRELY WITHIN SAID STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA.

     

    9.           Severability
of Provisions.  Any provision of this 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 hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.  To the
extent permitted by applicable law, the Borrowers hereby waive any provision of
law that renders any provision hereof prohibited or unenforceable in any
respect.

     

    10.         Counterparts.  This
Agreement may be executed in any number of several counterparts, all of which
shall be deemed to constitute but one original and shall be binding upon all
parties, their successors and permitted assigns.  Delivery of an
executed signature page of this Agreement by facsimile transmission or other
electronic transmission shall be as effective as delivery of a manually executed
counterpart hereof.

     

    11.         Entire
Agreement.  The Credit Agreement as amended through this
Agreement embodies the entire agreement between the parties hereto relating to
the subject matter thereof and supersedes all prior agreements, representations
and understandings, if any, relating to the subject matter thereof.

     

    
      
         

      

      
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    12.         No Strict
Construction.  The parties hereto have participated jointly in
the negotiation and drafting of this Agreement.  In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

     

    13.         No Third
Party Reliance.  This Agreement is solely for the benefit of
the parties signatory hereto, their successors and permitted
assigns.  No waiver, consent or amendment pursuant to this Agreement
may be relied upon by any third parties.

     

    14.         Release.  The
Credit Parties hereby remise, release, acquit, satisfy and forever discharge the
Lenders, the Administrative Agent, the Collateral Agent, and the L/C Issuer and
their respective agents, employees, officers, directors, predecessors, attorneys
and all others acting or purporting to act on behalf of or at the direction of
the Lenders, the Administrative Agent, the Collateral Agent, or the L/C Issuer
of and from any and all manner of actions, causes of action, suit, debts,
accounts, covenants, contracts, controversies, agreements, variances, damages,
judgments, claims and demands whatsoever, in law or in equity, which any of such
parties ever had or now has against the Lenders, the Administrative Agent, the
Collateral Agent, and the L/C Issuer their respective agents, employees,
officers, directors, attorneys and all persons acting or purporting to act on
behalf of or at the direction of the Lenders or the Administrative Agent (“Releasees”), for, upon or by
reason of any matter, cause or thing whatsoever arising from, in connection with
or in relation to the Credit Agreement or any of the other Loan Documents
(including this Agreement) through the date hereof.  Without limiting
the generality of the foregoing, the Credit Parties waive and affirmatively
agree not to allege or otherwise pursue any defenses, affirmative defenses,
counterclaims, claims, causes of action, setoffs or other rights they do, shall
or may have as of the date hereof, including, but not limited to, the rights to
contest any conduct of the Lenders, Administrative Agent or other Releasees on
or prior to the date hereof.

     

    

    [Remainder of page
intentionally blank; next page is signature page]

     

    
      
         

      

      
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    IN WITNESS WHEREOF, the
parties have caused this Fourth Amendment to Revolving Credit Agreement to be
duly executed by their respective officers or representatives thereunto duly
authorized, as of the date first above written.

     

    
      	 
      	
              BORROWERS:

               

              JAMES
      RIVER COAL COMPANY

               

               

              By:  /s/ Peter T.
      Socha                                              
      

               
           Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              JAMES
      RIVER COAL SERVICE COMPANY

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                   
       Name:  Peter T. Socha

                 
         Title: CEO

            
	 
      	 
      
	 
      	
              LEECO,
      INC.

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                  
        Name:  Peter T. Socha

                   
       Title: CEO

            
	 
      	 
      
	 
      	
              TRIAD
      MINING, INC.

               

               

              By:  /s/ Peter T.
      Socha                                                            

                  
        Name:  Peter T. Socha

                 
         Title: CEO

            
	 
      	 
      
	 
      	
              TRIAD
      UNDERGROUND MINING, LLC

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                   
       Name:  Peter T. Socha

                 
         Title: Member

            
	 
      	 
      

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    
      	 
      	
              BLEDSOE
      COAL CORPORATION

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                 
         Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              JOHNS
      CREEK ELKHORN COAL CORPORATION

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                  
        Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              JAMES
      RIVER COAL SALES, INC.

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                 
         Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              BLEDSOE
      COAL LEASING COMPANY

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                   
       Name:  Peter T. Socha

                
          Title: CEO

            
	 
      	 
      
	 
      	
              BLUE
      DIAMOND COAL COMPANY

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                 
         Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              MCCOY
      ELKHORN COAL CORPORATION

               

               

              By:  /s/ Peter T.
      Socha                                                           

                   
       Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    
      	 
      	
              GUARANTORS:

               

              BDCC
      HOLDING COMPANY, INC.

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                  
        Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              EOLIA
      RESOURCES, INC.

               

               

              By:  /s/ Peter T.
      Socha                                                      

                  
        Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              SHAMROCK
      COAL COMPANY, INCORPORATED

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                   
       Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              JOHNS
      CREEK COAL COMPANY

               

               

              By:  /s/ Peter T.
      Socha                                              
      

                  
        Name:  Peter T. Socha

                  
        Title: CEO

            
	 
      	 
      
	 
      	
              JOHNS
      CREEK PROCESSING COMPANY

               

               

              By:  /s/ Peter T.
      Socha                                                   

                  
        Name:  Peter T. Socha

                  
        Title: CEO

            

    

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	 
      	
              LENDER, ADMINISTRATIVE AGENT AND COLLATERAL
      AGENT:

               

              GENERAL
      ELECTRIC CAPITAL CORPORATION

               

               

              By:  /s/ Daniel T.
      Eubanks                                                 
      

                 
         Name:  Daniel T. Eubanks

                 
         Title:    Duly Authorized
      Signatory

            

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        14amacore_8k-ex1001.htm

    
      
        
          

        

      

      EXHIBIT
10.1

       

      SECURITIES
PURCHASE AGREEMENT

       

      By
and Between

       

      THE
AMACORE GROUP, INC.

       

      and

       

      VICIS
CAPITAL MASTER FUND

       

       

       

      

       

       

      

       

       

       

       

       

      November
13, 2009

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SECURITIES
PURCHASE AGREEMENT

       

      This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), effective as of
November 13, 2009, is made by and between THE AMACORE GROUP, INC., a
Delaware corporation (the “Company”), and VICIS CAPITAL MASTER FUND (the
“Purchaser”), 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,
pursuant to the terms and conditions of this Agreement, the Company wishes to
issue and sell to the Purchaser the following securities (collectively, the
“Securities”): (a) 600 shares (the “Acquired Shares”) of the Company’s
Series L Convertible Preferred Stock, par value $.001 per share (the “Series L
Preferred Stock”), with such terms, rights, and preferences as set forth in the
Amended and Restated Certificate of Designation for the Series L Preferred Stock
set forth in Exhibit
A attached hereto; and (b) a warrant to purchase an aggregate of
67,500,000 shares of the Company’s Class A Common Stock, par value $.001 per
share (the “Class A Common Stock”), initially at an exercise price of $0.375 per
share in the form attached hereto as Exhibit B (the
“Warrant”).

       

      NOW,
THEREFORE, the Company
and the Purchaser hereby agree as follows:

       

      ARTICLE
I

      PURCHASE
AND SALE OF THE ACQUIRED SHARES

       

      1.1   Purchase and Sale of the
Acquired Shares.  Subject to the terms and conditions hereof
and in reliance on the representations and warranties contained herein, or made
pursuant hereto, the Company will issue and sell to the Purchaser, and the
Purchaser will purchase from the Company at the closing of the transactions
contemplated hereby (the “Closing”), the Securities for $6,000,000 in cash (the
“Purchase Price”).

       

      1.2   Closing.  The
Closing shall be deemed to have occurred at the offices of Quarles &
Brady, LLP, 411 East Wisconsin Avenue, Milwaukee, Wisconsin at 5:00 p.m. CDT on
November 13, 2009 (the “Closing Date).

       

      1.3   Closing Matters. As
soon as reasonably practicable after Closing, subject to the terms and
conditions hereof, the Company will deliver to the Purchaser certificates,
registered in the name of the Purchaser, representing the Acquired Shares and
the Warrant.

       

      ARTICLE
II

      REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

       

      The
Company hereby represents and warrants to the Purchaser as of the date of this
Agreement as follows:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.1   Organization and
Qualification.  The Company is a corporation duly organized and
validly existing and in good standing under the laws of the jurisdiction in
which it is incorporated, and has all requisite corporate power and authority to
carry on its business as now conducted.   The Company is duly
qualified as a foreign corporation to do business and is in good standing in
every jurisdiction in which its ownership of property or the nature of the
business conducted by it makes such qualification necessary, except to the
extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect”
means any material adverse effect on the business, properties, assets,
operations, results of operations, condition (financial or otherwise) or
prospects of the Company or its Subsidiaries (as defined below) or on the
transactions contemplated hereby or by the agreements and instruments to be
entered into in connection herewith, or on the authority or ability of the
Company to perform its obligations under the Transaction Documents (as
hereinafter defined).

       

      2.2   Subsidiaries.  The
Company has nine subsidiaries: LBI, Inc., JRM Benefits Consulting, LLC, US
Health Benefits Group, Inc., US Healthcare Plans, Inc., On The Phone, Inc.,
Zurvita Holdings, Inc., Zurvita, Inc., Lifeguard Benefit Services, Inc., and
Amacore Direct Marketing, Inc. (each a “Subsidiary” and collectively, the
“Subsidiaries”).

       

      2.3   No
Violation.  Neither the Company nor any Subsidiary is in
violation of: (a) any of the provisions of its certificate of
incorporation, bylaws or other organizational or charter documents; or
(b) any judgment, decree or order or any statute, ordinance, rule or
regulation applicable to the Company, except for possible violations which would
not, individually or in the aggregate, have a Material Adverse
Effect.

       

      2.4   Capitalization.

       

      (a)   As of the
date hereof, the Company is currently authorized to issue up to (i) 1,480
million shares of Common Stock, par value $.001 per share, of which
1,034,139,168 shares are currently outstanding and 446,260,832 shares have been
reserved for issuance upon the exercise of all of the outstanding options,
warrants and other securities issued by the Company that are convertible into
Common Stock. All of such outstanding shares have been, or upon issuance will
be, validly issued, are fully paid and nonassessable; and (ii) 20 million shares
of Preferred Stock, par value $.001 per share, of which 3,855 shares are
currently outstanding.

       

      (b)   Except as
disclosed herein or in the Company’s reports, schedules, forms, statements and
other documents required to be filed by it with the Securities and Exchange
Commission (the “SEC”) pursuant to the reporting requirements of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), prior to the date hereof
(the “SEC Documents”):

       

      (i)   no holder
of shares of the Company’s capital stock has any preemptive rights or any other
similar rights or has been granted or holds any liens or encumbrances suffered
or permitted by the Company;

       

      (ii)   there are
no outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares of capital
stock of the Company or its Subsidiary, or contracts, commitments,
understandings or arrangements by which the Company or its Subsidiary are or may
become bound to issue additional shares of capital stock of the Company or its
Subsidiary or options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares of capital
stock of the Company or its Subsidiary;

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (iii)   there are
no outstanding debt securities, notes, credit agreements, credit facilities or
other agreements, documents or instruments evidencing Indebtedness (as defined
in Section 2.14 hereof) of the Company or its Subsidiary or by which the Company
or its Subsidiary are or may become bound;

       

      (iv)   there are
no agreements or arrangements under which the Company is obligated to register
the sale of any of their securities under the Securities Act of 1933, as
amended, (the “Securities Act”);

       

      (v)   there are
no outstanding securities or instruments of the Company that contain any
redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company is or may become bound to
redeem a security of the Company;

       

      (vi)   there are
no securities or instruments containing antidilution or similar provisions that
will be triggered by the issuance of the Securities; and

       

      (vii)   the
Company does not have any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement.

       

      2.5   Issuance of the Acquired
Shares.

       

      (a)   The
Acquired Shares and the Warrant to be issued hereunder are duly authorized and,
upon payment and issuance in accordance with the terms hereof and thereof, shall
be free from all taxes, Liens and charges with respect to the issuance
thereof.  After November 22, 2009, the
Company will have authorized and have reserved free of preemptive rights and
other similar contractual rights of stockholders, a number of its authorized but
unissued shares of Class A Common Stock equal to one hundred percent (100%) of
the aggregate number of shares of Class A Common Stock to effect the conversion
of the Acquired Shares (the “Conversion Shares”) and one hundred percent (100%)
of the aggregate number of shares of Class A Common Stock to effect the exercise
of the Warrant (the “Warrant Shares”).  All actions by the Board, the
Company and its stockholders necessary for the valid issuance of the Acquired
Shares and the Warrant, and the Conversion Shares and the Warrant Shares
pursuant to the terms of the Series L Preferred Stock and the Warrant,
respectively, has been taken.

       

      (b)   Subject
to the provisions of Section 7.14, the Conversion Shares and Warrant Shares,
when issued and paid for upon conversion of the Acquired Shares and Warrant,
respectively, will be validly issued, fully paid and nonassessable and free from
all taxes, Liens and charges with respect to the issue thereof, with the holders
being entitled to all rights accorded to a holder of Class A Common Stock.
Assuming the accuracy of each of the representations and warranties set forth in
Article III hereof, the issuance by the Company to the Purchaser of the Acquired
Shares and the Warrant is exempt from registration under the Securities
Act.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.6   Authorization; Enforcement;
Validity. The Company has the requisite corporate power and authority to
enter into and perform its obligations under this Agreement, the Registration
Rights Agreement delivered pursuant to Section 4.4(b) hereof, the Warrant, and
each of the other agreements or instruments entered into by the parties hereto
in connection with the transactions contemplated by this Agreement
(collectively, the “Transaction Documents”) and to issue the Acquired Shares,
the Warrant, the Conversion Shares and the Warrant Shares in accordance with the
terms hereof. The execution and delivery of the Transaction Documents by the
Company and the consummation by the Company of the transactions contemplated
hereby and thereby, including, without limitation, and the issuance of the
Acquired Shares and Warrant, have been duly authorized by the board of directors
of the Company (the “Board”), and no further consent or authorization is
required by the Company, the Board or its stockholders. This Agreement and the
other Transaction Documents of even date herewith have been duly executed and
delivered by the Company, and constitute the legal, valid and binding
obligations of the Company enforceable against the Company in accordance with
their respective terms, except (i) as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and
remedies, or (ii) as any rights to indemnity or contribution hereunder may
be limited by federal and state securities laws and public policy
consideration.

       

      2.7   Dilutive Effect. The
Company understands and acknowledges that its obligation to issue the Conversion
Shares and Warrant Shares upon conversion of the Acquired Shares or Warrant, as
the case may be, in accordance therewith is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership
interests of other stockholders of the Company.

       

      2.8   No Conflicts. The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and
thereby (including, without limitation, the reservation for issuance of the
Conversion Shares and Warrant Shares) will not (i) result in a violation of
any articles or certificate of incorporation, any certificate of designations,
preferences and rights of any outstanding series of preferred stock or bylaws of
the Company or (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture or instrument to which the
Company is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or
asset of the Company is bound or affected, except in the case of clauses (ii)
and (iii), for such breaches or defaults as would not be reasonably expected to
have a Material Adverse Effect.

       

      2.9   Governmental
Consents. Except for the filing of a Form D with the SEC and the
registration of the Conversion Shares and Warrant Shares under the Securities
Act for resale by the Purchaser, the Company is not required to obtain any
consent, authorization or order of, or make any filing or registration with, any
court, governmental agency or any regulatory or self-regulatory agency or any
other Person (as hereinafter defined) in order for it to execute, deliver or
perform any of its obligations under or contemplated by the Transaction
Documents, in each case, in accordance with the terms hereof or thereof. All
consents, authorizations, orders, filings and registrations which the Company is
required to obtain at or prior to the Closing pursuant to the preceding sentence
have been obtained or effected. The Company is unaware of any facts or
circumstances which might prevent the Company from obtaining or effecting any of
the foregoing.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      2.10   No General
Solicitation.  Neither the Company, its Subsidiary, nor any of
their affiliates, nor any Person acting on its or their behalf, has engaged in
any form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of
the Securities.

       

      2.11   No Integrated
Offering. None of the Company, its Subsidiaries, their affiliates, or any
Person acting on their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under
circumstances that would require registration of the Securities under the
Securities Act or cause this offering of the Securities to be integrated with
prior offerings by the Company for purposes of the Securities Act or any
applicable stockholder approval provisions.

       

      2.12   Placement Agent’s
Fees.  Except as set forth on Schedule 2.12, no
brokerage or finder’s fee or commission are or will be payable to any Person
with respect to the transactions contemplated by this Agreement based upon
arrangements made by the Company or any of its affiliates.  The
Company agrees that it shall be responsible for the payment of any placement
agent’s fees, financial advisory fees, or brokers’ commissions (other than for
persons engaged by Purchaser) relating to or arising out of the transactions
contemplated hereby. The Company shall pay, and hold the Purchaser harmless
against, any liability, loss or expense (including, without limitation,
attorney’s fees and out-of-pocket expenses) arising in connection with any claim
for any such fees or commissions.

       

      2.13   Litigation.  Except
as disclosed in the SEC Documents or Schedule 2.13, there
is no material action, suit, proceeding, inquiry or investigation before or by
any court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the Company, threatened against or affecting the
Company or its Subsidiaries, the transactions contemplated by the Transaction
Documents, the Class A Common Stock or any of the Company’s respective current
or former officers or directors in their capacities as such. To the knowledge of
the Company, there has not been within the past two (2) years, and there is not
pending, any investigation by the SEC involving the Company or any current or
former director or officer of the Company (in his or her capacity as such). The
SEC has not issued any stop order or other order suspending the effectiveness of
any registration statement filed by the Company under the Securities Act within
the past two (2) years.

       

      2.14   Indebtedness and Other
Contracts. Except as disclosed in the SEC Documents, the Company (a) does
not have any outstanding Indebtedness (as defined below), (b) is not a
party to any contract, agreement or instrument, the violation of which, or
default under, by any other party to such contract, agreement or instrument
would result in a Material Adverse Effect, (c) is not in violation of any
term of or in default under any contract, agreement or instrument relating to
any Indebtedness, except where such violations and defaults would not result,
individually or in the aggregate, in a Material Adverse Effect, or (d) is
not a party to any contract, agreement or instrument relating to any
Indebtedness, the performance of which, in the judgment of the Company’s
officers, has or is expected to have a Material Adverse Effect.  For
purposes of this Agreement:

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (x) ”Indebtedness”
of any Person means, without duplication (i) all indebtedness for borrowed
money, (ii) all obligations issued, undertaken or assumed as the deferred
purchase price of property or services (other than trade payables entered into
in the ordinary course of business), (iii) all reimbursement or payment
obligations with respect to letters of credit, surety bonds and other similar
instruments, (iv) all obligations evidenced by notes, bonds, debentures or
similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses, (v) all
indebtedness created or arising under any conditional sale or other title
retention agreement, or incurred as financing, in either case with respect to
any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in the
event of default are limited to repossession or sale of such property),
(vi) all monetary obligations under any leasing or similar arrangement
which, in connection with generally accepted accounting principles, consistently
applied for the periods covered thereby, is classified as a capital lease,
(vii) all indebtedness referred to in clauses (i) through (vi) above
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any mortgage, lien, pledge, change,
security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by any Person, even though the
Person which owns such assets or property has not assumed or become liable for
the payment of such indebtedness, and (viii) all Contingent Obligations in
respect of indebtedness or obligations of others of the kinds referred to in
clauses (i) through (vii) above; (y) ”Contingent Obligation” means, as
to any Person, any direct or indirect liability, contingent or otherwise, of
that Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if the primary purpose or intent of the Person
incurring such liability, or the primary effect thereof, is to provide assurance
to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the
holders of such liability will be protected (in whole or in part) against loss
with respect thereto; and (z) ”Person” means an individual, a limited
liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof.

       

      2.15   Financial Information; SEC
Documents.  The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Exchange Act. As of their
respective dates, the SEC Documents complied in all material respects with the
requirements of the Exchange Act and the rules and regulations of the SEC
promulgated thereunder applicable to such SEC Documents, and none of such SEC
Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. As of
their respective dates, the financial statements of the Company included in such
SEC Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles, consistently applied, during the
periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto, or (ii) in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments). No other
information provided by or on behalf of the Company to the Purchaser that is not
included in the SEC Documents contains any untrue statement of a material fact
or omits to state any material fact necessary in order to make the statements
therein, in the light of the circumstance under which they are or were made, not
misleading.  The foregoing representations and warranties are subject
to the Company’s restatement of its financial statements for the following
periods and the filing of associated amended reports with the
SEC:  March 31, 2008 and June 30, 2008.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      2.16   Absence of Certain
Changes. Except as disclosed in the SEC Documents or on Schedule 2.16,
since December 31, 2008, there has been no material adverse change and no
material adverse development in the business, properties, operations, condition
(financial or otherwise), results of operations or prospects of the Company or
its Subsidiary. Since December 31, 2008, the Company has not (i) declared
or paid any dividends, (ii) sold any assets, individually or in the
aggregate, in excess of $50,000 outside of the ordinary course of business or
(iii) had capital expenditures, individually or in the aggregate, in excess
of $100,000. The Company has not taken any steps to seek protection pursuant to
any bankruptcy law nor does the Company have any knowledge or reason to believe
that its creditors intend to initiate involuntary bankruptcy proceedings or any
actual knowledge of any fact which would reasonably lead a creditor to do so.
After giving effect to the transactions contemplated hereby to occur at the
Closing, the Company will not be Insolvent (as hereinafter defined). For
purposes of this Agreement, “Insolvent” means (i) the present fair saleable
value of the Company’s assets is less than the amount required to pay the
Company’s total indebtedness, contingent or otherwise, (ii) the Company is
unable to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured, (iii) the
Company intends to incur or believes that it will incur debts that would be
beyond its ability to pay as such debts mature or (iv) the Company has
unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be
conducted.

       

      2.17   Foreign Corrupt
Practices.  Neither the Company nor any Subsidiary, nor any
director, officer, agent, employee or other Person acting on behalf of the
Company or a Subsidiary has, in the course of its actions (a) used any
corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expenses relating to political activity, (b) made any direct or
indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds, (c) violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended or
(d) made any unlawful bribe, rebate, payoff, influence payment, kickback or
other unlawful payment to any foreign or domestic government official or
employee.

       

      2.18   Transactions With
Affiliates.  Except as set forth in the SEC Documents or on
Schedule 2.18, none of the officers, directors or employees of the Company or
any Subsidiary is presently a party to any transaction with the Company (other
than for ordinary course services as employees, officers or directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any such
officer, director or employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any such officer,
director, or employee has a substantial interest or is an officer, director,
trustee or partner.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      2.19   Insurance.  The
Company and each Subsidiary is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management
of the Company believes to be prudent and customary in the businesses in which
the Company and each such Subsidiary is engaged.  The Company has not
been refused any insurance coverage sought or applied for and the Company has no
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that
would not have a Material Adverse Effect.

       

      2.20   Employee
Relations.  Neither the Company nor any Subsidiary is a party
to any collective bargaining agreement or employs any member of a union. No
Executive Officer of the Company (as defined in Rule 501(f) of the Securities
Act) has notified the Company that such officer intends to leave the Company or
otherwise terminate such officer’s employment with the Company. No Executive
Officer of the Company, to the knowledge of the Company, is, or is now, in
violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or
any other contract or agreement or any restrictive covenant, and the continued
employment of each such executive officer does not subject the Company to any
liability with respect to any of the foregoing matters. The Company is in
compliance with all federal, state, local and foreign laws and regulations
respecting employment and employment practices, terms and conditions of
employment and wages and hours, except where failure to be in compliance would
not, either individually or in the aggregate, reasonably be expected to result
in a Material Adverse Effect.

       

      2.21   Title.  Each
of the Company and its Subsidiaries has good and marketable title to all
personal property owned by it which is material to their respective business, in
each case free and clear of all liens, encumbrances and defects except such as
are described in the SEC Documents or such as do not materially affect the value
of such property and do not interfere with the use made and proposed to be made
of such property by the Company. Any real property and facilities held under
lease by the Company and its Subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and
do not interfere with the use made and proposed to be made of such property and
buildings by the Company.

       

      2.22   Intellectual Property
Rights.  The Company’s and its Subsidiaries’ patents,
trademarks, trade names, service marks copyrights, and registrations and
applications therefor, trade secrets and any other intellectual property right
(collectively, “Intellectual Property Rights”), are, to the best of the
Company’s knowledge, fully valid and are in full force and
effect.  The Company does not have any knowledge of any infringement
by the Company or any Subsidiary of Intellectual Property Rights of others.
There is no claim, action or proceeding being made or brought, or to the
knowledge of the Company, being threatened, against the Company or a Subsidiary
regarding its Intellectual Property Rights that could have a Material Adverse
Effect. The Company is unaware of any facts or circumstances which might give
rise to any of the foregoing infringements or claims, actions or proceedings.
The Company has taken reasonable security measures to protect the secrecy,
confidentiality and value of its Intellectual Property Rights.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      2.23   Environmental
Laws.  Each of Company and its Subsidiaries (a) is in
compliance with any and all Environmental Laws (as hereinafter defined),
(b) has received all permits, licenses or other approvals required of them
under applicable Environmental Laws to conduct their respective businesses and
(c) is in compliance with all terms and conditions of any such permit,
license or approval where, in each of the foregoing clauses (a), (b) and (c),
the failure to so comply could be reasonably expected to have, individually or
in the aggregate, a Material Adverse Effect. The term “Environmental Laws” means
all federal, state, local or foreign laws relating to pollution or protection of
human health or the environment (including, without limitation, ambient air,
surface water, groundwater, land surface or subsurface strata), including,
without limitation, laws relating to emissions, discharges, releases or
threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands or demand letters,
injunctions, judgments, licenses, notices or notice letters, orders, permits,
plans or regulations issued, entered, promulgated or approved
thereunder.

       

      2.24   Tax
Matters.  Each of Company and its Subsidiaries (a) has
made or filed all federal and state income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject,
(b) has paid all taxes and other governmental assessments and charges that
are material in amount, shown or determined to be due on such returns, reports
and declarations, except those being contested in good faith and (c) has
set aside on its books reasonably adequate provision for the payment of all
taxes for periods subsequent to the periods to which such returns, reports or
declarations apply, except where such failure would not have a Material Adverse
Effect. There are no unpaid taxes in any material amount claimed to be due by
the taxing authority of any jurisdiction, and the officers of the Company know
of no basis for any such claim.

       

      2.25   Sarbanes-Oxley Act.
Except as set forth in Schedule 2.25, the Company is in compliance with any and
all requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the
date hereof and applicable to it, and any and all rules and regulations
promulgated by the SEC thereunder that are effective and applicable to it as of
the date hereof, except where such noncompliance would not have a Material
Adverse Effect.

       

      2.26   Investment Company
Status.  The Company is not, and immediately after receipt of
payment for the Acquired Shares will not be, an “investment company,” an
“affiliated person” of, “promoter” for or “principal underwriter” for, or an
entity “controlled” by an “investment company,” within the meaning of the
Investment Company Act.

       

      2.27   Material
Contracts.  Except as disclosed on Schedule 2.27 or in the SEC
Documents, each contract of the Company that involves expenditures or receipts
in excess of $100,000 (each an “Applicable Contract”) is in full force and
effect and is valid and enforceable in accordance with its terms. The Company is
and has been in full compliance with all applicable terms and requirements of
each Applicable Contract and no event has occurred or circumstance exists that
(with or without notice or lapse of time) may contravene, conflict with or
result in a violation or breach of, or give the Company or any other entity the
right to declare a default or exercise any remedy under, or to accelerate the
maturity or performance of, or to cancel, terminate or modify any Applicable
Contract. The Company has not given or received from any other entity any notice
or other communication (whether oral or written) regarding any actual, alleged,
possible or potential violation or breach of, or default under, any Applicable
Contract.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      2.28   Inventory.  All
inventory of the Company consists of a quality and quantity usable and salable
in the ordinary course of business, except for obsolete items and items of
below-standard quality, all of which have been or will be written off or written
down to net realizable value on the audited consolidated balance sheet of the
Company as of December 31, 2008.  The quantities of each type of
inventory (whether raw materials, work-in-process, or finished goods) are not
excessive, but are reasonable and warranted in the present circumstances of the
Company.

       

      2.29   Disclosure. The
Company confirms that neither it nor any other Person acting on its behalf has
provided the Purchaser or its agents or counsel with any information that
constitutes or might constitute material, nonpublic information that has not
been disclosed in the SEC Documents. The Company understands and confirms that
the Purchaser will rely on the foregoing representations in effecting
transactions in securities of the Company. All disclosure provided to the
Purchaser regarding the Company, its business and the transactions contemplated
hereby, including the Schedules to this Agreement, furnished by or on behalf of
the Company are true and correct and do not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were
made, not misleading.

       

      ARTICLE
III

      REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

       

      The
Purchaser hereby represents and warrants to the Company as of the date of this
Agreement as follows:

       

      3.1   Organization.  The
Purchaser is a corporation, limited liability company or partnership duly
incorporated or organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization.

       

      3.2   Authorization.  This
Agreement has been duly authorized, validly executed and delivered by the
Purchaser and is a valid and binding agreement and obligation of the Purchaser
enforceable against the Purchaser in accordance with its terms, subject to
limitations on enforcement by general principles of equity and by bankruptcy or
other laws affecting the enforcement of creditors’ rights generally, and the
Purchaser has full power and authority to execute and deliver this Agreement and
the other agreements and documents contemplated hereby and to perform its
obligations hereunder and thereunder.

       

      3.3   Investment
Investigation.  The Purchaser understands that no Federal,
state, local or foreign governmental body or regulatory authority has made any
finding or determination relating to the fairness of an investment in the
Acquired Shares and that no Federal, state, local or foreign governmental body
or regulatory authority has recommended or endorsed, or will recommend or
endorse, any investment in the Acquired Shares. The Purchaser, in making the
decision to purchase the Acquired Shares, has relied upon independent
investigation made by it and has not relied on any information or
representations made by third parties.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      3.4   Accredited
Investor.  The Purchaser is an “accredited investor” as defined
under Rule 501 of Regulation D promulgated under the Securities
Act.

       

      3.5   No
Distribution.  The Purchaser is and will be acquiring the
Acquired Shares for its own account, and not with a view to any resale or
distribution of the Acquired Shares in whole or in part, in violation of the
Securities Act or any applicable securities laws.

       

      3.6   Resale.  The
parties intend that the offer and sale of the Acquired Shares be exempt from
registration under the Securities Act, by virtue of Section 4(2) and/or Rule 506
of Regulation D promulgated under the Securities Act. The Purchaser understands
that the Acquired Shares purchased hereunder have not been, and may never be,
registered under the Securities Act and that the Acquired Shares cannot be sold
or transferred unless its is first registered under the Securities Act and such
state and other securities laws as may be applicable or in the opinion of
counsel for the Company an exemption from registration under the Securities Act
is available (and then the Acquired Shares may be sold or transferred only in
compliance with such exemption and all applicable state and other securities
laws).

       

      3.7   Reliance.  The
Purchaser understands that the Acquired Shares is being offered and sold to it
in reliance on specific provisions of Federal and state securities laws and that
the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set
forth herein for purposes of qualifying for exemptions from registration under
the Securities Act, and applicable state securities laws.

       

      ARTICLE
IV

      CONDITIONS
TO CLOSING OF THE PURCHASER

       

      The
obligation of the Purchaser to purchase the Securities at the Closing is subject
to the fulfillment to the Purchaser’s satisfaction on or prior to the Closing
Date of each of the following conditions, any of which may be waived by the
Purchaser:

       

      4.1   Representations and
Warranties Correct.  The representations and warranties in
Article II hereof shall be true and correct when made, and shall be true and
correct on the Closing Date with the same force and effect as if they had been
made on and as of the Closing Date.

       

      4.2   Performance.  All
covenants, agreements and conditions contained in this Agreement to be performed
or complied with by the Company on or prior to the Closing Date shall have been
performed or complied with by the Company in all material respects.

       

      4.3   No
Impediments.  Neither the Company nor any Purchaser shall be
subject to any order, decree or injunction of a court or administrative agency
of competent jurisdiction that prohibits the transactions contemplated hereby or
would impose any material limitation on the ability of such Purchaser to
exercise full rights of ownership of the Acquired Shares.  At the time
of the Closing, the purchase of the Acquired Shares to be purchased by the
Purchaser hereunder shall be legally permitted by all laws and regulations to
which the Purchaser and the Company are subject.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      4.4   Other Agreements and
Documents.  Company shall have executed and delivered the
following agreements and documents:

       

      (a)   Certificates,
registered in the name of the Purchaser, representing the Acquired Shares and
the Warrant in the form of Exhibit B attached
hereto.

       

      (b)   The
Registration Rights Agreement in the form of Exhibit C attached
hereto (the “Registration Rights Agreement”);

       

      (c)   A
certificate of good standing with respect to the Company from the Secretary of
State of Delaware;

       

      (d)   A filed
copy of the Amended and Restated Certificate of Designation for the Series L
Preferred Stock certified by the Secretary of State of Delaware;

       

      (e)   A
certificate of the Company’s Secretary, dated the Closing Date, certifying
(i) the fulfillment of the conditions specified in Sections 4.1 and 4.2 of
this Agreement, (ii) the Board resolutions approving this Agreement and the
transactions contemplated hereby, (iii) the Company’s certificate of
incorporation, and (iv) other matters as the Purchaser shall reasonably
request;

       

      (f)   A written
waiver, in form and substance satisfactory to the Purchaser, from each person
other than the Purchaser who has any of the following rights:

       

      (i)   any
currently effective right of first refusal to acquire the Acquired Shares;
or

       

      (ii)   any right
to an anti-dilution adjustment of securities issued by the Company that are held
by such person that will be triggered as a result of the issuance of the
Acquired Shares; and

       

      (g)   All
necessary consents or waivers, if any, from all parties to any other material
agreements to which the Company is a party or by which it is bound immediately
prior to the Closing in order that the transactions contemplated hereby may be
consummated and the business of the Company may be conducted by the Company
after the Closing without adversely affecting the Company.

       

      4.5   Due Diligence
Investigation.  No fact shall have been discovered, whether or
not reflected in the Schedules hereto, which in the Purchaser’s determination
would make the consummation of the transactions contemplated by this Agreement
not in the Purchaser’s best interests.

       

      4.6   Certificate of
Designation.  The Company shall have filed an Amended and
Restated Certificate of Designation for the Series L Preferred Stock in the form
attached hereto as Exhibit A with the
Secretary of State of Delaware.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      ARTICLE
V

      CONDITIONS
TO CLOSING OF THE COMPANY

       

      The
Company’s obligation to sell the Securities at the Closing is subject to the
fulfillment to its satisfaction on or prior to the Closing Date of each of the
following conditions:

       

      5.1   Representations.  The
representations made by the Purchaser pursuant to Article III hereof shall
be true and correct when made and shall be true and correct on the Closing
Date.

       

      5.2   Other Agreements and
Documents.  Purchaser shall have executed and delivered the
following agreements and documents:

       

      (a)   The
Registration Rights Agreement; and

       

      (b)   The
Waiver of Anti-Dilution Rights in the form of Exhibit D attached
hereto.

       

      5.3   No
Impediments.  Neither the Company nor any Purchaser shall be
subject to any order, decree or injunction of a court or administrative agency
of competent jurisdiction that prohibits the transactions contemplated hereby or
would impose any material limitation on the ability of such Purchaser to
exercise full rights of ownership of the Acquired Shares.  At the time
of the Closing, the purchase of the Acquired Shares to be purchased by the
Purchaser hereunder shall be legally permitted by all laws and regulations to
which the Purchaser and the Company are subject.

       

      5.4   Payment of Purchase
Price.  The Company shall have received the Purchase
Price.

       

      ARTICLE
VI

      INDEMNIFICATION

       

      6.1   Indemnification by the
Company.  The Company agrees to defend, indemnify and hold
harmless the Purchaser and shall reimburse the Purchaser for, from and against
each claim, loss, liability, cost and expense (including without limitation,
interest, penalties, costs of preparation and investigation, and the reasonable
fees, disbursements and expenses of attorneys, accountants and other
professional advisors) (collectively, “Losses”) directly or indirectly relating
to, resulting from or arising out of any untrue representation,
misrepresentation, breach of warranty or non-fulfillment of any covenant,
agreement or other obligation by or of the Company contained herein or in any
certificate, document, or instrument delivered to the Purchaser pursuant
hereto.

       

      6.2   Indemnification by the
Purchaser.  The Purchaser agrees to defend, indemnify and hold
harmless the Company and shall reimburse the Company for, from and against all
Losses directly or indirectly relating to, resulting from or arising out of any
untrue representation, misrepresentation, breach of warranty or non-fulfillment
of any covenant, agreement or other obligation of the Purchaser contained herein
or in any certificate, document or instrument delivered to the Company pursuant
hereto.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      6.3   Procedure. The
indemnified party shall promptly notify the indemnifying party of any claim,
demand, action or proceeding for which indemnification will be sought under
Sections 6.1 or 6.2 of this Agreement, and, if such claim, demand, action or
proceeding is a third party claim, demand, action or proceeding, the
indemnifying party will have the right at its expense to assume the defense
thereof using counsel reasonably acceptable to the indemnified
party.  The indemnified party shall have the right to participate, at
its own expense, with respect to any such third party claim, demand, action or
proceeding.  In connection with any such third party claim, demand,
action or proceeding, the Purchaser and the Company shall cooperate with each
other and provide each other with access to relevant books and records in their
possession.  No such third party claim, demand, action or proceeding
shall be settled without the prior written consent of the indemnified party,
which shall not be unreasonably withheld.  If a firm written offer is
made to settle any such third party claim, demand, action or proceeding and the
indemnifying party proposes to accept such settlement and the indemnified party
refuses to consent to such settlement, then: (i) the indemnifying party
shall be excused from, and the indemnified party shall be solely responsible
for, all further defense of such third party claim, demand, action or
proceeding; and (ii) the maximum liability of the indemnifying party
relating to such third party claim, demand, action or proceeding shall be the
amount of the proposed settlement if the amount thereafter recovered from the
indemnified party on such third party claim, demand, action or proceeding is
greater than the amount of the proposed settlement.

       

      ARTICLE
VII

      MISCELLANEOUS

       

      7.1   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.

       

      7.2   Survival.  Except
as specifically provided herein, the representations, warranties, covenants and
agreements made herein shall survive the Closing.

       

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

       

      7.4   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 Purchaser may assign its
rights hereunder, and the Company may not assign its rights or obligations
hereunder without the consent of the Purchaser or any of its successors,
assigns, heirs, executors and administrators.

       

      7.5   Entire
Agreement.  This Agreement, the Transaction Documents and the
other documents delivered pursuant hereto and simultaneously herewith constitute
the full and entire understanding and agreement between the parties with regard
to the subject matter hereof and thereof.

       

      7.6   Notices,
etc.  All notices, demands or other communications given
hereunder shall be in writing and shall be sufficiently given if delivered
either personally or by a nationally recognized courier service marked for next
business day delivery or sent in a sealed envelope by first class mail, postage
prepaid and either registered or certified, addressed as follows:

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (a)   if to the
Company:

      485 North Keller Road

      Suite 450

      Maitland, FL 32751

      Attn:
Chief Executive Officer

       

      With a
copy to:

       

      Darrin M.
Ocasio, Esquire

      Sichenzia
Ross Friedman Ference LLP

      61
Broadway, 32nd
Floor

      New York,
NY  10006

      

      and

      

      Michael
E. Plunkett, Esquire

      Blank
Rome LLP

      One Logan
Square

      130 North
18th
Street

      Philadelphia,
PA 19103-6998

       

      (b)   if to a
Purchaser:

       

      Vicis
Capital Master Fund

      445 Park
Avenue

      16th
Floor

      New York,
NY 10022

      Attn:
Shad Stastney

       

      with a
copy to:

       

      Andrew D.
Ketter, Esq.

      Quarles
& Brady LLP

      411 East
Wisconsin Avenue

      Milwaukee,
Wisconsin 53202

       

      7.7   Delays or
Omissions.  No delay or omission to exercise any right, power
or remedy accruing to any holder of any Acquired Shares upon any breach or
default of the Company under this Agreement shall impair any such right, power
or remedy of such holder nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence, therein, or of or in any similar breach
or default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring.  Any waiver, permit, consent or approval of any
kind or character on the part of any holder of any breach or default under this
Agreement, or any waiver on the part of any holder of any provisions or
conditions of this Agreement must be, made in writing and shall be effective
only to the extent specifically set forth in such writing.  All
remedies, either under this Agreement or by law or otherwise afforded to any
holder, shall be cumulative and not alternative.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      7.8   Severability.  The
invalidity of any provision or portion of a provision of this Agreement shall
not affect the validity of any other provision of this Agreement or the
remaining portion of the applicable provision.  It is the desire and
intent of the parties hereto that the provisions of this Agreement shall be
enforced to the fullest extent permissible under the laws and public policies
applied in each jurisdiction in which enforcement is
sought.  Accordingly, if any particular provision of this Agreement
shall be adjudicated to be invalid or unenforceable, such provision shall be
deemed amended to delete therefrom the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the operation of such
provision in the particular jurisdiction in which such adjudication is
made.

       

      7.9   Expenses.  The
Company shall bear its own expenses and legal fees incurred on its behalf with
respect to the negotiation, execution and consummation of the transactions
contemplated by this Agreement and shall pay all documentary stamp or similar
taxes imposed by any authority upon the transactions contemplated by this
Agreement or any Transaction Document. The Company shall pay all reasonable,
documented third-party fees and expenses incurred by the Purchaser in connection
with the enforcement of this Agreement or any of the other Transaction
Documents, including, without limitation, all actual reasonable attorneys’ fees
and expenses.

       

      7.10   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 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.

       

      7.11   Titles and
Subtitles.  The titles of the articles, sections and
subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      7.12   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.

       

      7.13   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.

       

      7.14   Agreement not to
Convert.  Purchaser agrees that it will not convert any of the
Acquired Shares into the Company’s Class A Common Stock prior to December 31,
2009, and agrees that any certificate issued for the Acquired Shares may have
legend placed thereon to the effect that the Acquired Shares are subject to the
terms of this Agreement.  After December 30, 2009, the Company agrees
that it shall issue to the Purchaser a certificate representing the Acquired
Shares without any such legend promptly upon request by the Purchaser, provided
that any certificate originally issued for such shares is surrendered to the
Company at the time such request is made.

       

      

       

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have duly executed this Securities Purchase
Agreement, as of the day and year first above written.

       

       

      
        	 	 	
                COMPANY:

                 

                THE
      AMACORE GROUP, INC.

                

                 

                /s/
      Jay Shafer

              
	 	 	
                Jay
      Shafer

                Chief
      Executive Officer

              
	 	 	 
	 	 	 
	 	 	 
	 	 	
                PURCHASER:

                 

                VICIS
      CAPITAL MASTER FUND

                By:
      Vicis Capital LLC

              
	 	 	 
	 	 	 
	 	 	/s/ Chris
      Phillips
	 	 	
                Chris
      Phillips

                Managing
      Director

              

      

       

      
        
          
          

        

        
          18

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