Document:

Exhibit 4.1

 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE
AND THE UNDERLYING SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY RECEIVES
AN OPINION OF COUNSEL FOR THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

	Warrant No. 34	Number of Shares: 1,412,500
	 	(subject to adjustment)

Date of Issuance: June 28, 2013

 

TARGETED MEDICAL PHARMA, INC.

 

Common Stock Warrant

 

1.                 
Targeted Medical Pharma, Inc. (the “Company”), for value received, hereby certifies that James
Giordano, or his registered assigns (the “Registered Holder”), is entitled, subject to the terms of this Common Stock
Warrant (the “Warrant”)  set forth below, to purchase from the Company, commencing on the latter of (i)
six months from the date hereof and (ii) the date on which the Funding Amount is paid in full pursuant to the Workers Compensation
Receivables Funding Assignment and Security Agreement (the “Agreement”) by and between the Company and the Registered
Holder dated as of the date hereof (the “Exercise Date”), and ending on June 28, 2018 (the “Expiration
Date”), 1,412,500 shares of the Company’s common stock at a per share exercisable price of $2.00 (the “Warrant
Exercise Price”) subject to adjustment as set forth in Section 2. This Warrant is being issued by the Company to the Registered
Holder in connection with the consulting agreement by and between the Registered Holder and the Company. All capitalized terms
used and not defined herein shall have the meanings ascribed thereto in the Initial Agreement.

  

The shares of Common
Stock purchasable upon exercise of this Warrant and the exercise price per share, as adjusted from time to time pursuant to the
provisions of this Warrant, are hereinafter referred to as the “Warrant Stock” and the “Exercise Price,”
respectively.

 

1.Exercise.

 

(a)Method of
Exercise. Subject to the provisions hereof (including, without limitation, Section 1(c) below, this Warrant may be exercised
by the Registered Holder, in whole or in part, beginning on the Exercise Date and at any time prior to the Expiration Date,
by (i) surrendering this Warrant, with the form appended hereto as Exhibit A duly executed by such Registered Holder,
or by such Registered Holder’s duly authorized attorney, at the principal office of the Company, or at such other office
or agency as the Company may designate in writing prior to the date of such exercise, accompanied by payment in full of the Exercise
Price payable with respect to the number of shares of Warrant Stock purchased upon such exercise, or (ii) by cashless exercise
pursuant to Section 1(b) below. If exercised pursuant to subsection 1(a)(i), the Exercise Price must be paid by cash, check or
wire transfer in immediately available funds.

 

    	 

    	 

    

 

(b)Cashless
Exercise. Notwithstanding any other provision contained herein to the contrary, the Registered Holder may elect
to receive, without the payment by the Registered Holder of the aggregate Exercise Price in respect of the shares of Common Stock
to be acquired, shares of Common Stock of equal value to the value of this Warrant, or any specified portion hereof, by the surrender
of this Warrant (or such portion of this Warrant being so exercised) together with a Cashless Exercise Election Notice, in the
form annexed hereto as Exhibit B, duly executed, to the Company. Thereupon, the Company shall issue to the Registered Holder
such number of fully paid, validly issued and nonassessable shares of Common Stock as is computed using the following formula:

 

	X =  Y (A - B)
	A

  

where

 

X =the number of
shares of Common Stock to which the Registered Holder is entitled upon such cashless exercise;

 

Y =the total number
of shares of Common Stock covered by this Warrant for which the Registered Holder has surrendered purchase rights at such time
for cashless exercise (including both shares to be issued to the Registered Holder and shares as to which the purchase rights are
to be canceled as payment therefor);

 

A =the “Market
Price” (as defined below) of one share of Common Stock as at the date the net issue election is made; and

 

B =the Warrant Exercise Price in
effect under this Warrant at the time the cashless exercise election is made.

 

For the purposes of this Section 1(b),
“Market Price” as of a particular date (the “Valuation Date”) shall mean the following: (a)
if the Common Stock is then listed on a national stock exchange, the closing sale price of one share of Common Stock on such exchange
on the last trading day prior to the Valuation Date; (b) if the Common Stock is then quoted on the Financial Industry Regulatory
Authority, Inc.’s OTC Bulletin Board (the “Bulletin Board”) or such similar quotation system or association,
the closing sale price of one share of Common Stock the Bulletin Board or such other quotation system or association on the last
trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low
asked price quoted thereon on the last trading day prior to the Valuation Date; or (c) if the Common Stock is not then listed on
a national stock exchange or quoted on the Bulletin Board or such other quotation system or association, the fair market value
of one share of Common Stock as of the Valuation Date, as determined in good faith by the Board of Directors of the Company and
the Registered Holder. If the Common Stock is not then listed on a national securities exchange, the Bulletin Board or such other
quotation system or association, the Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the
Registered Holder prior to the exercise hereunder as to the fair market value of a share of Common Stock as determined by the Board
of Directors of the Company. In the event that the Board of Directors of the Company and the Registered Holder are unable to agree
upon the fair market value in respect of subpart (c) of this paragraph, the Company and the Registered Holder shall jointly select
an appraiser, who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the cost of
such appraiser shall be borne equally by the Company and the Registered Holder. Such adjustment shall be made successively whenever
such a payment date is fixed.

    	 

    	 

    

 

(c)Limitations
on Exercises. Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable
by the Holder hereof to the extent (but only to the extent) that the Warrant Stock issuable on any exercise of this Warrant is
in excess of the average trading daily volume of the Company’s common stock during the ten trading days prior to the date
of exercise as reported on Bloomberg, To the extent the above limitation applies, the determination of whether this Warrant shall
be exercisable or exchangeable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder
or any of its Affiliates) and of which such securities shall be exercisable or exchangeable (as among all such securities owned
by the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the
Company for conversion, exercise or exchange (as the case may be

 

(d)Effective
Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of
business on the day on which this Warrant shall have been surrendered to the Company (the “Exercise Date”) as
provided in this Section 1. At such time, the person or persons in whose name or names any certificates for Warrant Stock shall
be issuable upon such exercise as provided in Section 1(c) below shall be deemed to have become the holder or holders of record
of the Warrant Stock represented by such certificates.

 

(e) Delivery
to Holder. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within five
(5) business days thereafter (the “Warrant Stock Delivery Date”), the Company at its expense will cause to be
issued in the name of, and delivered to, the Registered Holder, or as such Registered Holder (upon payment by such Registered Holder
of any applicable transfer taxes) may direct:

 

(i)a certificate
or certificates for the number of shares of Warrant Stock to which such Registered Holder shall be entitled, and

 

(ii)in case such
exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face
or faces thereof for the number of shares of Warrant Stock equal (giving effect to any adjustment therein) to the number of such
shares called for on the face of this Warrant minus the number of such shares purchased by the Registered Holder upon such exercise
as provided in Section 1(a) or Section 1(c) above.

 

    	 

    	 

    

 

2.Adjustments.

 

(a)Stock Splits
and Dividends. If the outstanding shares of the Company’s Common Stock shall be subdivided into a greater number
of shares or a dividend in Common Stock shall be paid in respect of Common Stock, the Exercise Price in effect immediately prior
to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately
after the record date of such dividend be proportionately reduced. If outstanding shares of Common Stock shall be combined into
a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness
of such combination, be proportionately increased. When any adjustment is required to be made in the Exercise Price, the number
of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing
(i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment,
multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately
after such adjustment.

 

(b)Merger Sale,
Reclassification, Etc. In case of any (i) consolidation or merger (including a merger in which the Company is the surviving
entity), (ii) sale or other disposition of all or substantially all of the Company’s assets or distribution of property to
shareholders (other than distributions payable out of earnings or retained earnings), or reclassification, change or conversion
of the outstanding securities of the Company or of any reorganization of the Company (or any other corporation the stock or securities
of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the
date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time thereafter shall be entitled
to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consolidation,
merger, sale or other disposition, reclassification, change, conversion or reorganization, the stock or other securities or property
to which such holder would have been entitled upon such consummation if such holder had exercised this Warrant immediately prior
thereto, all subject to further adjustment as provided in Section 2(a) or 2(b); and in each such case, the terms of this Section 2
shall be applicable to the shares of stock or other securities properly receivable upon the exercise of this Warrant after such
consolidation, merger, sale or other disposition, reclassification, change, conversion or reorganization.

 

(c)Adjustment
Certificate. When any adjustment is required to be made in the Warrant Stock or the Exercise Price pursuant to this Section
2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts
requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of stock or other
securities or property into which this Warrant shall be exercisable after such adjustment.

 

    	 

    	 

    

 

3.Transfers.

 

(a)Unregistered
Security. The holder of this Warrant acknowledges that this Warrant and the Warrant Stock have not been registered under
the Securities Act and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or
any Warrant Stock issued upon its exercise in the absence of (i) an effective registration statement under the Securities
Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any
applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the
Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Stock issued
upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect.

 

(b)Transferability.
Subject to the provisions of Section 4(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part,
to (i) any entity controlling, controlled by or under common control of the Registered Holder, or (ii) to any other proposed transferee
by surrendering the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office
of the Company.

 

(c)Warrant
Register. The Company will maintain a register containing the names and addresses of the Registered Holders of this Warrant.
Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant
as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank,
the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding
any notice to the contrary. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register
by written notice to the Company requesting such change.

 

4.No Impairment.
The Company will not, by amendment of its certificate of incorporation or through reorganization, consolidation, merger, dissolution,
sale of assets or any other voluntary 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 action
as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment.

 

5.Termination.
This Warrant (and the right to purchase securities upon exercise hereof) shall terminate on the Expiration Date.

 

6.Notices
of Certain Transactions. In case:

 

(a)the Company shall
take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this
Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to
subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, to subscribe
for or purchase any shares of stock of any class or any other securities, or to receive any other right, or

 

    	 

    	 

    

 

(b)of any capital
reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company,
any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the
Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company, or

 

(c)of the voluntary
or involuntary dissolution, liquidation or winding-up of the Company,

 

then, and in each such
case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may
be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed,
as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up) are to be determined.Failure to send
such notice shall not invalidate any such action

 

7.Reservation
of Stock. The Company covenants that it shall at all times have authorized, reserve and keep available, solely for the
issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property,
as from time to time shall be issuable upon the exercise of this Warrant. The Company covenants that all Warrant Stock that may
be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented
by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in
respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). The Company
further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty
of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant by the Holder. The Company will take all such reasonable action as may be necessary to assure
that such Warrant Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the OTC Bulletin Board, exchange, trading market or other inter-dealer electronic quotation system upon which the Common Stock
may be listed.

 

8.Exchange
of Warrants. Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company
at the principal office of the Company, the Company will, subject to the provisions hereof, issue and deliver to or upon the order
of such Registered Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such Registered
Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling
in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant
or Warrants so surrendered.

 

9.Replacement
of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably
required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of
this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

 

    	 

    	 

    

 

10.Piggyback
Registration Rights. If the Company proposes to register any of its Common Stock either for its own account or the account
of a security holder:

 

(a) The Company shall
use its best efforts to include in such registration (and any related qualification under blue sky laws or other compliance) all
how many is that the underlying shares of Common Stock to be issued under this Warrant.

 

(b)All registration
expenses incurred in connection with any registration, qualification or compliance pursuant to Sections 10(a) hereof, shall be
borne by the Company.

 

(c)Notwithstanding
the foregoing, if the managing underwriter of any such offering determines that the number of shares proposed to be sold by the
Company, by other shareholders having piggy-back rights, and/or by the Holder is greater than the number of shares which the underwriter
believes feasible to sell at the time, at the price and upon the terms approved by the Company, then the number of shares which
the underwriter believes may be sold shall be allocated for inclusion in the registration statement in the following order of priority:
(i) shares being offered by the Company; and (ii) pro rata among the other shareholders and the Holder, based on the number of
shares of Common Stock each shareholder requested to be registered. The Company shall have the right to designate the managing
underwriter in respect of a public offering pursuant to this Section 10.Except out offerings that contractually not permit piggybacks

 

11.Notices.
Any notice required or permitted by this Warrant shall be in writing and shall be deemed duly given upon receipt, when delivered
personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the regular mail
as certified or registered mail (airmail if sent internationally) with postage prepaid, addressed (a) if to the Registered Holder,
to the address of the Registered Holder most recently furnished in writing to the Company and (b) if to the Company, to the address
set forth on the signature page of this Warrant or as subsequently modified by written notice to the Registered Holder.

 

12.No Rights
as Stockholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any
rights by virtue hereof as a stockholder of the Company.

 

13.No Fractional
Shares. No fractional shares of Common Stock will be issued in connection with any exercise hereunder. In lieu of any fractional
shares which would otherwise be issuable, the Company shall round the amount of Warrant Stock issuable to the nearest whole share.

 

14.Amendment
or Waiver. Any term of this Warrant may be amended or waived upon written consent of the Company and the Registered Holder.

 

    	 

    	 

    

 

15.Headings.
The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision
of this Warrant.

 

16.Governing
Law. This Warrant and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles
of conflicts of law.

 

17.Representations
and Covenants of the Holder. This Warrant has been entered into by the Company in reliance upon the following representations
and covenants of the Registered Holder:

 

(a) Investment
Purpose. The Registered Holder is acquiring the Warrant and the Common Stock issuable upon exercise of the Warrant for
its own account, not as a nominee or agent and with no present intention of selling or otherwise distributing any part thereof.

 

(b)Private
Issue. The Registered Holder understands: (i) that neither the Warrant nor the Warrant Stock is, nor will be, registered
under the Securities Act or qualified under applicable state securities laws on the ground that the issuance contemplated by this
Warrant will be exempt from the registration and qualifications requirements thereof pursuant to Section 4(2) of the Securities
Act and any applicable state securities laws, and (ii) that the Company’s reliance on such exemption is predicated on the
representations set forth in this Section 17.

 

(c)Disposition
of Holder’s Rights. In no event will the Registered Holder make a disposition of the Warrant or the Common Stock
issuable upon exercise of the Warrant in the absence of (i) an effective registration statement under the Securities
Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any
applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the
Company, that such registration and qualification are not required. Notwithstanding the foregoing, the
restrictions imposed upon the transferability of any of its rights to acquire Common Stock or Common Stock issuable on the exercise
of such rights do not apply to transfers from the beneficial owner of any of the aforementioned securities to its nominee or from
such nominee to its beneficial owner, and shall terminate as to any particular share of Common Stock when (i) such security shall
have been effectively registered under the Securities Act and sold by the holder thereof in accordance with such registration or
(ii) such security shall have been sold without registration in compliance with Rule 144 under the Securities Act, or (iii) a letter
shall have been issued to the Registered Holder at its request by the staff of the Securities and Exchange Commission or a ruling
shall have been issued to the Registered Holder at its request by the Securities and Exchange Commission stating that no action
shall be recommended by such staff or taken by the Securities and Exchange Commission, as the case may be, if such security is
transferred without registration under the Securities Act in accordance with the conditions set forth in such letter or ruling
and such letter or ruling specifies that no subsequent restrictions on transfer are required. Whenever the restrictions imposed
hereunder shall terminate, as hereinabove provided, the Registered Holder or holder of a share of common stock then outstanding
as to which such restrictions have terminated shall be entitled to receive from the Company, without expense to such holder, one
or more new certificates for the Warrant or for such shares of Common Stock not bearing any restrictive legend.

 

    	 

    	 

    

 

(d)Financial
Risk. The Registered Holder has such business and financial experience as is required
to give it the capacity to protect its own interests in connection with its investment.

 

(e)Accredited
Investor. The Registered Holder is an “accredited investor” as defined by Rule 501 of Regulation D under the
Securities Act, as presently in effect.

 

18.Representations
and Warranties of the Company. This Warrant has been entered into by the Registered Holder in reliance upon the following
representations and covenants of the Company:

 

(a)Authorization.
The Warrant has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief
of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

(b)Valid
Issuance. The Warrant Stock is duly authorized and reserved for issuance, and when issued, sold and delivered in accordance
with the terms of this Warrant will be duly and validly issued, fully paid and nonassessable.

 

(c)No
Conflict. The execution and delivery of this Warrant do not, and the consummation of the transactions contemplated hereby
will not, conflict with, or result in any violation of, breach or default (with or without notice or lapse of time, or both), or
give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit, under,
any provision of the Certificate of Incorporation or bylaws of the Company, any material agreement of the Company filed with the
Commission, or any order, decree, statute, law, ordinance, rule, listing requirement or regulation applicable to the Company, its
properties or assets, which conflict, violation, default or right would have a material adverse effect on the business, properties,
prospects, financial condition or operations of the Company.

 

19.Counterparts.
This Warrant may be executed in counterparts, and each such counterpart shall be deemed an original for all purposes.

 

 

 

[SIGNATURES TO FOLLOW]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Warrant as of the date first above written.

 

	 	TARGETED MEDICAL PHARMA, INC.
	 	 	 
	 	 	 
	 	By 	 
	 	 	 
	 	Name:	David Silver
	 	 	 
	 	Title: 	Vice President and COO
	 	 	 
	 	 	 
	 	 	 
	 	REGISTERED HOLDER
	 	 	 
	 	JAMES N. GIORDANO
	 	 	 
	 	By 	 
	 	 	 
	 	Name:	James N. Giordano
	 	 	 
	 	Address:  	316 Greenway Road
	 	 	Ridgewood, NJ 07450

 

    	 

    	 

    

 

Exhibit A

 

WARRANT EXERCISE FORM

 

The undersigned hereby irrevocably elects
to exercise the within Warrant to the extent of purchasing ______ shares of Common Stock of Targeted Medical Pharma, Inc., a Delaware
corporation, and hereby makes payment of $___________ in payment therefore, all in accordance with the terms and conditions of
the Warrant dated December 19, 2012????.

 

 

 

Name: ______________________________________

 

Signature: ___________________________________

 

Signature of joint holder (if applicable): _____________________________________________

 

Date: ___________________

 

 

 

INSTRUCTIONS FOR
ISSUANCE OF STOCK

(if other than to the registered holder
of the within Warrant)

 

 

Name: ______________________________________

 

Address: _____________________________________________________________________

 

Social Security or Taxpayer Identification Number of Recipient:
_________________________

 

    	 

    	 

    

 

Exhibit B

 

CASHLESS EXERCISE ELECTION NOTICE

 

The undersigned hereby elects under Section 1(b) of this
Warrant to surrender the right to purchase [____________] shares of Common Stock of Targeted Medical Pharma, Inc., a Delaware corporation,
pursuant to this Warrant and hereby requests the issuance of [_____________] shares of Common Stock. The certificate(s) for the
shares issuable upon such net issue election shall be issued as follows:

 

 

 

Name: ______________________________________

 

Signature: ___________________________________

 

Signature of joint holder (if applicable): _______________________________________

 

Date: ___________________

 

 

 

INSTRUCTIONS FOR
ISSUANCE OF STOCK

(if other than to the registered holder
of the within Warrant)

 

 

Name: ______________________________________

 

Address: _____________________________________________________________________

 

Social Security or Taxpayer Identification Number of Recipient:___________________

 

    	 

    	 

    

 

Exhibit C

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, _____________________
hereby sells, assigns and transfers unto _______________________ the right to purchase Common Stock of Targeted Medical Pharma,
Inc., a Delaware corporation, represented by this Warrant to the extent of shares as to which such right is exercisable and does
hereby irrevocably constitute and appoint ______________________, Attorney, to transfer the same on the books of the Company with
full power of substitution in the premises.

 

 

 

Date: __________

 

Signature: ______________________________________

 

Signature of joint holder (if applicable):

_____________________________________________Exhibit 10.1 

 

WORKERS’ COMPENSATION RECEIVABLES
FUNDING, 

ASSIGNMENT AND SECURITY AGREEMENT
(CA)

 

This Agreement is being
entered into and shall be effective as of the ___ day of June 2013 (the “Effective Date”), by, between and among TARGETED
MEDICAL PHARMA, INC. (collectively “TMP”), a Delaware corporation with principal offices located at 2980 Beverly Glen
Circle, Suite 301, Los Angeles, CA 90077 with an Employer Identification Number of ___________ and CAMBRIDGE MEDICAL FUNDING GROUP,
L.L.C., a Delaware limited liability company with a principal office located 266 Harristown Road, Suite 300, Glen Rock, NJ 07452,
together with its successors and/or assigns (collectively “CMFG”).

 

RECITALS

 

A.
CMFG is engaged in, among other things, the business of funding medical providers and/or pharmaceutical companies related receivables,
including those payable from the proceeds of claims for California Workers’ Compensation (WC) benefits, pursuant to California
Labor Code § 4600, in compliance with California law.

 

B.
TMP is a pharmaceutical company that sells and/or distributes prescription medical foods, products and/or supplements to doctors
in accordance with California law. TMP maintains a medical billing and claims processing subsidiary that provides billing services,
including but not limited to Independent Bill Review (IBR) filing, lien filing and lien
activation requirements in compliance with California law. Both TMP and its medical billing and claims processing subsidiary (collectively
referred to herein as “TMP”)abide by all necessary criteria in The California Labor Code, with changes codified by
Senate Bill 863, including but not limited to IBR filing, lien filing and lien activation requirements in Labor Code Sections
4903.05, 4903.06 and 4903.07, to ensure payment of WC benefits to TMP by insurance carriers related to Funded Receivables. TMP
agrees to pay for EDEX services, an internet case notification and status system, related to all Funded Receivables, as defined
and/or detailed herein.

 

C. TMP wishes to have
the ability to assign to CMFG future proceeds related to Funded Receivables upon the terms and the conditions set forth herein.

 

D. CMFG wishes to fund
and accept an assignment of the future proceeds related to the Funded Receivables as defined herein based upon the representations
made by TMP in §3 below. CMFG hereby accepts TMP’s offer to allow TMP’s medical billing and claims processing
subsidiary to continue claims processing/billing, IBR filing, lien filing and lien activation services related to Funded Receivables
as part of the contractual obligations and transaction as detailed herein.

 

NOW THEREFORE, in consideration
of the mutual covenants and promises contained herein, the parties agree as follows:

 

    	 

    	 

    

1.DEFINITIONS. 

 

For purposes of the
Agreement, the following terms are defined herein as follows:

 

1.1 “Funded
Receivables” means those receivables and/or claims with dates of service between the year 2007 and December 31, 2012,
which have already been generated by TMP through treatment to WC patients in accordance with California law, are being funded by
CMFG, are listed on Exhibit A attached hereto and incorporated herein, and where the future proceeds related to such receivables
have been and/or shall be assigned hereunder to CMFG. TMP has ensured that the underlying claim(s) that relate to these
receivables have not been previously paid by any insurance carrier or The State Fund and that the available claims benefits under
any relevant policy have not been exhausted, and/or have not been closed. An associated assignment of benefits has been provided
to TMP for each such receivable, and shall be re-assigned to CMFG by TMP.

 

1.2 “Transaction
Documents” means all instruments including the Agreement, the Exhibits hereto, the prevailing California Official
Medical Fee Schedule and any other agreements, managed care contracts, financing statements, WC litigation documents, WC contractual
materials between the WC insurance carrier and TMP and instruments referenced or contemplated in this Agreement, and/or which the
parties hereto agree to execute, deliver, and/or exchange on, or before the effective date of the Agreement, or in the performance
of the Agreement hereafter, including any agreement between TMP or CMFG and a third-party, to which either CMFG or TMP is not a
party, but the subject of which relates to the rendering of treatment to the WC patients referenced in the Funded Receivables.

 

1.3“Closing Fee”
shall mean and/or be equal to the product of 3.0% and the Funding Amount. The Closing Fee is a non-refundable fee and will
be earned and payable to CMFG on the date of full execution of the instant Agreement and shall be deducted from the proceeds of
the Funding Amount.

 

1.4       
“Servicing Fee” shall mean and/or be equal to 5.0% of the total amount of TMP’s monthly collections
on Funded Receivables.

 

1.5       
“Unpaid Funding Balance” shall mean $3,280,000 less the total amount of monthly collections paid to-date
to CMFG by TMP.

 

		2.	FUNDING AND ASSIGNMENT OF FUTURE PROCEEDS RELATED TO FUNDED RECEIVABLES.

 

2.1             
Funding Amount In consideration for assignment of all future proceeds related to the Funded Receivables to CMFG, CMFG shall
fund to TMP a sum of 3,280,000 (the “Funding Amount”). CMFG shall provide TMP with funding of $750,000 on or prior
to June 30, 2013 with the balance of $2,530,000 to follow thereafter to TMP by July 31, 2013. A Closing Fee equal to 3% of the
Funding Amount shall be deducted from the proceeds of the Funding Amount and retained by CMFG.

 

 

    	 

    	 

    

 

2.2             
Escrow. $525,000 of the Funding Amount (the “Escrow Amount”) shall be placed into escrow as a right of offset
to be drawn-down by CMFG in the event TMP’s collections related to Funded Receivables fail to meet the $175,000 monthly collection
requirements as set forth in Section 2.4 of this Agreement. If the collections related to the Funded Receivables are less than
$175,000 in any month prior to CMFG’s receipt of a total of $3,280,000 in collections related to the Funded Receivables,
then an amount equal to $175,000 less the amount paid to CMFG toward the CMFG Monthly Amount (hereinafter defined) shall be released
from escrow to CMFG. Upon CMFG’s receipt of $1.64 million collections related to the Funded Receivables, $262,500 (or such
lesser amount which is held in escrow) of the Escrow Amount shall be released from escrow to TMP. The remaining balance shall be
released to TMP upon CMFG’s receipt of a total of $3,280,000 in collections related to the Funded Receivables.

 

 2.3             
Assignments of Future Proceeds related to the Funded Receivables to CMFG.  In consideration forthe Funding Amount,
TMP agrees to assign the potential future proceeds related to the Funded Receivables detailed in Exhibit A to this Agreement
to CMFG. The Funding Amount is non-refundable. There is a hold back amount of the Funding Amount in the amount of $525,000
per Section 2.2 to be placed in Escrow, per the provisions of Section 2.2.

  

2.4             
Servicing Fee. CMFG shall be also be entitled to collect and receivewith respect to each, individual Funded Receivable
of the Funded Receivables (i) the amount owed on the claim and (ii) a Servicing Fee which shall equal 5.0% of TMP’s monthly
collections for providing primary collection activities on all accounts covered under this agreement.

 

2.5             
Transfer of Rights in Funded Receivables . Other than the payments set forth in Section 2.6 of this Agreement, TMP
acknowledges and agrees that, any and all legal and equitable rights, title and interest TMP may have had in the Funded Receivables
where the future proceeds have been so assigned to CMFG, shall forever be transferred to CMFG; TMP will not retain any right whatsoever
to recover any payments from insurers, or from the proceeds of any settlement or judgment recovered by, or behalf of WC patients
by their attorneys other than as set forth herein; TMP agrees to immediately forward any such payments it may receive relating
to the Funded Receivables as provided in this Agreement to CMFG. CMFG’s interest in the Funded Receivables shall be secured
by a first lien and perfected security interest in the proceeds of all Funded Receivables, where the parties herein agreed that
their estimated face value is forty-six million dollars ($46,000,000).

  

A. Monthly Division of Collections
on Funded Receivables. After the payment of the TMP Reimbursable Expenses (hereinafter defined) and CMFG’s Reimbursable
Expenses (hereinafter defined), CMFG shall receive and retain the first $175,000 per month of collections related to Funded Receivables
(the CMFG Monthly Amount”), commencing thirty (30) days from complete execution of this Agreement. The next $125,000 in the
relevant month’s collections shall be retained by TMP (the “TMP Monthly Amount”). The remainder of the relevant
month’s collections in excess of $300,000 shall equally be shared between TMP and CMFG, with 50% of the remainder in excess
of the $300,000 to be forwarded to (or retained by) each party. Collections of the first $175,000 per month and CMFG’s portion
of the monthly collections in excess of $300,000 related to the Funded Receivables every month thereafter shall be remitted to
CMFG until such time as $3,280,000 funding detailed in §2.1, has been recovered by CMFG. Thereafter, collections and distributions
shall continue as follows: CMFG shall withhold $525,000 of the Funded Receivables as a right of offset to be drawn down by CMFG
in the event TMP’s collections related to Funded Receivables fail to meet the monthly collection requirements as detailed
in the instant paragraph. Upon CMFG’s receipt of $1.64 million collections related to the Funded Receivable, one half of
the right of offset amount shall be released to TMP. The remaining balance shall be released to TMP upon CMFG’s receipt of
a total of $3,280,000 in collections related to the Funded Receivables.

 

    	 

    	 

    

2.6             
Collections. All collections related to the Funded Receivables shall be applied in the following manner:

 

		1.	the period when the Unpaid Funding Balance is greater than zero (the “Waterfall Period”):
(a) to CMFG, the CMFG Monthly Amount, the Servicing Fee and its reimbursable expenses and enforcement expenses (as set forth in
Section xxii of Article 3), if any; to CMFG, during the period when the Unpaid Funding Balance is greater than zero (the “Waterfall
Period”), (b) to TMP, the TMP Monthly Amount and its reimbursable expenses, (c) and the balance to be shared equally.

  

		2.	After the Waterfall Period: (a) to CMFG, the Servicing Fee, its reimbursable expenses and enforcement
expenses, if any, and 45% of remaining collections and (b) to TMP, any remaining amounts.

 

		3.	REPRESENTATIONS, WARRANTIES AND COVENANTS

 

3.1TMP represents, warrants and
covenants to CMFG related to it and all of its wholly owned subsidiaries as follows:

 

i. That it
is duly qualified, properly licensed and is authorized to produce, sell and distribute medical/pharmaceutical foods/products.

 

ii. That prior
to assignment of the future proceeds related to the Funded Receivables to CMFG, it has/had a one hundred percent ownership, legal,
financial and/or security interest in the full amount of the Funded Receivables and full power and authority to assign the future
proceeds related to the Funded Receivables to CMFG.

 

iii. That it
has full legal capacity to execute and deliver, and to perform and carry out all of their respective obligations under this Agreement,
and it also possesses all necessary federal, state and local permits, licenses and any other ownership and/or financial interest
required to assign one hundred percent of the future proceeds related to the Funded Receivables to CMFG.

    	 

    	 

    

 

 

iv. That it is in compliance
with the Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. Section 1320d, et. seq., and regulations
promulgated thereunder, as amended from time to time (statute and regulations hereinafter collectively referred to as “HIPAA”),
that it shall comply with HIPAA and that it has executed CMFG’s Business Associate Agreement.

 

v. That it
does not have any intentions of dissolution of its corporation and/or intentions of changing ownership.

 

vi. That if
it receives any form of notice after the execution of this agreement regarding a lawsuit, action, or legal, administrative, arbitration
or other proceeding or governmental and/or insurance carrier investigation pending or threatened that could adversely affect the
ability of CMFG to collect on the Funded Receivables, it shall provide written notice of same to CMFG within five (5) business
days of receipt of such notification.

 

vii. That it
will take all necessary action to file liens where necessary for payment by the carriers and/or activate liens before December
31, 2013, where liens were already filed prior to January 1, 2013.

 

viii. That,
when needed, it will pay for EDEX searches and inquiries, an internet case notification and status system, related to all Funded
Receivables.

 

ix.      
That it will not and has not sold, pledged or assigned, either directly or collaterally, any of the Funded Receivables to any person
or entity other than to the CMFG. No other party has any rights or claims to the Funded Receivable or the proceeds thereof. There
are no agreements with any other parties restricting TMP’s rights to assign the proceeds related to the Funded Receivables.

 

x.That
it agrees to indemnify, defend and hold harmless CMFG from any claim by any third party related to the proceeds of the Funded Receivables
assigned under the terms of this Agreement to CMFG. xi. TMP has retained all medical documentation which it believes to support
the related services provided by TMP, including any precertification filed and denial of said precertificationThat the date of
loss for each the Funded Receivables is within five (5) years of the treatment date with proper pre-certification.

 

    	 

    	 

    

xi.
To the best of its knowledge, TMP is not in violation of, nor has TMP received notice of any alleged violation of or any citation
for noncompliance with, any applicable law relating to the Funded Receivables or the operations or practices of TMP. The business
and the operations or practices of each of the TMPs conform in all respects with all applicable laws applicable to Provider Assignor’s
operation thereof. To the best of its knowledge, TMP is not under investigation with respect to any violation of any applicable
law, order or judgment entered into by any governmental authority applicable to the Funded Receivable or the conduct of its business.
TMP is not aware of any proposed laws, rules, regulations, ordinances, orders, judgments, decrees, governmental takings, condemnations
or other proceedings that would be applicable to the business, operations or properties of TMP and that might adversely affect
the properties, assets, liabilities, operations, or prospects for CMFG to collect the proceeds of the Funded Receivables .

 

xii. That there
is no suit, action, or legal, administrative, arbitration or other proceeding or governmental investigation pending or threatened
that could adversely affect the ability of CMFG to collect the Funded Receivables.

 

xiii. That
there are no known liabilities relating to the Funded Receivables of any kind whatsoever, whether direct, indirect, accrued, contingent
or absolute, and whether or not determined or determinable to which either TMP or CMFG will be subject following consummation of
the transactions contemplated hereby. 

 

xiv. That it
has not conducted business under any other name.

 

xv. That, except
for this Agreement, it is not party to or bound by any agreement, undertaking or commitment: (A) to merge or consolidate with,
or to have TMP acquire all or substantially all of the properties and assets of, any other person or entity; or (B) to sell, lease
or exchange all or substantially all of the assets or the business to any other person or entity; or (C) to sell or exchange all
or substantially all of the capital stock of the TMP corporation to any other person or entity, or (D) to reorganize the TMP corporation.

 

xvi. That it
is not insolvent or currently in risk of, or contemplating filing, bankruptcy.

 

xvii. That
it is in compliance with and abides by all necessary criteria required by The California Labor Code, including changes codified
by Senate Bill 863as amended, to ensure proper treatment, billing, policy and/or procedure to ensure payment of WC benefits by
insurance carriers

 

    	 

    	 

    

 

xviii. That
there is no management company and/or billing company involved related to billing and/or collection of Funded Receivables except
as detailed herein.

 

xix.
That it will take all necessary action and be responsible for payment for IBR filing and fees associated with it, lien filing
and fees associated with it and/or lien activation fees (the “TMP Reimbursable Expenses”).

 

xx. That it shall be responsible
for payments related to all of CMFG’s reasonable costs and out-of-pocket expenses associated with the Funded Receivables
(the CMFG Reimbursable Expenses”) and (b) pay, upon receipt, all of CMFG’s counsel’s invoices for drafting the
Funding Amount financing documentation. Additionally, CMFG agrees to cap CMFG’s cost of due diligence, counsel fees and the
creation of and delivery of the Funding Amount financing documents at 25,000 (the “Diligence and Counsel Fee”). Should
additional costs be incurred, they will be distributed as mutually agreed between TMP and CMFG. The Diligence and Counsel Fee shall
be paid by TMP upon execution of this Agreement.

  

3.2CMFG Representations.
CMGF represents, warrants and covenants to TMP as follows:

 

		i.	That it has full power and authority to own and operate its businesses as now conducted related
the funding and receipt of assignment of Funded Receivables pursuant to the terms of this Agreement, and related to any services
or funding it may provide in connection with billing, collecting, processing and lien filing and activation services, or assignment
filing and service that are necessary for the parties to perform under the Agreement.

 

		ii.	That it has full legal capacity to execute and deliver, and to perform and carry out all of their
respective obligations under this Agreement, and it also possesses all necessary federal, state and local permits, licenses and
certifications, to the extent applicable.

 

 

		iii.	That it will comply with and not seek to hinder TMP’s compliance with the requirements of
California law, as amended, to ensure accurate assignment of the Funded Receivables, including filing and service of the herein
assignment in compliance with Labor Code § 4903.8.

 

		iv.	That it is in compliance with the Health Insurance Portability and Accountability Act of 1996,
42 U.S.C. Section 1320d, et. seq., and regulations promulgated thereunder, as amended from time to time (statute and regulations
hereinafter collectively referred to as “HIPAA”), that it shall comply with HIPAA and that it will provide a draft
Business Associate Agreement for TMP’s review and execution before the parties exchange patient health information.

 

    	 

    	 

    

		v.	That it does not have any intentions of dissolution of its corporation and/or intentions of changing
ownership.

 

		vi.	That if it receives any form of notice after the execution of this Agreement regarding a lawsuit,
action, or legal, administrative, arbitration or other proceeding or governmental and/or insurance carrier investigation pending
or threatened that could adversely affect the ability of the parties to perform under this Agreement, it shall provide written
notice of same to TMP within five (5) business days of receipt of such notification.

 

		vii.	That it will take all necessary action to release and make available collections proceeds to TMP
as contemplated by paragraphs 2.4 and 2.6 of this Agreement.

 

		viii.	CMFG is the primary responsible party for collection activity under this agreement after TMP completes,
when necessary, all IBR filings, lien filings and/or lien activation requirements.

  

4.CONFIDENTIALITY AND DUTY TO ADVISE
CMFG.

 

4.1Duty to Advise. TMP
agrees not to negotiate or discuss the Funded Receivables or the terms of this Agreement with any person not a party to this Agreement
without the prior written consent of CMFG. TMP and its subsidiaries shall use their best efforts to assist CMFG in transferring
the interest in the future proceeds related to the Funded Receivable to CMFG and to report to CMFG any material information that
either TMP or their agents or employees learn or become aware of related to the Funded Receivable.

 

4.2Confidentiality.
Unless otherwise agreed to by each of the parties in writing, following the execution of this Agreement, the parties to this Agreement
shall each hold and shall cause its respective affiliates, employees, auditors, attorneys, representatives and other advisors and
agents to hold, all Confidential Information (as defined below) in strict confidence, unless compelled to disclose such information
by judicial or administrative process, or, in the opinion of their respective counsel, by other requirements of law, and shall
not use to the detriment of the other parties, or release or disclose such Confidential Information to any other person, except
to the parties’ employees, auditors, attorneys, representatives and other advisors and agents, provided such person(s) shall
have first been advised of the confidentiality provision of this Article 4. For purposes hereof, “Confidential Information”
shall mean all information concerning the conduct of CMFG’s business, the terms of this Agreement, CMFG’s clients or
potential clients, and any payments made or to be made to TMP or to CMFG by TMP.

 

    	 

    	 

    

 

5.SECURITY INTEREST. 

 

TMP hereby grants to
CMFG an assignment of the potential future proceeds related to the Funded Receivables and/or a senior security interest in all
amounts due and owing related to the Funded Receivables. The Funding Amount shall be secured by a first lien perfected security
interest in the proceeds of all Funded Receivables of TMP estimated to have a face value of $46 million at the time of closing,
and a first lien upon both the Funded Receivables identified in Exhibit A.

 

6.ADDITIONAL DOCUMENTS AND
REPRESENTATIONS. 

 

6.1 Execution
of Additional Documents and Auditing. TMP agrees to execute and deliver to CMFG, upon request, all such documents, financing
statements, or other forms, or instruments, including any amendment thereof, as CMFG may reasonably require for the purpose of
effectuating the terms hereof, and the security interest provided for herein, and to the extent allowed under the Uniform Commercial
Code (“UCC”); CMFG has the right to audit TMP and any and all of its wholly owned subsidiaries related to billing,
claim processing and/or IBR filing, lien filing and activation requirement for Funded Receivables upon three (3) business days
written notice TMP hereby authorizes and empowers CMFG to execute in its name, and/or in the names of all of its controlled affiliates,
or trade-names, to deliver and file in the appropriate jurisdictions such financing statements (e.g., “UCC 1"), and
other instruments as may be required in order to perfect and continue the security interest identified or provided for herein as
to all Receivables that are, or may be the subjects of this Agreement, whether or not such Receivable is identified in a Current
Schedule, and to renew or amend such instruments from time-to-time as may be reasonably required in order to maintain the security
interest herein granted to CMFG; such authorization and empowerment made herein by TMP may be exercised by CMFG without regard
to whether or not an authorized representative of TMP is unavailable, and without need to request that any such representative
of TMP execute any such instrument.

 

6.2 No Other
Lien. TMP further promises, covenants and/or agrees that it has not, and shall not grant or otherwise cause or suffer the
existence of any other security interest, pledge, or encumbrance in favor of another party with regard to the Funded Receivables
assigned by TMP to CMFG.

 

6.3 Defense of
CMFG’s Priority. TMP further promises, covenants and/or agrees to defend the first priority of the assignment (s)
and/or security interest(s) granted or intended to be granted to CMFG hereunder against the claims and demands of all persons other
than CMFG, and to hold CMFG harmless, and indemnify CMFG as to any and all expenses, including legal fees and litigation costs
that may be incurred in enforcing CMFG's rights under the Agreement and any successor or related agreements unless such expenses
are a result of CMFG’s negligence or willfull misconduct.

 

    	 

    	 

    

6.4 Power of Attorney and Endorsement
and Deposit of Payments. CMFG shall have the right to endorse in the name of TMP, or any affiliated entity controlled by
TMP through which it does business or operates under, and to deposit checks that TMP receives from payers on account of Funded
Receivables where the future proceeds related to the claims have been assigned to CMFG by TMP according to the terms herein. TMP
hereby grants to CMFG a Power of Attorney sufficient to empower CMFG to execute or endorse in the name of TMP, and any controlled
affiliates, or other names through which it does business, (i) any financing statement under the Uniform Commercial Code, or other
document required in order to perfect and/or record the security interest intended to be granted to CMFG under the Agreement in
all Funded Receivables, (ii) any document or instrument required in connection with the negotiation for CMFG’s own account,
or deposit to CMFG’s own account of payments made payable to TMP notwithstanding the prior assignment of the proceeds related
to the Funded Receivable(s) in question. Upon request, TMP agrees to execute and deliver a formal “Power of Attorney”
substantially in the same form as Exhibit “B,” incorporated herein and made a part hereof, conferring upon CMFG
all of the foregoing authority to act in its stead.

 

7.GENERAL TERMS AND CONDITIONS.

 

7.1 Amendments.
Except as provided for herein, the Agreement may not be amended, modified, altered or changed in any respect whatsoever, except
by further agreement in writing, duly executed by each of the parties. Either party, with the consent and agreement of the other
party, reserves the right to supplement, amend, modify and/or terminate the instant Agreement upon thirty (30) days written notice
in the event changes to and/or developments in California or federal law make compliance with the terms as they are detailed herein
to be contractually impossible. Reasonable consent for supplementation, amendments, modifications and/or termination shall not
be withheld by the parties.

  

7.2 Construction
of Agreement. TMP and CMFG, and their respective attorneys, have participated fully in the review and revision of this
Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply
in the interpretation of this Agreement inasmuch as TMP, as well as CMFG, had an equal opportunity to negotiate the terms and provisions
of this Agreement.

 

7.3Successors. This
Agreement shall be binding on and inure to the benefit of the respective successors, assigns and personal representatives of the
parties, except to the extent of any contrary provision in this Agreement.

 

7.4Assignment. TMP
may not assign this Agreement without the express prior written consent of CMFG, except to a successor or affiliated entity having
substantially the same ownership as TMP, and such ownership must be documented and verified to CMFG. CMFG may not assign this Agreement
without the express prior written consent of TMP, except to a successor or affiliated entity having substantially the same ownership
as CMFG, and such ownership must be documented and verified to TMP.

 

    	 

    	 

    

 7.5 No Third Party
Beneficiary. No person, natural or legal, who or which is not a party to the Agreement shall be deemed a third-party beneficiary
hereof, or to have any right to demand or obtain from any party hereto any benefit provided for hereunder, or to have enforced
against a party hereto any obligation imposed on that party hereunder.

 

7.6Governing
Law. The Agreement is executed and intended to be performed in the State of California, and the laws of that State, as
well as the United States, shall govern its interpretation, enforcement and effect.

 

7.7Complete Agreement.
 The making, execution and delivery of this Agreement by the parties has not been induced by any representations, statements,
warranties or agreements other than those expressed in the Agreement. The Agreement and the exhibits and other documents referred
to herein embody the entire understanding of the parties. Except for those agreements specifically referred to herein, there are
no other agreements or understandings, written or oral, in effect between the parties relating to the subject matter of the Agreement.

 

7.8Severability. 
If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms and conditions of the Agreement shall remain in full force and effect, and shall in
no way be affected, impaired or invalidated.

 

7.9 Notices.
All notices and demands required or permitted under this Agreement shall be sent to the respective addresses listed in the first
paragraph. All notices shall be in writing, containing the information required by this Agreement to be communicated to any person,
and, except with respect to such notices as the Agreement specifically provides may be delivered by facsimile transmission, shall
be either personally delivered to such party or sent either by first class and certified mail, mail, postage prepaid, or by reputable
overnight air courier service, in either case providing for proof of delivery.

 

7.10 No Waiver.
 The parties to this Agreement shall not be deemed to have waived any rights under this Agreement unless such waiver is given
in writing and signed by a principal officer or director of the party giving the waiver. No delay or omission on the part of the
parties in exercising any right arising hereunder or under any related writing, shall operate as a waiver of such right or any
other right. A waiver by the parties of the right to enforce a provision of the Agreement, pursuant to a particular circumstance,
shall not prejudice or constitute a waiver by a party of its right to otherwise demand strict compliance of the other party’s
obligations under that provision of or any other provision of the Agreement. No prior waiver by any of the parties shall constitute
a waiver of the other parties’ obligations as to any future transactions.

 

    	 

    	 

    

7.11Further Assurances.
 Each party will do such other and further acts, including executing and delivering additional agreements or instruments as
the other may reasonably require, to consummate, evidence or confirm the agreements, representations and understandings contained
in the Agreement.

 

7.12Gender.  The
male, female or neutral gender form used in the Agreement shall be deemed to include any gender reasonably within the contemplation
of its provisions. The use of singular usage shall include the plural usage and the use of the plural usage shall include the singular
usage.

 

7.13Time of the Essence.
Time is of the essence throughout the term of this Agreement for every provision in which time is an element. No extension of time
for performance of any act shall be deemed an extension of time for the performance of any other act required hereunder.

 

7.14 Cumulative Remedies.
The various rights, options, elections, powers and remedies under the Agreement, or granted by law shall be construed as cumulative.
No single right is exclusive of any of the other rights.

 

7.15 Recitals. The
Recitals set forth above and all Exhibits to the Agreement are incorporated into the Agreement and are hereby made a part thereof.

  

7.17 Counterparts.
The Agreement may be executed in separate counterparts and shall become effective only after all such separate counterparts
have been executed and exchanged between the parties hereto. A facsimile signature, assuming it is genuine, shall be regarded as
an original signature for purposes of this Agreement and shall have the same force and effect as an original signature upon receipt
by the other party. Notwithstanding, the parties shall endeavor to exchange original signature pages promptly thereafter.

 

7.18Attorneys’ Fees.
The party prevailing in any action related to the terms and provisions of the Agreement, including but limited to breach remedy,
damages for breach, to compel enforcement and/or compliance and/or injunctive relief, shall be entitled to recover its reasonable
attorney’s fees from the non-prevailing party.

 

7.19 Arbitration.
 Any dispute or claim in law or equity between the parties arising out of this Agreement shall be decided by neutral, binding
arbitration and not by court action. The arbitration shall be held in a mutually agreeable location within the State of California
and shall be conducted in accordance with the rules of American Arbitration Association (“AAA”), unless the parties
to such arbitration may mutually agree in writing to use different rules and/or arbitrator(s). Judgment upon the award rendered
by the arbitrator(s) may be entered in any court having jurisdiction thereof. The parties shall have the right to discovery as
permitted by the rules of the American Arbitration Association. An action for an injunction for violation of any provision for
the non-disclosure of confidential information or trade secrets shall not be subject to arbitration hereunder, unless the parties
otherwise mutually agree in writing. The filing of a judicial action to enable the recording of a notice of pending action, for
order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver of the right to arbitrate
under this provision. The prevailing party in the arbitration shall be entitled to recover reasonable attorneys’ fees and
costs from the other party, in addition to any other relief that may be granted to such prevailing party by the arbitrators.

 

    	 

    	 

    

7.20 Exception
to Arbitration. An action for an injunction for violation of any provision for the non-disclosure of confidential
information or trade secrets provisions of this Agreement shall not be subject to arbitration hereunder, unless the parties otherwise
mutually agree in writing. In addition, a judicial action to enable the recording of a notice of pending action, for order of attachment,
receivership, injunction, or other provisional remedies to enforce the provisions of this Agreement shall not be subject to arbitration
hereunder, and may be filed in any court having jurisdiction with respect thereto, within the State of California. However, the
filing of such action shall not constitute a waiver of the right to arbitrate any related claims for damages.

 

7.21 Notification
of Assignment.  If necessary, the parties agree cooperate and assist each other in notifying all necessary parties, including
but not limited to insurers, of the assignment of the future proceeds related to the Funded Receivables to CMFG, and CMFG’s
right to ultimately receive payment of amounts of the Funded Receivables as contemplated by and required under this Agreement.
To the extent filing and service of a copy of the herein assignment of the future proceeds related to the Funded Receivables to
CMFG is required by California law, including but not limited to Labor Code § 4903.8, the parties hereby agree to cooperate
in effectuating such service and filing.

 

7.22 No Creation of Partnership
or Agency.The provisions contained herein are not intended to create any partnership, joint venture, agency, or employment
relationship between TMP or its subsidiaries CMFG or its subsidiaries.

 

7.23 Indemnity. Each party
to this Agreement shall indemnify, defend and hold the other party harmless against any and all claims, actions, obligations, costs,
and expenses (including reasonable costs of investigation and attorneys’ fees) and other losses, liabilities and damages
resulting from any breach by the party of any provision of this Agreement.

 

 

TARGETED MEDICAL PHARMA, INC.

 

 

	 

By: David Silver, MD

 

    	 

    	 

    

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

 

State of California

 

County of ______________

 

On June ___, 2013, before me, _______________,
notary public, personally appeared David Silver, MD, who proved to me on the basis of satisfactory evidence to be the person (s)
whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which
the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

 

WITNESS my hand and official seal.

 

Signature ________________________

 

Signature of Notary
Public

 

______________________________OPTIONAL_____________________________________

 

Though the information below is not required
by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this
to another form to another document.

 

 

Description of attached Document

 

Title or Type of Document: __________________________________________

 

Document Date: ____________________ Number
of Pages: _______________

 

Signer(s) Other than Named Above: ___________________________________

 

 

CAMBRIDGE MEDICAL FUNDING GROUP, L.L.C.

 

	 

By: Cy E. Hammond, Chief Financial Officer/Vice President of
Operations

 

ACKNOWLEDGMENT

 

 

	STATE OF NEW JERSEY	)
	 	) SS:
	COUNTY OF BERGEN                               	)

 

 

IT IS ACKNOWLEDGED
that on June ___, 2013, before me personally appeared Cy E. Hammond, the Chief Financial Officer and Vice President of Operations
of CAMBRIDGE MEDICAL FUNDING GROUP, L.L.C. and fully executed the Agreement herein.

 

 

	 

                      Notary Public

 

    	 

    	 

    

 

 

EXHIBIT “B”

LIMITED IRREVOCABLE POWER OF ATTORNEY

 

TARGETED MEDICAL PHARMA, INC., located at 2980 Beverly Glen
Circle, Suite 301, Los Angeles, CA 90077 respectively, together with its/their successors and/or assigns pursuant to the terms
of a certain agreement dated June __, 2013, entitled  WC RECEIVABLES FUNDING, ASSIGNMENT AND SECURITY AGREEMENT (“the
Agreement”), does hereby irrevocably constitute and appoint CMFG as its true and lawful attorney for it, and in its name,
place and stead, only for the following purposes contemplated and authorized:

 

		A.	To execute or endorse in the name of TARGETED MEDICAL
PHARMA, INC. and/or David Silver, MD and/or, and any controlled affiliates, or other names through which it does business: (i)
any financing statement under the Uniform Commercial Code (“UCC”), or other document required in order to perfect
and/or record the security interest intended to be granted to CMFG under the Agreement in all Funded Receivables (as defined in
the agreement), (ii) any other document or instrument required in connection with the negotiation for its own account, or for
the deposit to its own account of payments made payable to TARGETED MEDICAL PHARMA, INC.

 

		B.	To receive and endorse any and all checks payable to TARGETED MEDICAL PHARMA, INC. which represent
payments of the accounts receivables referred to in the WC Receivables Funding, Assignment, and Security Agreement as Funded Receivables,
and

 

		C.	With full power of substitution and revocation, to ask
for, collect, demand and receive; to prosecute and sue for, by proceedings or otherwise, in a court of law or equity; to give
acquittance for said money or monies due or to become due, or any part thereof, and to withdraw any claims, suits or proceedings
pertaining to, or out of the Agreement, or assignments or other instruments or agreements provided for thereunder.

 

In the event of TARGETED
MEDICAL PHARMA, INC. or Dr. David Silver’s unavailability or failure upon request to execute any instrument or document which
counsel for CMFG may reasonably require be executed for the purposes of effectuating the assignments contemplated in the Agreement,
and/or the continuation or perfection of any security interest identified or provided for under the Agreement, including financing
statements, termination statement, or other UCC forms, or instruments, or any amendments thereof within one business day of receipt,
TARGETED MEDICAL PHARMA, INC. hereby consents to, and authorizes CMFG, as necessary, to execute such instruments on its behalf.

 

    	 

    	 

    

TARGETED MEDICAL PHARMA,
INC. understands that by virtue of making this Power of Attorney, it no longer has the exclusive right or authority to take the
acts reflected herein, except as otherwise authorized by CMFG.

 

Except upon the express,
written consent of CMFG, which shall not be unreasonably withheld, thisinstrument may not be revoked or changed by TARGETED MEDICAL
PHARMA, INC. during the term of the Agreement, and for so long thereafter as CMFG has failed to receive in full payments due it
under the Agreement for all potential future proceeds related to the Funded receivables that have been assigned to CMFG under the
Agreement.

 

TARGETED MEDICAL PHARMA, INC.

 

	 

By: David Silver, MD

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

 

State of California

 

County of ______________

 

On June ___, 201__, before me, _______________,
notary public personally appeared _____________________, who proved to me on the basis of satisfactory evidence to be the person
(s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which
the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

  

WITNESS my hand and official seal.

 

Signature ________________________

 

Signature of Notary
Public

 

______________________________OPTIONAL_____________________________________

 

Though the information below is not required
by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this
to another form to another document.

 

 

 

Description of attached Document

 

Title or Type of Document: __________________________________________

 

Document Date: ____________________ Number
of Pages: _______________

 

Signer(s) Other than Named Above: ___________________________________

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