Document:

Form of Warrant

  
 Exhibit 10.12.2

 Warrant Certificate No.          

NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH
RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION
ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS. 

 

			
	Effective Date: June 8, 2009	  	Void After: June 8, 2011

SINGLE TOUCH SYSTEMS INC. 
 WARRANT TO PURCHASE COMMON STOCK 
 Single Touch Systems Inc., a Delaware
corporation (the “Company”), for value received on May 30, 2009 (the “Effective Date”), hereby issues to StreamWorks Technologies (the “Holder”) this Warrant (the “Warrant”) to
purchase, one million eight hundred thirty three thousand three hundred thirty four (1,833,334) shares (each such share as from time to time adjusted as hereinafter provided being a “Warrant Share” and all such shares being the
“Warrant Shares”) of the Company’s Common Stock (as defined below), at the Exercise Price (as defined below), as adjusted from time to time as provided herein, on or before June 8, 2011 (the “Expiration
Date”), all subject to the following terms and conditions. 
 As used in this Warrant, (i) “Business
Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York, New York, are authorized or required by law or executive order to close; (ii) “Common Stock” means the
common stock of the Company, par value $0.001 per share, including any securities issued or issuable with respect thereto or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend, stock split,
stock combination, recapitalization, reclassification, reorganization or other similar event; (iii) “Exercise Price” means $2.30 per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading
Day” means any day on which the Common Stock is traded on the primary national or regional stock exchange on which the Common Stock is listed, or if not so listed, the OTC Bulletin Board, if quoted thereon, is open for the transaction of
business; and (v) “Affiliate” means any person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, a person, as such terms are used and construed in
Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). 

  

	1.	DURATION AND EXERCISE OF WARRANTS 

(a) Exercise Period. The Holder may exercise this Warrant in whole or in part on any Business Day on or before 5:00 P.M., Eastern
Time, on the Expiration Date, at which time this Warrant shall become void and of no value. 
 (b) Exercise Procedures.

 (i) While this Warrant remains outstanding and exercisable in accordance with Section 1(a), in addition
to the manner set forth in Section 1(b) below, the Holder may exercise this Warrant in whole or in part at any time and from time to time by: 
 (A) delivery to the Company of a duly completed and executed copy of the notice of exercise attached as Exhibit A (the “Notice of Exercise”); 

(B) surrender of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency
as the Company may specify in writing to the Holder; and 

							
		  		  		  	_______________
		  		  	(C) payment of the then-applicable Exercise Price per share multiplied by the number of Warrant Shares being purchased upon exercise of the Warrant (such amount, the
“Aggregate Exercise Price”) made in the form of cash, or by certified check, wire transfer, bank draft or money order payable in lawful money of the United States of America.	  	A
				
	 with:
	  	X =	  	the number of Warrant Shares to be issued to the Holder	  	
				
		  	Y =	  	the number of Warrant Shares with respect to which the Warrant is being exercised	  	

 (iii) Upon the exercise of this Warrant in compliance with the provisions of this
Section 1(b), and except as limited pursuant to the last paragraph of Section 1(b), the Company shall promptly issue and cause to be delivered to the Holder a certificate for the Warrant Shares purchased by the Holder. Each exercise of
this Warrant shall be effective immediately prior to the close of business on the date (the “Date of Exercise”) that the conditions set forth in Section 1(b) have been satisfied, as the case may be. On the first Business Day
following the date on which the Company has received each of the Notice of Exercise and the Aggregate Exercise Price with Section 1(b) (the “Exercise Delivery Documents”), the Company shall transmit an acknowledgment of receipt
of the Exercise Delivery Documents to the Company’s transfer agent (the “Transfer Agent”). On or before the fifth Business Day following the date on which the Company has received all of the Exercise Delivery Documents (the
“Share Delivery Date”), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the
Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system, or
(Y) if the Transfer Agent is not participating in the DTC Fast 

  
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Automated Securities Transfer Program, issue and dispatch by overnight courier to the address as specified in the Notice of Exercise, a certificate, registered in the Company’s share
register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares. If this Warrant is submitted in
connection with any exercise pursuant to Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the actual number of Warrant Shares being acquired upon such an exercise, then the Company
shall as soon as practicable and in no event later than five (5) Business Days after any exercise and at its own expense, issue a new Warrant of like tenor representing the right to purchase the number of Warrant Shares purchasable immediately
prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. 
 (iv) If the Company shall fail for any reason or for no reason to issue to the Holder, within five (5) Business Days of receipt of the Exercise Delivery Documents, a certificate for the number of
shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the
Holder is entitled upon the Holder’s exercise of this Warrant, and if on or after such Business Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of
shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within five (5) Business Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the
Company’s obligation to deliver such certificate (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such shares of Common
Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the closing bid price on the date of exercise. 

(c) Partial Exercise. This Warrant shall be exercisable, either in its entirety or, from time to time, for part only of the number
of Warrant Shares referenced by this Warrant. If this Warrant is exercised in part, the Company shall issue, at its expense, a new Warrant, in substantially the form of this Warrant, referencing such reduced number of Warrant Shares that remain
subject to this Warrant. 
 (d) Disputes. In the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 15. 

 

	2.	ISSUANCE OF WARRANT SHARES 

 (a)
The Company covenants that all Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be (i) duly authorized, fully paid and non-assessable, and (ii) free from all liens, charges and security interests, with the
exception of claims arising through the acts or omissions of any Holder and except as arising from applicable Federal and state securities laws. 
 (b) The Company shall register this Warrant upon records to be maintained by the Company for that purpose in the name of the record holder of such Warrant from time to time. The Company may deem and treat
the registered Holder of this Warrant as the absolute owner thereof for the purpose of any exercise thereof, any distribution to the Holder thereof and for all other purposes. 

  
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 (c) The Company will
not, by amendment of its articles of incorporation, by-laws or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all action necessary or appropriate in
order to protect the rights of the Holder to exercise this Warrant, or against impairment of such rights. 
 (ii)
Dividends in Stock, Property, Reclassification. If at any time, or from time to time, the holders of Common Stock (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or
become entitled to receive, without payment therefore: 
 (A) any shares of stock or other securities that are at
any time directly or indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution, or 

(iii) Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or
reorganization of the capital stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its assets or other transaction shall be effected in such a way that holders of
Common Stock shall be entitled to receive stock, securities or other assets or property (an “Organic Change”), then lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have the
right to purchase and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant) such shares of stock, securities or other assets
or property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares of such stock immediately theretofore purchasable and receivable assuming the full exercise
of the rights represented by this Warrant. In the event of any Organic Change, appropriate provision shall be made by the Company with respect to the rights and interests of the Holder of this Warrant to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this Warrant) shall thereafter be applicable, in relation to any shares of stock, securities
or assets thereafter deliverable upon the exercise hereof. To the extent necessary to effect the foregoing provisions, the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing
such assets shall assume by written instrument reasonably satisfactory in form and substance to the Holder executed and mailed or delivered to the registered Holder hereof at the last address of such Holder appearing on the books of the Company, the
obligation to deliver to such Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, such Holder may be entitled to purchase. If there is an Organic Change, then the Company shall cause to be mailed to the
Holder at its last address as it shall appear on the books and records of the Company, at least 10 calendar days before the effective date of the Organic Change, a notice stating the date on which such Organic Change is expected to become effective
or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares for securities, cash, or other property delivered upon such Organic Change; provided, that the failure to
mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to exercise this Warrant during the 10-day period commencing on
the date of such notice to the effective date of the event triggering such notice. In any event, the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing such assets shall be
deemed to assume such obligation to deliver to such Holder such shares of stock, securities or assets even in the absence of a written instrument assuming such obligation to the extent such assumption occurs by operation of law. 

  
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 (b) Certificate as
to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 3, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each
Holder of this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall promptly furnish or cause to be furnished to such Holder a like
certificate setting forth: (i) such adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property which at the time would be received upon the exercise of the Warrant. 

(c) Certain Events. If any event occurs as to which the other provisions of this Section 3 are not strictly applicable but
the lack of any adjustment would not fairly protect the purchase rights of the Holder under this Warrant in accordance with the basic intent and principles of such provisions, or if strictly applicable would not fairly protect the purchase rights of
the Holder under this Warrant in accordance with the basic intent and principles of such provisions, then the Company’s Board of Directors will, in good faith and subject to applicable law, make an appropriate adjustment to protect the rights
of the Holder; provided, that no such adjustment pursuant to this Section 3(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 3. 

 

	4.	TRANSFERS AND EXCHANGES OF WARRANT AND WARRANT SHARES 

 (a) Registration of Transfers and Exchanges. Subject to Section 4(c), upon the Holder’s surrender of this Warrant, with a duly executed copy of the Form of Assignment attached as
Exhibit B, to the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify in writing to the Holder, the Company shall register the transfer of all or any portion of this Warrant. Upon
such registration of transfer, the Company shall issue a new Warrant, in substantially the form of this Warrant, evidencing the acquisition rights transferred to the transferee and a new Warrant, in similar form, evidencing the remaining acquisition
rights not transferred, to the Holder requesting the transfer. 
 (b) Warrant Exchangeable for Different Denominations.
The Holder may exchange this Warrant for a new Warrant or Warrants, in substantially the form of this Warrant, evidencing in the aggregate the right to purchase the number of Warrant Shares, which may then be purchased hereunder, each of such new
Warrants to be dated the date of such exchange and to represent the right to purchase such number of Warrant Shares as shall be designated by the Holder. The Holder shall surrender this Warrant with duly executed instructions regarding such
re-certification of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify in writing to the Holder. 

(c) Restrictions on Transfers. This Warrant may not be transferred at any time without (i) registration under the Securities
Act or (ii) an exemption from such registration and a written opinion of legal counsel addressed to the Company that the proposed transfer of the Warrant may be effected without registration under the Securities Act, which opinion will be in
form and from counsel reasonably satisfactory to the Company. 
 (d) Permitted Transfers and Assignments. Notwithstanding
any provision to the contrary in this Section 4, the Holder may transfer, with or without consideration, this Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s Affiliates (as such term is defined under Rule 144 of
the Securities Act) without obtaining the opinion from counsel that may be required by Section 4(c)(ii), provided, that the Holder delivers to the Company and its counsel certification, documentation, and other assurances reasonably
required by the Company’s counsel to enable the Company’s counsel to render an opinion to the Company’s Transfer Agent that such transfer does not violate applicable securities laws. 

  
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	5.	MUTILATED OR MISSING WARRANT CERTIFICATE 

 If this Warrant is mutilated, lost, stolen or destroyed, upon request by the Holder, the Company will, at its expense, issue, in exchange for and upon cancellation of the mutilated Warrant, or in
substitution for the lost, stolen or destroyed Warrant, a new Warrant, in substantially the form of this Warrant, representing the right to acquire the equivalent number of Warrant Shares; provided, that, as a prerequisite to the issuance of
a substitute Warrant, the Company may require satisfactory evidence of loss, theft or destruction as well as an indemnity from the Holder of a lost, stolen or destroyed Warrant. 

 

	6.	PAYMENT OF TAXES 

 The Company
will pay all transfer and stock issuance taxes attributable to the preparation, issuance and delivery of this Warrant and the Warrant Shares (and replacement Warrants) including, without limitation, all documentary and stamp taxes; provided,
however, that the Company shall not be required to pay any tax in respect of the transfer of this Warrant, or the issuance or delivery of certificates for Warrant Shares or other securities in respect of the Warrant Shares to any person or
entity other than to the Holder. 
  

	7.	FRACTIONAL WARRANT SHARES 

 No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The Company, in lieu of issuing any fractional Warrant Share, shall round up the number of Warrant Shares issuable to nearest whole share. 

 

	8.	NO STOCK RIGHTS AND LEGEND 

 No
holder of this Warrant, as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that may at any time be issuable on the exercise hereof, nor shall anything contained herein be construed to confer upon the
holder of this Warrant, as such, the rights of a stockholder of the Company or the right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or give or withhold consent to any corporate action
or to receive notice of meetings or other actions affecting stockholders (except as provided herein), or to receive dividends or subscription rights or otherwise (except as provide herein). 

Each certificate for Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued to
any subsequent transferee of any such certificate, shall be stamped or otherwise imprinted with a legend in substantially the following form: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES
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 ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION
FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.” 

  
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	9.	REGISTRATION UNDER THE SECURITIES ACT OF 1933 

 The Company agrees to provide registration rights for the resale of the Warrant Shares under the Securities Act on the terms and subject to the conditions set forth in the Registration Rights Agreement
between the Company and each of the investors party to the subscription agreements substantially similar to the Subscription Agreement, pursuant to which this Warrant was issued. 

 

	10.	NOTICES 

 All
notices, consents, waivers, and other communications under this Warrant must be in writing and will be deemed given to a party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs
prepaid); (b) sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee, if sent by certified mail, return receipt requested, if to the registered Holder hereof;
or (d) seven days after the placement of the notice into the mails (first class postage prepaid), to the Holder at the address, facsimile number, or e-mail address furnished by the registered Holder to the Company in accordance with the
Subscription Agreement by and between the Company and the Holder, or if to the Company, to it at Single Touch Systems Inc., 2235 Encinitas Blvd., Suite 210, Encinitas, CA 92024, Attention: Anthony Macaluso, Chief Executive Officer (or to such other
address, facsimile number, or e-mail address as the Holder or the Company as a party may designate by notice to the other party) with a copy to Gottbetter& Partners, LLP, 488 Madison Avenue, 12th Floor, New York, NY 10022, Attention: Scott Rapfogel. 

 

	11.	SEVERABILITY 

 If a court of
competent jurisdiction holds any provision of this Warrant invalid or unenforceable, the other provisions of this Warrant will remain in full force and effect. Any provision of this Warrant held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable. 
  

	12.	BINDING EFFECT 

 This Warrant
shall be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the registered Holder or Holders from time to time of this Warrant and the Warrant Shares. 

 

	13.	SURVIVAL OF RIGHTS AND DUTIES 

This Warrant shall terminate and be of no further force and effect on the earlier of 5:00 P.M., Eastern Time, on the Expiration Date or
the date on which this Warrant has been exercised in full. 
  

	14.	GOVERNING LAW 

 This Warrant will
be governed by and construed under the laws of the State of New York without regard to conflicts of laws principles that would require the application of any other law. 

  
 7 

  

	15.	DISPUTE RESOLUTION 

 In the case
of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within five (5) Business Days of
receipt of the Notice of Exercise giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three
Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, at its sole discretion, within five (5) Business Days, submit via facsimile (a) the disputed determination of the
Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder, or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it
receives the disputed determinations or calculations; provided that, if such disputed determination or arithmetic calculation being submitted by the Holder is determined to be incorrect, then the expense of the investment bank or the accountant
shall be the responsibility of the Holder. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be final, binding and conclusive upon the parties thereto. 

 

	16.	NOTICES OF RECORD DATE 

 Upon
(a) any establishment by the Company of a record date of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, or right or option to acquire
securities of the Company, or any other right, or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation of the Company with or into any other corporation, any transfer of all or substantially all the assets
of the Company, or any voluntary or involuntary dissolution, liquidation or winding up of the Company, or the sale, in a single transaction, of a majority of the Company’s voting stock (whether newly issued, or from treasury, or previously
issued and then outstanding, or any combination thereof), the Company shall mail to the Holder at least ten (10) Business Days, or such longer period as may be required by law, prior to the record date specified therein, a notice specifying
(i) the date established as the record date for the purpose of such dividend, distribution, option or right and a description of such dividend, option or right, (ii) the date on which any such reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding up, or sale is expected to become effective and (iii) the date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock
for securities or other property deliverable upon such reorganization, reclassification, transfer, consolation, merger, dissolution, liquidation or winding up. 
  

	17.	RESERVATION OF SHARES 

 The
Company shall reserve and keep available out of its authorized but unissued shares of Common Stock for issuance upon the exercise of this Warrant, free from pre-emptive rights, such number of shares of Common Stock for which this Warrant shall from
time to time be exercisable. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation. Without limiting the
generality of the foregoing, the Company covenants that it will use commercially reasonable efforts to take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
Warrant Shares upon the exercise of this Warrant and use commercially reasonable efforts to obtain all such authorizations, exemptions or consents, including but not limited to consents from the Company’s stockholders or Board of Directors or
any public regulatory body, as may be necessary to enable the Company to perform its obligations under this Warrant. 

  
 8 

  

	18.	HEADINGS 

 The headings used in
this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
  

	19.	AMENDMENT AND WAIVERS 

 Any term
of this Warrant may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Holders of a
majority of the Warrant Shares issuable upon exercise of the Warrants. 
  

	20.	NO THIRD PARTY RIGHTS 

 This
Warrant is not intended, and will not be construed, to create any rights in any parties other than the Company and the Holder, and no person or entity may assert any rights as third-party beneficiary hereunder. 

[SIGNATURE PAGE FOLLOWS] 

  
 9 

  
 IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed as of the date first set forth above. 
  

			
	SINGLE TOUCH SYSTEMS INC.
		
	By:	 	 
	Name: 	 	Anthony Macaluso
	Title:	 	Chief Executive Officer

  
 10 

  
 WARRANT 

EXHIBIT A 

NOTICE OF EXERCISE 
 (To be executed by the Holder of Warrant if such Holder desires to exercise Warrant) 
 To Single
Touch Systems Inc.: 
 The undersigned hereby irrevocably elects to exercise this Warrant and to purchase thereunder,
                         full shares of Single Touch Systems Inc. common stock issuable upon exercise of the Warrant and
delivery of: 
 (1) $             (in cash as provided for in
the foregoing Warrant) and any applicable taxes payable by the undersigned pursuant to such Warrant; and 
 (2)
             shares of Common Stock (pursuant to a Cashless Exercise in accordance with Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to deliver an
unspecified number of shares equal the number sufficient to effect a Cashless Exercise [        ]). 
 The undersigned requests that certificates for such shares be issued in the name of: 

	
	  

	 (Please print name, address and social security or federal employer

identification number (if applicable))

	  

	  

 If the shares
issuable upon this exercise of the Warrant are not all of the Warrant Shares which the Holder is entitled to acquire upon the exercise of the Warrant, the undersigned requests that a new Warrant evidencing the rights not so exercised be issued in
the name of and delivered to: 
  

	
	  

	 (Please print name, address and social security or federal employer

identification number (if applicable))

	  

	  

  

			
	Name of Holder (print): 	 	 

			
	(Signature):  	 	 
	(By:)	 	 
	(Title:)	 	 
	Dated:	 	 

  
 WARRANT 

EXHIBIT B 
 FORM
OF ASSIGNMENT 
 FOR VALUE RECEIVED,
                                         
                hereby sells, assigns and transfers to each assignee set forth below all of the rights of the undersigned under the Warrant (as defined in and evidenced by
the attached Warrant) to acquire the number of Warrant Shares set opposite the name of such assignee below and in and to the foregoing Warrant with respect to said acquisition rights and the shares issuable upon exercise of the Warrant: 

 

					
	 Name of Assignee
	  	 Address
	  	 Number of Shares

		  		  	
		  		  	
		  		  	

 If the total of the Warrant Shares are not all of the Warrant Shares evidenced by the foregoing Warrant, the
undersigned requests that a new Warrant evidencing the right to acquire the Warrant Shares not so assigned be issued in the name of and delivered to the undersigned. 

 

			
	Name of Holder (print): 	 	 

			
	(Signature):  	 	 
	(By:)	 	 
	(Title:)	 	 
	Dated:Convertible Promissory Note

  
 Exhibit 10.13

 THIS CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY
NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF WITHIN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, OR ANY AREA SUBJECT TO ITS JURISDICTION, OR TO ANY CITIZEN OR RESIDENT OF THE UNITED STATES OR ANY STATE, TERRITORY, OR POSSESSION THEREOF,
INCLUDING ANY ESTATE OF SUCH PERSON OR ANY COMPANY, PARTNERSHIP, TRUST, OR OTHER ENTITY CREATED OR EXISTING UNDER THE LAWS THEREOF, UNTIL ONE YEAR AFTER THE CLOSING OF THE OFFERING IN WHICH THE LENDER PURCHASED THE SECURITIES, AND THEREAFTER MAY NOT
BE SO TRANSFERRED ABSENT AN EFFECTIVE REGISTRATION UNDER THE ACT, COMPLIANCE WITH RULE 144 OR ITS SUCCESSOR RULE UNDER THE ACT, OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT REGISTRATION IS NOT REQUIRED. 

THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFER AS DESCRIBED HEREIN. 
 SINGLE TOUCH SYSTEMS, INC. 
 CONVERTIBLE PROMISSORY NOTE 

 

			
	August 17, 2009	  	Encinitas, California

 For value
received, Single Touch Systems, Inc., a Delaware corporation (the “Company”), hereby promises to pay to Ted Cooper, (“Lender”), the principal amount of Five Hundred Thousand Dollars ($500,000.00) with simple
interest thereon at the rate of five percent (5%) per annum on the unpaid balance of the principal sum. The Company shall make payment at such place as the Lender indicates. All principal and interest shall be payable, as provided for herein,
in immediately available funds in lawful money of the United States of America. The principal amount of this convertible promissory note (the “Note”) is convertible into common stock (the “Common Stock”) of the
Company as more fully set forth herein. 
 1. Estimated Use of Proceeds. 
 The Company shall use the proceeds from this Note for general working capital needs. 
 2.
Maturity Date; Prepayment. 
 The Note shall mature on November 31, 2009 (the “Maturity Date”), or such later date as
agreed to in writing by Lender. Commencing on August 17, 2009, and provided the Lender consents in writing, the Company may, at any time, prepay the outstanding principal and accrued interest evidenced by this Note, in whole or in part, without
penalty or premium, by paying to Lender, by check in immediately available federal funds, the amount of such prepayment, from the proceeds of the Company’s next round of financing. If any such prepayment is less than a full repayment, then such
prepayment shall be applied first to the payment of accrued interest and the remaining balance shall be applied to the payment of principal. 

  
 4. Interest Payments.

 Simple interest shall accrue on the Note at the rate of five percent (5%) per annum. Annual interest payments shall be made to
Lender by 5:00 p.m. PDT on September 17, 2009 and October 17, 2009 (and on a quarterly basis thereafter, assuming the Lender agrees, in writing, to extend the term of the Note beyond the Maturity Date) via check at the address listed in
the subscription agreement attached hereto as Appendix A. All payments (including prepayments) hereunder are to be applied first to the payment of accrued interest and the remaining balance shall be applied to the payment of principal. Accrued
interest shall be computed on the basis of a 360 day year, based on the actual number of days elapsed. 
 5. Voluntary Conversion.

 5.1. The outstanding principal on this Note may, at the sole discretion of the Lender, be converted (in full or in
part, at any time) into fully paid and non-assessable shares of Common Stock, par value $0.001 per share, of the Company at the rate of $0.95 per share (the “Conversion Rate”); provided, however, in the event the Company undertakes
an Additional Financing (as defined in section 5.2 below), and the Additional Financing is undertaken at a price per share less than $0.95, then the Conversion Rate shall be subject to a full ratchet and reset at the price per share of the
Additional Financing (the “Reset Conversion Rate”). 
 5.2. The Company shall promptly provide Lender
written notice if the Company closes a financing (the “Additional Financing”) in the future involving the issuance of equity or the issuance of convertible debt securities (the “Additional Securities”). An
Additional Financing shall not include the issuance of Common Stock under the Company’s stock option and incentive plan or otherwise to employees, consultants, advisors, or others for purposes other than financing the Company’s operations.

 6. Mechanics of Conversion. 

Commencing on the date of issuance, the Lender may at any time prior to 5:00 p.m. PDT on the Maturity Date, convert the principal amount of this Note, or
any portion thereof, into fully paid and non-assessable shares of Common Stock, par value $0.001 per share, of the Company at the Conversion Rate, or the Reset Conversion Rate, as applicable. Such conversion shall be effected by the surrender of
this Note at the principal office of the Company (or such other office or agency of the Company as may be designated from time to time by written notice to the Lender) at any time during usual business hours, together with notice in writing that the
Lender wishes to convert all, or a portion, of the principal amount of this Note, which notice shall also state the name(s) (with addresses) and denominations in which the certificate(s) for Common Stock shall be issued and shall include
instructions for delivery thereof. Such conversion shall be deemed to have been effected as of the close of business on the date on which this Note shall have been surrendered and such notice shall have been received, and at such time (the
“Conversion Date”) the rights of the Lender with respect to the principal amount of the Note converted shall cease and the person(s) in whose name(s) any certificate(s) for Common Stock are to be issued upon such conversion shall be
deemed to have become the Lender or Lenders of record of the shares of Common Stock represented by such certificate(s). No fractional shares of common stock shall 

 
be issued to Lender upon the conversion of the Note. The Company shall round up all note conversion calculations to the nearest whole share. As soon as practicable (but in no event more than
twenty (20) calendar days following the Conversion Date), the Company shall deliver to the Lender, certificates representing the number of shares of Common Stock issuable upon such conversion registered in such name or names and such
denomination or denominations as the Lender shall have specified. The Company shall also make payment to the Lender, in the form of cash, all accrued and outstanding interest due and payable as of the Conversion Date, calculated in the manner set
forth in Section 4 hereof. In each case of conversion of this Note in part, the Company shall receive and hold this Note as a fiduciary agent of the Lender, and shall reissue the Note as of the Conversion Date in the amount represented by the
remaining principal outstanding. Upon issuance of the new note, the original note shall be deemed null and void and of no legal effect. 
 7.
Default. 
 The Company shall be deemed in default if any of the following events occur: (a) the Company fails to pay all outstanding
principal and accrued interest relating to the Note by the Maturity Date; (b) the entry of a decree or order by a court having appropriate jurisdiction adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization or liquidation of Company under the Federal Bankruptcy Act or any other applicable federal or state law, or appointing a receiver, liquidator, assignee or trustee over any substantial portion of Company’s property, or
ordering the winding up or liquidation of the Company’s affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days; (c) the institution by the Company of proceedings to
be adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the Federal Bankruptcy
Act or any other applicable federal or state law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee or trustee of Company; (d) default in the obligation of the Company for borrowed
money, other than this Note, which shall continue for a period of sixty (60) days, or any event that results in acceleration of the maturity of any indebtedness of the Company under any note, indenture, contract, or agreement; (e) any
representation or statement made or furnished to Lender by the Company or on the Company’s behalf is false or misleading in any material respect; or (f) any levy, seizure, attachment, lien, or encumbrance of or on the Company’s
property, other than those existing as of the date hereof, which is not discharged by the Company within 20 days. 
 7.1
Cure. 
 The Company shall be provided a period of five (5) calendar days from the date of an event of default, as defined in
Section 8 above, to cure a default. In the event Company fails to cure any default within such time period, including the payment of all costs and expenses provided for in this Note, Lender may immediately enforce any and all rights provided
under this Note. 
 7.2. Events of Default; Consequences. In the event of the occurrence of an Event of Default (as
defined in Section 8 above) the Lender may declare the entire unpaid principal balance of this Note, together with accrued interest, immediately due and payable at the place of payment, without presentment, protest, notice or demand, all of
which are expressly waived by the Company. 

  
 7.3. No Setoff,
Etc. The obligations of the Company to pay the principal balance and interest due to the Lender shall be absolute and unconditional and the Company shall make such payment without abatement, diminution or deduction regardless of any cause or
circumstances whatsoever including, without limitation, any defense, setoff, recoupment, or counterclaim which the Company may have or assert against the Lender or any other person. 

7.4. Waiver of Presentment, Etc. The Company waives presentment, demand, notice of dishonor, protest and notice of nonpayment and
protest. 
 7.5. Costs of Collection. The Company shall pay all costs and expenses of collection incurred by the Lender,
including reasonable attorneys’ fees. 
 8. Anti-Dilution Provisions. 

The Conversion Rate, or the Reset Conversion Rate as the case may be, shall be subject to appropriate adjustment so as to protect the
rights of Lender upon the occurrence on or after the issuance of the Note of any stock dividend, stock split, reverse stock split, recapitalization, reclassification, merger, combination, consolidation or other similar transaction. Upon each
occurrence of any event described in the immediately preceding sentence, the Conversion Rate, or the Reset Conversion Rate as the case may be, in effect immediately prior to such event shall be adjusted (and any other appropriate actions shall be
taken by the Company, including, upon the occurrence of any merger, combination, consolidation or other similar transaction, the issuance to Lender of any securities into which this Note shall be converted by operation of law or pursuant to the
express terms of such transaction provided that such transaction has been approved by the board of directors of the Company), so that Lender, upon any conversion of the Note, shall be entitled to receive the number of shares of Common Stock or other
property, including cash or securities, that Lender would have owned or would have been entitled to receive upon or by reason of any of the events described above, had this Note been converted immediately prior to the date of such event, or if such
event has a record date, then the record date applicable to such event. An adjustment made pursuant to the immediately preceding sentence shall become effective retroactively to the close of business on the day upon which such event is effected.

 9. No Voting Rights. Nothing contained in this Note shall be construed as conferring upon the Lender the right to vote or to consent
or to receive notice as a stockholder in respect of the meetings of stockholders for the election of directors of the Company or any other matter. Notwithstanding the foregoing, the Company shall mail by first class to the Lender at the address
specified in Appendix A hereto, one copy of all materials forwarded to stockholders or filed with the Securities and Exchange Commission by the Company, if applicable, said mailing to be made promptly after mailing to stockholders or filing with the
Securities and Exchange Commission, as the case may be. 

  
 10. Transfer Procedure.

 This Note is not transferable without the written consent of the Company, which the Company may withhold in its absolute discretion, and
is generally restricted by the Act. The transfer of this Note is registrable by Lender in person or by an attorney duly authorized in writing on the books of the Company. Upon surrender and cancellation of this Note upon any such transfer, the
Company shall issue a new note for the same aggregate principal amount to the transferee. The Company and any transfer agent may deem and treat the person in whose name this Note is registered upon the books of the Company as the absolute owner of
this Note (whether or not this Note is overdue and notwithstanding any notation of ownership or other writing hereon) for all other purposes, and neither the Company nor any transfer agent shall be affected by any notice to the contrary. All
payments to the registered owner shall be valid and effectual to satisfy and discharge the liability on this Note to the extent of the sum so paid. 
 11. Representations and Warranties of Borrower. 
 Borrower represents and warrants to the
Lender with respect to the issuance of this Note as follows: 
 11.1. Organization and Standing. 

The Company is a corporation duly organized and validly existing under the laws of the State of Nevada, is in good standing under such laws, and is
authorized to exercise all of its corporate powers, rights, and privileges. The Company has the requisite corporate power and authority to conduct its business as presently conducted and as proposed to be conducted. The Company is qualified to do
business as a foreign corporation in each jurisdiction where the failure to be so qualified would have a material adverse effect on the business of the Company as now conducted or as proposed to be conducted. 

11.2. Corporate Power. 

The Company has the requisite legal and corporate power to execute and deliver this Note and to perform its obligations under this Note. 

11.3. No Subsidiaries. 

The Company has no subsidiaries and does not otherwise own or control, directly or indirectly, any equity interest in any other business entity. The
Company is not a party to any partnership. 
 11.4. Capitalization. 

The authorized capital stock of the Company consists of 100,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock,
$0.001 par value. As of June 30, 2009, there are 53,640,751 shares of common stock outstanding held by 405 stockholders. In addition, as of June 30, 2009, there are (i) warrants outstanding to purchase a total of 6,686,000 shares of
common stock, with a weighted average exercise price of $0.808 per share, and (ii) options outstanding to purchase 2,000,000 shares of common stock, with a weighted average exercise price of $0.25 per share. There is no preferred stock
outstanding. 

  
 11.5. Authorization
and Enforceability of the Note. 
 All corporate action on the part of the board of directors of the Company necessary for the
authorization, execution, delivery, and performance of this Note, including the reservation of shares of common stock to be issued upon the conversion of the Note, has been taken. The Note, when executed and delivered by the Company, will constitute
valid and binding obligations of the Company enforceable in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights. 
 11.6. Compliance with Other Instruments. 

The Company is not in, nor will the conduct of its business as proposed to be conducted result in, any violation of (a) its articles of
incorporation or bylaws, or (b) any applicable law or regulation. The execution, delivery, and performance of the Note, and the issuance of this Note, have not resulted, and will not result, in any such violation. The Company is not bound by
any agreement that the Company believes materially adversely affects or, so far as the Company may now foresee, in the future may materially adversely affect any material aspect of the Company. 

11.7. Governmental Consent. 
 No consent, approval, or authorization of, or designation, declaration, or filing with, any governmental authority on the part of the Company is required in connection with the valid execution, delivery,
and performance of this Note, except notice filings under Regulation D of the Act, and pursuant to applicable state securities laws including, without limitation, Section 25102(f) of the California Corporations Code. 

11.8. Tax Returns and Payments. 
 The Company has accurately prepared and timely filed all tax returns (foreign, federal, state, and local) required to be filed by it. All taxes shown to be due and payable on said returns, any assessments
received, and all other taxes due and payable by the Company on or before the date of this Note have been paid or will be paid before they become delinquent. No state agency has audited any income, franchise, sales, or use tax return of the Company.
The federal income tax returns of the Company have not been audited by the Internal Revenue Service. No deficiency assessment or proposed adjustment of any tax previously paid by the Company is pending. The Company does not know of any liability for
any tax to be imposed upon its properties or assets for which the Company has not adequately reserved. 

  
 12. Representations and Warranties
of Lender; Review of Risk Factors 
 In addition to the representations and warranties set forth in the subscription agreement attached
hereto as Appendix A, Lender represents and warrants to the Company with respect to the issuance of this Note, and the shares of Common Stock issuable upon conversion of this Note as follows: 

12.1. Review of Disclosure Materials. 
 Lender has reviewed this Note, the following risk factors, the estimated use of proceeds attached hereto as Appendix C, the audited and internally prepared financial statements attached hereto as Appendix
D and the executive summary attached hereto as Appendix E. 
 12.1.1 Risk Factors. 

The following risk factors should be reviewed in detail prior to making an investment decision regarding the Note. 

AN INVESTMENT IN THE NOTED INVOLVES A HIGH DEGREE OF RISK. THE 

FOLLOWING FACTORS SHOULD BE CAREFULLY CONSIDERED PRIOR TO 
 MAKING AN INVESTMENT IN THE NOTE. 
 Risk Factors Related To Our Business

 The Company has a limited operating history and has experienced operating losses since its inception 

Since its inception, the Company has realized several million dollars in operating losses. The Company is a development stage entity and is in the process
of fully implementing its planned principal operations. The Company’s continued operations are dependent upon its ability to generate sufficient revenues from operations and obtain further financing, including the sale of the Notes. If the
Company is unable to generate sufficient revenues and obtain sufficient financing from the sale of the Notes, its current business plans could fail and its financial condition and results of operations could be materially adversely affected.

 The Company’s capitalization is limited and it may need additional funds beyond the sale of Notes 

A limiting factor on the growth of the Company, including its ability to penetrate new markets, attract new customers and deliver new products in a timely
matter, is the limited capitalization of the Company compared to other companies in the industry. The Company believes that currently available capital resources, including the net proceeds from the sale of Notes, assuming $3,000,000 is received,
will be adequate to fund its operations and business objectives for 12 months. There can be no assurance, however, that the net proceeds from this Offering will provide sufficient funds for the Company to achieve all of its proposed objectives or
that the Company will not require additional financing. In addition, there can be no assurance that the maximum offering amount of $5,000,000 will be realized. If additional funding in the form of

 
equity or convertible debt is not available on reasonable terms, the Company may not achieve its revenue and profit objectives. Delays in meeting the anticipated funding schedule may affect the
ability of the Company to fully implement its business plan. Further, if additional funds are procured through the issuance of additional equity or convertible debt securities, investors in the Notes will experience dilution. 

The Company is extremely dependent on its President and Chief Executive Officer, Anthony Macaluso, as well as other members of its executive
management team 
 The Company’s future performance will be substantially dependent on the continued services of Mr. Macaluso
and on the performance of other senior management and key personnel. The Company’s performance also depends on its ability to attract, retain and motivate additional management and key employees. The loss of the services of Mr. Macaluso or
any other key personnel could have a material adverse effect on the Company’s business, prospects, financial condition and results of operations. 
 The Company faces competition from companies that have substantially greater capital and marketing resources than the Company 
 While the Company believes that it is a pioneer in its sector, and that there are very few companies, if any, who offer the broad applications of the Company’s products, potential competitors for the
Company include companies with generally longer operating histories, greater name recognition, larger customer bases and significantly greater financial, technical and marketing resources than the Company. Such competition could materially adversely
affect the Company’s business, operating results and financial condition. As a result, the Company will be competing for customers with other companies offering similar or alternative products and services that may have greater name
recognition, more proprietary products, and a larger existing customer base. 
 The Company’s revenues are difficult to predict given
that a large percentage of the Company’s future revenues will come from emerging markets 
 It is not feasible to predict with
assurance the timing or the amount of revenues that the Company will receive from the sale, or license, of its products. Any substantial delay in the introduction of products could result in significant delays in revenues, the need to raise
additional capital through the issuance of additional equity or debt securities sooner than the Company intends, and may allow competitors to reach certain of such markets with products before the Company. In view of the emerging nature of the
technology involved in certain of these markets, and the attendant uncertainty as to whether the Company’s products will achieve meaningful commercial acceptance, if at all, there can be no assurance that the Company will realize revenues
sufficient to achieve profitability. 

  
 If the Company fails to obtain
strategic partnerships with key players in need of its products, the Company’s results of operation will be adversely affected 
 If
the Company is unsuccessful in creating strategic partnerships with large companies in its sector, the amount of revenues realizable will not be significant and the Company’s overall business, financial condition and results of operations will
be materially adversely affected. 
 Although the Company has entered into confidentiality and non-compete agreements with its key
employees and consultants, if it is unable to protect its proprietary information against unauthorized use by others, its competitive position could be harmed 
 The Company’s proprietary information is critically important to its competitive position and is a significant aspect of the products it provides. If the Company is unable to protect its proprietary
information against unauthorized use by others, its competitive position could be harmed. The Company generally enters into confidentiality and non-compete agreements with its employees and consultants, and controls access to, and distribution of,
its documentation and other proprietary information. Despite these precautions, the Company cannot assure you that these strategies will be adequate to prevent misappropriation of its proprietary information in all cases. Therefore, the Company
could be required to expend significant amounts to defend its rights to proprietary information in the future if a breach were to occur. 

An investor who acquires Notes will immediately incur significant dilution in the book value of our Common Stock 

Because the current book value per share of the Company’s Common Stock is significantly lower than the Conversion Rate of the Notes, current
stockholders of the Company will receive an immediate increase in net book value per share and the Lender will experience immediate dilution in book value per share. 
 The Company anticipates issuing additional stock options to employees and consultants in the future 
 The Company has adopted a stock option and incentive plan for its employees, officers, directors and key consultants. Because stock options granted under the plan will generally only be exercised when the
exercise price for such option is below the then market value of the Common Stock, the exercise of such options will cause dilution to the book value per share of the Company’s Common Stock. 

The Company does not presently intend to pay dividends on its Common Stock in the foreseeable future 

The Company’s future earnings will be reinvested and used for working capital purposes. Thus, upon the conversion of the Note, the Lender should not
expect to receive dividends on the shares of Common Stock issued in conjunction therewith. 

  
 Risk Factors
Relating to the Offering 
 There is limited liquidity in the Notes 
 The Notes may only be resold if registered under the Act, or pursuant to an exemption from registration thereunder, including Rule 144. Rule 144 is only available if there is a public market for the
Company’s securities and the public availability of current information regarding the Company. Transfer of the Notes may also be restricted by state “blue sky” securities laws. As a result, investors should be aware that in the
absence of registration of the Notes with the Securities and Exchange Commission, or the shares of Common Stock issuable upon conversion thereof, or the availability of an exemption from registration, the Notes and the shares of Common Stock
underlying the Notes, must be held by the purchasers thereof for an indefinite period of time. 
 Following a fully subscribed offering of
$5,000,000, our executive officers and members of our board of directors will beneficially own more than 40% of the issued and outstanding shares of our Common Stock and could limit the ability of our other stockholders to influence the outcome of
director elections and other transactions submitted to a vote of stockholders 
 Immediately following the offering, and assuming we
realize $5,000,000 from the sale of the Notes, the executive officers and board of directors will beneficially own more than 40% of the issued and outstanding shares of our Common Stock. These stockholders will have the power to influence all
matters requiring approval by our stockholders, including the election of directors and approval of mergers and other significant corporate transactions. This concentration of ownership may also have the effect of delaying or preventing a change in
control of the Company. 
 13. No Recourse Against Individuals. 
 Lender shall have no recourse for the repayment of the principal of, or interest on, this Note against any past, present, or future incorporator, stockholder, officer, director, employee, agent, or
attorney of the Company in the absence of an express written agreement with such person to the contrary. 
 14. Governing Law and Venue.

 This Note is delivered in and shall be governed by and construed in accordance with the laws of the State of Delaware without regard to
any rules that would apply the law of another jurisdiction. Venue shall lie exclusively in Delaware. The parties agree that their respective obligations are to be performed in Delaware. 
 15. Notices. 
 Any notice pursuant to this Note to be given or made by the Lender to or
upon the Company shall be sufficiently made if sent by certified or registered mail, postage prepaid, addressed (until another address is sent by the Company to the Lender) as follows: 

Single Touch Interactive, Inc. 
 2235 Encinitas Blvd. 
 Suite 228 

Encinitas, CA 92024 

  
 16. Register of Notes. The
Company shall keep at its principal office (or such other place the Company reasonably designates) a register for the Notes. Each transfer of the Notes (if permitted), conversion thereof into Common Stock and payment thereunder as well as the name
and address of the Lender shall be noted on the register of Notes. The register shall be made available by the Company for review by the Lender or his agent during usual business hours of the Company. 

17. Modification and Waiver. No modification or waiver of any provision of this Note shall in any event be effective unless the same shall be in
writing signed by the Lender and then such modification or waiver shall be effective only in the specific instance for the specific purpose given. 
 18. Counterparts. This Note may be executed in any number of counterparts, each of which shall be deemed to be an original against any Party whose signature appears thereon, and all of which shall
together constitute one and the same instrument. This Note shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the Parties reflected hereon as the signatories. 

19. Other. 
 19.1
Registration Rights. 
 19.1 Inclusion of Registrable Securities. If (but without any obligation
to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Lenders) any of its stock or other securities under the Act in connection with a public offering of such
securities solely for cash, the Company shall, at such time, promptly give Lender written notice of such registration. Upon the written request of Lender within twenty (20) days following mailing of such notice by the Company, the Company
shall, subject to the provisions of Section 20.2.2, cause to be registered under the Act all of the shares of Common Stock issuable to Lender upon the conversion of the Note (the “Registrable Securities”) that Lender requests,
in writing, to be registered. 
 19.2 Underwriting Requirements. In connection with any offering involving
an underwriting of Common Stock, the Company shall not be required under this Section 20.2.2 to include any of the Lender’s Common Stock issuable upon conversion of the Note unless they accept the terms of the underwriting as agreed upon
between the Company and the underwriters selected by it (or by other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering
by the Company. If the underwriters, in their sole discretion, determine and advise 

 
in writing the Company and the Lenders of the Registrable Securities requesting participation in such registration that in their good faith judgment the number of shares of Registrable Securities
and the other securities requested to be registered under this Section 20.2.2 exceeds the maximum amount of Common Stock which can be marketed (giving first priority to Common Stock to be issued by the Company in such underwriting, but giving
priority to the shares requested to be included in the offering pursuant to this Section 20.2.2 over all other shares proposed to be included therein), then the Company shall be required to include in the offering only that number of shares of
Common Stock, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering and the securities so included shall be apportioned pro rata among the participating Lender
according to the total amount of securities entitled to be included therein owned by each participating Lender. For purposes of such apportionment, for any participating Lender that is a partnership or corporation, the partners, retired partners and
stockholders of such Lender, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single participating Lender, and any pro-rata reduction
with respect to such participating Lender shall be based upon the aggregate amount of shares of Common Stock carrying registration rights owned by all persons included in such participating Lender. 

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above. 

 

									
	“LENDER”	 		 	“COMPANY”
				
	Signature:	 	 	 		 	 Single Touch Systems, Inc.,
 a Delaware Corporation

					
	Print Name: 	 	 	 		 		 	
					
	Its:	 	 	 		 	By: 	 	 
		 		 		 		 	Anthony G. Macaluso
		 		 		 		 	President & Chief Executive Officer

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