Exhibit
10.2
THIS WARRANT
AND THE SHARES OF CLASS A COMMON STOCK ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.
WARRANT TO PURCHASE
SHARES OF CLASS A COMMON
STOCK
OF
THE AMACORE GROUP, INC.
Expires December 31, 2013
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Number of Shares:
28,125,000
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Date of
Issuance: December 31, 2008
FOR VALUE RECEIVED, the undersigned, The Amacore
Group, Inc., a Delaware corporation (together with its successors
and assigns, the “ Issuer ”), hereby certifies
that Vicis Capital Master Fund or its registered assigns is
entitled to subscribe for and purchase, during the Term (as
hereinafter defined), up to Twenty-Eight Million One Hundred
Twenty-Five Thousand (28,125,000) shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully
paid and non-assessable Class A Common Stock of the Issuer, par
value $.001 per share (the “ Class A Common Stock
”), at an exercise price per share equal to the Warrant Price
then in effect, subject, however, to the provisions and upon the
terms and conditions hereinafter set forth. This Warrant
has been executed and delivered pursuant to the Securities Purchase
and Exchange Agreement dated as of December 31_, 2008 (the “
Purchase Agreement ”) by and among the Issuer and the
purchaser(s) listed therein. Capitalized terms used and
not otherwise defined herein shall have the meanings set forth for
such terms in the Purchase Agreement. Capitalized terms used in
this Warrant and not otherwise defined herein shall have the
respective meanings specified in Section 8 hereof.
1.
Term . The term of this Warrant shall commence on
December 31, 2008 and shall expire at 6:00 p.m., eastern time, on
December 31, 2013 (such period being the “ Term
”).
2.
Method of Exercise; Payment; Issuance of New Warrant; Transfer
and Exchange .
(a)
Time of Exercise . The purchase rights
represented by this Warrant may be exercised in whole or in part
during the Term beginning on the date of issuance
hereof.
(b)
Method of Exercise . The Holder hereof may
exercise this Warrant, in whole or in part, by the surrender of
this Warrant (with the exercise form attached hereto duly executed)
at the principal office of the Issuer, and by the payment to the
Issuer of an amount of consideration therefor equal to the Warrant
Price in effect on the date of such exercise multiplied by the
number of shares of Warrant Stock with respect to which this
Warrant is then being exercised, payable at such Holder’s
election (i) by certified or official bank check or by wire
transfer to an account designated by the Issuer, (ii) by
“cashless exercise” in accordance with the provisions
of subsection (c) of this Section 2, but only when a registration
statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect, or (iii) when permitted by
clause (ii), by a combination of the foregoing methods of payment
selected by the Holder of this Warrant.
(c)
Cashless Exercise . Notwithstanding any
provisions herein to the contrary and commencing six-months
following the Original Issue Date if (i) the Per Share Market Value
of one share of Class A Common Stock is greater than the Warrant
Price (at the date of calculation as set forth below) and (ii) a
registration statement under the Securities Act providing for the
resale of the Warrant Stock is not in effect in accordance with the
terms of the Registration Rights Agreement at the time of exercise,
in lieu of exercising this Warrant by payment of cash, the Holder
may exercise this Warrant by a cashless exercise and shall receive
the number of shares of Class A Common Stock equal to an amount (as
determined below) by surrender of this Warrant at the principal
office of the Issuer together with the properly endorsed Notice of
Exercise in which event the Issuer shall issue to the Holder a
number of shares of Class A Common Stock computed using the
following formula: