Document:

ex4-3.htm

    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 17th 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 number of Shares for which such Warrant might have been
exercised immediately prior to such consolidation or merger.  Such
supplemental warrant agreement shall provide for adjustments which shall be
identical to the adjustments provided in Section 4.1 hereof and to the
provisions of Section 11 hereof.  This Section 4.2 shall similarly
apply to successive consolidations or mergers.

     

    5.           Transfers.

     

    5.1           Unregistered
Securities. The Warrant Holder
hereby acknowledges and agrees that the Warrant and the Shares have not been
registered under the Securities Act of 1933, as amended (the “Securities
Act”), and are “restricted
securities” under the Securities Act inasmuch as they are being acquired
in a transaction not involving a public offering, and the Warrant Holder agrees
not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose
of the Warrant or any Shares issued upon exercise of the Warrant in the absence
of (a) an effective registration
statement under the Securities Act as to the Warrant or such Shares and
registration and/or qualification of the Warrant or such Shares under any
applicable Federal or state securities law then in effect or (b) an opinion of counsel,
reasonably satisfactory to the Company, that such registration and qualification
are not required.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2           Transferability. Subject to the
provisions of Section 5.1 hereof, the rights under this Agreement are freely
transferable, in whole or in part, by the Warrant Holder, and such transferee
shall have the same rights hereunder as the Warrant Holder.

     

    5.3           Warrant
Register. 
The Company will maintain a register containing the names and addresses
of the Warrant Holders of the Warrant.  Until any transfer of Warrant
in accordance with this Agreement is reflected in the warrant register, the
Company may treat the Warrant Holder as the absolute owner hereof for all
purposes.  Any Warrant Holder may change such Warrant Holder’s address
as shown on the warrant register by written notice to the Company requesting
such change.

     

    6.           No
Fractional Shares. 
Any adjustment in the number of Shares purchasable hereunder shall be
rounded to the nearest whole share.

     

    7.           Investment
Representations. 
The Warrant Holder agrees and acknowledges that it is acquiring the
Warrant and will be acquiring the Shares for its own account and not with a view
to any resale or distribution other than in accordance with federal and state
securities laws.  The Warrant Holder confirms that its only member is
an “accredited investor”
within the meaning of Rule 501(a) of Regulation D promulgated under the
Securities Act.

     

    8.           Covenants
as to the Shares.
The Company covenants and agrees that the Shares to be issued upon
exercise of the Warrant, will, upon issuance in accordance with the terms
hereof, be duly and validly issued and outstanding, fully-paid and
non-assessable, with no personal liability attaching to the ownership thereof,
and free from all taxes, liens and charges with respect to the issuance thereof
imposed by or through the Company; provided, however, that the
Company shall not be required to pay any tax that may be payable in respect of
any transfer involved in the issuance and delivery of any certificates in
respect of such Shares in a name other than that of the Warrant Holder and the
Company shall not be required to issue or deliver such certificates unless or
until the person(s) requesting the issuance thereof shall have paid to the
Company the amount of such tax or it shall be established to the satisfaction of
the Company that such tax has been paid.  The Company further
covenants and agrees that the Company will at all times have authorized and
reserved a sufficient number of Shares to provide for the exercise of the rights
represented under this Agreement.

     

    9.           Legend. Any certificate
evidencing the Shares issuable upon exercise hereof will bear a legend
indicating that such securities have not been registered under the Securities
Act or under any state securities laws and may not be sold or offered for sale
in the absence of an effective registration statement as to the securities under
the Securities Act and any applicable state securities law or an opinion of
counsel reasonably satisfactory to the Company that such registration is not
required.

     

    10.        Rights
Applicable to the Warrant Shares. The parties hereby
acknowledge and agree that the Shares, when issued in accordance with the terms
hereof, shall be entitled to all of the same rights and privileges provided to
the Company’s Common Stock.

     

    11.        Dividends
and Other Distributions.  In the event that the
Company shall, at any time prior to the exercise of all Warrants, declare a
dividend (other than a dividend consisting solely of shares of Common Stock) or
otherwise distribute to its stockholders any assets, properties, rights,
evidence of indebtedness, securities (other than shares of Common Stock),
whether issued by the Company or by another, or any other thing of value, the
Warrant Holder shall thereafter be entitled, in addition to the shares of Common
Stock or other securities and property receivable upon the exercise thereof, to
receive, upon the exercise of such Warrant, the same assets, property, rights,
evidences of indebtedness, securities or any other thing of value that the
Warrant Holder would have been entitled to receive at the time of such dividend
or distribution as if the Warrant had been exercised immediately prior to such
dividend or distribution.  At the time of any such dividend or
distribution, the Company shall make (and maintain) appropriate reserves to
ensure the timely performance of the provisions of this Section 11.

     

    12.        Vesting. The right to exercise
the Warrant to purchase one million (1,000,000) Shares is vested immediately and
the right to exercise the balance of the Warrant shall vest based on the
financial performance of the Company’s wholly owned subsidiary, The WEB Channel
Network, Inc., a Florida corporation (the “Subsidiary”),
as follows:

     

    The right
to exercise the Warrant to purchase a second one million (1,000,000) Shares
shall vest when the Subsidiary generates its first $1 million in aggregate
revenue;

     

    The right
to exercise the Warrant to purchase a third one million (1,000,000) Shares shall
vest when the Subsidiary generates $2 million in aggregate (cumulative)
revenue;

     

    The right
to exercise the Warrant to purchase a fourth one million (1,000,000) Shares
shall vest when the Subsidiary generates $3 million in aggregate (cumulative)
revenue; and

     

    The right
to exercise the Warrant to purchase a fifth one million (1,000,000) Shares shall
vest when the Subsidiary generates $4 million in aggregate (cumulative)
revenue;

     

    13.        Miscellaneous.

     

    13.1         Waivers
and Amendments.  This Agreement or
any provisions hereof may be changed, waived, discharged or terminated only by a
statement in writing signed by the Company and by the Warrant
Holder.

     

    13.2         Governing
Law.  This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Florida.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.3         Notices.  All notices and other
communications hereunder shall be in writing and shall be deemed to have been
given when delivered by hand or by facsimile transmission, when telexed, or upon
receipt when mailed by registered or certified mail (return receipt requested),
postage prepaid, to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice):

    

    (i)           
If to the Company:

    

    Innovative
Software Technologies, Inc.

    1413 S.
Howard Ave.

    Tampa,
FL, 33606

    Phone:  (813)
387-3310

    Attention:  Robert
Rudman, President

    Facsimile: (813)
251-5684

    

    (ii)           If
to the Warrant Holder:

    

    The WEB
Channel Network, LLC

    19901
Arbor Path

    Lutz, Fl.
33559

    Phone:  (813)
786-5400

    Attention:  Robert
W. Singerman, Operating Manager

    Facsimile: (866)
810-2153

    

    13.4         Headings. The headings in this
Agreement are for convenience of reference only, and shall not limit or
otherwise affect the terms hereof.

    

    13.5         Closing
of Books. The
Company will at no time close its transfer books against the transfer of any
Shares issued or issuable upon the exercise of the Warrant in a manner that
interferes with the timely exercise of the Warrant.

     

    13.6         No Rights
or Liabilities as a Stockholder. This Agreement shall not
entitle the Warrant Holder hereof to any voting rights or other rights as a
stockholder of the Company with respect to the Shares prior to the exercise of
the Warrant.  No provision of this Agreement, in the absence of
affirmative action by the Warrant Holder to purchase the Shares, and no mere
enumeration herein of the rights or privileges of the Warrant Holder, shall give
rise to any liability of such Holder for the Exercise Price or as a stockholder
of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

     

    13.7         Successors. All the covenants and
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns and
transferees.

     

    13.8         Severability. If any provision of
this Agreement shall be held to be invalid and unenforceable, such invalidity or
unenforceability shall not affect any other provision of this
Agreement.

     

    IN WITNESS WHEREOF, the undersigned
have caused this Agreement to be executed as of the date first written
above.

    

    
      	
              “Company”

               

              Innovative
      Software Technologies, Inc.

               

               

               

               

              By: /s/ Robert V.
      Rudman                         
                                                            

              Robert
      V. Rudman, President

            	
              "Warrant
      Holder"

               

              The
      WEB Channel Network, LLC

               

               

               

               

              By: /s/ Robert
      W.
      Singerman                             

              Robert
      W. Singerman, Operating Manager

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    NOTICE OF
EXERCISE

     

    (To be
signed only on exercise of Warrant)

     

    Dated:________________________

     

    To:       Innovative Software Technologies,
Inc.

     

    

     

    The
undersigned, pursuant to the provisions set forth in the attached Warrant
Agreement, hereby irrevocably elects to:

     

    r           purchase
_____ shares of Common Stock covered by such Warrant Agreement and herewith
makes a cash payment of $_____________, representing the full purchase price for
such shares at the price per share provided for in such Warrant
Agreement.

     

    r           purchase
_____ shares of Common Stock covered by such Warrant Agreement and herewith
delivers _____ shares of Common Stock having a Market Price as of the last
trading day preceding the date hereof of $______, representing the full purchase
price for such shares at the price per shares provided for in such Warrant
Agreement.

     

    Please
issue a certificate or certificates representing such shares of Common Stock in
the name of the undersigned or in such other name as is specified
below.

     

    

     

    Signature:
_________________________________________________

     

    Name
(print):_______________________________________________

     

    Title (if
applicable):__________________________________________

     

    Company
(if applicable):______________________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    WARRANT EXERCISE
FORM

     

    

     

    The undersigned hereby irrevocably
elects to exercise the within Warrant to the extent of purchasing __________
shares of common stock, par value $0.001 per share, of Innovative Software Technologies,
Inc., a Delaware corporation, and hereby makes payment of $____________
in payment therefore.

    

    

    

    

     

    
      	 	_______________________________________
	 	Signature
	 	Type or print name
      of above signatory below:
	 	_______________________________________

    

     

    

     

    
      	 	___________________________________
	 	Signature,
      if jointly held
	 	Type
      or print name of above signatory below:
	 	___________________________________

    

    Date:                                                                             

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    INSTRUCTIONS FOR ISSUANCE OF
STOCK

    

    (if other
than to the registered holder of the within Warrant)

    

    

    

    Name                                                                                                                                          

    (Please typewrite or print in block
letters)

    

    

    

    Address                                                                                                                                     

    

                                                                                                                                      

    

    Social
Security or Other Taxpayer Identification Number                                                                                                                                 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
FORM

     

    FOR VALUE RECEIVED,
______________________________ hereby sells, assigns and transfers
unto

    (Please typewrite or print above
name in block letters.) the right to purchase common stock, par value
$0.001 per share, of Innovative Software Technologies, Inc., a Delaware
corporation (the “Company”),
represented by this Warrant to the extent of shares as to which such right is
exercisable and does hereby irrevocably constitute and appoint
____________________________________________, as its attorney in fact, to
transfer the same on the books of the Company with full power of substitution in
the premises.

    

     

    Dated:                                                      

     

    

     

    
      	 	 _______________________________________
	 	Signature
	 	Type or print name
      of above signatory below:
	 	_______________________________________

    

    
    

    
 

     

    
      	 	_______________________________________ 
	 	Signature, if
      jointly held
	 	Type or print name
      of above signatory below:
	 	_______________________________________ex10-1.htm

    Exhibit 10.01

    EXHIBIT
D

     

    EMPLOYMENT AGREEMENT

     

    June 17,
2009

    

    Robert W.
Singerman

    19901
Arbor Path

    Lutz,
Florida 33559

    

    Dear
Robert:

     

    On behalf
of Innovative Software Technologies, Inc. (“Innovative”)
and its wholly-owned subsidiary, The WEB Channel Network, Inc., (“WEB Channel”
or the
“Company”), it is my pleasure as President of Innovative and as the
current President of the Company to extend this offer of employment to you to
serve as the new President of the Company.  With your acceptance of
this offer, by your signature below and your delivery of this letter agreement
to the Company with your signature, this letter agreement will constitute your
employment agreement with the Company (“this
Agreement”).  At that time, I will resign as President of the
Company and assume the role of Chief Financial Officer of the
Company.

     

    In
addition to your appointment as President, the Company will ask you to join its
Board of Directors and serve in the role of Chairman.  The duties,
responsibilities and benefits of the Chairman of the Board of Directors will be
outlined in a separate letter to you.

     

    The terms
and conditions of your employment by the Company are as follows:

     

    
      	
              Position:

            	
              President.

            

    

     

    
      	
              Duties:

            	
              You
      will report to the Board of Directors of the Company and you will be
      responsible for pursuing the corporate strategy, executing the business
      plan and managing the overall affairs of the Company as approved by the
      Board of Directors.

            

    

    

    
      	
              Start
      Date:

            	
              June
      17, 2009.

            

    

    

    
      	
              Term:

            	
              Three
      years from the Start Date, provided that either party may cancel this
      agreement by giving the other party written notice of a prior
      termination.

            

    

    

    
      	
              Base
      Salary:

            	
              $150,000
      per year and payable bi-weekly.  The parties agree that during
      the initial stage of the Company’s development, as equity funding is
      arranged and positive cash flow is achieved, a portion of the base salary
      will need to be deferred.  The parties also agree that this base
      salary relates to a full-time position.  Increases in base
      salary may occur annually at the discretion of the Company’s Compensation
      Committee.

            

    

     

    
      	
              Performance

              Bonuses:

               

            	
              Also
      at the discretion of the Company’s Compensation Committee, performance
      bonuses may be approved on a semi--annual or annual
  basis.

            

    

    

    
      	
              Termination
      

              Without
      Cause:

            	
              If
      the Company terminates you without “Cause”
      for any reason during the Term or any extension thereof, then the Company
      agrees that as severance, it will continue to pay you your Base Salary and
      maintain your employee benefits for a period that is equal to one month
      for every full year of your employment by the Company (subject to a
      minimum of one month and a maximum of two months), beginning on the date
      of your termination notice. For
      the purposes of this Agreement, the Company shall have “Cause”
      to terminate your employment hereunder upon:  (i) failure to
      materially perform and discharge your duties and responsibilities under
      this Agreement (other than any such failure resulting from incapacity due
      to illness) after receiving written notice and allowing you ten (10)
      business days to cure such failures, if so curable, provided, however,
      that after one such notice has been given to you, the Company is no longer
      required to provide time to cure subsequent failures under this provision,
      or (ii) any breach
      by you of the provisions of this Agreement; or (iii) misconduct which,
      in the opinion and sole discretion of the Company, is injurious to the
      Company; or (iv)
      any felony conviction involving the personal dishonesty or moral
      turpitude, or (v)
      engagement in illegal drug use or alcohol abuse which prevents you
      from performing your duties in any manner, or (vi) any material
      misappropriation, embezzlement or conversion of the Company’s or any of
      its subsidiary’s or affiliate’s property or business opportunities by you;
      or (vii) willful
      misconduct by you in respect of your duties or obligations under this
      Agreement or the Non-Disclosure, Non-Competition, Non-Solicitation, and
      Invention Agreement.

               

              You
      acknowledge and agree that any and all payments to which you are entitled
      under this Section are conditioned upon and subject to your execution of a
      general waiver and release, in such reasonable form as counsel for each of
      the Company and you shall agree, of all claims you have or may have
      against the Company.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

    

    
      	
              Benefits:

            	
              You
      will be entitled to participate in all medical and other benefits that the
      Company may establish for its employees in accordance with the Company’s
      policy for such benefits at any given time.  Other benefits may
      include but not be limited to: short term and long term disability, dental
      and an employee stock purchase
plan.

            

    

     

    
      	
              Paid Time
      Off:

            	
              After
      completing twelve months of employment, you will be eligible for three (3)
      weeks of paid time off (PTO) per year (120 hours), which will accrue on a
      pro-rata basis throughout the year.

            

    

     

    
      	
              Stock
      Options:

            	
              Upon
      your Start Date, you will be granted employee incentive stock options to
      purchase up to five million (5,000,000) shares of Innovative common stock
      at an exercise price of $0.03 per
share.

            

    

     

    
      	
               
      

            	
              The
      grant of such options will be made pursuant to Innovative’s stock option
      plan and will be evidenced by a separate Option Agreement, which
      Innovative will execute with you within 60 days of the date you sign and
      deliver to the Company Innovative’s and the Company’s Non-Disclosure,
      Non-Competition, Non-Solicitation and Invention Agreement.  So
      long as you remain employed by the Company, such options will have a five
      year term from the grant date and will vest according to the following
      schedule:

            

    

     

    
      	
               
      

            	
              Time-Based
      Vesting

            

    

     

    1,000,000                      upon
the Start Date

    2,000,000                      at
your first year anniversary

    2,000,000                      at
your second year anniversary

    

    
      	
               
      

            	
              If
      for any reason you resign within 12 months following your Start Date, you
      will forgo all such unvested options.  Furthermore, you
      understand that the Innovative’s stock option plan requires that any
      employee who leaves the employment of Innovative, the Company, or any
      other subsidiary of Innovative at a time when such person has vested
      options, such person will have no more than three (3) months from such
      termination date to exercise any vested
options.

            

    

     

    The
Company further agrees that your stock options will contain a provision that
states that in the event that Innovative or the Company is purchased or there is
a change in control prior to the time in which all of your options have vested,
then all of your unvested options shall automatically vest.

     

    In the
event the Company terminates you without “Cause,” then the pro rata portion of
any unvested time-based options up until the date of notice of termination that
are due to vest in the year of termination shall vest.

     

    
      	
              Non-Disclosure,

              Non-Competition,

              Non-Solicitation,

              and
      Invention

              Agreemnent:

            	
              You
      agree that prior to your Start Date, you will execute the Innovative’s and
      the Company’s Non-Disclosure, Non-Competition, Non-Solicitation and
      Invention Agreement attached Exhibit E.  You understand that if
      you should fail to execute such Non-Disclosure, Non-Competition,
      Non-Solicitation and Invention Agreement in the agreed form, it will be
      grounds for revoking this offer and not hiring
  you.

            

    

     

    
      	
              Employee’s

              Representations:

            	
              You
      understand and acknowledge that this position is an officer level position
      within the subsidiary of a public company that is subject to government
      regulation.  You represent and warrant, to the best of your
      knowledge, that nothing in your past legal or work experiences, which if
      became broadly known in the marketplace, would impair your ability to
      serve as an officer of a public company or its subsidiary or materially
      damage your credibility with public shareholders.  You further
      represent and warrant, to the best of your knowledge, that, prior to
      accepting this offer of employment, you have disclosed all material
      information about your past legal and work experiences that would be
      required to be disclosed on a Directors’ and Officers’ questionnaire for
      the purpose of determining what disclosures, if any, will need to be made
      with the U.S. Securities and Exchange Commission.  Prior to
      Innovative’s next public filing, you also agree to fill out a Director’s
      and Officer’s questionnaire in form and substance satisfactory to the
      Company’s counsel.  You further represent and warrant, to the
      best of your knowledge, that you are currently not obligated under any
      form of non-competition or non-solicitation agreement which would preclude
      you from serving in the position indicated above for the Company or
      soliciting business relationships for any laboratory services from any
      potential customers in the United States.

               

            

    

    

    
      	
              Miscellaneous:

            	
              (i)

            	
              This
      Agreement supersedes all prior agreements and understandings between the
      parties and may not be modified or terminated orally.  No
      modification or attempted waiver will be valid unless in writing and
      signed by the party against whom the same is sought to be
      enforced.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      provisions of this Agreement are separate and severable, and if any of
      them is declared invalid or unenforceable by a court of competent
      jurisdiction or an arbitrator, the remaining provisions shall not be
      affected.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii)                 This
Agreement is the joint product of the Company and you and each provision hereof
has been subject to the mutual consultation, negotiation and agreement of the
Company and you and shall not be construed for or against either party
hereto.

     

    (iv)                  This Agreement will be
governed by, and construed in accordance with the provisions of the law of the
State of Florida, without reference to provisions that refer a matter to the law
of any other jurisdiction.  Each party hereto hereby irrevocably
submits itself to the exclusive personal jurisdiction of the federal and state
courts sitting in Hillsborough, Florida.

     

    
      
      

    

    
      (v)                  
This
Agreement may be signed in counterparts and by fax; and each of which shall be
an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

    

     

    (vi)                
 Within three days of your start date, you will need to provide
documentation verifying your legal right to work in the United
States.  Please understand that this offer of employment is contingent
upon your ability to comply with the employment verification requirements under
federal laws and that we cannot begin payroll until this requirement has been
meet.

     

    (vii)                
 Employment with the Company is an “at-will” relationship and not
guaranteed for any term.  You or the Company may terminate employment
at anytime for any reason.

     

    If the
terms and conditions of employment as set forth above are acceptable to you,
please sign and return two duplicate copies of this Agreement.

     

     

    Very
truly yours,

    The WEB
Channel Network, Inc.

    

    By: /s/ Robert V. Rudman 

            Robert
V. Rudman, President

    

    
 

     

    Agreed
and Accepted by:

     

    “Employee”

    

     

    /s/ Robert W.
Singerman                      

    Robert W.
Singerman

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