Document:

Exhibit 10.2 

 

No.: GEM-___

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”),
AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION D PROMULGATED
UNDER THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT. THIS WARRANT MAY ONLY BE EXERCISED
BY A PERSON WHO QUALIFIES AS AN “ACCREDITED INVESTOR” PURSUANT TO RULE 501 OF REGULATION D OF THE ACT.

 

SCRIPSAMERICA, INC.

 

COMMON STOCK PURCHASE WARRANT

 

	Number of Shares: ___________	Issuance Date:          October 10, 2013

 

FOR VALUE RECEIVED,
the undersigned, ScripsAmerica, Inc., a Delaware corporation (together with its successors and assigns, the “Issuer”
and the “Company”), hereby certifies that __________________ (“Holder”) or its registered assigns is entitled
to subscribe for and purchase, during the Term (as hereinafter defined), in accordance with the terms of this Warrant, up to ___________________
shares (“Shares”) (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid
and non-assessable Common Stock of the Issuer, at an exercise price per share of $_______ (as such price may be adjusted from time
to time as shall result from the adjustments specified in this Warrant).  Capitalized terms used in this Warrant and
not otherwise defined herein shall have the respective meanings specified in Section 9 hereof.

 

1.     Term.  The
term of this Warrant shall commence on October 10, 2013 and shall expire at 6:00 p.m., Eastern Time, on October 10, 2018 (such
period being the “Term”); provided that if the Company fails to have the Warrant Registration Statement (as defined
in the Purchase Agreement) declared effective by the Commission on or before the Registration Effective Date (as defined in the
Purchase Agreement), the Term shall be extended by the number of days that elapse after the Registration Effective Date until the
Warrant Registration Statement is declared effective by the Commission.

 

2.     Vesting;
Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.

 

(a)            Time
of Exercise.  The purchase rights represented by this Warrant may be exercised in whole or in part during the Term.

 

    	 

    	 

    

(b)           Method
of Exercise.  The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant
(with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer
of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number
of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election
by certified or official bank check or by wire transfer to an account designated by the Issuer.

 

(c)          Issuance
of Stock Certificates.  In the event of any exercise of this Warrant in accordance with and subject to the terms
and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered
to the Holder hereof within a reasonable time, not exceeding five (5) Business Days after such exercise (the “Delivery Date”)
or, at the request of the Holder (provided that a registration statement under the Securities Act (as defined below) providing
for the resale of the Warrant Stock being purchased is then in effect or that such Warrant Stock are otherwise exempt from registration),
issued and delivered to the Depository Trust Company (“DTC”) account on the Holder’s behalf via the Deposit Withdrawal
Agent Commission System (“DWAC”) on or before the Delivery Date (if the Corporation is eligible for DWAC services at
such time), and the Holder hereof shall be deemed for all purposes to be the holder of the shares of Warrant Stock so purchased
as of the date of such exercise, and, unless this Warrant has been fully exercised or expired, a new warrant having the same terms
as this Warrant and representing the remaining portion of such shares, if any, with respect to which this Warrant shall not then
have been exercised shall also be issued to the Holder hereof as soon as possible and in any event within twenty (20) Business
Days after such effective exercise.

 

(d)         Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise.  In addition to any other rights available to
the Holder, if the Issuer fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing
the Warrant Stock pursuant to an exercise on or before the Delivery Date, and if after such date the Holder is required by its
broker to purchase (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by
the Holder of the Warrant Stock which the Holder anticipated receiving upon such exercise (a “Buy-In” ), then the Issuer
shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions,
if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of shares of
Warrant Stock that the Issuer was required to deliver to the Holder in connection with the exercise at issue times (B) the price
at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate
the portion of the Warrant and equivalent number of shares of Warrant Stock for which such exercise was not honored or deliver
to the Holder the number of shares of Common Stock that would have been issued had the Issuer timely complied with its exercise
and delivery obligations hereunder.  For example, if the Holder purchases Common Stock having a total purchase price
of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving
rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the Issuer shall be required
to pay the Holder $1,000. The Holder shall provide the Issuer written notice indicating the amounts payable to the Holder in respect
of the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Issuer.  Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Issuer’s failure to timely
deliver certificates representing shares of Common Stock upon exercise of this Warrant as required pursuant to the terms hereof.

 

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(e)           Transferability
of Warrant.  Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part, without
the consent of the Issuer.  If transferred pursuant to this paragraph, this Warrant may be transferred on the books of
the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office
of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary
transfer tax or other governmental charge imposed upon such transfer.  This Warrant is exchangeable at the principal
office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent
the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange.  All
Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except
as to the number of shares of Warrant Stock issuable pursuant thereto.

 

(f)           Continuing
Rights of Holder.  The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request
of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights
to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that
if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to
afford such rights to such Holder.

 

(g)         Compliance
with Securities Laws.

 

(i)      The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon
exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for
investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be
issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the
Securities Act and any applicable state securities laws.

 

(ii)      Except
as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise
hereof shall be stamped or imprinted with a legend in substantially the following form:

 

THIS WARRANT AND THE SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

 

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(iii)    The
Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above
if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing
the manner and terms of such transfer. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received
an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities
Act is not required in connection with such proposed transfer, (ii) a registration statement under the Securities Act covering
such proposed disposition has been filed by the Issuer with the Securities and Exchange Commission and has become effective under
the Securities Act, (iii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and
qualification under the Securities Act and state securities laws are not required, or (iv) the Holder provides the Issuer with
reasonable assurances that such security can be sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer
has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under
the securities or “blue sky” laws of any state is not required in connection with such proposed disposition, or (ii)
compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect
thereto. The Issuer will respond to any such notice from a holder within five (5) Trading Days. In the case of any proposed transfer
under this Section 2(g), the Issuer will use reasonable efforts to comply with any such applicable state securities or “blue
sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified,
(y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject,
or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable
to the Issuer.  The restrictions on transfer contained in this Section 2(g) shall be in addition to, and not by way of
limitation of, any other restrictions on transfer contained in any other section of this Warrant.  Whenever a certificate
representing the Warrant Stock is required to be issued to a the Holder without a legend, in lieu of delivering physical certificates
representing the Warrant Stock, the Issuer shall cause its transfer agent to electronically transmit the Warrant Stock to the Holder
by crediting the account of the Holder or Holder’s Prime Broker with DTC through its DWAC system (to the extent not inconsistent
with any provisions of this Warrant or the Purchase Agreement).

 

(h)           Accredited
Investor Status.  In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited
investor” as defined in Regulation D under the Securities Act.

 

3.     Stock
Fully Paid; Reservation and Listing of Shares; Covenants.

 

(a)           Stock
Fully Paid.  The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be
issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant,
be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through
the Issuer.  The Issuer further covenants and agrees that during the period within which this Warrant may be exercised,
the Issuer will at all times have authorized and reserved for the purpose of the issuance upon exercise of this Warrant a number
of authorized but unissued shares of Common Stock equal to at least one hundred fifty (150%) of the number of shares of Common
Stock issuable upon exercise of this Warrant without regard to any limitations on exercise.

 

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(b)           Reservation.  If
any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any Governmental Authority under any federal or state law before such shares may be
so issued, the Issuer will in good faith use its reasonable best efforts at its expense to cause such shares to be duly registered
or qualified.  If the Issuer shall list any shares of Common Stock on any securities exchange or market it will, at its
expense, list thereon, and maintain and increase when necessary such listing, of, all shares of Warrant Stock from time to time
issued upon exercise of this Warrant or as otherwise provided hereunder (provided that such Warrant Stock has been registered pursuant
to a registration statement under the Securities Act then in effect), and, to the extent permissible under the applicable securities
exchange rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as any shares of Common
Stock shall be so listed.  The Issuer will also so list on each securities exchange or market, and will maintain such
listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the exercise of this Warrant
if at the time any securities of the same class shall be listed on such securities exchange or market by the Issuer.

 

(c)           Covenants.  The
Issuer shall not by any action including, without limitation, amending the Certificate of Incorporation or the Bylaws of the Issuer,
or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of the Holder hereof.  Without limiting the generality of the foregoing, the Issuer will (i) not permit
the par value, if any, of its Common Stock to exceed the then effective Warrant Price, (ii) not amend or modify any provision of
the Certificate of Incorporation or Bylaws of the Issuer in any manner that would adversely affect the rights of the Holder, (iii)
take all such action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided herein) upon
the exercise of this Warrant, and (iv) use its best efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be reasonably necessary to enable the Issuer to perform its obligations
under this Warrant.

 

(d)           Loss,
Theft, Destruction of Warrant.  Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss,
theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity
or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant,
the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same number of shares of Common Stock.

 

(e)           Payment
of Taxes.  The Issuer will pay any documentary stamp taxes attributable to the initial issuance of the Warrant Stock
issuable upon exercise of this Warrant; provided, however, that the Issuer shall not be required to pay any tax or taxes which
may be payable in respect of any transfer involved in the issuance or delivery of any certificates representing Warrant Stock in
a name other than that of the Holder in respect to which such shares are issued.

 

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4.     Adjustment
of Warrant Price.  The price at which such shares of Warrant Stock may be purchased upon exercise of this Warrant
shall be subject to adjustment from time to time as set forth in this Section 4. The Issuer shall give the Holder notice of any
event described below which requires an adjustment pursuant to this Section 4 in accordance with the notice provisions set forth
in Section 5.

 

(a)       Recapitalization,
Reorganization, Reclassification, Consolidation, Merger or Sale.

 

(i)        In
case the Issuer after the Original Issue Date shall do any of the following (each, a “Triggering Event”): (a) consolidate
or merge with or into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation
or merger, or (b) permit any other Person to consolidate with or merge into the Issuer and the Issuer shall be the continuing or
surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed into or
exchanged for Securities of any other Person or cash or any other property, or (c) transfer all or substantially all of its properties
or assets to any other Person, or (d) effect a capital reorganization or reclassification of its Capital Stock, then, and in the
case of each such Triggering Event, proper provision shall be made to the Warrant Price and the number of shares of Warrant Stock
that may be purchased upon exercise of this Warrant so that, upon the basis and the terms and in the manner provided in this Warrant,
the Holder of this Warrant shall be entitled upon the exercise hereof at any time after the consummation of such Triggering Event,
to the extent this Warrant is not exercised prior to such Triggering Event, to receive at the Warrant Price as adjusted to take
into account the consummation of such Triggering Event, in lieu of the Common Stock issuable upon such exercise of this Warrant
prior to such Triggering Event, the Securities, cash and property to which such Holder would have been entitled upon the consummation
of such Triggering Event if such Holder had exercised the rights represented by this Warrant immediately prior thereto (including
the right of a shareholder to elect the type of consideration it will receive upon a Triggering Event), subject to adjustments
(subsequent to such corporate action) as nearly equivalent as possible to the adjustments provided for elsewhere in this Section
4. Immediately upon the occurrence of a Triggering Event, the Issuer shall notify the Holder in writing of such Triggering Event
and provide the calculations in determining the number of shares of Warrant Stock issuable upon exercise of the new warrant and
the adjusted Warrant Price.  Upon the Holder’s request, the continuing or surviving corporation as a result of
such Triggering Event shall issue to the Holder a new warrant of like tenor evidencing the right to purchase the adjusted number
of shares of Warrant Stock and the adjusted Warrant Price pursuant to the terms and provisions of this Section 4(a)(i).  Notwithstanding
the foregoing to the contrary, this Section 4(a)(i) shall only apply if the surviving entity pursuant to any such Triggering Event
is a company that has a class of equity securities registered pursuant to the Exchange Act and its common stock is listed or quoted
on a national securities exchange, national automated quotation system or the OTC Bulletin Board.  In the event that
the surviving entity pursuant to any such Triggering Event is not a public company that is registered pursuant to the Exchange
Act or its common stock is not listed or quoted on a national securities exchange, national automated quotation system or the OTC
Bulletin Board, then the Holder shall have the right to demand that the Issuer pay to the Holder an amount in cash equal to the
value of this Warrant calculated in accordance with the Black-Scholes formula.

 

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(ii)       In
the event that the Holder has elected not to exercise this Warrant prior to the consummation of a Triggering Event and has also
elected not to receive shares of Common Stock pursuant to the provisions of Section 4(a)(i) above, so long as the surviving entity
pursuant to any Triggering Event is a company that has a class of equity securities registered pursuant to the Exchange Act and
its common stock is listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin
Board, the surviving entity and/or each Person (other than the Issuer) which may be required to deliver any Securities, cash or
property upon the exercise of this Warrant as provided herein shall assume, by written instrument delivered to, and reasonably
satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer under this Warrant (and if the Issuer shall survive
the consummation of such Triggering Event, such assumption shall be in addition to, and shall not release the Issuer from, any
continuing obligations of the Issuer under this Warrant) and (B) the obligation to deliver to such Holder such Securities, cash
or property as, in accordance with the foregoing provisions of this subsection (a), such Holder shall be entitled to receive, and
the surviving entity and/or each such Person shall have similarly delivered to such Holder an opinion of counsel for the surviving
entity and/or each such Person, which counsel shall be reasonably satisfactory to such Holder, or in the alternative, a written
acknowledgement executed by the President or Chief Financial Officer of the Issuer, stating that this Warrant shall thereafter
continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of this subsection
(a)) shall be applicable to the Securities, cash or property which the surviving entity and/or each such Person may be required
to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto.

 

(b)     Stock
Dividends, Subdivisions and Combinations.  If at any time the Issuer shall:

 

(i)        make
or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive a dividend payable
in, or other distribution of, shares of Common Stock,

 

(ii)       subdivide
its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

 

(iii)      combine
its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

 

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then (1) the number
of shares of Common Stock for which this Warrant is exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same number of shares of Common Stock for which this
Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to receive after the happening
of such event, and (2) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied
by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B)
the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment.

 

(c)           Certain
Other Distributions.  If at any time the Issuer shall make or issue or set a record date for the holders of all of
the Common Stock for the purpose of entitling them to receive any dividend or other distribution of:

 

(i)       cash,

 

(ii)      any
evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other
than cash, Common Stock Equivalents or Additional Shares of Common Stock), or

 

(iii)     any
warrants or other rights to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any
other securities or property of any nature whatsoever (other than cash, Common Stock Equivalents or Additional Shares of Common
Stock),

 

then (1) the number
of shares of Common Stock for which this Warrant is exercisable shall be adjusted to equal the product of the number of shares
of Common Stock for which this Warrant is exercisable immediately prior to such adjustment multiplied by a fraction (A) the numerator
of which shall be the Per Share Market Value of Common Stock at the date of taking such record and (B) the denominator of which
shall be such Per Share Market Value minus the amount allocable to one share of Common Stock of any such cash so distributable
and of the fair value (as determined in good faith by the Board of Directors of the Issuer and supported by an opinion from an
investment banking firm mutually agreed upon by the Issuer and the Holder) of any and all such evidences of indebtedness, shares
of stock, other securities or property or warrants or other subscription or purchase rights so distributable, and (2) the Warrant
Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common
Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of shares of Common Stock
for which this Warrant is exercisable immediately after such adjustment.  A reclassification of the Common Stock (other
than a change in par value, or from par value to no par value or from no par value to par value) into shares of Common Stock and
shares of any other class of stock shall be deemed a distribution by the Issuer to the holders of its Common Stock of such shares
of such other class of stock within the meaning of this Section 4(c) and, if the outstanding shares of Common Stock shall be changed
into a larger or smaller number of shares of Common Stock as a part of such reclassification, such change shall be deemed a subdivision
or combination, as the case may be, of the outstanding shares of Common Stock within the meaning of Section 4(b).

 

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(d)           Issuance
of Additional Shares of Common Stock. In the event the Issuer shall at any time following the Original Issuance Date issue
any Additional Shares of Common Stock (otherwise than as provided in the foregoing subsections (b) through (c) of this Section
4), at a price per share less than the most recent price paid for Common Stock under the Purchase Agreement or without consideration,
then the Warrant Price upon each such issuance shall be adjusted to the price equal to the consideration per share paid for such
Additional Shares of Common Stock.

 

(e)            Issuance
of Common Stock Equivalents. In the event the Issuer shall at any time following the Original Issuance Date take a record of
the holders of its Common Stock for the purpose of entitling them to receive a distribution of, or shall in any manner (whether
directly or by assumption in a merger in which the Issuer is the surviving corporation) issue or sell, any Common Stock Equivalents,
whether or not the rights to exchange or convert thereunder are immediately exercisable, and the price per share for which Common
Stock is issuable upon such conversion or exchange shall be less than the most recent price paid for Common Stock under the Purchase
Agreement, or if, after any such issuance of Common Stock Equivalents, the price per share for which Additional Shares of Common
Stock may be issuable thereafter is amended or adjusted, and such price as so amended shall be less than the most recent price
paid for Common Stock under the Purchase Agreement at the time of such amendment or adjustment, then the Warrant Price then in
effect shall be adjusted as provided in Section 4(d). No further adjustments of the number of shares of Common Stock for which
this Warrant is exercisable and the Warrant Price then in effect shall be made upon the actual issue of such Common Stock upon
conversion or exchange of such Common Stock Equivalents. If the conversion or exercise price of a Common Stock Equivalent is not
stated or fixed at the time of issuance or sale, this provision shall not apply until such time that said Common Stock Equivalent
is actually converted or exercised.

 

(f)            Other
Provisions Applicable to Adjustments Under This Section.  The following provisions shall be applicable to the making
of adjustments of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect
provided for in this Section 4:

 

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(i)       Computation
of Consideration.  To the extent that any Additional Shares of Common Stock or any Common Stock Equivalents (or any
warrants or other rights therefor) shall be issued for cash consideration, the consideration received by the Issuer therefor shall
be the amount of the cash received by the Issuer therefor, or, if such Additional Shares of Common Stock or Common Stock Equivalents
are offered by the Issuer for subscription, the subscription price, or, if such Additional Shares of Common Stock or Common Stock
Equivalents are sold to underwriters or dealers for public offering without a subscription offering, the initial public offering
price (in any such case subtracting any amounts paid or receivable for accrued interest or accrued dividends and without taking
into account any compensation, discounts or expenses paid or incurred by the Issuer for and in the underwriting of, or otherwise
in connection with, the issuance thereof).  In connection with any merger or consolidation in which the Issuer is the
surviving corporation (other than any consolidation or merger in which the previously outstanding shares of Common Stock of the
Issuer shall be changed to or exchanged for the stock or other securities of another corporation), the amount of consideration
therefore shall be, deemed to be the fair value, as determined reasonably and in good faith by the Board, of such portion of the
assets and business of the nonsurviving corporation as the Board may determine to be attributable to such shares of Common Stock
or Common Stock Equivalents, as the case may be.  The consideration for any Additional Shares of Common Stock issuable
pursuant to any warrants or other rights to subscribe for or purchase the same shall be the consideration received by the Issuer
for issuing such warrants or other rights plus the additional consideration payable to the Issuer upon exercise of such warrants
or other rights.  The consideration for any Additional Shares of Common Stock issuable pursuant to the terms of any Common
Stock Equivalents shall be the consideration received by the Issuer for issuing warrants or other rights to subscribe for or purchase
such Common Stock Equivalents, plus the consideration paid or payable to the Issuer in respect of the subscription for or purchase
of such Common Stock Equivalents, plus the additional consideration, if any, payable to the Issuer upon the exercise of the right
of conversion or exchange in such Common Stock Equivalents.  In the event of any consolidation or merger of the Issuer
in which the Issuer is not the surviving corporation or in which the previously outstanding shares of Common Stock of the Issuer
shall be changed into or exchanged for the stock or other securities of another corporation, or in the event of any sale of all
or substantially all of the assets of the Issuer for stock or other securities of any corporation, the Issuer shall be deemed to
have issued a number of shares of its Common Stock for stock or securities or other property of the other corporation computed
on the basis of the actual exchange ratio on which the transaction was predicated, and for a consideration equal to the fair market
value on the date of such transaction of all such stock or securities or other property of the other corporation.  In
the event any consideration received by the Issuer for any securities consists of property other than cash, the fair market value
thereof at the time of issuance or as otherwise applicable shall be as determined in good faith by the Board.  In the
event Common Stock is issued with other shares or securities or other assets of the Issuer for consideration which covers both,
the consideration computed as provided in this Section 4(f)(i) shall be allocated among such securities and assets as determined
in good faith by the Board of the Issuer.

 

(ii)      When
Adjustments to Be Made.  The adjustments required by this Section 4 shall be made whenever and as often as any specified
event requiring an adjustment shall occur, except that any adjustment of the number of shares of Common Stock for which this Warrant
is exercisable that would otherwise be required may be postponed (except in the case of a subdivision or combination of shares
of the Common Stock, as provided for in Section 4(b)) up to, but not beyond the date of exercise if such adjustment either by itself
or with other adjustments not previously made adds or subtracts less than one percent (1%) of the shares of Common Stock for which
this Warrant is exercisable immediately prior to the making of such adjustment.  Any adjustment representing a change
of less than such minimum amount (except as aforesaid) which is postponed shall be carried forward and made as soon as such adjustment,
together with other adjustments required by this Section 4 and not previously made, would result in a minimum adjustment or on
the date of exercise. For the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business
on the date of its occurrence.

 

    	9

    	 

    

(iii)      Fractional
Interests.  In computing adjustments under this Section 4, fractional interests in Common Stock shall be taken into
account to the nearest one one-hundredth (1/100th) of a share.

 

(iv)     When
Adjustment Not Required.  If the Issuer shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution
to stockholders thereof, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights,
then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously made
in respect thereof shall be rescinded and annulled.

 

(g)           Form
of Warrant After Adjustments.  The form of this Warrant need not be changed because of any adjustments in the Warrant
Price or the number and kind of Securities purchasable upon the exercise of this Warrant.

 

(h)           Escrow
of Warrant Stock.  If after any property becomes distributable pursuant to this Section 4 by reason of the taking
of any record all of the holders of Common Stock, but prior to the occurrence of the event for which such record is taken, and
the Holder exercises this Warrant, any shares of Common Stock issuable upon exercise by reason of such adjustment shall be deemed
the last shares of Common Stock for which this Warrant is exercised (notwithstanding any other provision to the contrary herein)
and such shares or other property shall be held in escrow for the Holder by the Issuer to be issued to the Holder upon and to the
extent that the event actually takes place, upon payment of the current Warrant Price.  Notwithstanding any other provision
to the contrary herein, if the event for which such record was taken fails to occur or is rescinded, then such escrowed shares
shall be cancelled by the Issuer and escrowed property returned.

 

5.     Notice
of Adjustments.  Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to Section 4 hereof
(for purposes of this Section 5, each an “adjustment”), the Issuer shall cause its Chief Financial Officer to prepare
and execute a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment,
the method by which such adjustment was calculated (including a description of the basis on which the Board made any determination
hereunder), and the Warrant Price and Warrant Share Number after giving effect to such adjustment, and shall cause copies of such
certificate to be delivered to the Holder of this Warrant promptly after each adjustment.  Any dispute between the Issuer
and the Holder of this Warrant with respect to the matters set forth in such certificate may at the option of the Holder of this
Warrant be submitted to a national or regional accounting firm reasonably acceptable to the Issuer and the Holder, provided that
the Issuer shall have ten (10) days after receipt of notice from such Holder of its selection of such firm to object thereto,
in which case such Holder shall select another such firm and the Issuer shall have no such right of objection.  The
firm selected by the Holder of this Warrant as provided in the preceding sentence shall be instructed to deliver a written opinion
as to such matters to the Issuer and such Holder within thirty (30) days after submission to it of such dispute.  Such
opinion shall be final and binding on the parties hereto.  The costs and expenses of the initial accounting firm shall
be paid equally by the Issuer and the Holder and, in the case of an objection by the Issuer, the costs and expenses of the subsequent
accounting firm shall be paid in full by the Issuer.

 

    	10

    	 

    

6.     Fractional
Shares.  No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu
of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number
of shares.

 

7.     Ownership
Cap and Exercise Restriction.  Notwithstanding anything to the contrary set forth in this Warrant, at no time may
a Holder of this Warrant exercise this Warrant if the number of shares of Common Stock to be issued pursuant to such exercise would
exceed, when aggregated with all other shares of Common Stock owned by such Holder and its affiliates at such time, the number
of shares of Common Stock which would result in such Holder and its affiliates beneficially owning (as determined in accordance
with Section 13(d) of the Exchange Act and the rules  thereunder) in excess of 4.99% of the then issued and outstanding
shares of Common Stock; provided, however, that upon a Holder of this Warrant providing the Issuer with sixty-one (61) days’
notice (pursuant to Section 13 hereof) (the “Waiver Notice”) that such Holder would like to waive this Section 7 with
regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this Section 7 will be of no force or effect
with regard to all or a portion of the Warrant referenced in the Waiver Notice until the date that the Holder notifies the Issuer
(pursuant to Section 13 hereof) that the Holder revokes the Waiver Notice; provided , further , that during the sixty-one (61)
day period prior to the expiration of the Term, the Holder may waive this Section 7 by providing a Waiver Notice at any time during
such sixty-one (61) day period.

  

8.     [Reserved.]

 

9.     Definitions.  For
the purposes of this Warrant, the following terms have the following meanings:

 

“Additional Shares
of Common Stock” means all shares of Common Stock issued by the Issuer after the Original Issue Date, and all shares of Other
Common Stock, if any, issued by the Issuer after the Original Issue Date, except: (i) securities issued (other than for cash) in
connection with a merger, acquisition, or consolidation, (ii) securities issued pursuant to the conversion or exercise of convertible
or exercisable securities issued or outstanding on or prior to the date of the Purchase Agreement or issued pursuant to the Purchase
Agreement (so long as the conversion or exercise price in such securities are not amended or reset to lower such price and/or adversely
affect the Holder unless the issuance of shares pursuant to the Purchase Agreement results in a lower adjusted price), (iii) the
Warrant Stock, (iv) securities issued in connection with bona fide strategic license agreements, consulting agreements, or other
partnering or technology development arrangements so long as such issuances are not for the purpose of raising capital, (v) Common
Stock issued or the issuance or grants of options to purchase Common Stock pursuant to the Issuer’s stock option plans and
employee stock purchase plans outstanding as they exist on the date of the Purchase Agreement or as subsequently approved by the
independent members of the Board, provided that the amount of Common Stock issued pursuant to such plans does not exceed ten percent
(10%) of the Common Stock outstanding, (vi) Common Stock issued or the issuance or grants of warrants or options to purchase Common
Stock to consultants and third party service providers, provided that such issuances collectively shall not in the aggregate exceed
400,000 shares of Common Stock, and (vii) any warrants issued to the finders, placement agents or their respective designees for
the transactions contemplated by the Purchase Agreement or in subsequent offerings or placements.  The exclusions set
forth in this definition shall also apply to the issuance or sale of Common Stock Equivalents.

 

    	11

    	 

    

“Board”
shall mean the Board of Directors of the Issuer.

 

“Capital Stock”
means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated)
corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether
general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests
in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.

 

“Certificate
of Incorporation” means the Certificate of Incorporation of the Issuer as in effect on the Original Issue Date, and as hereafter
from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable
law.

 

 “Closing
Price” shall mean the closing sale price of the Common Stock, as recorded by the Principal Market, on a particular day.

 

“Commission”
shall mean the United States Securities and Exchange Commission or any successor entity.

 

“Common Stock”
means the common stock, $0.0001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter
be changed.

 

“Common Stock
Equivalent” means any Convertible Security or warrant, option or other right to subscribe for or purchase any Additional
Shares of Common Stock or any Convertible Security.

 

“Convertible
Securities” means evidences of indebtedness, shares of Capital Stock or other Securities which are or may be at any time
convertible into or exchangeable for Additional Shares of Common Stock.  The term “Convertible Security”
means one of the Convertible Securities.

 

“Governmental
Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission,
board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.

 

“Holders”
mean the Persons who shall from time to time own any Warrant.  The term “Holder” means one of the Holders.

 

“Independent
Appraiser” means a nationally recognized or major regional investment banking firm or firm of independent certified public
accountants of recognized standing (which may be the firm that regularly examines the financial statements of the Issuer) that
is regularly engaged in the business of appraising the Capital Stock or assets of corporations or other entities as going concerns,
and which is not affiliated with either the Issuer or the Holder of any Warrant.

 

    	12

    	 

    

“Original Issue
Date” means October 10, 2013.

 

“OTC Bulletin
Board” means the over-the-counter electronic bulletin board.

 

“Other Common
Stock” means any other Capital Stock of the Issuer of any class which shall be authorized at any time after the date of this
Warrant (other than Common Stock) and which shall have the right to participate in the distribution of earnings and assets of the
Issuer without limitation as to amount.

 

“Outstanding
Common Stock” means, at any given time, the aggregate amount of outstanding shares of Common Stock, assuming full exercise,
conversion or exchange (as applicable) of all options, warrants and other Securities which are convertible into or exercisable
or exchangeable for, and any right to subscribe for, shares of Common Stock that are outstanding at such time.

 

“Person”
means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization,
joint venture, Governmental Authority or other entity of whatever nature.

 

“Per Share Market
Value” means on any particular date (a) the last Closing Price per share of the Common Stock on such date on a registered
national stock exchange on which the Common Stock is then listed, or if there is no such price on such date, then the Closing Price
on such exchange or quotation system on the date nearest preceding such date, or (b) if the Common Stock is not listed or traded
then on any registered national stock exchange, the last Closing Price for a share of Common Stock in the over-the-counter market,
as reported by the OTC Bulletin Board or by Pink Sheets LLC (or similar organization or agency succeeding to its functions of reporting
prices) at the close of business on such date, or (c) if the Common Stock is not then publicly traded the fair market value of
a share of Common Stock as determined by an Independent Appraiser selected in good faith by the Holder; provided, however, that
the Issuer, after receipt of the determination by such Independent Appraiser, shall have the right to select an additional Independent
Appraiser, in which case, the fair market value shall be equal to the average of the determinations by each such Independent Appraiser;
and provided , further that all determinations of the Per Share Market Value shall be appropriately adjusted for any stock dividends,
stock splits or other similar transactions during such period.  The determination of fair market value by an Independent
Appraiser shall be based upon the fair market value of the Issuer determined on a going concern basis as between a willing buyer
and a willing seller and taking into account all relevant factors determinative of value, and shall be final and binding on all
parties.  In determining the fair market value of any shares of Common Stock, no consideration shall be given to any
restrictions on transfer of the Common Stock imposed by agreement or by federal or state securities laws, or to the existence or
absence of, or any limitations on, voting rights.

 

    	13

    	 

    

“Purchase Agreement”
means the Common Stock Purchase Agreement, dated as of the date hereof, between the Issuer and the GEM Global Yield Fund Limited.

 

“Securities”
means any debt or equity securities of the Issuer, whether now or hereafter authorized, any instrument convertible into or exchangeable
for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security.  ”Security”
means one of the Securities.

 

“Securities Act”
means the Securities Act of 1933, as amended, or any similar federal statute then in effect.

 

“Subsidiary”
means any corporation at least 50% of whose outstanding Voting Stock shall at the time be owned directly or indirectly by the Issuer
or by one or more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

 

“Term”
has the meaning specified in Section 1 hereof.

 

“Trading Day”
means (a) a day on which the Common Stock is traded on a national securities exchange, or (b) if the Common Stock is not traded
on a national securities exchange, a day on which the Common Stock is quoted in the over-the-counter market as reported by the
OTC Bulletin Board or Pink Sheets LLC (or any similar organization or agency succeeding its functions of reporting prices); provided,
however, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall
mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State
of New York are authorized or required by law or other government action to close.

 

“Voting Stock”
means, as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) having ordinary
voting power for the election of a majority of the members of the Board of Directors (or other governing body) of such corporation,
other than Capital Stock having such power only by reason of the happening of a contingency.

 

“Warrant Price”
means $0.41, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including
Section 4 hereto.

 

“Warrant Share
Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise
of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the
terms hereof.

 

    	14

    	 

    

“Warrant Stock”
means Common Stock issuable upon exercise of this Warrant.

 

10.           Other
Notices.  In case at any time:

 

	 	(A)	the Issuer shall make any distributions to the holders of Common Stock; or
	 	(B)	the Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of Capital Stock of any class or other rights; or
	 	(C)	there shall be any reclassification of the Capital Stock of the Issuer; or
	 	(D)	there shall be any capital reorganization by the Issuer; or
	 	(E)	there shall be any (i) consolidation or merger involving the Issuer or (ii) sale, transfer or other disposition of all or substantially all of the Issuer’s property, assets or business (except a merger or other reorganization in which the Issuer shall be the surviving corporation and its shares of Capital Stock shall continue to be outstanding and unchanged and except a consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or
	 	(F)	there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer or distribution to holders of Common Stock;

 

then, in each of such
cases, the Issuer shall, to the extent permitted by law, give written notice to the Holder of the date on which (i) the books of
the Issuer shall close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take place.  Such
notice also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution
or subscription rights, or shall be entitled to exchange their certificates for Common Stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the
case may be.  To the extent permitted by law, such notice shall be given at least twenty (20) days prior to the action
in question and not less than five (5) days prior to the record date or the date on which the Issuer’s transfer books are
closed in respect thereto.  This Warrant entitles the Holder to receive copies of all financial and other information
distributed or required to be distributed to the holders of the Common Stock.

 

11.    Amendment
and Waiver.  Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may
be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or
written instruments executed by the Issuer and the Holder.

 

    	15

    	 

    

12.    Governing
Law; Jurisdiction.  This Warrant shall be governed by and construed in accordance with the internal laws of the State
of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive
law of another jurisdiction.  This Warrant shall not be interpreted or construed with any presumption against the party
causing this Warrant to be drafted.  The Issuer and the Holder agree that venue for any dispute arising under this Warrant
will lie exclusively in the state or federal courts located in New York, and the parties irrevocably waive any right to raise
forum non conveniens or any other argument that New York is not the proper venue.  The Issuer and the Holder irrevocably
consent to personal jurisdiction in the state and federal courts of the state of New York.  The Issuer and the Holder
consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in
effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process
and notice thereof.  Nothing in this Section 12 shall affect or limit any right to serve process in any other manner
permitted by law.  The Issuer and the Holder hereby agree that the prevailing party in any suit, action or proceeding
arising out of or relating to this Warrant or the Purchase Agreement, shall be entitled to reimbursement for reasonable legal fees
from the non-prevailing party.  The parties hereby waive all rights to a trial by jury.

  

13.      Notices.  Any
notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall
be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur. The addresses for such communications shall be:

 

	If to the Issuer:	
        ScripsAmerica, Inc.

        Corporate Office Centre Tysons II

        1650 Tysons Boulevard, Suite 1580

        Tysons Corner, VA 22102

        Attn: Robert Schneiderman, CEO

 

with copies (which copies

shall not constitute notice)

	to:	Fox Law Offices, P.A.
	 	561 NE Zebrina Senda

Jensen Beach, FL 34957

Telephone number: (772) 225-6435

Fax: (772) 225-6435 (call first)

Attention: Richard C. Fox, Esq.

 

    	16

    	 

    

 

	If to the Holder:	
        GEM Global Yield Fund Limited

        c/o CM Group

        Commerce House

        1 Bowring Road

        Ramsey

        Isle of Man

        IM8 2LQ

 

with copies (which copies

shall not constitute notice)

	to:	Gottbetter & Partners, LLP
	 	488 Madison Avenue, 12th Floor
	 	New York, New York 10022
	 	Telephone Number:  (212) 400-6900
	 	Fax:  (212) 400-6901
	 	Attention:  Adam S. Gottbetter, Esq.

 

Any party hereto may
from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

 

14.     Warrant
Agent.  The Issuer may, by written notice to each Holder of this Warrant, appoint an agent having an office in New
York, New York for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to subsection (b) of
Section 2 hereof, exchanging this Warrant pursuant to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the
case may be, shall be made at such office by such agent.

 

15.     Remedies.  The
Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by
the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that,
to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any
agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

16.     Successors
and Assigns.  This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the
successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued
pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.

 

    	17

    	 

    

17.     Modification
and Severability.  If, in any action before any court or agency legally empowered to enforce any provision contained
herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary
to make it enforceable by such court or agency.  If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall
be construed as if such unenforceable provision had never been contained herein.

 

18.     Headings.  The
headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

 

19.     Registration
Rights.  The Holder of this Warrant is entitled to the benefit of certain registration rights with respect to the
shares of Warrant Stock issuable upon the exercise of this Warrant pursuant to the terms of the Purchase Agreement and the registration
rights with respect to the shares of Warrant Stock issuable upon the exercise of this Warrant by any subsequent Holder may only
be assigned in accordance with the terms and provisions of this Warrant and the Purchase Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

    	18

    	 

    

 

IN WITNESS WHEREOF,
the Issuer has executed this Warrant as of the day and year first above written.

 

 

	 	SCRIPSAMERICA, INC. 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

 

 

 

 

 

[Signature Page to Warrant]

 

 

    	19

    	 

    

 

NOTICE OF EXERCISE FORM

 

SCRIPSAMERICA, INC.

 

The undersigned _______________, pursuant
to the provisions of the within Warrant, hereby elects to purchase _____ shares of Common Stock of covered by the within Warrant.

 

	 	
	 	 (name)

 

 

	Dated: _________________	Signature	 
	 	 	 
	 	Address	 

 

Number of shares of
Common Stock beneficially owned or deemed beneficially owned by the Holder on the date of Exercise:  _________________________

 

The undersigned is
an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.

 

The undersigned intends
that payment of the Warrant Price shall be made as (check one):

 

Cash Exercise_______

 

Since the Warrant is
only exercisable via Cash Exercise, the Holder shall pay the sum of $________ by certified or official bank check (or via wire
transfer) to the Issuer in accordance with the terms of the Warrant.

 

 

    	20

    	 

    

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED,
_________________ hereby sells, assigns and transfers unto __________________ the within Warrant and all rights evidenced thereby
and does irrevocably constitute and appoint _____________, attorney, to transfer the said Warrant on the books of the within named
corporation.

 

	 	 
	 	 (name)

 

 

	Dated: _________________	Signature	 
	 	 	 
	 	Address	 

 

 

PARTIAL ASSIGNMENT FORM

 

FOR VALUE RECEIVED,
_________________ hereby sells, assigns and transfers unto __________________ the right to purchase _________ shares of Warrant
Stock evidenced by the within Warrant together with all rights therein, and does irrevocably constitute and appoint ___________________,
attorney, to transfer that part of the said Warrant on the books of the within named corporation.

 

	 	
	 	 (name)

 

 

	Dated: _________________	Signature	 
	 	 	 
	 	Address	 

 

 

FOR USE BY THE ISSUER ONLY:

 

This Warrant No. W-___
canceled (or transferred or exchanged) this _____ day of ___________, _____, shares of Common Stock issued therefor in the name
of _______________, Warrant No. W-_____ issued for ____ shares of Common Stock in the name of _______________.

 

 

    	21Exhibit 10.1

 

MANAGEMENT AGREEMENT

 

[FANTEX HOLDINGS, INC. SERVICES TO FANTEX, INC.]

 

THIS MANAGEMENT AGREEMENT is entered into on July 10, 2013 by and between Fantex Holdings, Inc., a Delaware corporation (“Holdings”), and Fantex, Inc., an Delaware corporation (“Fantex”).

 

RECITALS

 

WHEREAS, Fantex’s business consists of: (a) researching, targeting and accessing key brands of individuals such as professional athletes and entertainers that have the potential to transcend the core careers of the individual person and survive in perpetuity; (b) acquiring ownership rights in key brands purchased at a negotiated price; and (c) enriching its acquired brands via marketing, advertising and strategic partnering (the “Business”);

 

WHEREAS, Fantex requires certain administrative capabilities and services in connection with the Business;

 

WHEREAS, Fantex requires certain and executive managerial capabilities for strategic and tactical execution and planning;

 

WHEREAS, Fantex requires certain marketing and public relations capabilities;

 

WHEREAS, Holdings has personnel, facilities, data processing systems and expertise which can assist Fantex with such administrative, management and marketing matters; and

 

WHEREAS, Fantex wishes to engage the services of Holdings and Holdings wishes to be retained by Fantex to provide certain services in accordance with the terms of this Agreement.

 

AGREEMENT

 

NOW THEREFORE the parties covenant and agree as follows:

 

1.             Definitions.  In this Agreement, unless the context otherwise requires:

 

(a)           “Affiliate” means, with respect to a party, any firm, corporation, partnership, limited liability partnership, limited liability company, or other entity that now or in the future, directly controls, is controlled with or by or is under common control with a party.  For purposes of the foregoing, “control” means:  (a) where applicable, ownership directly of 50% or more of the voting power to elect directors thereof; or otherwise (b) the power to direct the management of such entity.

 

(b)           “Agreement” means this Management including all recitals and exhibits.

 

(c)           “Service” means any one or more of the management and administrative services available from Holdings and described on Exhibit A hereto and as requested by Fantex of Holdings from time to time.

 

2.             Interpretation.  In this Agreement, unless the context otherwise requires:

 

(a)           words importing the singular number only shall include the plural and vice versa, words importing any gender shall include all genders and words importing persons

 

 

shall include companies, corporations, partnerships, syndicates, trusts and any aggregate of persons;

 

(b)           all references to “party” or “parties” refer to the parties to this Agreement;

 

(c)           references to a Section or exhibit are to a Section of or exhibit to this Agreement;

 

(d)           any reference to a statute or regulation refers to that statute or regulation as amended or re-enacted from time to time;

 

(e)           where a period of time is prescribed, dated or calculated from a date or event, the time shall be calculated excluding such date, or the date on which such event occurred;

 

(f)            any reference to cancellation or termination shall be interpreted as preserving all of the rights, obligations and liabilities existing, arising, accrued or accruing at or prior to the time of such cancellation or termination; and

 

(g)           all monetary amounts are in the lawful currency of the United States.

 

3.             Engagement and Term.

 

(a)           Fantex hereby retains the services of Holdings and Holdings agrees to provide the Services to Fantex in accordance with and subject to the terms of this Agreement.

 

(b)           The engagement shall commence upon the consummation of the initial public offering of securities of Fantex pursuant to an effective registration statement on Form S-1 filed with the Securities and Exchange Commission (the “Effective Date”) and continue until December 31, 2014 unless earlier terminated pursuant to this Agreement; provided, that this engagement will automatically renew for successive periods of one year thereafter until terminated by either party on written notice not less than three-months prior to the next December 31.  Notwithstanding the foregoing, Fantex may terminate any specific Service and/or this Agreement, without penalty, with 30 days prior written notice to Holdings.  Holdings may terminate any specific Service and/or this Agreement with 180 days prior written notice to Fantex provided that if Fantex, using its commercially reasonable efforts, is unable to either perform the Services itself or enter into a reasonable arrangement with a third party to perform the Services that Fantex is unable perform itself, then Fantex will so notify Holdings and Holdings will continue to perform such Services for an additional period of 180 days.

 

(c)           A party may terminate this Agreement by giving to the other party written notice of such termination upon the other party’s (a) material breach of any material term (subject to the other party’s right to cure such breach within 30 days (or ten business days in the case of a payment breach) after receipt of such notice); or (b) insolvency, or the institution of any insolvency, assignment for the benefit of creditors, bankruptcy or similar proceedings by or against the other party.

 

2

 

4.             Provision of Services.

 

(a)           Holdings shall provide to Fantex the Services as requested by Fantex from time to time.

 

(b)           Holdings shall ensure that its systems properly support the Services and that its personnel (whether employees or contractors) are appropriately trained and capable to deliver the Services to Fantex accurately, timely and in a professional manner.  Holdings and each such person assisting Holdings shall devote sufficient time and attention to the Services to ensure that all requested assistance is given in a commercially reasonable manner.

 

(c)           Holdings agrees that, if requested by Fantex, Holdings will enter into a reasonable service level agreement with Fantex regarding one or more of the Services.

 

5.             Confidentiality.

 

(a)           For purposes hereof, “Confidential Information” of a party shall mean all information or material that (i) gives that party some competitive business advantage or the opportunity of obtaining such advantage or the disclosure of which could be detrimental to the interests of that party; or (ii) which is either (A) marked “Confidential,” “Restricted,” or “Proprietary Information” or other similar marking, (B) known by the parties to be considered confidential and proprietary, whether or not marked as such, or (C) from all the relevant circumstances should reasonably be assumed to be confidential and proprietary, whether or not marked as such.  Notwithstanding the foregoing, Confidential Information shall not include information which: (i) is or becomes generally known to the public by any means other than a breach of the obligations of a receiving party; (ii) was previously known to the receiving party or rightly received by the receiving party from a third party; or (iii) is independently developed by the receiving party without reference to information received from the other party.

 

(b)           Unless otherwise provided under this Section, each party agrees to hold the other party’s Confidential Information in strict confidence in perpetuity.  The parties agree not to make each other’s Confidential Information available in any form to any person or to use each other’s Confidential Information for any purpose other than the implementation of, and as specified in, this Agreement.  Each party agrees to take all reasonable steps to ensure that Confidential Information of either party is not disclosed or distributed by its employees, agents or contractors in violation of the provisions of this Agreement.  This Section 5 supplements and does not supersede any existing non-disclosure or confidentiality agreements between the parties.

 

(c)           In the event any Confidential Information is required to be disclosed by a receiving party under the terms of a valid and effective subpoena or order issued by a court of competent jurisdiction, or by a demand or information request from an executive or administrative agency or other governmental authority, the receiving party requested or required to disclose such Confidential Information shall, unless prohibited by the terms

 

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of a subpoena, order, or demand, promptly notify the disclosing party of the existence, terms and circumstances surrounding such demand or request, shall consult with the disclosing party on the advisability of taking legally available steps to resist or narrow such demand or request, and, if disclosure of such Confidential Information is required, shall exercise its reasonable best efforts to narrow the scope of disclosure and obtain an order or other reliable assurance that confidential treatment will be accorded to such Confidential Information.  To the extent the receiving party is prohibited from notifying the disclosing party of a subpoena, order or demand, by the terms of same, the receiving party shall exercise its reasonable efforts to narrow the scope of disclosure.

 

(d)           Holdings’ Confidential Information shall remain the sole and exclusive property of Holdings, and Fantex’s Confidential Information shall remain the sole and exclusive property of Fantex.

 

(e)           Each party covenants that any collection, storage, disclosure, transfer or use of personal information (including any information about an identifiable individual) will comply with all applicable federal, provincial, state, municipal or other laws governing the collection, storage or use of personal information.

 

6.             Title to Intellectual Property.  

 

(a)           The parties agree that any Intellectual Property developed by or on behalf of Holdings following the Effective Date for the primary purpose of providing the Services to Fantex and any Intellectual Property of Fantex made available to Holdings in connection with the Services, and any derivative works, additions, modifications or enhancements thereof created by or on behalf of Holdings, are and shall remain the sole property of Fantex.  Holdings agrees not to use Intellectual Property of Fantex for any purpose other than in connection with the provision of Services.  To the extent that Holdings uses its own Intellectual Property in connection with providing the Services and such Intellectual Property was developed either prior to the Effective Date or following the Effective Date for a purpose other than the provision of the Services, such Intellectual Property, and any derivative works, additions, modifications or enhancements thereof created during the term hereof shall remain the sole property of Holdings.  For purposes of this section 6, the term “Intellectual Property” means all data, information, look and feel, user interface, tools, software, trademarks, copyright, technologies, business processes, know-how and other intellectual property and proprietary information of a party.

 

(b)           Subject to trademark use policies and procedures established by Holdings from time to time, Holding hereby grants to Fantex and Fantex hereby accepts a perpetual, exclusive, transferable right and license to use the U.S. Trademark Application Serial No. 85/876365 for FANTEX and U.S. Trademark Application Serial No. 85/867620 for the X Logo, both in Classes 35 and 36 (individually and collectively, the “Trademarks”) in connection with the operation of the Fantex’s business, as now conducted or as may be conducted in the future.  This grant includes all rights that Holdings now has or may in the future acquire anywhere in the world.  All goodwill arising from Fantex’s use of the Trademarks shall inure solely and singularly to the benefit of Holdings, and Fantex will make no claim of right, entitlement or interest in the Trademarks, except such rights as are licensed hereunder.

 

7.             Indemnities.

 

(a)           Fantex shall indemnify, defend and hold harmless Holdings and its shareholders, officers, directors, employees, agents, Affiliates, parents and subsidiaries, and each of the successors and assigns of any of the foregoing (the “Holdings Indemnified Parties”), from and against any and all costs and expenses, losses, damages, claims, causes of action and liabilities (including reasonable attorneys’ fees, disbursements and expenses of litigation) incurred by or asserted against the Holdings Indemnified Parties (other than as to any claim brought by Fantex against Holdings) arising from, relating to, or in any way connected with (i) Fantex’s breach of its obligations under this Agreement, except to the extent that such shall be caused by the wilful misconduct, gross negligence or bad faith of Holdings,  or (ii) any act or omission

 

4

 

by Fantex which is in violation of any provision of this Agreement or any applicable laws or regulations.

 

(b)           Holdings shall indemnify, defend and hold harmless Fantex and its shareholders, officers, directors, employees, agents, Affiliates, parents and subsidiaries, and each of the successors and assigns of any of the foregoing (the “Fantex Indemnified Parties”), from and against any and all costs and expenses, losses, damages, claims, causes of action and liabilities (including reasonable attorneys’ fees, disbursements and expenses of litigation) incurred by or asserted against the Fantex Indemnified Parties (other than as to any claim brought by Holdings against Fantex) arising from, relating to, or in any way connected with (i) Holdings’ breach of its obligations under this Agreement, except to the extent that such shall be caused by the wilful misconduct, gross negligence or bad faith of Fantex,  or (ii) any act or omission by Holdings which is in violation of any provision of this Agreement or any applicable laws or regulations.

 

(c)           Each party claiming indemnity shall promptly provide the other party with written notice of any claim, action or demand for which indemnity is claimed.  The indemnifying party shall be entitled to control the defense of any action, provided that the indemnified party may participate in any such action with counsel of its choice at its own expense.  The indemnified party shall provide reasonable cooperation in the defense as the indemnifying party may request and at the indemnifying party’s expense.  No indemnifying party may settle a claim against an indemnified party without the prior written consent of such indemnified party or a complete release of claims against the indemnified party.

 

(d)           EXCEPT IN CONNECTION WITH (I) ANY ACT OF FRAUD OR INTENTIONAL WRONG-DOING BY A PARTY, (II) ANY CLAIM THAT IS SUBJECT TO INDEMNIFICATION UNDER SECTION 7, OR (III) ANY CLAIM THAT ARISES OUT OF A BREACH OF CONFIDENTIALITY, IN NO EVENT SHALL EITHER PARTY OR ANY OF THEIR OFFICERS, DIRECTORS, MEMBERS, SHAREHOLDERS, EMPLOYEES, AFFILIATES, OR SUPPLIERS BE LIABLE TO THE OTHER PARTY, WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (EVEN IF SUCH DAMAGES ARE FORESEEABLE, AND WHETHER OR NOT THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES) RELATING TO, ARISING FROM OR UNDER, OR IN ANY WAY CONNECTED WITH THIS AGREEMENT.

 

8.             Cost for Services.

 

(a)           In consideration of the Services provided by Holdings to Fantex as detailed in this Agreement, Fantex shall pay Holdings an amount equal to 5% of the gross cash received by Fantex pursuant to its brand contracts, if any, for any quarterly period (the “Service Fee”), as reported in its periodic reports pursuant to the Securities Exchange Act of 1934, as amended, for such period filed with the Securities and Exchange Commission (each, a “Periodic Report”).  The parties may negotiate a change to the

 

5

 

Service Fee in good faith from time to time to the extent that the parties believe that the Service Fee is not reasonably related to the actual cost of Services in any fiscal year.

 

(b)           Fantex shall, within 30 days after the filing of a Periodic Report for any period deliver to Holdings an invoice showing the Service Fee for the prior quarterly period covered by the Periodic Report and on or about the time of the delivery of such invoice shall pay Holdings an amount equal to the Service Fee for such period .

 

(c)           Upon request, Holdings will provide to Fantex for any period an invoice for actual costs and all disbursements made on Fantex’s behalf during such quarterly period, which shall be accompanied by reasonable documentation or explanation supporting such charges.

 

9.             Notices.

 

(a)           All notices, demands, consents, approvals or other communications provided for or permitted under this Agreement (collectively referred to as “notices”) shall be in writing, personally delivered to an officer or other responsible employee of the addressee or sent by registered mail, charges prepaid, or by e-mail, facsimile, or other means of electronic communication, to the applicable address set forth below or to such other address as a party to this Agreement may from time to time designate in such manner.  Any notice so personally delivered shall be considered to have been validly and effectively given on the date of such delivery.  Any notice so sent by registered mail shall be considered to have been validly and effectively given on the fifth day (excluding Saturdays, Sundays and statutory holidays at the address to which it is sent) following the day on which it is sent, as evidenced by the postal receipt.  Any notice so sent by e-mail, facsimile, or other means of electronic communication shall be considered to have been validly and effectively given on the day (excluding Saturdays, Sundays and statutory holidays at the address to which it is sent) following the day on which it is sent.  If the party giving any demand, notice or other communication knows or should reasonably know of any difficulties with the postal system that might affect the delivery of mail, any such demand, notice or other communication shall not be mailed but shall be given by personal delivery or by electronic communication.

 

To Fantex at:

 

330 Townsend Street, Suite 234

San Francisco, California 94107

Attention:  Fantex, Inc. — Chief Financial Officer

 

To Holdings at:

 

330 Townsend Street, Suite 234

San Francisco, California 94107

Attention:  Fantex Holdings, Inc. — Chief Financial Officer

 

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10.          Audit Rights.   Each party shall have the right, during the term of this Agreement and for a period of one year thereafter, to inspect and audit the other party’s records relating to such other party’s performance hereunder to ensure compliance with this Agreement.  Any audit will be conducted not more than one time per year, at mutually agreed upon times, upon reasonable prior written notice, and in a manner so as to minimize any disruption of the audited party’s normal business activities; provided, however, that in the event of an underpayment of more than five percent, the foregoing limit of one audit per year shall be expanded to one per calendar quarter.  If Fantex is found not to have complied with its payment obligations hereunder by an amount equal to or exceeding five percent of such obligations for any calendar month, then Fantex shall reimburse Holdings for all reasonable costs associated with Holdings’ audit.  Any overpayment or underpayment revealed by any audit hereunder shall be reimbursed promptly after the completion of such audit.

 

11.          Assignment.  Neither party may transfer or assign this Agreement or its obligations under this Agreement, in whole or in part, without the prior written consent of the other party. Any assignment contrary to the foregoing shall be void.  Notwithstanding the foregoing, either party may assign this Agreement in whole (but not in part) to any parent, Affiliate, subsidiary or successor upon not less than 30 days prior written notice to the other party.

 

12.          Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to any doctrine of conflicts of laws, including all matters of construction, validity, performance and enforcement.

 

13.          Arbitration.  Any controversy or claim arising out of or in any way connected with this Agreement or the alleged breach thereof shall be resolved by one arbitrator, in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then in effect in San Francisco, California and shall be held in the San Francisco Bay Area.  Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.  Costs of AAA will be shared equally by both parties.

 

14.          Force Majeure.  Neither party shall be liable for any delay or failure in performance under this Agreement arising out of a cause beyond its reasonable control or without its fault or negligence.  Such causes may include, but are not limited to fires, floods, earthquakes, strikes, unavailability of necessary utilities, blackouts, acts of God, acts of declared or undeclared war, acts of regulatory agencies, or national disasters.

 

15.          Independent Contractor.  The parties are independent contractors.  Nothing in this Agreement shall be construed to create a joint venture, partnership, an agency relationship, or any other form of joint enterprise between the parties.  Neither party has the authority, without the other party’s prior written approval, to bind or commit the other party in any way.

 

16.          Entire Agreement.  This Agreement and any attachments hereto set forth the entire agreement and understanding between the parties as to the subject matter hereof and supersede all prior discussions, agreements and understandings of any kind, and every nature between them.  This Agreement shall not be changed, modified or amended except in writing and signed by both parties.

 

This Agreement amends and restates in its entirety the Administrative Services Agreement previously entered into by the parties on April 1, 2013, which agreement is hereby terminated.

 

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17.          Severability.  If any provision of this Agreement (or any portion thereof) is determined to be invalid or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and shall be binding upon Fantex and Holdings and shall be enforceable, as though said invalid or unenforceable provision (or portion thereof) were not contained in this Agreement.

 

18.          Waiver.  The failure by either party to insist upon strict performance of any of the provisions contained in this Agreement shall in no way constitute a waiver of its rights as set forth in this Agreement, at law or in equity, or a waiver of any other provisions or subsequent default by the other party in the performance of or compliance with any of the terms and conditions set forth in this Agreement.

 

19.          Third Party Beneficiaries.  No third party is a third-party beneficiary to this Agreement.

 

20.          Headings.  The headings of this Agreement are intended solely for convenience of reference and shall be given no effect in the interpretation or construction of this Agreement.

 

(Signature Page Follows)

 

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IN WITNESS WHEREOF the parties have executed this Agreement as of the date first above written to be effective as of the Effective Date.

 

	
FANTEX   HOLDINGS, INC.
    	
 
    	
FANTEX, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ David Mullin
    	
 
    	
By:
    	
/s/   Cornell “Buck” French
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
David Mullin
    	
 
    	
Name:
    	
Cornell   “Buck” French
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chief Financial Officer
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

9

 

Exhibit A

 

SERVICES

 

	
Type of 
   Service
    	
 
    	
General Description of Services that Holdings
    will make available to Fantex
    
	
 
    	
 
    	
 
    	
 
    
	
1. 
    	
IT
    	
 
    	
Lease/use of hardware
    
	
 
    	
 
    	
 
    	
Lease/use of software
    
	
 
    	
 
    	
 
    	
Data transmission services
    
	
 
    	
 
    	
 
    	
Data center and security
    
	
 
    	
 
    	
 
    	
Development
    
	
 
    	
 
    	
 
    	
PC support/Desktop services
    
	
 
    	
 
    	
 
    	
Network support
    
	
 
    	
 
    	
 
    	
Technical support
    
	
 
    	
 
    	
 
    	
Security and risk management PCI compliance
    
	
 
    	
 
    	
 
    	
 
    
	
2. 
    	
Customer Support
    	
 
    	
Utilization of customer support center
    
	
 
    	
 
    	
 
    	
 
    
	
3. 
    	
Brand Management and Other Support Operations
    	
 
    	
General management supervision, strategy,   planning & direction

Executive management and other personnel 

General marketing
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Facilities
    	
 
    	
Office space and administration (including   lease negotiations)/use of furniture
    
	
 
    	
 
    	
 
    	
Security
    
	
 
    	
 
    	
 
    	
Utilities
    
	
 
    	
 
    	
 
    	
Telephones
    
	
 
    	
 
    	
 
    	
Email
    
	
 
    	
 
    	
 
    	
Mail
    
	
 
    	
 
    	
 
    	
 
    
	
5. 
    	
HR
    	
 
    	
Payroll
    
	
 
    	
 
    	
 
    	
Payroll tax return preparation
    
	
 
    	
 
    	
 
    	
Benefit Plans (including pension plan)
    
	
 
    	
 
    	
 
    	
Stock plan administration
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Tax
    	
 
    	
Income and non-income tax planning and   compliance (domestic and international)
    
	
 
    	
 
    	
 
    	
Income and non-income tax return preparation   and administration
    
	
 
    	
 
    	
 
    	
Sales tax compliance/local business licenses
    
	
 
    	
 
    	
 
    	
 
    
	
7. 
    	
Accounting
    	
 
    	
General ledger
    
	
 
    	
 
    	
 
    	
US GAAP accounting consultation
    
	
 
    	
 
    	
 
    	
Sub-ledger accounting
    
	
 
    	
 
    	
 
    	
Account reconciliation
    

 

10

 

	
 
    	
 
    	
 
    	
Accounts receivable
    
	
 
    	
 
    	
 
    	
Accounts payable processing
    
	
 
    	
 
    	
 
    	
Coordination of audit regarding Fantex’s   financial statements
    
	
 
    	
 
    	
 
    	
Sarbanes Oxley compliance consultation
    
	
 
    	
 
    	
 
    	
Internal audit matters
    
	
 
    	
 
    	
 
    	
 
    
	
8. 
    	
Treasury
    	
 
    	
Bank account set up/maintenance
    
	
 
    	
 
    	
 
    	
Cash management/investment services
    
	
 
    	
 
    	
 
    	
Letters of credit
    
	
 
    	
 
    	
 
    	
 
    
	
9. 
    	
Insurance
    	
 
    	
Commercial and general liability insurance
    
	
 
    	
 
    	
 
    	
Workers compensation insurance
    
	
 
    	
 
    	
 
    	
Directors and Officers’ liability insurance
    
	
 
    	
 
    	
 
    	
 
    
	
10. 
    	
Other
    	
 
    	
Any other services reasonably requested from   time to time
    

 

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