Document:

Exhibit 4.1

 

NOTE PURCHASE AND SECURITY AGREEMENT

THIS NOTE PURCHASE AND
SECURITY AGREEMENT is entered as of August 21, 2012, by and among LENCO MOBILE INC., a Delaware corporation (the "Company"),
and the individuals listed on the Schedule of Lenders attached hereto (each a "Lender," and collectively
the "Lenders").

 

RECITALS

 

A.       The
Company desires to borrow up to an aggregate of $4,000,000 (the “Maximum Funding Amount”) from the Lenders
and each Lender is willing to lend the Company the amount set forth opposite such Lender's name on the Schedule of Lenders attached
hereto. Each such advance will be evidenced by a promissory note substantially in the form of Exhibit A attached hereto
(each a "Note" and all the "Notes").

 

B.       The
Company's obligations to the Lenders under this Agreement and the Notes will be secured by a first priority security interest in
substantially all of the Company's assets.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.       Amount
and Terms of the Notes and Warrants.

 

1.1       Note
Purchase. Subject to the terms and conditions of this Agreement, at the Initial Closing (as defined below) or any Additional
Closing(s) (as defined below), as applicable, the Company agrees to sell to each Lender, and each Lender severally agrees to purchase
from the Company, a Note in the "Principal Amount" set forth opposite such Lender's name on the Schedule of Lenders (each,
the “Principal Amount”).

 

1.2       Warrant
Purchase. Subject to the terms and conditions of this Agreement, at the Initial Closing or any Additional Closing(s), as applicable,
the Company agrees to sell and issue to each Lender, and each Lender severally agrees to purchase from the Company, a warrant to
purchase shares of the Company’s common stock (“Common Stock”), in the form attached hereto as
Exhibit B (each, individually, a “Warrant” and collectively, the “Warrants”),
exercisable for the maximum number of shares of Common Stock (the “Warrant Stock”) as set forth in each
Warrant at an exercise price per share as set forth in the Warrant. The purchase price for the Warrant shall be equal to one-hundredth
of one percent (0.01%) of the Principal Amount of each Note purchased by such Lender hereunder, as set forth in the Schedule of
Lenders.

 

1.3       Pari
Passu Obligations. Each Note shall be a pari passu obligation with each other Note. Accordingly, each payment of principal,
interest or fees made with respect to any Note shall be made by or shared by each Lender in accordance with the percentage that
the original principal amount of such Lender's Note is of the total principal amount of all Lenders set forth on the Schedule of
Lenders (the "Applicable Percentage"). If by exercising any right of setoff, or counterclaim or otherwise
any Lender shall obtain payment in respect of any principal of or interest on its Note resulting in such Lender receiving payment
of a proportion of the aggregate amount of its Note greater than its pro rata share thereof as provided herein, then the Lender
receiving such greater proportion shall purchase (for cash at face value) participations in the Notes of the other Lenders, or
make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by Lenders ratably
in accordance with the Applicable Percentages, provided that if any such participations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest. The Company consents to the foregoing and agrees that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against Company rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Company in the amount of such participation.

 

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2.       Closings.

 

2.1       The
Initial Closing. Subject to the satisfaction or waiver of the conditions set forth in Section 5 of this Agreement, the purchase
and sale of the Notes and the Warrants will take place at the offices of the Company on July 30, 2012, or at such other time and
place as the Company and the Lender who have agreed to purchase a majority of the aggregate Principal Amount mutually agree upon
(which time and place are referred to as the “Initial Closing”). At the Initial Closing, each Lender
will deliver to the Company, as payment in full for the Note to be purchased by such Lender at the Initial Closing, the amount
set forth opposite such Lender’s name on the Schedule of Lenders by (a) a check payable to the Company’s order, (b)
wire transfer of funds to the Company, or (c) any combination of the foregoing. At the Initial Closing, the Company will deliver
to each Lender a duly executed Note in the Principal Amount set forth opposite such Lender’s name on the Schedule of Lenders
and a duly executed Warrant to acquire up to the maximum number of shares of Warrant Stock applicable to such Lender.

 

2.2       Additional
Closing(s).

 

(a)       Subject
to the terms and conditions of this Agreement, at any time and from time to time from the date of the Initial Closing and ending
on October 15, 2012, the Company may, at one or more additional closings (each an “Additional Closing”
and collectively with the Initial Closing, a “Closing”), without obtaining the signature, consent or
permission of any of the Lender, offer and sell to other investors, which may include one or more of the Lenders (the “New
Lenders”) Notes and Warrants pursuant to this Agreement under the same terms and conditions as set forth in this
Agreement, with such Notes having an aggregate Principal Amount of no more than the difference of (i) the Maximum Funding Amount
minus (ii) the aggregate Principal Amount of all Notes previously sold hereunder. As set forth above, New Lenders may include persons
or entities who are already Lenders under this Agreement.

 

(b)       The
Company and each New Lender purchasing one or more Notes at an Additional Closing will execute counterpart signature pages to this
Agreement, and each New Lender will, upon delivery by such New Lender to the Company of such signature pages, and the payment by
such New Lender to the Company of the principal amount of the Note(s) to be purchased by such New Lender and the purchase price
for the Warrant(s) to be acquired by such New Lender at such Additional Closing, become a party to, and bound by, this Agreement
to the same extent as if such New Lender had been a Lender at the Initial Closing. The obligation of the Company to sell and issue
Notes and Warrants to New Lenders at each Additional Closing, and the obligation of each New Lender at each Additional Closing
to purchase a Note and Warrant, shall each be subject to satisfaction of the applicable conditions set forth in Sections 2.3 and
2.4 of this Agreement, except that unless otherwise set forth therein, each reference in Section 2.3 and 2.4 to the “Closing”
shall instead refer to the applicable Additional Closing. Immediately after each Additional Closing, the Schedule of Lenders attached
to this Agreement will be amended, without the consent of any other Lender, to add to the names of the New Lenders purchasing Notes
and Warrants at such Additional Closing as “Lenders” hereunder and to set forth the principal amount of each Note and
the Warrant purchase price for each New Lender under this Agreement. The Company will promptly furnish to each Lender upon request,
a copy of the Schedule of Lenders as amended to the date of such request.

 

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2.3       Conditions
to Lenders’ Obligations. The obligations of each Lender under this Section 2 are subject to the fulfillment or waiver,
on or before each Closing, as applicable, of each of the following conditions, the waiver of which shall not be effective against
any Lender who does not consent to such waiver, which consent may be given by written, oral or telephone communication to the Company,
its counsel or to special counsel to the Lenders:

 

(a)       each
of the representations and warranties of the Company contained in Section 4 shall be true and complete in all material respects
on and as of such Closing with the same effect as though such representations and warranties had been made on and as of the date
of such Closing;

 

(b)       the
Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before such Closing and shall have obtained all approvals, consents and qualifications
necessary to complete the purchase and sale described herein; and

 

(c)       the
Company shall have executed and delivered to each Lender purchasing a Note at such Closing a Note and a Warrant in the amounts
set forth opposite such Lender’s name on the Schedule of Lenders.

 

2.4       Condition
to Company’s Obligations. The obligations of the Company to each Lender under this Agreement are subject to the fulfillment
or waiver on or before each Closing of the following conditions by such Lender:

 

(a)       Each
of the representations and warranties of such Lender contained in Section 5 shall be true and complete on the date of such Closing
with the same effect as though such representations and warranties had been made on and as of such Closing; and

 

(b)       such
Lender shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required
to be performed or complied with by it on or before such Closing and shall have obtained all approvals, consents and qualifications
necessary to complete the purchase and sale described herein.

 

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3.       Security;
Covenants. 

 

3.1       Security
Interest. As security for the full and prompt payment, in cash, and performance of the Company's obligations under this Agreement
and the Notes, the Company hereby grants to the Collateral Agent (as defined below) a security interest in all of the Collateral.
As used herein, "Collateral" means (a) all of the Company's and its wholly owned subsidiaries’
(including without limitation, Capital Supreme (Pty) Ltd., dba Multimedia Solutions, Lenco Technology Group Ltd., and Lenco International
Ltd., collectively, the “Subsidiaries”) property and rights in and to property, including all accounts,
instruments, chattel paper, deposit accounts, documents, general intangibles, goods (including inventory, equipment and fixtures),
money, letter of credit rights, supporting obligations, intellectual property, investment property and commercial tort claims,
except Excluded Assets; (b) all products, proceeds, rents and profits of the foregoing; (c) all of the Company's and
the Subsidiaries’ books and records related to any of the foregoing; and (d) all of the foregoing, whether now owned
or existing or hereafter acquired or arising or in which the Company now has or hereafter acquires any rights. "Excluded
Assets" means, with respect to each subsidiary of the Company that is not organized under the laws of the United States,
more than 65% of the issued and outstanding equity interests of such subsidiary entitled to vote (within the meaning of Treas.
Reg. Section 1.956-2(c)(2)) or such greater percentage as (A) could not reasonably be expected to cause the undistributed
earnings of such subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to the
Company and (B) could not reasonably be expected to cause any material adverse tax consequences.

 

3.2       Collateral
Agent/Required Lenders. The Lenders agree that the Required Lenders (as defined below) shall either (a) act together as the
collateral agent hereunder or (b) appoint a third party as collateral agent hereunder (in each case, the “Collateral
Agent”). Each of the Lenders hereby irrevocably appoints the Collateral Agent, and any officer, member, partner,
employee or agent of such Collateral Agent, with full power of substitution, to act on such Lender's behalf as the collateral agent
hereunder and as the Company’s true and lawful attorney-in-fact with respect to such matters, effective as of the date hereof,
with power, upon the Required Lenders’ election. The Collateral Agent shall have all the rights and powers of a secured party
under the Uniform Commercial Code, but shall not exercise any of its rights and powers without first obtaining the written consent
of the Required Lenders. "Required Lenders" means Lenders holding Notes representing a majority of the
Applicable Percentages.

 

3.3       Permitted
Liens. The Company shall keep the Collateral free and clear of all liens, except Permitted Liens. "Permitted Liens"
means (a) liens arising by operation of law for taxes, assessments or governmental charges not yet due; (b) statutory
liens of mechanics, materialmen, shippers, warehousemen, carriers, and other similar persons for services or materials arising
in the ordinary course of business for which payment is not past due; (c) nonconsensual liens incurred or deposits made in
the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security;
(d) liens for taxes or statutory liens of mechanics, materialmen, shippers, warehousemen, carriers and other similar persons
for services or materials that are due but are being contested in good faith; (e) liens granted with the consent of the Required
Lenders; and (f) liens of a depository institution arising solely by virtue of any statutory or common law provision relating
to banker's liens, rights of setoff, or similar rights and remedies as to deposit accounts or other funds maintained with such
institution.

 

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3.4       Dispositions
of Collateral. Except for (i) the disposition in the ordinary course of business of equipment no longer useful in the
Company's or its Subsidiaries’ business, (ii) the sale or consumption of Collateral in the ordinary course of business,
(iii) the licensing of intellectual property of the Company or its Subsidiaries in the ordinary course of the Company’s or
Subsidiaries’, as the case may be, business as conducted from time to time and (iv) Permitted Liens, the Company will
not permit any lien to exist on any of its assets, nor sell, lease, or otherwise dispose of or transfer, whether by sale, merger,
consolidation, liquidation, dissolution, or otherwise, any of the Collateral.

 

3.5       Distributions.
Unless otherwise agreed to by the Required Lenders, the Company shall not declare or make any dividend payment or other distribution
of assets, properties, cash, rights, obligations or securities on account or in respect of any of its equity interests, except
(i) to the extent that it is obligated to do so under obligations in effect as of the date of this Agreement and (ii) for the repurchase
of shares of Common Stock from employees, officers, directors, consultants or other persons performing services for the Company
or any Subsidiary pursuant to agreements under which the Company has the option to repurchase such shares (x) at the lower of the
original purchase price or the then-current fair market value thereof upon the occurrence of certain events, such as the termination
of employment or service, or (b) pursuant to a right of first refusal that is approved by the Board of Directors of the Company.

 

3.6       Additional
Covenants. The Company will not, and will not permit any of its Subsidiaries to, without the Required Lenders’ prior
written consent, do any of the following: (i) engage in any business other than the business currently engaged in by the Company
or reasonably related thereto; (ii) incur or become liable for any Indebtedness other than Permitted Indebtedness (each, as defined
below); and (iii) issue any New Securities (as defined below).

 

3.7       Definitions.
As used herein:

 

(a)       “Indebtedness”
shall mean and include the aggregate amount of, without duplication, (i) all obligations for borrowed money, (ii) all obligations
evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations to pay the deferred purchase price of
property or services (other than accounts payable incurred in the ordinary course of business determined in accordance with generally
accepted accounting principles), (iv) all obligations with respect to capital leases, (v) all guaranty obligations, (vi) all obligations
created or arising pursuant to any conditional sale or other title retention agreement with respect to property acquired by such
person, (vii) all obligations of such person with respect to vendor advances or any other advances made to such person, and (viii)
all reimbursement and other payment obligations, contingent or otherwise, in respect of letters of credit.

 

(b)       “Permitted
Indebtedness” means (i) the Notes; (ii) Indebtedness existing on the effective date of this Agreement; (iii) Indebtedness
to trade creditors incurred in the ordinary course of business; (iv) Indebtedness secured by Permitted Liens; (v) Indebtedness
arising from the endorsement of instruments in the ordinary course of business; (vi) Indebtedness the proceeds of which are used
to repay all then-outstanding obligations under the Notes; (vii) Indebtedness that is issued with the prior approval of the Required
Lenders; and (viii) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness
described in (i) through (vii) above, provided that the principal amount thereof is not increased or the terms thereof are not
modified to impose materially more burdensome terms upon the Company or its Subsidiaries, as the case may be.

 

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(c)       “New
Securities” shall mean any Common Stock or preferred stock of the Company (“Preferred Stock”),
whether now authorized or not, and rights, options or warrants to purchase such Common Stock or Preferred Stock, and securities
of any type whatsoever that are, or may become, convertible or exchangeable into such Common Stock or Preferred Stock (collectively,
“Convertible Securities”); provided, however, that the term “New Securities”
does not include: (i) shares of Common Stock issued or issuable upon conversion of the outstanding shares of all the series of
the Preferred Stock; (ii) shares of Common Stock or Preferred Stock issuable upon exercise of any options, warrants or rights to
purchase any securities of the Company outstanding as of the date of this Agreement and any securities issuable upon the conversion
thereof; (iii) shares of Common Stock or Preferred Stock issued in connection with any stock split or stock dividend or recapitalization;
(iv) shares of Common Stock (or options, warrants or rights therefor) granted or issued hereafter to employees, officers, directors,
contractors, consultants or advisers to, the Company or any subsidiary of the Company pursuant to incentive agreements, stock purchase
or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the Board; (v) the
Warrants or any shares of Common Stock issued pursuant to the exercise of the Warrants; (vi) any shares of Common Stock, Preferred
Stock or Convertible Securities (and/or options or warrants therefor) issued or issuable as, or in connection with, any Permitted
Indebtedness; and (vii) any shares of Common Stock, Preferred Stock or Convertible Securities (and/or options or warrants therefor)
issued or issuable with the prior approval of the Required Lenders.

 

3.8       Termination.
The term of the security interest set forth in Section 3.1 above and the other obligations and restrictions set forth in this Agreement,
including under this Section 3, will extend until the aggregate obligations to the Lenders under all Notes have been paid in full,
at which time the Company and any of its duly appointed officers are hereby authorized to file any termination statement under
the Uniform Commercial Code in effect in any jurisdiction to terminate the financing statements that evidence the security interest
in the Collateral created by this Agreement and the Notes. Upon payment in full of such obligations, each Lender will execute and
deliver to the Company all deeds, assignments and other instruments, and will take such other actions, as may be necessary or proper
to re-vest in the Company full title to the Collateral, subject to any disposition which may have been made by the Lenders pursuant
to this Agreement.

 

4.       Representations
and Warranties of the Company. The Company hereby represents and warrants to the Lenders
and Collateral Agent that the statements in the following paragraphs of this Section 4 are all true and complete as of immediately
prior to the Initial Closing, except as otherwise indicated:

 

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4.1       Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and
has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted.

 

4.2       Authorization.
All corporate action on the part of the Company necessary for the authorization, execution and delivery of this Agreement, the
performance of the Company's obligations hereunder, and the authorization, issuance and delivery of each Note and Warrant has been
taken. This Agreement, each Note and each Warrant, when executed and delivered by the Company, shall constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms.

 

4.3       Valid
Issuance. Each Note, when issued, sold, and delivered in accordance with this Agreement, will be duly and validly issued, fully
paid and non-assessable and, based in part upon the representations of the Lenders in this Agreement, will be issued in compliance
with all applicable federal and state securities laws. Each Warrant and all shares of Warrant Stock issuable upon exercise thereof
(collectively, with each Note and each Warrant, the “Securities”), when issued, sold, and delivered in
accordance with this Agreement and the Warrant, will be duly and validly issued, fully paid and non-assessable and, based in part
upon the representations of the Lenders in this Agreement, will be issued in compliance with all applicable federal and state securities
laws.

 

4.4       Noncontravention.
The execution, delivery and performance of the Agreement, the consummation of the transactions contemplated hereby and the authorization,
issuance and delivery of the Securities will not result in any violation of or be in conflict with or constitute, with or without
the passage of time and giving of notice, a default under any judgment, order, writ, decree or agreement to which the Company is
bound.

 

5.       Representations
and Warranties of Each Lender. Each Lender hereby represents and warrants to the Company
that:

 

5.1       Authorization.
This Agreement constitutes such Lender's valid and legally binding obligation enforceable in accordance with its terms.

 

5.2       Noncontravention.
The execution, delivery and performance of the Agreement, the consummation of the transactions contemplated hereby and the authorization,
issuance and delivery of the Securities will not result in any violation or be in conflict with or constitute, with or without
the passage of time and giving of notice, a default under any judgment, order, writ, decree or agreement to which such Lender is
bound.

 

5.3       Purchase
Entirely for Own Account. Such Lender acknowledges that this Agreement is made with such Lender in reliance upon such Lender's
representation to the Company that the Securities will be acquired for investment for such Lender's own account, not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof, and that such Lender has no present intention
of selling, granting any participation in, or otherwise distributing any Securities. By executing this Agreement, Lender further
represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person or to any third person with respect to any Securities.

 

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5.4       Disclosure
of Information. Such Lender acknowledges that it has received all the information it considers necessary or appropriate for
deciding whether to acquire any Securities. Such Lender further represents that it has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions of the offering of the Securities.

 

5.5       Investment
Experience. Such Lender is an investor in securities of companies in the development stage and acknowledges that it is able
to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of the investment in the Securities. If other than an individual,
such Lender also represents it has not been organized solely for the purpose of acquiring any Securities.

 

5.6       Accredited
Investor. Such Lender is an "accredited investor" within the meaning of Rule 501 of Regulation D of the Securities
and Exchange Commission ("SEC"), as presently in effect.

 

5.7       Restricted
Securities. Such Lender understands that the Securities are characterized as "restricted securities" under the federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that
under such laws and applicable regulations such a Securities may be resold without registration under the Securities Act of 1933,
as amended (the "Act"), only in certain limited circumstances. Such Lender represents that it is familiar
with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Act.

 

5.8       Further
Limitations on Disposition. Without in any way limiting the representations set forth above and any other limitations set forth
in the Note and/or Warrant, such Lender further agrees not to make any disposition of all or any portion of the Securities unless
and until the transferee has agreed in writing for the benefit of the Company to make with respect to itself the representations
and warranties in and be bound by the covenants of this Section 5 and (a) there is then in effect a registration statement
under the Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or
(b) Lender shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and if requested by the Company, Lender shall have furnished
the Company with an opinion of counsel, satisfactory to the Company, that such disposition will not require registration of any
Securities under the Act.

 

6.       Event
of Default; Remedies.

 

6.1       Event
of Default. The occurrence of any of the following shall constitute an "Event of Default" under this
Agreement:

 

(a)       the
Company fails to pay when due any amount payable under any of the Notes;

 

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(b)       any
representation or warranty made by the Company in this Agreement is false or misleading in any material respect when furnished
or made;

 

(c)       any
default by the Company in the performance of any its obligations under this Agreement, any Note or any Warrant (other than the
obligation referred to in subsections (a) and (b)), which default is not cured within 30 days after notice thereof has been given
to the Company by Required Lenders; or

 

(d)       the
Company suffers or consents to or applies for the appointment of a receiver, trustee, custodian or liquidator of itself or any
of its property, or makes a general assignment for the benefit of creditors; the Company files a voluntary petition in bankruptcy,
or seeks to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Code, or under any state
or other Federal law granting relief to debtors, whether now or hereafter in effect; or any involuntary petition or proceeding
pursuant to the Bankruptcy Code or any other applicable state or other Federal law relating to bankruptcy, reorganization or other
relief for debtors is filed or commenced against the Company and is not dismissed, stayed or vacated within sixty days thereafter;
the Company files an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition; or
the Company or any Subsidiary is adjudicated a bankrupt, or an order for relief is entered by any court of competent jurisdiction
under the Bankruptcy Code or any other applicable state or Federal law relating to bankruptcy, reorganization or other relief for
debtors.

 

6.2       Remedies.
During the continuance of any Event of Default (other than an Event of Default referred to in Section 6.1(d)), Required Lenders
may, by notice to the Company, declare all or any part of the Company's obligations under the Notes to be immediately due and payable
without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Company,
and/or take such enforcement action as is permitted under applicable law. Upon the occurrence or existence of any Event of Default
described in Section 6.1(d), immediately and without notice, (A) any obligation of Lenders to extend any credit under
this Agreement shall automatically cease and terminate, and (B) all Indebtedness of the Company evidenced by the Notes shall automatically
become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Company. During the continuance of an Event of Default, Collateral Agent shall, at the direction of the
Required Lenders, have all of the rights and remedies of a secured party under the Uniform Commercial Code and all other applicable
law, all of which rights and remedies shall be cumulative and nonexclusive to the extent permitted by law.

 

7.       Miscellaneous.

 

7.1       No
Transfers of Notes; Successors and Assigns. Except as otherwise set forth in the Notes, no Lender may transfer, assign, pledge,
encumber or otherwise convey an interest to part or all of such Lender's Note without the Company's consent, which consent will
not be unreasonably withheld. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto (or their respective successors and assigns) any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

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7.2       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, without regard
to the conflict of laws provisions thereof.

 

7.3       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by fax or other electronic
imagining means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

7.4       Notices.
Any notice required or permitted under this Agreement or any Note or Warrant shall be given in writing and shall be deemed effectively
given upon personal delivery to the party to be notified or three days after deposit with the United States Post Office, by registered
or certified mail, postage prepaid and addressed to such party at the address set forth below, or at such other address as such
party may designate by written notice to the other parties.

 

If to the Company:

 

Lenco Mobile Inc.

2025 First Avenue, Suite
320

Seattle, WA 98121

Attn: Chief Executive Officer

 

If to Lenders:

 

At the addresses shown on
the Schedule of Lenders.

 

7.5       Expenses.
If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement or any Note, the prevailing
party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

 

7.6       Entire
Agreement. This Agreement, the Notes and the Warrants constitute the entire understanding and agreement among the parties with
regard to the subject hereof and thereof.

 

7.7       Amendments
and Waivers. Any term of this Agreement, the Notes or the Warrants may be amended or waived (either generally or in a particular
instance and either retroactively or prospectively), with the written consent of the Company and Required Lenders; provided,
however, that no such amendment or waiver shall: (a) extend or increase the commitment of any Lender without the written
consent of such Lender; (b) postpone any date fixed for payment of principal, interest or fees due to the Lenders (or any
of them) without the written consent of each Lender directly affected thereby; (c) reduce the principal of or the rate of
interest specified in any Note without the written consent of each Lender directly affected thereby; or (d) change any provision
of this Section 7.7 without the written consent of each Lender.

 

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7.8       Waiver
of Jury Trial. EACH OF THE COMPANY AND EACH LENDER, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR OTHER LITIGATION IN ANY WAY ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE NOTES. A COPY OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE WAIVER OF THE RIGHT
TO TRIAL BY JURY AND THE CONSENT TO TRIAL BY COURT.

 

 

 

[Remainder of
Page Intentionally Left Blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the
parties have executed this Note Purchase and Security Agreement as of the date first above written.

 

     

	 	LENCO MOBILE INC.
	 	 
	 	 
	 	By: /s/ Christopher L Dukelow
	 	       Christopher L Dukelow, Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the
parties have executed this Note Purchase and Security Agreement as of the date first above written.

 

	 	LENDER:
	 	(use if individual)
	 	 
	 	 
	 	______________________________
	 	                (signature)
	 	______________________________
	 	               (printed name)
	 	 
	 	Address:  ______________________
	 	                ______________________
	 	 
	 	 
	 	LENDER:
	 	(use if entity)
	 	 
	 	 
	 	______________________________
	 	              (printed name of entity)
	 	 
	 	By:  __________________________
	 	Name:  ________________________
	 	Title  _________________________
	 	 
	 	 
	 	Address: ______________________
	 	               _________________________

 

    	13

    	 

    

 

 

SCHEDULE
OF LENDERS

Third
Closing

(August
21, 2012)

 

	
         

        Name and Address of Lender
	
         

        Principal Amount
	
         

        Warrant Purchase Price

	Walter Harrison	$99,990	$10.00
	Edward S. Brokaw	$49,995	$5.00
	Edwina S. Millington	$49,995	$5.00
	CGM IRA Custodian FBO Matthew Harris	$99,990	$10.00
	Robert J. Chiumento	$19,998	$2.00
	Srinivas Kandikattu	$1,999.80	$0.20
	Richard Moore	$2,999.70	$0.30
	Robert B. Corman	$49,995	$5.00
	James D. Meadlock Trust	$499,950	$50.00
	 	 	 
	TOTAL	$874,913	$87.50

 

    	14

    	 

    

 

 

EXHIBIT A

 

Form of Senior Secured
Promissory Note

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	15

    	 

    

 

 

EXHIBIT B

 

Form of Warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	16LOAN AGREEMENT

 

 

THIS
LOAN AGREEMENT ("Agreement") is entered into as of August 15, 2012 by and between SCRIPSAMERICA, INC., a Delaware corporation
("Borrower), and DEVELOPMENT 72, LLC, a Delaware limited liability company ("Lender), by and between Lender
and Borrower.

 

Recitals

 

WHEREAS,
this Agreement applies to the term loan in the amount of $500,001.00 made of even date herewith (the "Loan") as evidenced
by that certain Term Loan Promissory Note of even date herewith by Borrower in favor of Lender, as may be modified from time to
time (whether one or more, the "Note"), and all Loan Documents. All capitalized terms not otherwise defined herein shall
have the meanings as set forth in the Note.

 

NOW
THEREFORE, relying upon the covenants, agreements, representations and warranties contained in this Agreement, Lender is willing
to extend credit to Borrower upon the terms and subject to the conditions set forth herein, and Lender and Borrower agree as follows:

 

REPRESENTATIONS. Borrower represents that from
the date of this Agreement and until final payment in full of the Obligations:

 

		a.	Accurate
                                                                 Information. All information now and hereafter furnished
                                                                 to Lender is and will be true, correct and complete in all material
                                                                 respects. Any such information relating to Borrower's financial
                                                                 condition will accurately reflect Borrower's financial condition
                                                                 as of the date(s) thereof (including all contingent liabilities
                                                                 of every type), and Borrower further represents that its financial
                                                                 condition has not materially adversely changed since the date(s)
                                                                 of such documents.

 

		b.	Authorization;
                                                                                    Non-Contravention. The execution, delivery
                                                                                    and performance by Borrower and any guarantor,
                                                                                    as applicable, of this Agreement and other
                                                                                    Loan Documents to which it is a party are
                                                                                    within its power, have been duly authorized
                                                                                    as may be required and, if necessary, by making
                                                                                    appropriate filings with any governmental
                                                                                    agency or unit and are the legal, binding,
                                                                                    valid and enforceable obligations of Borrower
                                                                                    and any guarantors; and do not (i) contravene,
                                                                                    or constitute (with or without the giving
                                                                                    of notice or lapse of time or both) a violation
                                                                                    of any provision of applicable law, a violation
                                                                                    of the organizational documents of Borrower
                                                                                    or any guarantor, or a default under any agreement,
                                                                                    judgment, injunction, order, decree or other
                                                                                    instrument binding upon or affecting Borrower
                                                                                    or any guarantor, (ii) result in the creation
                                                                                    or imposition of any lien (other than the
                                                                                    lien(s) created by the Loan Documents) on
                                                                                    any of Borrower's or any guarantor's assets,
                                                                                    or (iii) give cause for the acceleration of
                                                                                    any obligations of Borrower or any guarantor
                                                                                    to any other creditor.

 

		c.	Asset
                                                                                                                               Ownership.
                                                                                                                               Borrower
                                                                                                                               has
                                                                                                                               good
                                                                                                                               and
                                                                                                                               marketable
                                                                                                                               title
                                                                                                                               to
                                                                                                                               all
                                                                                                                               of
                                                                                                                               the
                                                                                                                               properties
                                                                                                                               and
                                                                                                                               assets
                                                                                                                               reflected
                                                                                                                               on
                                                                                                                               the
                                                                                                                               balance
                                                                                                                               sheets
                                                                                                                               and
                                                                                                                               financial
                                                                                                                               statements
                                                                                                                               supplied
                                                                                                                               Lender
                                                                                                                               by
                                                                                                                               Borrower,
                                                                                                                               and
                                                                                                                               all
                                                                                                                               such
                                                                                                                               properties
                                                                                                                               and
                                                                                                                               assets
                                                                                                                               are
                                                                                                                               free
                                                                                                                               and
                                                                                                                               clear
                                                                                                                               of
                                                                                                                               mortgages,
                                                                                                                               security
                                                                                                                               deeds,
                                                                                                                               pledges,
                                                                                                                               liens,
                                                                                                                               charges,
                                                                                                                               and
                                                                                                                               all
                                                                                                                               other
                                                                                                                               encumbrances,
                                                                                                                               except
                                                                                                                               as
                                                                                                                               otherwise
                                                                                                                               disclosed
                                                                                                                               to
                                                                                                                               Lender
                                                                                                                               by
                                                                                                                               Borrower
                                                                                                                               in
                                                                                                                               writing
                                                                                                                               and
                                                                                                                               approved
                                                                                                                               by
                                                                                                                               Lender
                                                                                                                               ("Permitted
                                                                                                                               Liens").
                                                                                                                               To
                                                                                                                               Borrower's
                                                                                                                               knowledge,
                                                                                                                               no
                                                                                                                               default
                                                                                                                               has
                                                                                                                               occurred
                                                                                                                               under
                                                                                                                               any
                                                                                                                               Permitted
                                                                                                                               Liens
                                                                                                                               and
                                                                                                                               no
                                                                                                                               claims
                                                                                                                               or
                                                                                                                               interests
                                                                                                                               adverse
                                                                                                                               to
                                                                                                                               Borrower's
                                                                                                                               present
                                                                                                                               rights
                                                                                                                               in
                                                                                                                               its
                                                                                                                               properties
                                                                                                                               and
                                                                                                                               assets
                                                                                                                               have
                                                                                                                               arisen.

    	1

    	 

    

 

 

		d.	Discharge
                                                                 of Liens and Taxes. Borrower has duly filed, paid and/or
                                                                 discharged all taxes or other claims that may become a lien on
                                                                 any of its property or assets, except to the extent that such
                                                                 items are being appropriately contested in good faith and an
                                                                 adequate reserve for the payment thereof is being maintained.

 

		e.	Sufficiency
                                                                 of Capital. Borrower is not, and after consummation of this
                                                                 Agreement and after giving effect to all indebtedness incurred
                                                                 and liens created by Borrower in connection with the Note and
                                                                 any other Loan Documents, will not be, insolvent within the meaning
                                                                 of 11 U.S.C. § 101, as in effect from time to time.

 

		f.	Compliance
with Laws. Borrower and any subsidiary and affiliate of Borrower and any guarantor are in compliance in all material respects
with all federal, state and local laws, rules and regulations applicable to its properties, operations, business, and finances,
including, without limitation, all applicable federal, state and local laws and regulations intended to protect the environment;
and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), if applicable. None of Borrower, or any
subsidiary or affiliate of Borrower or any guarantor is a Sanctioned Person or has any of its assets in a Sanctioned Country or
does business in or with, or derives any of its operating income from investments in or transactions with, Sanctioned Persons
or Sanctioned Countries in violation of economic sanctions administered by OFAC. The proceeds from the Loan will not be used to
fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned
Country. "OFAC" means the U.S. Department of the Treasury's Office of Foreign Assets Control. "Sanctioned
Country" means a country subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/
programs/index.shtml, or as otherwise published from time to time. "Sanctioned Person" means
(i) a person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofacidsn/index.shtml,
or as otherwise published from time to time, or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization
controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country to the extent subject to a sanctions program
administered by OFAC.

 

		g.	Organization
                                                                                                and Authority. Borrower is
                                                                                                duly created, validly existing
                                                                                                and in good standing under the
                                                                                                laws of the state of its organization,
                                                                                                and has all powers, governmental
                                                                                                licenses, authorizations, consents
                                                                                                and approvals required to operate
                                                                                                its business as now conducted.
                                                                                                Borrower is duly qualified, licensed
                                                                                                and in good standing in each jurisdiction
                                                                                                where qualification or licensing
                                                                                                is required by the nature of its
                                                                                                business or the character and
                                                                                                location of its property, business
                                                                                                or customers, and
                                                                                                in
                                                                                                which the failure to so qualify
                                                                                                or be licensed, as the case may
                                                                                                be, in the aggregate, could have
                                                                                                a material adverse effect on the
                                                                                                business, financial position,
                                                                                                results of operations, properties
                                                                                                or prospects of Borrower.

    	2

    	 

    

 

 

		h.	No Litigation.
                                                                                    There are no pending or threatened suits,
                                                                                    claims or demands against Borrower.

 

		i.	Indemnity.
                                                                 Borrower will indemnify Lender and its affiliates from and against
                                                                 any losses, liabilities, claims, damages, penalties or fines
                                                                 imposed upon, asserted or assessed against or incurred by Lender
                                                                 arising out of the inaccuracy or breach of any of the representations
                                                                 contained in this Agreement or any other Loan Documents.

 

AFFIRMATIVE COVENANTS.
Borrower agrees that from the date hereof and until final payment in full of the Obligations, unless Lender shall otherwise consent
in writing, Borrower will:

 

		a.	Access
                                                                 to Books and Records. Allow Lender, or its agents, during
                                                                 normal business hours, access to the books, records and such
                                                                 other documents of Borrower as Lender shall reasonably require,
                                                                 and allow Lender, at Lender's expense, to inspect, audit and
                                                                 examine the same and to make extracts therefrom and to make copies
                                                                 thereof.

 

		b.	Accounts
                                                                 Payable Aging. Borrower shall deliver to Lender, from time
                                                                 to time hereafter but not less than quarterly within thirty (30)
                                                                 days of the end of each such period, a detailed payables report
                                                                 including aging of payables by total, vendor names and addresses,
                                                                 a reconciliation statement, and the original date of each invoice.

 

		c.	Accounts
                                                                 Receivable Aging. Borrower shall deliver to Lender, from
                                                                 time to time hereafter but not less than quarterly within thirty
                                                                 (30) days of the end of each such period, a detailed receivables
                                                                 report including totals, customer names and addresses, a reconciliation
                                                                 statement, and the original date of each invoice.

 

		d.	Business
                                                                 Continuity. Conduct its business in substantially the same
                                                                 manner and locations as such business is now and has previously
                                                                 been conducted.

 

		e.	Compliance
                                                                 with Other Agreements. Comply with all terms and conditions
                                                                 contained in this Agreement, and any other Loan Documents.

 

		f.	Estoppel
                                                                 Certificates. Furnish, within fifteen (15) days after request
                                                                 by Lender, a written statement, duly acknowledged, of the amount
                                                                 due under the Loan and whether offsets or defenses exist against
                                                                 the Obligations.

 

		g.	Insurance.
                                                                 Maintain adequate insurance coverage with respect to its properties
                                                                 and business against loss or damage of the kinds and in the amounts
                                                                 customarily insured against by companies of established reputation
                                                                 engaged in the same or similar businesses including, without
                                                                 limitation, product liability insurance in the amount of Five
                                                                 Million Dollars ($5,000,000.00).

 

    	3

    	 

    

 

 

		h.	Maintain Properties.
Maintain, preserve and keep its property in good repair, working order and condition, making all replacements, additions and
improvements thereto necessary for the proper conduct of its business, unless prohibited by the Loan Documents.

 

		i.	Non-Default Certificate. Borrower shall deliver to Lender, with the
Financial Statements required below, a certificate signed by a principal financial officer of Borrower, in the form of Exhibit
A attached hereto, warranting that no "Default" as specified in the Loan Documents nor any event which, upon the
giving of notice or lapse of time or both, would constitute such a Default, has occurred and demonstrating Borrower's compliance
with the financial covenants contained herein.

 

		j.	Notice
                                                                 of Default and Other Notices. (A) Notice of Default. Furnish
                                                                 to Lender immediately upon becoming aware of the existence of
                                                                 any condition or event which constitutes a Default (as defined
                                                                 in the Loan Documents) or any event which, upon the giving of
                                                                 notice or lapse of time or both, may become a Default, written
                                                                 notice specifying the nature and period of existence thereof
                                                                 and the action which Borrower is taking or proposes to take with
                                                                 respect thereto. (B) Other Notices. Promptly notify Lender
                                                                 in writing of (i) any material adverse change in its financial
                                                                 condition or its business; (ii) any default under any material
                                                                 agreement, contract or other instrument to which it is a party
                                                                 or by which any of its properties are bound, or any acceleration
                                                                 of the maturity of any indebtedness owing by Borrower; (iii)
                                                                 any material adverse claim against or affecting Borrower or any
                                                                 part of its properties; (iv) the commencement of, and any material
                                                                 determination in, any litigation with any third party or any
                                                                 proceeding before any governmental agency or unit affecting Borrower;
                                                                 and (v) at least thirty (30) days prior thereto, any change in
                                                                 Borrower's name or address as shown above, and/or any change
                                                                 in Borrower's structure. (C) Other Financial Information.
                                                                 Deliver promptly such other information regarding the operation,
                                                                 business affairs, and financial condition of Borrower which Lender
                                                                 may reasonably request.

 

		k.	Payment of Debts. Pay and discharge when due, and before subject
to penalty or further charge, and otherwise satisfy before maturity or delinquency, all obligations, debts, taxes, and liabilities
of whatever nature or amount, except those which Borrower in good faith disputes.

 

		l.	Reports and Proxies. Deliver to Lender, promptly, a copy of all financial
statements, reports, notices, and proxy statements, sent by Borrower to stockholders, and all regular or periodic reports required
to be filed by Borrower with any governmental agency or authority.

 

NEGATIVE COVENANTS. Borrower
agrees that from the date hereof and until final payment in full of the Obligations, unless Lender shall otherwise consent in writing
(which consent, for purposes of this paragraph, shall be deemed to be given if Lender's representative on the Board of Directors
of Borrower gives his approval in connection with action by the Board of Directors on the applicable matter), Borrower will not:

    	4

    	 

    

 

 

 

		a.	
Change in Fiscal Year. Change its fiscal year.

 

		b.	Change of Control. Make or suffer a change of ownership that effectively
changes control of Borrower from current ownership, excluding the proposed acquisition of Marlex Pharmaceuticals Inc. (including
the conversion of existing notes and/or equity financing in connection with such acquisition).

 

		c.	Encumbrances. Create, assume, or permit to exist any mortgage, security
deed, deed of trust, pledge, lien, charge or other encumbrance by the Company or on any of its assets, whether now owned or hereafter
acquired, other than: (i) security interests required by the Loan Documents; or (ii) liens for taxes contested in good faith, excluding
(i) the existing lien on accounts receivable pursuant to that certain Factoring and Security Agreement, dated as of April 16, 2010
and amended on May 25, 2012, between the borrower and United Capital Funding Corporation and (ii) the lien that may be granted
to the Senior Lender pursuant to a subsequent factoring facility.

 

		d.	Guarantees. Guarantee or otherwise become responsible for obligations
of any other person or persons, other than the endorsement of checks and drafts for collection in the ordinary course of business.

 

		e.	Investments. Purchase any stock, securities, or evidence of indebtedness
of any other person or entity except investments in (i) Marlex Pharmaceuticals, Inc. or (ii) direct obligations of the United States
Government and certificates of deposit of United States commercial banks having a tier 1 capital ratio of not less than 6% and
then in an amount not exceeding 10% of the issuing Lender's unimpaired capital and surplus.

 

		f.	Default on Other Contracts or Obligations. Default on any material
contract with or obligation when due to a third party or default in the performance of any obligation to a third party incurred
for money borrowed.

 

		f.	Government Intervention. Permit the assertion or making of any seizure,
vesting or intervention by or under authority of any governmental entity, as a result of which the management of Borrower or any
guarantor is displaced of its authority in the conduct of its respective business or such business is curtailed or materially impaired.

 

		g.	Judgment Entered. Permit the entry of any monetary judgment or the
assessment against, the filing of any tax lien against, or the issuance of any writ of garnishment or attachment against any property
of or debts due over $25,000.00 in the aggregate.

 

		i.	Prepayment of Other Debt. Retire any long-term debt entered into
prior to the date of this Agreement at a date in advance of its legal obligation to do so, excluding the notes currently held by
Jim and Joanne Speers, and Leon Hurst.

 

	j.		Retire or Repurchase Capital Stock. Retire or
otherwise acquire any of its capital stock.

 

    	5

    	 

    

 

 

ANNUAL FINANCIAL STATEMENTS.
Borrower shall deliver to Lender, within sixty (60) days after the close of each fiscal year, audited financial statements
reflecting its operations during such fiscal year, including, without limitation, a balance sheet, profit and loss statement and
statement of cash flows, with supporting schedules; all on a consolidated basis with respect to Borrower and its subsidiaries,
affiliates and parent or holding company, as applicable, and in reasonable detail, prepared in conformity with generally accepted
accounting principles, applied on a basis consistent with that of the preceding year. If audited statements are required, all such
statements shall be examined by an independent certified public accountant reasonably acceptable to Lender. The opinion of such
independent certified public accountant shall not be acceptable to Lender if qualified due to any limitations in scope imposed
by Borrower or any other person or entity. Any other qualification of the opinion by the accountant shall render the acceptability
of the financial statements subject to Lender's approval.

 

PERIODIC FINANCIAL STATEMENTS.
Borrower shall deliver to Lender, within forty-five (45) days after the end of each fiscal quarter (other than the fourth fiscal
quarter), unaudited management-prepared quarterly financial statements including, without limitation, a balance sheet, profit and
loss statement and statement of cash flows, with supporting schedules; all on a consolidated basis with respect to Borrower and
its subsidiaries, affiliates and parent or holding company, as applicable, all in reasonable detail and prepared in conformity
with generally accepted accounting principles, applied on a basis consistent with that of the preceding year. Such statements shall
be certified as to their correctness by a principal financial officer of Borrower and in each case, if audited statements are required,
subject to audit and year-end adjustments. Borrower shall deliver to Lender such other information as Lender may reasonably request
from time to time, including without limitation, financial statements and information pertaining to Borrower's financial condition.
Such information shall be true, complete, and accurate.

 

MONTHLY
SALES REPORTS. Borrower shall deliver to Lender, within ten (10) days after the end of
each calendar month, unaudited management-prepared sales and revenue reports with respect to such month's Rapi Meds Sales Amount
for Borrower and its subsidiaries, affiliates and parent or holding company, as applicable, all in reasonable detail and prepared
in conformity with generally accepted accounting principles. Such reports shall be certified as to their correctness by a principal
financial officer of Borrower.

 

FINANCIAL COVENANTS.
Borrower agrees to the following provisions from the date hereof until final payment in full of the Obligations, unless Lender
shall otherwise consent in writing:

 

		a.	Limitation on Debt. Borrower shall not, directly or indirectly, create,
incur, assume or become liable for any additional indebtedness, whether contingent or direct without prior written consent of the
Lender, with the exception of indebtedness incurred in the ordinary course of business, not to exceed $50,000, and that certain
$1,250,000 revolving credit facility from US Capital Partners, LLC and that certain $500,000 term loan facility from US Capital
Partners, LLC, or an alternative lender of similar quality, each issued to Borrower on or about even date herewith.

    	6

    	 

    

 

 

		b.	Dividends.
                                                                                                                               Except
                                                                                                                               for
                                                                                                                               dividends
                                                                                                                               and
                                                                                                                               distributions
                                                                                                                               paid
                                                                                                                               to
                                                                                                                               the
                                                                                                                               holder
                                                                                                                               of
                                                                                                                               the
                                                                                                                               outstanding
                                                                                                                               shares
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Borrower's
                                                                                                                               Series
                                                                                                                               A
                                                                                                                               Preferred
                                                                                                                               Stock,
                                                                                                                               Borrower
                                                                                                                               shall
                                                                                                                               not,
                                                                                                                               during
                                                                                                                               any
                                                                                                                               fiscal
                                                                                                                               year,
                                                                                                                               declare
                                                                                                                               or
                                                                                                                               pay
                                                                                                                               dividends
                                                                                                                               or
                                                                                                                               make
                                                                                                                               other
                                                                                                                               distributions
                                                                                                                               to
                                                                                                                               its
                                                                                                                               shareholders
                                                                                                                               without
                                                                                                                               prior
                                                                                                                               written
                                                                                                                               consent
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Lender.

 

SECURITY
INTEREST. Subject to the existing lien on accounts receivable pursuant to that certain Factoring and Security Agreement, dated
as of April 16, 2010 and amended on May 25, 2012, between the borrower and United Capital Funding Corporation, Borrower hereby
grants to Lender, to secure the payment and performance in full of all of the Obligations, a security interest in and pledges and
assigns to Lender the following (all of the same being hereinafter called the "Collateral"): All assets of the Borrower
presently existing and wherever located, including but not limited to: (a) all accounts, chattel paper (including tangible and
electronic chattel paper), deposit accounts, documents, equipment, general intangibles (including payment intangibles and software),
instruments, inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including
returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money,
and all of Borrower's books and records with respect to any of the foregoing, and the computers and equipment containing said books
and records; and (b) any and all cash proceeds and/or noncash proceeds thereof, including, without limitation, insurance proceeds,
and all supporting obligations and the security therefor or for any right to payment. Upon request by Borrower after securing a
senior lender ("Senior Lender") providing accounts receivable financing in an amount no less than One Million
Seven Hundred and Fifty Thousand and 00/100 Dollars ($1,750,000.00), Lender shall enter into a subordination agreement and intercreditor
agreement in form reasonably acceptable to Lender with respect to the Collateral, provided that (i) Borrower is not in default
hereunder at the time of such request and (ii) Lender shall retain a senior lien on all tooling and equipment purchased by Borrower's
contract manufacturer on Borrower's behalf located at the Capricorn Pharma, Inc. facility located at 6900 English Muffin Way, Unit
A, Frederick, MD 21703, as detailed on Exhibit C attached hereto.

 

AUTHORIZATION
TO FILE FINANCING STATEMENTS. Borrower hereby irrevocably authorizes Lender at any time and from time to time to file in any
filing office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto or continuations
thereof that (a) indicate the Collateral (i) as all assets of the Borrower or words of similar effect, regardless of whether any
particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code of the State or
such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) provide any other information required
by part 5 of Article 9 of the Uniform Commercial Code of the State or such other jurisdiction for the sufficiency or filing office
acceptance of any financing statement or amendment, including whether the Borrower is an organization, the type of organization
and any organizational identification number issued to the Borrower. Borrower agrees to furnish any such information to Lender
promptly upon the Lenders request.

 

NOTICES.
All notices or other written communications hereunder or under any other Loan Document shall be deemed to have been properly
given (i) upon delivery, if delivered in person or by facsimile transmission with receipt acknowledged by the recipient thereof,
or (ii) one (1) Business Day after having been deposited for overnight delivery with any reputable overnight courier service, addressed
as follows:

    	7

    	 

    

 

 

	If to Borrower:	ScripsAmerica, Inc.

77 McCullough Drive, Suite 7

 New Castle, Delaware 19720
	 	 
	 	 
	If to Lender: 	Development 72, LLC

 2090 Palm Beach Lakes Boulevard, Suite 701 

West Palm Beach, FL 33409

 

 

or addressed as such party
may from time to time designate by written notice to the other parties.

 

CONDITIONS
PRECEDENT. The obligations of Lender to make the loan and any advances pursuant to this Agreement are subject to the receipt
by Lender of such additional supporting documents as Lender or its counsel may reasonably request.

 

 

LIMITATION
ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO, INCLUDING LENDER BY ACCEPTANCE HEREOF, AGREES THAT IN
ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR AMONG THEM THAT MAY ARISE OUT OF OR BE
IN ANYWAY CONNECTED WITH THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE OBLIGATIONS
EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1)
INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. EACH OF THE
PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY ARISE IN THE FUTURE
IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER THE SAME IS RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY
OR OTHERWISE.

    	8

    	 

    

 

 

 

IN WITNESS WHEREOF, Borrower and Lender,
on the day and year first written above, have caused this Loan Agreement to be duly executed under seal.

 

	 	BORROWER:
	 	 
	 	SCRIPSAMERICA, INC., a Delaware corporation
	 	 
		 
	 	By:      /s/Robert Schneiderman
	 	Name:  Robert Schneiderman 
	 	Title:    Chief Executive Officer
	 	 
	 	 
	 	 
	 	LENDER:
	 	 
	 	DEVELOPMENT 72, LLC, a Delaware limited liability company
	 	 
	 	 
	 	 
	 	By: /s/Andrius Pranskevicius
	 	       Andrius Pranskevicius, Manager

 

 

 

 

 

 

 

    	9

    	 

    

 

EXHIBIT
A

 

NON-DEFAULT CERTIFICATE

 

In accordance with the terms of the Loan Documents
dated August 15, 2012 by and between

Development 72, LLC
and ScripsAmerica, Inc., I hereby certify that:

 

 

	1.		I am a principal financial officer of ScripsAmerica, Inc.;

 

	2.		The enclosed financial statements are prepared in accordance with generally accepted
accounting principles;

 

	3.		No Default (as defined in the Loan Documents) or any event which, upon the giving
of notice or lapse of time or both, would constitute such a Default, has occurred.

 

	 	BORROWER:
	 	 
	 	SCRIPSAMERICA, INC., a Delaware corporation
	 	 
	 	 
	 	By:     /s/Robert Schneiderman
	 	Name: Robert Schneiderman
	 	Title: CEO
	 	 
	 	Date: 8/15/12

 

 

 

 

 

 

 

 

 

 

 

    	10

    	 

    

 

 

Exhibit B

 

Monthly Amortization
Schedule

 

 

The monthly payment
will be $12,442.55. The breakdown of each of the 48 monthly payments are listed below.

 

 

	
        Payment

         

        1
	
        Monthly Payment

         

        $12,442.55
	
        Principal Paid

         

          $8,692.54
	
        Interest Paid

         

        $3,750.01
	
        Remaining Balance

         

        $491,308.46

	2	$12,442.55	  $8,757.73	$3,684.81	$482,550.73
	3	$12,442.55	  $8,823.42	$3,619.13	$473,727.31
	4	$12,442.55	  $8,889.59	$3,552.95	$464,837.72
	5	$12,442.55	  $8,956.26	$3,486.28	$455,881.46
	6	$12,442.55	  $9,023.44	$3,419.11	$446,858.02
	7	$12,442.55	  $9,091.11	$3,351.44	$437,766.91
	8	$12,442.55	  $9,159.29	$3,283.25	$428,607.62
	9	$12,442.55	  $9,227.99	$3, 214.56	$419,379.63
	10	$12,442.55	  $9,297.20	$3,145.35	$410,082.43
	11	$12,442.55	  $9,366.93	$3,075.62	$400,715.50
	12	$12,442.55	  $9,437.18	$3,005.37	$391,278.32
	13	$12,442.55	  $9,507.96	$2,934.59	$381,770.36
	14	$12,442.55	  $9,579.27	$2,863.28	$372,191.10
	15	$12,442.55	  $9,651.11	$2,791.43	$362,539.98
	16	$12,442.55	  $9,723.50	$2,719.05	$352,816.49
	17	$12,442.55	  $9,796.42	$2,646.12	$343,020.06
	18	$12,442.55	  $9,869.90	$2,572.65	$333,150.17
	19	$12,442.55	  $9,943.92	$2,498.63	$323, 206.25
	20	$12,442.55	$10,018.50	$2,424.05	$313,187.75
	21	$12,442.55	$10,093.64	$2,348.91	$303,094.11
	22	$12,442.55	$10,169.34	$2,273.21	$292,924.77
	23	$12,442.55	$10,245.61	$2,196.94	$282,679.16
	24	$12,442.55	$10,322.45	$2,120.09	$272,356.71
	25	$12,442.55	$10,399.87	$2,042.68	$261,956.84
	26	$12,442.55	$10,477.87	$1,964.68	$251,478.97
	27	$12,442.55	$10,556.45	$1,886.09	$240,922.51
	28	$12,442.55	$10,635.63	$1,806.92	$230,286.89
	29	$12,442.55	$10,715.39	$1,727.15	$219,571.49
	30	$12,442.55	$10,795.76	$1,646.79	$208,775.73
	31	$12,442.55	$10,876.73	$1,565.82	$197,899.01
	32	$12,442.55	$10,958.30	$1,484.24	$186,940.70
	33	$12,442.55	$11,040.49	$1,402.06	$175,900.21

 

    	11

    	 

    

 

 

	34	$12,442.55	$11,123.29	$1, 319.25	$164,776.92
	35	$12,442.55	$11,206.72	$1,235.83	$153,570.20
	36	$12,442.55	$11,290.77	$1,151.78	$142,279.43
	37	$12,442.55	$11,375.45	$1,067.10	$130,903.98
	38	$12,442.55	$11,460.77	   $981.78	$119,443.21
	39	$12,442.55	$11,546.72	   $895.82	$107,896.49
	40	$12,442.55	$11,633.32	   $809.22	  $96,263.17
	41	$12,442.55	$11,720.57	   $721.97	  $84, 542.59
	42	$12,442.55	$11,808.48	   $634.07	  $72,734.12
	43	$12,442.55	$11,897.04	   $545.51	  $60,837.08
	44	$12,442.55	$11,986.27	   $456.28	  $48,850.81
	45	$12,442.55	$12,076.16	   $366.38	  $36,774.64
	46	$12,442.55	$12,166.74	   $275.81	  $24,607.91
	47	$12,442.55	$12, 257.99	   $184.56	 $12,349.92
	48	$12,442.55	$12,349.92	      $92.62	           $0.00
	Totals	$597,242.21	$500,001.00	$97,241.21	 

 

    	12

    	 

    

 

Exhibit C

 

Tooling and Equipment

 

 

 

 

 

 

 

 

 

 

    	13

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