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EXHIBIT 4.9 STOCK PURCHASE WARRANT

Warrant Agreement

EXHIBIT 4.9 STOCK PURCHASE WARRANT | Document Parties: VILLAGEEDOCS INC You are currently viewing:
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VILLAGEEDOCS INC

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Title: EXHIBIT 4.9 STOCK PURCHASE WARRANT
Governing Law: New York     Date: 4/19/2005
Law Firm: Johnson, Pope, Bokor, Ruppel & Burns, LLP    

EXHIBIT 4.9 STOCK PURCHASE WARRANT, Parties: villageedocs inc
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THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE " 1933 ACT " ), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.

 

IN ADDITION, A NOTE PURCHASE AGREEMENT DATED AS OF APRIL 13, 2005 (THE "PURCHASE AGREEMENT"), A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICE, CONTAINS CERTAIN ADDITIONAL AGREEMENTS BETWEEN THE PARTIES WITH RESPECT TO THIS WARRANT.


---------------------------------------

 
VILLAGEEDOCS

 

 STOCK PURCHASE WARRANT "A"

 

Number of Shares: 32,000,000
                                     

Holder: Barron Partners LP

                                                                                                

c/o  Barron Capital Advisors LLC

Original Issue Date:  April 13, 2005                                     

Managing Partner

                                                                                               

Attn: Andrew Barron Worden

                                                                                               

730 Fifth Avenue, 9th Floor

Expiration Date: April 13, 2010                                           

New York NY 10019

 

tel 212-659-7790


Exercise Price per Share: $0.10
                                             

fax 646-607-2223

 

 

VillageEDOCS, Inc, a company organized and existing under the laws of the State of California (the " Company "), hereby certifies that, for value received, BARRON PARTNERS LP, or its registered assigns (the " Warrant Holder "), is entitled to purchase from the Company up to Thirty Two Million (32,000,000) shares of common stock, no par value, of the Company (the " Common Stock ") or preferred stock, par value $.001 per share, of the Company (the " Preferred Stock ") ( subject to the terms set forth below and except as provided in Section 5f and as adjusted from time to time as provided in Section 7, the " Warrant Shares ") , at a price of Ten Cents ($0.10) per Warrant Share (as adjusted from time to time as provided in Section 7, the " Exercise Price "), at any time and from time to time from and after the date thereof and through and including 5:00 p.m. New York City time on April 13, 2010 (or eighteen months of effectiveness of a Registration Statement after the original issue date hereof (such eighteen months to be extended by one month for each month or portion of a month during which a Registration Statement's effectiveness has lapsed or been suspended, whichever is longer)(the "Expiration Date"), and subject to the following terms and conditions:

 

1.               Registration of Warrant.   The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the " Warrant Register "), in the name of the record Warrant Holder hereof from time to time.  The Company may deem and treat the registered Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Warrant Holder, and for all other purposes, and the Company shall not be affected by notice to the contrary.

 

2.               Investment Representation.   The Warrant Holder by accepting this Warrant represents that the Warrant Holder is acquiring this Warrant for its own account or the account of an affiliate for investment purposes and not with the view to any offering or distribution and that the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant Shares in violation of applicable securities laws.  The Warrant Holder acknowledges that the certificates representing any Warrant Shares will bear a legend indicating that they have not been registered under the United States Securities Act of 1933, as amended (the " 1933 Act ") and may not be sold by the Warrant Holder except pursuant to an effective registration statement or pursuant to an exemption from registration requirements of the 1933 Act and in accordance with federal and state securities laws.  If this Warrant was acquired by the Warrant Holder pursuant to the exemption from the registration requirements of the 1933 Act afforded by Regulation S thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by or on behalf of a Person during the one year distribution compliance period (as defined in Regulation S) following the date hereof.  " Person " means an individual, partnership, firm, limited liability company, trust, joint venture, association, corporation, or any other legal entity.

 

3.               Validity of Warrant and Issue of Shares.   The Company represents and warrants that this Warrant has been duly authorized and validly issued and warrants and agrees that all of capital stock of the Company , whether Common Stock or Preferred Stock , that may be issued upon the exercise of this Warrant will, when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof.  The Company further warrants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved a sufficient number of shares Preferred Stock and Common Stock to provide for the exercise of this Warrant.

 

4.               Registration of Transfers and Exchange of Warrants.

 

a.         Subject to compliance with the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed and signed, to the Company at the office specified in or pursuant to Section 9.  Upon any such registration or transfer, a new warrant, in substantially the form of this Warrant (any such new warrant, a " New Warrant "), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder.  The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a Warrant Holder of a Warrant.

b .         This Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant to Section 9 for one or more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased hereunder.  Any such New Warrant will be dated the date of such exchange.

 

5.               Exercise of Warrants; Call Option.

 

a.         Upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly completed and signed to the Company, at its address set forth in Section 9, and upon payment and delivery of the Exercise Price multiplied by the number of Warrant Shares that the Warrant Holder intends to purchase hereunder, in lawful money of the United States of America, in cash or by certified or official bank check or checks, to the Company, all as specified by the Warrant Holder in the Form of Election to Purchase, the Company shall promptly (but in no event later than 7 business days after the Date of Exercise (as defined herein)) issue or cause to be issued  and cause to be delivered to or upon the written order of the Warrant Holder and in such name or names as the Warrant Holder may designate (subject to the restrictions on transfer described in the legend set forth on the face of this Warrant), a certificate for the Warrant Shares issuable upon such exercise, with such restrictive legend as required by the 1933 Act.  Any person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.

 

b.         A " Date of Exercise " means the date on which the Company shall have received (i) this Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase attached hereto (or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.

 

c.         This Warrant shall be exercisable at any time and from time to time for such number of Warrant Shares as is indicated in the attached Form of Election To Purchase.  If less than all of the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant.

 

d .         (i)   Notwithstanding anything contained herein to the contrary, the holder of this Warrant may, at its election exercised in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the " Net Number " of shares of Common Stock determined according to the following formula (a " Cashless Exercise "):

                       

                        Net Number = (A x (B - C))/B

 

           \    (ii)       For purposes of the foregoing formula:

                    A= the total number shares with respect to which this Warrant is then being exercised.

                                B= the last reported sale price (as reported by Bloomberg) of the Common Stock on the trading day immediately preceding the date of the Exercise Notice.

    C= the Warrant Exercise Price then in effect at the time of such exercise.

 

e.             The holder of this Warrant agrees not to elect a Cashless Exercise for a period of six (6) months from the original issue date hereof . The holder of this Warrant also agrees not to elect a Cashless Exercise so long as there is an effective registration statement for the Warrant Shares.


 

f.             During the period beginning on the effective date of the amendment of the Company 's Articles of Incorporation to authorize and designate the Preferred Stock (the "Preferred Stock Authorization Date") and ending at 5pm, E.S.T. on the date that is  120 days after the original issue date hereof , this Warrant will be convertible solely into shares of Preferred Stock.  If this Note i


 
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