EXHIBIT 10.11
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WARRANT AGREEMENT
THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT MAY NOT BE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR UNLESS AN EXEMPTION THEREFROM IS AVAILABLE.
This Warrant (this "Warrant") is entered into as of March 8, 2000 by
and between IN STORE MEDIA SYSTEMS, INC., a Nevada corporation (the "Company"),
and Xxxxxx & Xxxxx Financial, Inc. (the "Holder").
RECITALS
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WHEREAS the Company has entered into that certain engagement
letter dated February 2, 2000 ("Agreement") with Xxxxxx & Xxxxx Financial, Inc.
("MMF" or the "Holder") to assist the Company to obtain up to two hundred
million dollars ($200,000,000) in equipment financing and two hundred million
dollars ($200,000,000) in revolving line of credit to implement its
In$taClearing electronic coupon clearing system, and;
WHEREAS the Agreement specifies that MMF shall receive
warrants (the "Warrants") to purchase five percent of the shares of Company
Common Stock outstanding on February 2, 2000 (equal to three million one hundred
fifty thousand (3,150,000) shares) at a price equal to $2.00 per share upon
closing a Receivables-Backed revolving line of credit facility accepted by the
Company, and;
WHEREAS, the Company desires to evidence such Warrants, by
executing and delivering this Agreement.
NOW, THEREFORE, in consideration of the foregoing and other
good and valuable consideration, the adequacy and receipt of which are
irrevocably acknowledged, the parties hereto agree as follow.
1. DESCRIPTION; EXECUTION.
(a) This certifies that, for value received, the
Holder is hereby granted Warrants to purchase up to an aggregate of three
million one hundred fifty thousand (3,150,000) shares of Company Common Stock.
As used herein, "Shares" refers to the shares of Common Stock issued upon
exercise of the Warrants. The Company shall cause to be issued to the Holder a
Warrant certificate, in the form attached hereto, as soon as practicable after
the execution of this Agreement (collectively, the "Warrant Certificate").
(b) Upon delivery of the Warrant Certificate to the
Holder, this Agreement shall be binding upon the Company, and the Holder shall
be entitled to all the benefits set forth herein.
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2. TERM OF WARRANTS; REPURCHASE BY COMPANY.
(a) This Warrant shall remain exercisable as provided
in Section 3 until the close of business on the earlier of (i) the date five (5)
years from the date first written above or (ii) the Repurchase Date, as defined
in paragraph (b) below. Such date is hereafter referred to as the "Expiration
Date.".
(b) At any time commencing after the date which is
thirty (30) months) after the date of this Warrant Agreement, and (ii) the
Common Stock underlying the Warrants has been registered for resale by the
holders thereof, then the Company may, in its sole and absolute discretion,
established a date on which the Company shall be entitled to repurchase all, or
any portion, of the Warrants (the "Repurchase Date") at a price of Four Dollars
($4.00) per Share. The Company shall deliver to the Holder a written notice
setting forth the Repurchase Date, which date shall be at least sixty (60) days
after the date of the notice. Prior to the Repurchase Date, the Holder may
exercise the Warrants as provided herein. If not exercised on or before the
Repurchase Date, the Company may repurchase the number of Warrants set forth in
the notice.
3. EXERCISE OF WARRANT.
(a) The Warrant shall not be exercisable until two
(2) years after the date of this Warrant Agreement. At any time thereafter until
the Expiration Date, the Holder shall have the right to purchase from the
Company (and the Company shall promptly issue to the Holder) one fully-paid and
nonassessable share of Common Stock at the Exercise Price (as defined below) for
each Warrant, by surrendering the Warrant Certificate and the Subscription Form
attached hereto to the Company at its executive offices and paying the aggregate
Exercise Price for the Shares to be purchased, in cash or by check.
(b) The Warrants may be exercised in whole and in
part, but not in increments of less than 100 shares. In case of a partial
exercise, the Warrant Certificate shall be surrendered and a new Warrant
Certificate of the same tenor and for the purchase of the number of shares not
purchased upon such partial exercise shall be issued by the Company to the
Holder hereof. Warrants shall be deemed to have been exercised immediately prior
to the close of business on the date of their surrender for exercise as provided
above, and the person or entity entitled to receive the shares of Common Stock
issuable upon the exercise shall be treated for all purposes as the Holder of
such shares of record as of the close of business on such date. Prior to any
such exercise, neither the Holder nor any person entitled to receive shares
issuable upon exercise shall be or have any of the rights of a shareholder of
the Company. No adjustment shall be made for dividends or other stockholder
rights for which the record date is prior to the date of exercise. As soon as
practicable on or after such date, the Company shall issue in the name of, and
deliver to the person or persons entitled to receive, a certificate or
certificates for the full number of shares of Common Stock issuable upon such
exercise.
4. EXERCISE PRICE; ADJUSTMENT.
4.1 EXERCISE PRICE. The exercise price for each Share issuable
pursuant to the Warrant is two dollars ($2.00) per share adjusted as provided
below (the "Exercise Price").
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5. ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES OF COMMON
STOCK. The number and kind of securities purchasable upon the exercise of the
Warrants and the Exercise Prices shall be subject to adjustment from time to
time upon the happening of certain events, as follows:
5.1 ADJUSTMENTS. The number of shares of Common Stock
purchasable upon the exercise of each Warrant and the Exercise Price thereof
shall be subject to adjustment as follows:
(a) In case the Company shall (i) pay a dividend in
Common Stock or make a distribution in Common Stock, (ii) subdivide its
outstanding Common Stock, (iii) combine its Stock, or (iv) issue, by
reclassification of its Common Stock, other securities of the Company, the
number of shares of Common Stock purchasable upon exercise of a Warrant
immediately prior thereto shall be adjusted so that the Holder of a Warrant
shall be entitled to receive the kind and number of shares of Common Stock or
other securities of the Company which such Holder would have owned or would have
been entitled to receive immediately after the happening of any of the events
described above, had the Warrant been exercised immediately prior to the
happening of such event or any record date with respect thereto. Any adjustment
made pursuant to this Subsection 5.1(a) shall become effective immediately after
the effective date of such event retroactive to the record date, if any, for
such event.
(b) In case the Company shall issue rights, options,
warrants or convertible securities to all or substantially all Holders of its
Common Stock, without any charge to such Holders, entitling them to subscribe
for or purchase Common Stock at a price per share which is lower at the record
date mentioned below than the then Current Market Price (as defined in Section 6
hereof), the number of shares of Common Stock thereafter purchasable upon the
exercise of each Warrant shall be determined by multiplying the number of shares
of Common Stock theretofore purchasable upon exercise of a Warrant by a
fraction, of which the numerator shall be the number of shares of Common Stock
outstanding immediately prior to the issuance of such rights, options, warrants
or convertible securities plus the number of additional shares of Common Stock
offered for subscription or purchase, and of which the denominator shall be the
number of shares of Common Stock outstanding immediately prior to the issuance
of the rights, options, warrants or convertible securities plus the number of
shares which the aggregate offering price of the total number of shares offered
would purchase at such Current Market Price. Such adjustment shall be made
whenever such rights, options, warrants or convertible securities are issued,
and shall become effective immediately and retroactive to the record date for
the determination of stockholders entitled to receive such rights, options,
warrants or convertible securities.
(c) In case the Company shall distribute to all or
substantially all Holders of its Common Stock, evidences of its indebtedness or
assets (excluding cash dividends or distributions out of earnings) or rights,
options, warrants or convertible securities containing the right to subscribe
for or purchase Common Stock (excluding those referred to in Subsection 5.1(b)
above), then in each case the number of shares of Common Stock thereafter
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purchasable upon the exercise of each Warrant shall be determined by multiplying
the number of shares of Common Stock theretofore purchasable upon exercise of
such Warrant by a fraction, of which the numerator shall be the then Current
Market Price on the date of such distribution, and of which the denominator
shall be such Current Market Price on such date minus the then fair value
(determined by the Company's Board of Directors) of the portion of the assets or
evidences of indebtedness so distributed or of such subscription rights,
options, warrants or convertible securities applicable to one share. Such
adjustment shall be made whenever any such distribution is made and shall become
effective on the date of distribution retroactive to the record date for the
determination of stockholders entitled to receive such distribution.
(d) No adjustment in the number of shares of Common
Stock purchasable pursuant to the Warrants shall be required unless such
adjustment would require an increase or decrease of at least one percent in the
number of shares of Common Stock then purchasable upon the exercise of the
Warrants or, if the Warrants are not then exercisable, the number of shares of
Common Stock purchasable upon the exercise of the Warrants on the first date
thereafter that the Warrants become exercisable; provided, however, that any
adjustments which by reason of this Subsection 5.1(d) are not required to be
made immediately shall be carried forward and taken into account in any
subsequent adjustment.
(e) Whenever the number of shares of Common Stock
purchasable upon the exercise of a Warrant is adjusted as herein provided, the
Exercise Price payable upon exercise of the Warrant shall be adjusted by
multiplying such Exercise Price immediately prior to such adjustment by a
fraction, of which the numerator shall be the number of shares of Common Stock
purchasable upon the exercise of such Warrant immediately prior to such
adjustment, and of which the denominator shall be the number of shares of Common
Stock so purchasable immediately thereafter.
(f) Whenever the number of shares of Common Stock
purchasable upon the exercise of a Warrant or the Exercise Price is adjusted as
herein provided, the Company shall cause to be promptly mailed to the Holder by
first class mail, postage prepaid, notice of such adjustment or adjustments.
(g) For the purpose of this Section 5, the term
"Common Stock" shall mean (i) the class of stock designated as the Common Stock
of the Company at the date of this Agreement, or (ii) any other class of stock
resulting from successive changes or reclassifications of such Common Stock
consisting solely of changes in par value, or from par value to no par value, or
from no par value to par value.
5.2 NO ADJUSTMENT FOR DIVIDENDS. Except as provided in Section
5.1 hereof, no adjustment in respect of any dividends or distributions out of
earnings shall be made during the term of a Warrant or upon the exercise of a
Warrant.
5.3 NO ADJUSTMENT IN CERTAIN CASES. No adjustments shall be
made pursuant to Section 5 hereof in connection with the grant or exercise of
presently authorized or outstanding options to purchase Common Stock under the
Company's existing stock option plan or the exercise of presently outstanding
warrants to purchase Common Stock.
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5.4 PRESERVATION OF PURCHASE RIGHTS UPON RECLASSIFICATION,
CONSOLIDATION, ETC. In case of any consolidation of the company with or merger
of the Company into another corporation or in case of any sale or conveyance to
another corporation of the property, assets or business of the Company as an
entirety or substantially as an entirety, the Company or such successor or
purchasing corporation, as the case may be, shall execute with the Holder an
agreement that the Holder shall have the right thereafter, upon payment of the
Exercise Price in effect immediately prior to such action, to purchase, upon
exercise of each Warrant, the kind and amount of shares and other securities and
property which it would have owned or have been entitled to receive after the
happening of such consolidation, merger, sale or conveyance had each Warrant
been exercised immediately prior to such action. In the event of a merger
described in Section 368(a)(2)(E) of the Internal Revenue Code of 1986, as
amended, in which the Company is the surviving corporation, the right to
purchase shares of Common Stock under the Warrants shall terminate on the date
of such merger and thereupon the Warrants shall become null and void, but only
if the controlling corporation shall agree to substitute for the Warrants its
warrants which entitle the Holders thereof to purchase upon their exercise the
kind and amount of shares and other securities and property which they would
have owned or been entitled to receive had the Warrants been exercised
immediately prior to such merger. Any such agreements referred to in this
Subsection 5.4 shall provide for adjustments, which shall be as nearly
equivalent as may be practicable to the adjustments provided for in Section 5
hereof. The provisions of this Subsection 5.4 shall similarly apply to
successive consolidations, mergers, sales or conveyances.
6. FRACTIONAL SHARES; ISSUANCE OF SHARES; LEGENDS.
6.1 FRACTIONAL SHARES. The Company shall not be required to
issue fractional shares of Common Stock on the exercise of a Warrant. If any
fraction of a share of Common Stock would, except for the provisions of this
Section 6, be issuable on the exercise of a Warrant (or specified portion
thereof), the Company shall in lieu thereof pay an amount in cash equal to the
then Current Market Price, multiplied by such fraction. For purposes of this
Agreement, the term "Current Market Price" shall mean (i) if the Common Stock is
traded in the over-the-counter market and not in the NASDAQ National Market
System nor on any national securities exchange, the average of the per share
closing bid prices of the Common Stock on the 30 consecutive trading days
immediately preceding the date in question, as reported by NASDAQ or an
equivalent generally accepted reporting service, or (ii) if the Common Stock is
traded in the NASDAQ National Market System or on a national securities
exchange, the average for the 30 consecutive trading days immediately preceding
the date in question of the daily per share closing prices of the Common Stock
in the NASDAQ National Market System or on the principal stock exchange on which
it is listed, as the case may be. For purposes of clause (i) above, if trading
in the Common Stock is not reported by NASDAQ, the bid price referred to in said
clause shall be the lowest bid price as reported in the "pink sheets" published
by National Quotation Bureau, Incorporated. The closing price referred to in
clause (ii) above shall be the last reported sale price or, in the case no such
reported sale takes place on such day, the average of the reported closing bid
and asked prices, in either case in the NASDAQ National Market System or on the
national securities exchange on which the Common Stock is then listed.
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6.2 ISSUANCE OF SHARES. All shares of Common Stock issued upon
exercise of a Warrant will be duly authorized, validly issued, fully paid and
nonassessable.
6.3 LEGENDS. If the Common Stock to be issued upon exercise of
this Warrant has not been registered under the Securities Act of 1933, as
amended, then the stock certificates representing such shares of Common Stock
shall bear a legend substantially in the following form:
THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR APPLICABLE STATE
SECURITIES LAWS AND ARE RESTRICTED SECURITIES. SUCH SECURITIES MAY NOT BE SOLD
OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM
UNDER THE ACT AND STATE SECURITIES LAWS.
7. TRANSFERABILITY.
The Warrants may not be transferred, sold or otherwise
disposed of, except by will or devise and by the laws of descent.
Notwithstanding the foregoing Xxxxxx & Xxxxx Financial, Inc. may transfer all or
any portion of the Warrants to Xxxxxxx X. Xxxxx and Xxxxxxxxx X. Xxxxxx
individually. Any attempt to transfer, sell or otherwise dispose of this Warrant
(except as provided above) shall be void and shall not convey any rights or
privileges to the transferee.
8. REGISTRATION RIGHTS.
8.1 DEFINITIONS. For the purposes of this Agreement:
(a) "Commission" means the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act of 1933, as
amended (the "Securities Act").
(b) "Registrable Securities" means (x) shares of Common Stock issuable
upon exercise of the Warrants and (y) any Common Stock issued as a dividend or
other distribution with respect to or in exchange for or in replacement of the
shares referenced in (x) above, provided, however, that Registrable Securities
shall not include any shares of Common Stock which have previously been
registered or which have been sold to the public.
(c) The terms "register," "registered" and "registration" refers to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the effectiveness of such
registration statement.
(d) "Registration Expenses" means all expenses incurred in effecting
any registration pursuant to this Agreement, including, without limitation, all
registration, qualification, and filing fees, printing expenses, escrow fees,
fees and disbursements of counsel for the Company, blue sky fees and expenses of
any regular or special audits incident to or required by any such registration,
but shall not include selling expenses and fees and disbursements of counsel for
the Holder.
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(e) "Rule 144" means Rule 144 as promulgated by the Commission under
the Securities Act, as such Rule may be amended from time to time, or any
similar successor rule that may be promulgated by the Commission.
(f) "Rule 145" means Rule 145 as promulgated by the Commission under
the Securities Act, as such Rule may be amended from time to time, or any
similar successor rule that may be promulgated by the Commission.
8.2 "PIGGYBACK" REGISTRATION. If the Company shall determine
to register any of its shares of Common Stock in a public offering for the
account of any selling shareholders, other than a registration relating solely
to employee benefit plans, or a registration relating solely to a Rule 145
transaction on Form S-4, or a registration on any registration form that does
not permit secondary sales, the Company will:
(a) promptly give to Holder written notice thereof;
(b) use its best efforts to include in such registration (and any
related qualification under the blue sky laws or other compliance), except as
set forth in Section 8.3 below, and in any underwriting involved therein, all
the Registrable Securities specified in a written request or requests, made by
Holder within Twenty (20) days after the written notice from the Company
described in clause 8.2(a) above is given. Such written request may specify all
or a part of Holder's Registrable Securities; and
(c) pay all Registration Expenses, other than the selling expenses of
Holder's Registrable Securities.
8.3 UNDERWRITING. If the registration of which the Company
gives notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holder as a part of the written notice. In such
event, the right of the Holder to registration pursuant to this Section 8 shall
be conditioned upon Holder's participation in such underwriting and the
inclusion of the Holder's Registrable Securities in the underwriting to the
extent provided herein. The Holder shall (together with the Company) enter into
an underwriting agreement in customary form with the representative of the
underwriter of underwriters selected by the Company.
8.4 EXCLUSION OF REGISTRABLE SECURITIES. Notwithstanding any
other provisions of this Section 8, if the representative of the underwriters
advises the Company that marketing factors require a limitation on the number of
shares to be underwritten, the representative may (subject to the limitations
set forth below) exclude all Registrable Securities from, or limit the number of
Registrable Securities to be included in, the registration and underwriting. The
Company shall so advise the Holder, and the number of shares of securities that
are entitled to be included in the registration and underwriting shall be
allocated first to the Company for securities being sold for its own account and
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thereafter to the Holder, pro rata with any other holders of Common Stock having
registration rights. If the Holder does not agree to the terms of any such
underwriting, he shall be excluded therefrom by written notice from the Company
or the underwriter. Any Registrable Securities or other securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration.
If shares are so withdrawn from the registration or if the number of
shares of Registrable Securities to be included in such registration was
previously reduced as a result of marketing factors, the Company shall then
offer to all persons who have retained the right to include securities in the
registration the right to include additional securities in the registration in
an aggregate amount equal to the number of shares so withdrawn, with such shares
to be allocated among the persons requesting additional inclusion pro rata
amongst those persons requesting inclusion.
8.5 REGISTRATION PROCEDURES. In the case of each registration
effected by the Company pursuant to Section 8, the Company will keep Holder
advised in writing as to the initiation of each registration and as to the
completion thereof, at its expense, the Company will use its best efforts to:
(a) Keep such registration effective for a period of one hundred twenty
(120) days or until the Holder has completed the distribution described in the
registration statement relating thereto, whichever first occurs; provided,
however, that (x) such 120-days period shall be extended for a period of time
equal to the period the Holder refrains from selling any securities included in
such registration at the request of an underwriter of Common Stock (or other
securities) of the Company; and (y) in the case of any registration of
Registrable Securities on Form S-3 which are intended to be offered on a
continuous or delayed basis, such 120-day period shall be extended, if
necessary, to keep the registration statement effective until all such
Registrable Securities are sold, provided that Rule 145, or any successor rule
under the Securities Act, permits an offering on a continuous or delayed basis,
and provided further that applicable rules under the Securities Act governing
the obligation to file a post-effective amendment permit, in lieu of filing a
post-effective amendment that (I) includes any prospectus required by Section
10(a)(3) of the Securities Act or (II) reflects facts or events representing a
material or fundamental change in the information set forth in the registration
statement, the incorporation by reference of information required to be included
in (I) and (II) above to be contained in periodic reports filed pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 in the registration
statement.
(b) Prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement;
(c) Furnish such number of prospectuses and other documents incident
thereto, including any amendment of or supplement to the prospectus, as the
Holder from time to time may reasonably request;
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(d) Notify the Holder at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading or incomplete in the light of the
circumstances then existing, and at the request of Holder, prepare and furnish
to the Holder a reasonable number of copies of a supplement to or an amendment
of such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such shares, such prospectus shall not include an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading or incomplete
in the light of the circumstances then existing;
(e) Cause all such Registrable Securities registered pursuant hereunder
to be listed on each securities exchange on which similar securities issued by
the Company are then listed;
(f) Provide a transfer agent and registrar for all Registrable
Securities registered pursuant to such registration statement and a CUSIP number
for all such Registrable Securities, in each case not later than the effective
date of such registration; and
(g) Otherwise use its best efforts to comply with all applicable rules
and regulations of the Commission, and make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of
at least twelve months, but not more than eighteen months, beginning with the
first month after the effective date of the Registration Statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act.
9. MISCELLANEOUS.
9.1 NOTICES.
All notices, requests, demands and other communications
required or permitted to be given hereunder shall be deemed to have been duly
given if in writing and delivered personally, given by prepaid telegram, or
mailed first class, postage prepaid, registered or certified mail, return
receipt requested, to the following addresses:
If to the Company: IN STORE MEDIA SYSTEMS, INC.
00000 X. Xxxxxxx Xxxxx
Xxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx X. Xxxxxxx, Xx.
With a copy to: Pillsbury, Madison & Sutro, LLP
000 Xxxx Xxxxxx Xxxxx, Xxxxxxx Xxxxx
Xxxxx Xxxx, XX 00000
Attention: Xxxxxxxxxxx X. Xxxxxx, Esq.
If to the Holder: Xxxxxx & Xxxxx Financial, Inc.
000 Xxxxx Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxxxx, Xxxxxxxxx 00000
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Any party may change the address to which such communications are to be directed
to it by giving written notice to the other party. Except as otherwise provided
in this Warrant, all notices shall be deemed to be given when delivered in
person, or if placed in the mail as aforesaid, then two (2) days thereafter.
9.2 MODIFICATIONS.
The parties may, by mutual consent, amend, modify, supplement
and waive any right under this Warrant in any manner agreed by them in writing
at any time.
9.3 ENTIRE AGREEMENT.
This Agreement, the Note, the Registration Rights Agreement
and any documents, instruments or agreements specifically referred to herein,
set forth the entire agreement and understanding of the parties with respect to
the transactions contemplated hereby and supersede all prior agreements,
arrangements and understandings relating to the subject matter hereof.
9.4 HEADINGS.
The section and paragraph headings contained in this Warrant
are for convenient reference only, and shall not in any way affect the meaning
or interpretation hereof.
9.5 GOVERNING LAW.
This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado, without any regard to the
choice of law provisions thereof.
9.6 SEVERABILITY.
If any provision of this Agreement shall be held to be
invalid, illegal or unenforceable, it shall be deemed severable from the
remaining provisions of this Agreement, which shall remain in full force and
effect.
9.7 WAIVER.
No waiver of any provision of this Agreement or any breach
thereof shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar) or any other breach hereunder nor shall such
waiver constitute a continuing waiver. Either party may waive performance of any
provision of this Agreement, the non-performance of which would otherwise
constitute a breach of this Agreement, including but not limited to the
non-performance of any condition precedent to such party's performance, without
affecting the enforceability of this Agreement or the provisions contained
herein.
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9.8 SUCCESSORS AND ASSIGNS.
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 hereto. The Company may not assign this Agreement without the prior
written consent of the Holder. Holders may transfer and assign the Warrants only
as provided in Section 7. Any assignment by either party in violation of the
foregoing shall be void.
9.9 ATTORNEYS' FEES.
If any legal action is instituted to enforce or interpret the
terms of this Warrant, the prevailing party in such action shall be entitled to
actual attorneys' fees in addition to any other relief to which the party is
entitled.
IN WITNESS WHEREOF, the parties have executed this instrument as of the
date first written above.
XXXXXX XXXXX FINANCIAL, INC. IN STORE MEDIA SYSTEMS, INC.
By:/S/ Xxxxxxxxx X. Xxxxxx By:/S/ Xxxxxxx X. Xxxxxxx
-------------------------------- ---------------------------------
Xxxxxxxxx X. Xxxxxx, Xxxxxxx X. Xxxxxxx, Xx.,
Chief Executive Officer President/CEO
/S/ Xxxxxxx X. Xxxxx
--------------------------------
Xxxxxxx X. Xxxxx, President
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WARRANT SUBSCRIPTION FORM
(To be executed only upon exercise of Warrant)
The undersigned Holder of this Warrant hereby irrevocably exercises
this Warrant for the purchase of that number of shares of the Common Stock, no
par value, of In Store Media System, Inc., set forth below, up to a maximum of
three million-one hundred fifty thousand (3,150,000) shares (or such other
number of shares as may be issuable upon the exercise of this Warrant pursuant
to the adjustment provisions hereof), and hereby makes payment of the aggregate
Exercise Price therefor which is also set forth below, all on the terms and
subject to the conditions specified in this Warrant.
Number of Shares: ___________
x $2.00 per share
Aggregate Purchase Price paid: $__________
Dated: __________________ , 200_
HOLDER:
-----------------------------
(Signature)
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(Please print)
ACCEPTED:
IN STORE MEDIA SYSTEMS, INC.,
a Nevada corporation
By: ______________________________
Title: PRESIDENT/CEO .
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