Document:

Form of Warrant to Purchase Common Stock

  
 Exhibit 10.22.2

 THIS WARRANT AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SECURITIES
ISSUABLE HEREUNDER MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION THAT IS EXEMPT
FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. 
  
  

WARRANT TO PURCHASE COMMON STOCK 
 OF 
 SINGLE TOUCH SYSTEMS, INC. 

 

			
	NO. SITO- 2010- c - _	  	May 28, 2010

 THIS CERTIFIES
THAT, for value received, _______, or his permitted registered assigns (“Holder”), is entitled, subject to the terms and conditions of this Warrant, at any time or from time to time commencing after the issuance date of this
Warrant (the “Effective Date”), and before 5:00 p.m. Eastern Time on May 27, 2013 (the “Expiration Date”), to purchase from Single Touch Systems, Inc., a Delaware corporation (the “Company”),
up to _______ shares of Common Stock of the Company at an exercise price per share equal to $1.00 (the “Purchase Price”). Both the number of shares of Common Stock purchasable upon exercise of this Warrant and the Purchase Price are
subject to adjustment and change as provided herein. 
  

	1.	CERTAIN DEFINITIONS. As used in this Warrant the following terms shall have the following respective meanings: 

 

	 	1.1	“Registered Holder” shall mean any Holder in whose name this Warrant is registered upon the books and records maintained by the Company.

  

	 	1.2	“Warrant” as used herein, shall include this Warrant and any warrant delivered in substitution or exchange therefore as provided herein.

  

	 	1.3	“Common Stock” shall mean the Common Stock of the Company and any other securities at any time receivable or issuable upon exercise of this Warrant.

  

	2.	EXERCISE OF WARRANT 

  

	 	2.1	Payment. Subject to compliance with the terms and conditions of this Warrant and applicable securities laws, this Warrant may be exercised, in whole or in part
at any time or from time to time after the Effective Date, and on or before the Expiration Date by the delivery (including, without limitation, delivery by facsimile) of the form of Notice of Exercise attached hereto as Exhibit 1 (the
“Notice of Exercise”), duly executed by the Holder, at the principal office of the Company, and as soon as practicable after such date, surrendering 

 

	 	(a)	this Warrant at the principal office of the Company, and 

  

	 	(b)	payment in cash (by check) or by wire transfer of an amount equal to the product obtained by multiplying the number of shares of Common Stock being purchased upon
such exercise by the then effective Purchase Price (the “Exercise Amount”). 

  

	 	2.2	Stock Certificates; Fractional Shares. As soon as practicable on or after the date of any exercise of this Warrant but in any event within 5 business days after
its receipt of the Exercise Amount, the Company shall issue and deliver to the person or persons designated by the Holder a certificate or certificates for the aggregate number of whole shares of Common Stock issuable upon such exercise. No
fractional shares or scrip representing fractional shares shall be issued upon an exercise of this Warrant. 

  

	 	2.3	Partial Exercise; Effective Date of Exercise. In case of any partial exercise of this Warrant, the Company shall cancel this Warrant upon surrender hereof and
shall execute and deliver a new Warrant of like tenor and date for the balance of the shares of Common Stock purchasable hereunder. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its
surrender for exercise as provided above. The person entitled to receive the shares of Common Stock issuable upon exercise of this Warrant shall be treated for all purposes as the holder of record of such shares as of the close of business on the
date the Company receives the Notice of Exercise, subject to receipt of the Exercise Amount. 

  

	 	2.4	Vesting. The warrants shall vest fully upon issuance. 

  

	3.	VALID ISSUANCE; TAXES. All shares of Common Stock issued upon the exercise of this Warrant shall be validly issued, fully paid and non-assessable. The
Company shall not be required to pay any tax or other charge imposed in connection with any transfer involved in the issuance of any certificate for shares of Common Stock in any name other than that of the Registered Holder of this Warrant, and in
such case the Company shall not be required to issue or deliver any stock certificate or security until such tax or other charge has been paid, or it has been established to the Company’s reasonable satisfaction that no tax or other charge is
due. 

  

	4.	ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES. The number of shares of Common Stock issuable upon exercise of this Warrant (or any shares of stock or other
securities or property receivable or issuable upon exercise of this Warrant) and the Purchase Price are subject to adjustment upon occurrence of the following events: 

 

	 	4.1	Adjustment for Stock Splits, Stock Subdivisions or Combinations of Shares. The Purchase Price of this Warrant shall be proportionally decreased and the number of
shares of Common Stock issuable upon exercise of this Warrant (or any shares of stock or other securities at the time issuable upon exercise of this Warrant) shall be proportionally increased to reflect any stock split or other subdivision of the
Company’s Common Stock. The Purchase Price of this Warrant shall be proportionally increased and the number of shares of Common Stock issuable upon exercise of this Warrant (or any shares of stock or other securities at the time issuable upon
exercise of this Warrant) shall be proportionally decreased to reflect any reverse stock split, consolidation or combination of the Company’s Common Stock. 

 

	 	4.2	Reclassification. If the Company, by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this
Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change
with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such reclassification or other change, and the Purchase Price therefore shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 4. No adjustment shall be made pursuant to this Section 4.3 upon any conversion or redemption of the Common Stock which is the subject of Section 4.4.

  

	 	4.3	 Adjustment for Capital Reorganization, Merger or Consolidation. In case of any capital reorganization of the capital stock of the Company (other
than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), or any merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all the assets of the Company
then, and in each such case, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during
the period specified herein and upon payment of the Purchase Price then in effect, the number of shares of stock or other securities or property (including cash) to which the holder of the shares deliverable upon exercise of this Warrant would have
been entitled to receive in such reorganization, consolidation, merger, sale or transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer, all subject to further adjustment as
provided in this Section 4. The foregoing provisions of this Section 4.3 shall similarly apply to successive reorganizations, consolidations, mergers, sales and transfers and to the stock or securities of any

	 	 
other corporation that are at the time receivable upon the exercise of this Warrant. In all events, appropriate adjustment (as determined in good faith by the Company’s Board of Directors)
shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the Holder after the transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after that event upon exercise of this Warrant. 

  

	 	4.4	Conversion of Common Stock. In case all or any portion of the authorized and outstanding shares of Common Stock of the Company are redeemed or converted or
reclassified into other securities or property pursuant to the Company’s Certificate of Incorporation or otherwise, or the Common Stock otherwise ceases to exist, then, in such case, the Holder of this Warrant, upon exercise hereof at any time
after the date on which the Common Stock is so redeemed or converted, reclassified or ceases to exist (the “Termination Date”), shall receive, in lieu of the number of shares of Common Stock that would have been issuable upon such
exercise immediately prior to the Termination Date, the securities or property that would have been received if this Warrant had been exercised in full and the Common Stock received thereupon had been simultaneously converted immediately prior to
the Termination Date, all subject to further adjustment as provided in this Warrant. Additionally, the Purchase Price shall be immediately adjusted such that the aggregate Purchase Price of the maximum number of securities or other property for
which this Warrant is exercisable immediately after the Termination Date is equal to the aggregate Purchase Price of the maximum number of shares of Common Stock for which this Warrant was exercisable immediately prior to the Termination Date, all
subject to further adjustment as provided herein. 

  

	5.	LOSS OR MUTILATION. Upon receipt of evidence reasonably satisfactory to the Company of the ownership of and the loss, theft, destruction or mutilation of
this Warrant, and of indemnity reasonably satisfactory to it, and (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will execute and deliver in lieu thereof a new Warrant of like tenor as the lost, stolen,
destroyed or mutilated Warrant. 

  

	6.	RESERVATION OF COMMON STOCK. The Company hereby covenants that at all times there shall be reserved for issuance and delivery upon exercise of this
Warrant such number of shares of Common Stock or other shares of capital stock of the Company as are from time to time issuable upon exercise of this Warrant and, from time to time, will take all steps necessary to amend its Certificate of
Incorporation to provide sufficient reserves of shares of Common Stock issuable upon exercise of this Warrant. All such shares shall be duly authorized, and when issued upon such exercise, shall be validly issued, fully paid and non-assessable, free
and clear of all liens, security interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights, except encumbrances or restrictions arising under federal or state securities laws. Issuance of this
Warrant shall constitute full authority to the Company’s Officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the exercise of this Warrant.

  

	7.	TRANSFER AND EXCHANGE. Subject to the terms and conditions of this Warrant and compliance with all applicable securities laws, this Warrant and all
rights hereunder may be transferred to any Registered Holder’s parent, subsidiary or affiliate or to any officer, director, partner or member of any such parent, subsidiary or affiliate, in whole or in part, on the books of the Company
maintained for such purpose at the principal office of the Company referred to above, by the Registered Holder hereof in person, or by duly authorized attorney, upon surrender of this Warrant properly endorsed and upon payment of any necessary
transfer tax or other governmental charge imposed upon such transfer. Upon any permitted partial transfer, the Company will issue and deliver to the Registered Holder a new Warrant or Warrants with respect to the shares of Common Stock not so
transferred. Each taker and holder of this Warrant, by taking or holding the same, consents and agrees that when this Warrant shall have been so endorsed, the person in possession of this Warrant may be treated by the Company, and all other persons
dealing with this Warrant, as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented hereby, any notice to the contrary notwithstanding; provided, however that until a transfer of this Warrant is duly
registered on the books of the Company, the Company may treat the Registered Holder hereof as the owner for all purposes. 

  

	8.	RESTRICTIONS ON TRANSFER. By acceptance hereof, the Holder acknowledges that this Warrant and the capital stock of the Company that may be issued upon its
exercise have not been registered under the Securities Act, and Holder agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any capital stock issued upon its exercise in the absence of (i) an
effective registration statement under the Securities Act as to this Warrant or such securities and registration or qualification of this Warrant or such securities under any applicable Blue Sky or state securities laws then in effect, or
(ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration and qualification are not required. In the reasonable discretion of the Company, the Company may condition any transfer of all or any portion of this
Warrant or the capital stock of the Company that may be issued upon its exercise (other than a disposition satisfying the conditions set forth in clause (i) of Section 8(i) above) upon the transferee’s delivery to the Company
of a written agreement, in form and substance reasonably satisfactory to the Company, whereby the transferee makes such representations and warranties to and for the benefit of the Company as are comparable to the representations and warranties of
the Holder set forth in Section 9 below. 

  

	9.	 COMPLIANCE WITH SECURITIES LAWS. By acceptance of this Warrant, the Holder hereby represents, warrants and covenants that any shares of
stock purchased upon exercise of this Warrant shall be acquired for investment only and not with a view to, or for sale in connection with, any distribution thereof; that the Holder has had such opportunity as such Holder has deemed adequate to
obtain from representatives of the Company such information as is necessary to permit the Holder to evaluate the merits and risks of its investment in the Company; that the Holder is able to bear the economic risk of holding such shares as may be
acquired pursuant to the exercise of this Warrant for an 

	 	 
indefinite period; that the Holder understands that the shares of stock acquired pursuant to the exercise of this Warrant will not be registered under the Securities Act (unless otherwise
registered pursuant to exercise by the Holder of the registration rights, if any, granted to the Registered Holder) and will be “restricted securities” within the meaning of Rule 144 under the Securities Act and that the exemption from
registration under Rule 144 will not be available for at least one (1) year from the date of exercise of this Warrant, subject to any special treatment by the SEC for exercise of this Warrant pursuant to Section 2.2, and even then
will not be available unless a public market then exists for the stock, adequate information concerning the Company is then available to the public, and other terms and conditions of Rule 144 are complied with; and that all stock certificates
representing shares of stock issued to the Holder upon exercise of this Warrant or upon conversion of such shares may have affixed thereto a legend substantially in the following form: 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION THAT IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. 
  

	10.	NO RIGHTS OR LIABILITIES AS STOCKHOLDERS. This Warrant shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company.
In the absence of affirmative action by such Holder to purchase Common Stock by exercise of this Warrant or Common Stock upon conversion thereof, no provisions of this Warrant, and no enumeration herein of the rights or privileges of the Holder
hereof shall cause such Holder hereof to be a stockholder of the Company for any purpose. 

  

	11.	NOTICES. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in
writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when received when sent by facsimile at the address and number set forth below; (c) three business days after deposit in
the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed to the other party as set forth below; or (d) the next business day after deposit with a national overnight delivery service, postage prepaid,
addressed to the parties as set forth below with next-business-day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider. 

  

			
	 To Holder:
	  	To the Company:
	 At the address of record.
	  	Single Touch Systems, Inc.
		  	2235 Encinitas Boulevard, Suite 210
		  	Encinitas, CA 92024
		
		  	Fax Number: (760) 438-1171

 Each person
making a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile pursuant hereto. A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 11 by giving the other party written notice of the new address in the manner set forth above. 

 

	12.	HEADINGS. The headings in this Warrant are for purposes of convenience in reference only, and shall not be deemed to constitute a part hereof.

  

	13.	LAW GOVERNING. This Warrant shall be construed and enforced in accordance with, and governed by, the laws of the State of Nevada.

  

	14.	WAIVER OF JURY TRIAL. The Company and, by acceptance of this Warrant, the Holder each waive all right to trial by jury in any action or proceeding to
enforce or defend any rights or remedies hereunder or relating hereto. 

  

	15.	NO IMPAIRMENT. The Company will not, by amendment of its Certificate of Incorporation or bylaws, or through reorganization, consolidation, merger,
dissolution, issue or sale of securities, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered Holder of this Warrant against impairment. Without limiting the generality of the foregoing, the Company
(a) will not increase the par value of any shares of stock issuable upon the exercise of this Warrant above the amount payable therefore upon such exercise, and (b) will 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 shares of Common Stock upon exercise of this Warrant. 

  

	16.	SEVERABILITY. If any term, provision, covenant or restriction of this Warrant is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Warrant shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

 

	17.	COUNTERPARTS. For the convenience of the parties, any number of counterparts of this Warrant may be executed by the parties hereto and each such executed
counterpart shall be, and shall be deemed to be, an original instrument. 

  
 IN WITNESS
WHEREOF, the parties hereto have executed this Warrant as of the date first set forth above. 
  

			
	Single Touch Systems, Inc.
	
	 
	By:	 	 Anthony G. Macaluso

President

 SIGNATURE PAGE TO 
 WARRANT TO PURCHASE COMMON STOCK 

  
 EXHIBIT 1

 NOTICE OF EXERCISE 
 (To be executed upon exercise of Warrant) 
  

	To:	Single Touch Systems, Inc. 

 The undersigned
hereby irrevocably elects to exercise the right of purchase represented by the within Warrant Certificate for, and to purchase thereunder, the securities of Single Touch Systems, Inc., as provided for therein, and (check the applicable box):

  

			
	 ̈	  	tenders herewith payment of the exercise price in full in the form of cash or a certified or official bank check or wire transfer in same-day funds in the amount of $____________
for _________ such securities.

 Please issue a certificate or certificates for such securities in the name of, and pay any cash
for any fractional share to (please print name, address and social security number): 
  

			
	 Name:
	 	 
		
	 Address:
	 	 
		
	 Signature:
	 	 

 Note: The above signature should correspond
exactly with the name on the first page of this Warrant Certificate. 
 If said number of shares shall not be all the shares purchasable under
the within Warrant Certificate, a new Warrant Certificate is to be issued in the name of said undersigned for the balance remaining of the shares purchasable thereunder rounded up to the next higher whole number of shares. 

  
 EXHIBIT 2

 ASSIGNMENT 
 (To be executed only upon assignment of Warrant Certificate) 
 For value received, the undersigned
hereby sells, assigns and transfers unto the parties set forth below all or such portion of the Warrants represented by the within Warrant Certificate set forth below, together with all right, title and interest therein, and does hereby irrevocably
constitute and appoint ____________________________ attorney, to transfer said Warrant Certificate on the books of the within-named Company with respect to the number of Warrants set forth below, with full power of substitution in the premises:

  

					
	 Name(s) of Assignee(s)
	 	 Address
	 	 # of Warrants

		 		 	
		 		 	
		 		 	
		 		 	
		 		 	

 And if said number of Warrants shall not be all the Warrants represented by the Warrant Certificate, a new Warrant
Certificate is to be issued in the name of said undersigned for the balance remaining of the Warrants registered by said Warrant Certificate. 
  

			
	 Dated:
	 	 
		
	 Signature:
	 	 

 Notice: The signature to the foregoing Assignment
must correspond to the name as written upon the face of this security in every particular, without alteration or any change whatsoever.Convertible Promissory Note

  
 Exhibit 10.23

 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 

 

			
	 March 12, 2010
	  	Encinitas, California

 For value
received, Single Touch Systems, Inc., a Delaware corporation (the “Company”), hereby promises to pay to Mike Robert, (“Lender”), the principal amount of Five Hundred Thousand Dollars ($500,000.00) with simple
interest thereon at the rate of five percent (12%) 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 September 30, 2010
(the “Maturity Date”), or such later date as agreed to in writing by Lender. Commencing on March 12, 2010, 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. 

3. Interest Payments. Simple interest shall accrue on the Note at the rate of five percent (12%) per annum. Annual interest
payments shall be made to Lender by 5:00 p.m. PDT on June 30, 2010 and September 30, 2010 (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. 
 4. Voluntary Conversion. 
 4.1 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 $0.37 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 $0.37, 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”). 
 4.2 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. 
 5. 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. 

  
 2 

  
 6. 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. 

6.1 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. 
 6.2 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. 
 6.3 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. 

6.4 Waiver of Presentment, Etc. The Company waives presentment, demand, notice of dishonor, protest and notice of
nonpayment and protest. 
 6.5 Costs of Collection. The Company shall pay all costs and expenses of
collection incurred by the Lender, including reasonable attorneys’ fees. 
 7. 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

  
 3 

 
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 affected. 

8. 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. 
 9. 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. 
 10. Representations and Warranties of Borrower. Borrower represents and warrants to the Lender with
respect to the issuance of this Note as follows: 
 10.1 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. 
 10.2
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. 

  
 4 

  
 10.3
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. 

10.4 Capitalization. The authorized capital stock of the Company consists of 200,000,000 shares of common stock,
$0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value. As of March 12, 2010, there are 79,527,008 shares of common stock outstanding held by 405 stockholders. In addition, as of March 12, 2010, there are
(i) warrants outstanding to purchase a total of 35,580,145 shares of common stock, with a weighted average exercise price of $1.166 per share, and (ii) options outstanding to purchase 8,675,000 shares of common stock, with a weighted
average exercise price of $1.38 per share. There is no preferred stock outstanding. 
 10.5 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. 
 10.6 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. 

10.7 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. 
 10.8 Tax Returns
and Payments. The Company has accurately prepared and timely filed alt 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. 
 11. 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: 
 11.1 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. 

  
 5 

  
 11.1.1
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. 

  
 6 

  
 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. 

  
 7 

  
 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. 

  
 8 

  
 12. 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. 
 13. 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. 
 14. 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 

15. 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. 
 16.
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. 
 17. 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. 

18. Other. 
 18.1 Registration Rights. 
 18.1.1 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. 

  
 9 

  
 18.1.2
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 wider 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 he 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:	 	/s/ Mike Robert	 		 	 Single Touch Systems, Inc.,
 a Delaware Corporation

	Print Name:	 	 Mike Robert

Lender
	 		 		 	
				
		 		 	By:	 	/s/ Anthony G. Macaluso
		 		 		 		 	 Anthony G. Macaluso
 President
& Chief Executive Officer

  
 10

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