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WARRANT AGREEMENT

Warrant Agreement

WARRANT AGREEMENT | Document Parties: INNOVATIVE SOFTWARE TECHNOLOGIES INC | DIATECT INTERNATIONAL CORPORATION | WEB Channel Network LLC You are currently viewing:
This Warrant Agreement involves

INNOVATIVE SOFTWARE TECHNOLOGIES INC | DIATECT INTERNATIONAL CORPORATION | WEB Channel Network LLC

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Title: WARRANT AGREEMENT
Governing Law: Florida     Date: 6/23/2009

WARRANT AGREEMENT, Parties: innovative software technologies inc , diatect international corporation , web channel network llc
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Exhibit 4.03

EXHIBIT C

 

WARRANT AGREEMENT

 

INNOVATIVE SOFTWARE TECHNOLOGIES, INC.

 

 

Warrant No.                                                                                                                                                                                                                                                                                                                                                  Issuance Date:  June 17, 2009

 

 

THE SECURITES REPRESENTED BY THIS AGREEMENT HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT” ), AND HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE.  THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY SATISFACTORY TO DIATECT INTERNATIONAL CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

 

WARRANT AGREEMENT

 

THIS WARRANT AGREEMENT ( “this Agreement” ) is dated this 17 th day of June 2009, by and between Innovative Software Technologies, Inc., a Florida corporation (the “Company” ), and The WEB Channel Network LLC., (the “Warrant Holder” ).

 

W I T N E S S E T H

 

WHEREAS, as part of the Agreement, the Company agreed to issue to the Warrant Holder a warrant (the “Warrant” ) to purchase an aggregate of 5,000,000 shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock” ).

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Incorporation of Recitals . The Recitals portion of this Agreement is hereby incorporated by this reference as though it were fully set forth and rewritten herein, and the affirmative statements therein contained shall be deemed to be representations of the Company and the Warrant Holder, which are hereby confirmed.

 

2.            Grant of Warrant .

 

(a)            The Company hereby agrees that the Warrant Holder, for value received, is entitled, subject to the provisions of this Warrant, to purchase from the Company, in whole or in part and at any time or from time to time, during the period commencing on the date hereof and expiring at 5:00 p.m., EST, on the Expiration Date (as defined below), June 17, 2012 fully paid and non-assessable shares of Common Stock (as defined below).  The “Exercise Price” for such shares shall be equal to $0.03 per share, subject to adjustment as set forth in Section 4 below.

 

(b)            The term “Common Stock” means the common stock, par value $0.001 per share, of the Company as constituted on the date hereof, together with any other equity securities that may be issued by the Company in substitution therefor.  The number of shares of Common Stock to be received upon the exercise of this Warrant, and the Exercise Price, shall be adjusted from time to time as hereinafter set forth.  The shares of Common Stock deliverable upon such exercise, and as adjusted from time to time, are hereinafter referred to as “Shares.”   The term “Company” means and includes the Company as well as (i) any successor corporation resulting from the merger or consolidation of the Company with another corporation, or (ii) any corporation to which the Company has transferred its property or assets as an entirety or substantially as an entirety.

 

3.            Exercise of Warrant .

 

3.1            Process and Consequences of Exercise .

 

(a)            Subject to the limitations set forth in Section 5, this Warrant may be exercised in whole or in part at any time or from time to time during the period commencing on the date hereof and expiring at 5:00 p.m. Florida time, on June 17, 2012 or, if such date is a day on which banking institutions in Florida are authorized by law to close, then on the next succeeding day that banking institutions in Florida shall not be authorized to close.

 


 

(b)            The Holder may exercise this Warrant by presentation and surrender of this Warrant to the Company at its principal office with the Warrant Exercise Form attached as Exhibit A hereto (the  “Notice of Exercise” ), duly executed by the Warrant Holder   and accompanied by payment (either in cash, wire transfer, or by certified or official bank check, payable to the order of the Company) of an amount equal to the Exercise Price multiplied by the number of Shares purchased (the  “Purchase Price” ).  The Purchase Price shall be payable in cash.

 

(c)            If this Warrant is exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the Holder thereof to purchase the balance of the shares purchasable hereunder.

 

(d)            Upon receipt by the Company of this Warrant, together with the Purchase Price, at its office in proper form for exercise, the Holder shall be deemed to be the holder of record of the Shares to be issued upon such exercise, not withstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Shares shall not then be actually delivered to the Holder.

 

3.2             Issuance of Certificates As soon as practicable after the exercise of the Warrant (in whole or in part) in accordance with Section 3.1 hereof, the Company, at its expense, shall cause to be issued in the name of and delivered to the Warrant Holder (i) a certificate or certificates for the number of fully-paid and non-assessable Shares to which the Warrant Holder shall be entitled upon such exercise and (if applicable) (ii) a new warrant agreement of like tenor to purchase all of the Shares that may be purchased pursuant to the portion, if any, of the Warrant not exercised by the Warrant Holder.  The Warrant Holder shall for all purposes be deemed to have become the holder of record of such Shares on the date on which the Notice of Exercise and payment of the Purchase Price in accordance with Section 3.1 hereof were delivered and made, respectively, irrespective of the date of delivery of such certificate or certificates, except that if the date of such delivery, notice and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of record of such Shares at the close of business on the next succeeding date on which the stock transfer books are open.

 

3.3             Market Price The “Market Price” of a share of Common Stock means:  the average of the daily volume weighted average price of shares of Common Stock on the principal market on which shares of the Common Stock are traded for the five (5) trading days immediately preceding the date of the determination of the Market Price.  If shares of Common Stock are not traded on any public market (e.g. NYSE, AMEX, NASDAQ, OTCBB or Pink Sheets), the Market Price of the Common Stock shall be determined, in good faith, by the Board of Directors of the Company.

 

4.            Adjustments .

 

4.1             Stock Splits, Stock Dividends and Combinations .  If the Company at any time subdivides the outstanding shares of the Common Stock or issues a stock dividend (in Common Stock) on the outstanding shares of the Common Stock, the Exercise Price in effect immediately prior to such subdivision or the issuance of such stock dividend shall be proportionately decreased, and the number of Shares subject hereto shall be proportionately increased, and if the Company at any time combines (by reverse stock split or otherwise) the outstanding shares of Common Stock, the Exercise Price in effect immediately prior to such combination shall be proportionately increased, and the number of Shares subject hereto shall be proportionately decreased, effective at the close of business on the date of such subdivision, stock dividend or combination, as the case may be.

 

4.2             Merger or Consolidation . In the case of any consolidation of the Company with, or merger of the Company with or into another entity (other than a consolidation or merger which does not result in any reclassification or change of the outstanding capital stock of the Company), the entity formed by such consolidation or merger shall execute and deliver to the Warrant Holder a supplemental warrant agreement providing that the Warrant Holder of the Warrant then outstanding or to be outstanding shall have the right thereafter (until the expiration of such Warrant) to receive, upon exercise of such Warrant, the kind and amount of shares of capital stock and other securities and property receivable upon such consolidation or merger by a holder of the nu


 
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