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Unassociated Document

    WARRANT

    

    THE
      WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT (COLLECTIVELY,
      THE “SECURITIES”) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
      THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, REASONABLY
      SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT.

     

    INNOFONE.COM,
      INCORPORATED

     

    Warrant
      To Purchase Common Stock

     

    
      	
              Warrant
                No.: _____

            	
              Number
                of Shares: 5,000,000

            

    

    

     

    Date
      of
      Issuance: June 2, 2006

     

    THIS
      IS
      TO CERTIFY THAT, for value received, Cogent Capital Financial LLC., a Delaware
      limited liability company, or registered assigns (the “Holder”)
      is
      entitled to purchase from Innofone.com, Incorporated, a Nevada corporation
      (the
“Company”),
      at any
      time or times on or after June 2, 2006, but not after 5:00 p.m., New York time,
      on the Expiration Date (as defined herein) at the Exercise Price (as defined
      herein) Five Million (5,000,000) fully paid nonassessable shares of Common
      Stock
      (as defined herein) of the Company (the “Warrant
      Shares”),
      all
      subject to adjustment and upon the terms and conditions as hereinafter provided.
      This Warrant has been issued pursuant to the Equity Swap Confirmation, dated
      the
      date hereof, between the Company and the Holder (as such agreement may be
      amended from time to time in accordance therewith, the “Swap
      Confirmation”)
      as part
      of the Initial Exchange Amount thereunder.

     

    Section
      1. Definitions.

     

    (a) Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

    (i) “Business
      Day”
      means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      the City of New York are authorized or required by law to remain
      closed.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    (ii) “Common
      Stock”
      means
      (i) the Company’s common stock, par value $0.001 per share, and (ii) any capital
      stock into which such Common Stock shall have been changed or any capital stock
      resulting from a reclassification of such Common Stock. 

     

    (iii) “Exercise
      Date”
      means
      the date when the Exercise Notice, the Aggregate Exercise Price and the Warrant
      (or an indemnification undertaking with respect to the Warrant in the case
      of
      its loss, theft or destruction) (the “Exercise
      Delivery Documents”)
      are
      received by the Company at or prior to 5:00 p.m., New York time, on a Business
      Day. If any of the Exercise Delivery Documents are received after 5:00 p.m.,
      New
      York time, on a Business Day, the Exercise Date shall be the next succeeding
      Business Day.

     

    (iv) “Exercise
      Price”
      shall be
      equal to, with respect to any Warrant Share, $1.20, subject to adjustment as
      provided herein.

     

    (v) “Expiration
      Date”
      means
      the date five (5) years after the Initial Issuance Date or, if such date falls
      on a Saturday, Sunday or other day on which banks are required or authorized
      to
      be closed in the City of New York or the State of New York or on which trading
      does not take place on the principal exchange or automated quotation system
      on
      which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

    (vi) “Initial
      Issuance Date”
      means
      June 2, 2006.

     

    (vii) “1933
      Act”
      means
      the Securities Act of 1933, as amended.

     

    (viii) “Person”
      means an
      individual, a limited liability company, a partnership, a joint venture, a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    (ix) “Warrant”
      means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof.

     

    (b) Other
      Definitional Provisions.

     

    (i) Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be
      deemed to include the Company’s successors and (B) to any applicable law defined
      or referred to herein, shall be deemed references to such applicable law as
      the
      same may have been or may be amended or supplemented from time to
      time.

     

    (ii) When
      used
      in this Warrant, the words “herein,” “hereof,” and “hereunder,” and words of
      similar import, shall refer to this Warrant as a whole and not to any provision
      of this Warrant, and the words “Section,” “Schedule,” and “Exhibit” shall refer
      to Sections of, and Schedules and Exhibits to, this Warrant unless otherwise
      specified.

     

    (iii) Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa.

     

    
      
         

      

      
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    Section
      2. Exercise
      of Warrant.

     

    (a) Exercise
      Period.
      Subject
      to Section 2(d) below, the Holder may exercise, in whole or in part, the
      purchase rights represented by this Warrant at any time and from time to time
      after the Initial Issuance Date to and including the Expiration
      Date.

     

    (b) Exercise
      of Warrants.

     

    (i) Method
      of Exercise.
      The
      Warrant evidenced hereby may be exercised by the Holder, in whole or in part,
      by
      the delivery at the principal office of the Company (or at such other office
      or
      agency of the Company as it may designate by notice in writing to the Registered
      Holder), during normal business hours, of this Warrant and the Exercise
      Agreement (in the form attached hereto as Exhibit
      I),
      duly
      completed and executed, and payment of the Purchase Price (as such term is
      defined in Section 2(b)(x) below) in cash, by wire transfer of immediately
      available United States federal funds or by bank certified, treasurer's or
      cashier's check payable to the order of the Company. Upon delivery of the
      Exercise Agreement, this Warrant and the Purchase Price, the Company shall
      deliver to the Holder that number of Warrant Shares which is equal to the
      Purchase Price divided by the Exercise Price, as may be adjusted from time
      to
      time.

     

    (ii) Cashless
      Exercise.
      In lieu
      of exercising the Warrant evidenced hereby pursuant to Section 2(b)(i) above,
      the Holder shall have the right during the Exercise Period to exercise this
      Warrant, in whole or in part, by surrendering this Warrant to the Company
      accompanied by the Form of Cashless Exercise (in the form attached hereto as
      Exhibit II), duly completed and executed. Upon delivery of the Form of Cashless
      Exercise and this Warrant, the Company shall deliver to the Holder (without
      payment by the Holder of any cash in respect of the Purchase Price) that number
      of Warrant Shares which is equal to the amount obtained by dividing (x) an
      amount equal to the difference between (1) the aggregate Market Price for the
      Warrant Shares as to which the Cashless Exercise Right is then being exercised
      (the "Cashless Exercise Shares"), determined as of immediately prior to the
      effective time of the exercise of the Cashless Exercise Right, minus (2) the
      aggregate Exercise Price then applicable to the Cashless Exercise Shares (such
      difference, the "Cashless Exercise Amount"), by (y) the Market Price of one
      share of Common Stock determined as of the close of trading immediately after
      the effective time of the exercise of the Cashless Exercise right. Upon exercise
      of the Cashless Exercise right, the Cashless Exercise Amount shall be deemed
      to
      have been paid to the Company in respect of the Warrant Shares so acquired.
      Any
      references in this Warrant to the "exercise" of this Warrant, and the use of
      the
      term "exercise" herein, shall be deemed to include, without limitation, any
      exercise of the Cashless Exercise right. For purposes hereof, the “Market Price”
of the Common Stock shall be the trailing ten (10) day average per share price
      of the Common Stock for the period immediately preceding the effective time
      of
      such exercise as quoted on the OTC Bulletin Board or, if applicable, as listed
      on one of the following markets or exchanges: the Nasdaq SmallCap Market, the
      American Stock Exchange, the New York Stock Exchange or the Nasdaq National
      Market.

     

    (iii) Certificates
      for shares of Warrant Stock purchased upon exercise of this Warrant shall be
      delivered by the Company to the Holder as soon as practicable after surrender
      of
      the Warrant and either (a) payment of the Purchase Price and delivery of the
      Exercise Agreement or (b) delivery of the Form of Cashless Exercise to the
      Company, and in any event within ten (10) days after such surrender, payment
      and
      delivery to the Company in the manner described above. Unless this Warrant
      has
      expired or all of the purchase rights represented hereby have been exercised,
      the Company shall prepare a new Warrant, substantially identical hereto, in
      the
      name of Holder, representing the rights formerly represented by this Warrant
      which have not expired or been exercised and shall, as soon as practicable,
      deliver such new Warrant to the Holder or to such Person as the Holder has
      designated for delivery.

    

      
        
           

        

        
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    (iv) The
      Warrant Stock issuable upon the exercise of this Warrant shall be deemed to
      have
      been issued to the Holder as of the close of business on the date on which
      this
      Warrant shall have been surrendered to the Company and delivery of (1) the
      Purchase Price and Exercise Agreement or (2) Form of Cashless Exercise has
      been
      made to the Company, and the Holder shall be deemed for all purposes to have
      become the record holder of such Warrant Stock on that date.

     

    (v) The
      issuance of certificates for shares of Warrant Stock upon exercise of this
      Warrant shall be made without charge to the Holder with respect to any issuance
      tax or other cost incurred by the Company in connection with such exercise
      and
      the related issuance of shares of Warrant Stock. Each share of Warrant Stock
      issuable upon exercise of this Warrant shall, upon payment of the Exercise
      Price
      therefor, be duly authorized, validly issued, fully paid and nonassessable
      and
      free from all liens and charges with respect to the issuance
      thereof.

     

    (vi) The
      Company shall not close its books against the transfer of this Warrant or of
      any
      share of Warrant Stock issued or issuable upon the exercise of this Warrant
      in
      any manner which interferes with the timely exercise of this Warrant. The
      Company shall from time to time take all such action as may be necessary to
      insure that the par value per share of the unissued Warrant Stock acquirable
      upon exercise of this Warrant is at all times equal to or less than the Exercise
      Price then in effect.

     

    (vii) The
      Company shall assist and cooperate with any Holder required to make any
      governmental filings or obtain any governmental approvals prior to, or in
      connection with, the exercise of this Warrant.

     

    (viii) The
      Company shall at all times reserve and keep available out of its authorized
      but
      unissued shares of Warrant Stock, solely for the purpose of issuance upon the
      exercise of the Warrants, at least such number of shares of Warrant Stock
      issuable upon the exercise in full of all outstanding Warrants. The Company
      shall take all such actions as may be necessary to insure that all such shares
      of Warrant Stock may be so issued without violation of any applicable law or
      governmental regulation or any requirements of any domestic securities exchange
      upon which shares of Warrant Stock may be listed (except for official notice
      of
      issuance which shall be immediately delivered by the Company upon each such
      issuance). The Company shall not take any action which would cause the number
      of
      authorized but unissued shares of Warrant Stock to be less than the number
      of
      such shares required to be reserved hereunder for issuance upon exercise of
      the
      Warrants.

     

    (ix) If
      the
      shares of Warrant Stock issuable by reason of exercise of this Warrant are
      convertible into or exchangeable for any other stock or securities of the
      Company, the Company shall, at the Holder's option and upon surrender of this
      Warrant by such holder as provided above, together with any notice, statement
      or
      payment required to effect such conversion or exchange of Warrant Stock, deliver
      to such holder (or such other Person specified by such holder) a certificate
      or
      certificates representing the stock or securities into which the shares of
      Warrant Stock issuable by reason of such conversion are convertible or
      exchangeable, registered in such name or names and in such denomination or
      denominations as such holder has specified.

    

      
        
           

        

        
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    (x) Purchase
      Price.
      The
      Purchase Price shall be the amount equal to the product of the Exercise Price
      multiplied by the number of shares of Warrant Stock being purchased upon such
      exercise. 

     

    (c) Fractional
      Shares.
      If a
      fractional share of Warrant Stock would be issuable upon exercise of the rights
      represented by this Warrant, the Company shall, as soon as practicable after
      the
      date of exercise, deliver to the Registered Holder a check payable to the
      Registered Holder, in lieu of such fractional share, in an amount equal to
      the
      difference between (x) the Market Price of such fractional share as of the
      date
      of the Exercise Time and (y) the Exercise Price of such fractional
      share.

     

    (d) Limitation
      on Beneficial Ownership.
      Notwithstanding anything to the contrary contained in this Warrant, the Holder
      shall not have the right to receive, and the Company shall not issue to the
      Holder, any securities as a dividend or distribution, or upon exercise of this
      Warrant, to the extent that, upon giving effect to such issuance, the aggregate
      number of shares of Common Stock beneficially owned by such Holder and its
      affiliates would exceed 9.5% of the total outstanding shares of Common Stock
      following such issuance. Any such issuance shall be limited to an amount of
      shares as shall not exceed such percentage, and the issuance of the remaining
      shares shall be delayed and the Warrant shall remain unexercised with respect
      thereto (without compounding, increasing, creating or accelerating any
      obligation of the Company to the Holder under this Warrant), and such shares
      shall not be considered outstanding, until (and only until) the conditions
      set
      forth at the end of this Section 2(d) are satisfied. For purposes of the
      foregoing, the aggregate number of shares of Common Stock beneficially owned
      by
      the Holder and its affiliates shall include the number of shares of Common
      Stock
      issuable upon exercise of this Warrant with respect to which the determination
      of such provision is being made, but shall exclude the number of shares of
      Common Stock which would be issuable upon (i) exercise of the remaining
      unexercised portion of this Warrant by the Holder and its affiliates and (ii)
      exercise or conversion of the unexercised or unconverted portion of any other
      securities of the Company (including, without limitation, any convertible
      preferred stock) subject to a limitation on conversion or exercise analogous
      to
      the limitation contained herein beneficially owned by the Holder and its
      affiliates. Except as set forth in the preceding sentence, for purposes of
      this
      Section 2(d), beneficial ownership shall be calculated in accordance with
      Section 13(d) of the Exchange Act, as amended. For purposes of this Section
      2(d), in determining the number of outstanding shares of Common Stock, a Holder
      may rely on the number of outstanding shares of Common Stock as reflected in
      (1)
      the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (2) a more
      recent public announcement by the Company or (3) any other notice by the Company
      or its transfer agent setting forth the number of shares of Common Stock
      outstanding. Upon the written request of any Holder, the Company shall promptly,
      but in no event later than one (1) business day following the receipt of such
      request, confirm in writing to any such Holder the number of shares Common
      Stock
      then outstanding. In any case, the number of outstanding shares of Common Stock
      shall be determined after giving effect to the conversion or exercise of
      securities of the Company, including this Warrant, by such Holder and its
      affiliates since the date as of which such number of outstanding shares of
      Common Stock was reported. If at any time, a Holder is unable to receive shares
      of Common Stock as a result of this Section 2(d), then it shall be entitled
      to
      receive such Common Stock at such subsequent time as it notifies the Company
      in
      writing that its receipt of such Common Stock is permitted hereunder. By written
      notice to the Company, any Holder may waive the provisions of this Section
      2(d)
      solely with respect to its own holdings, but any such waiver will not be
      effective until the 61st day after such notice is delivered to the
      Company.

     

    
      
         

      

      
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    Section
      3. Covenants
      as to Common Stock.
      The
      Company hereby covenants and agrees as follows:

     

    (a) This
      Warrant is, and any Warrants issued in substitution for or replacement of this
      Warrant upon issuance will be, duly authorized and validly issued.

     

    (b) All
      Warrant Shares which may be issued upon the exercise of the rights represented
      by this Warrant upon issuance will be validly issued, fully paid and
      nonassessable (assuming payment of the Exercise Price) and free from all taxes,
      liens and charges with respect to the issue thereof.

     

    (c) During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least 100% of
      the
      number of shares of Common Stock needed to provide for the exercise of the
      rights then represented by this Warrant and the par value of said shares will
      at
      all times be less than or equal to the applicable Exercise Price.

     

    (d) The
      Company shall promptly secure the listing of the shares of Common Stock issuable
      upon exercise of this Warrant upon each national securities exchange or
      automated quotation system, if any, upon which shares of Common Stock are then
      listed (subject to official notice of issuance upon exercise of this Warrant)
      and shall maintain, so long as any other shares of Common Stock shall be so
      listed, such listing of all shares of Common Stock from time to time issuable
      upon the exercise of this Warrant; and the Company shall so list on each
      national securities exchange or automated quotation system, as the case may
      be,
      and shall maintain such listing of, any other shares of capital stock of the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e) The
      Company will not, by amendment of its Articles of Incorporation 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 by
      it
      hereunder, 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 such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. Without
      limiting the generality of the foregoing, the Company (i) will not increase
      the
      par value of any shares of Common Stock receivable upon the exercise of this
      Warrant above the Exercise Price then in effect, and (ii) will take all such
      actions as may be necessary or appropriate in order that the Company may validly
      and legally issue fully paid and nonassessable shares of Common Stock upon
      the
      exercise of this Warrant.

     

    
      
         

      

      
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    (f) This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

    Section
      4. Taxes.
      The
      Company shall pay any and all documentary stamp taxes which may be payable
      with
      respect to the issuance and delivery of Warrant Shares upon exercise of this
      Warrant.

     

    Section
      5. Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of the Company for any purpose, nor shall anything contained in this Warrant
      be
      construed to confer upon the holder hereof, as such, any of the rights of a
      stockholder of the Company or any right to vote, give or withhold consent to
      any
      corporate action (whether any reorganization, issue of stock, reclassification
      of stock, consolidation, merger, conveyance or otherwise), receive notice of
      meetings, receive dividends or subscription rights, or otherwise, prior to
      the
      issuance to the holder of this Warrant of the Warrant Shares which he or she
      is
      then entitled to receive upon the due exercise of this Warrant. In addition,
      nothing contained in this Warrant shall be construed as imposing any liabilities
      on such holder to purchase any securities or as a stockholder of the Company,
      whether such liabilities are asserted by the Company or by creditors of the
      Company. 

     

    Section
      6. Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for its own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the 1933 Act. The holder of this Warrant
      further represents, by acceptance hereof, that, as of this date, such holder
      is
      an “accredited investor” as such term is defined in Rule 501(a)(1) of Regulation
      D promulgated by the Securities and Exchange Commission under the 1933 Act
      (an
“Accredited
      Investor”).
      Upon
      exercise of this Warrant, the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor. If such
      holder cannot make such representations because they would be factually
      incorrect, it shall be a condition to such holder’s exercise of this Warrant
      that the Company receive such other representations as the Company considers
      reasonably necessary to assure the Company that the issuance of its securities
      upon exercise of this Warrant shall not violate any United States or state
      securities laws. The Company shall not be penalized or disadvantaged by a
      holder’s inability to exercise this Warrant due to such holder’s inability to
      make the required representations in connection with the exercise of this
      Warrant.

     

    
      
         

      

      
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    Section
      7. Ownership
      and Transfer.

     

    (a) The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the Person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the Person in whose
      name any Warrant is registered on the register as the owner and holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    (b) This
      Warrant may be offered for sale, sold, transferred or assigned without the
      consent of the Company, except as may otherwise be required by the Purchase
      Agreement.

     

    (c) The
      Company is obligated to register the Warrant Shares for resale under the 1933
      Act pursuant to the Purchase Agreement and the initial holder of this Warrant
      (and certain assignees thereof) is entitled to the registration rights in
      respect of the Warrant Shares as set forth in the Purchase
      Agreement.

     

    Section
      8. Adjustment
      of Warrant Exercise Price and Number of Shares.
      The
      Warrant Exercise Price and the number of shares of Common Stock issuable upon
      exercise of this Warrant shall be adjusted from time to time as
      follows:

     

    (a) Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, recapitalization or otherwise) one or more classes of its
      outstanding shares of Common Stock into a greater number of shares, the Exercise
      Price in effect immediately prior to such subdivision and the number of shares
      of Common Stock obtainable upon exercise of this Warrant prior to such
      subdivision shall be adjusted so that the Holder of any Warrant thereafter
      exercised shall be entitled to receive the number of shares of capital stock
      of
      the Company that such Holder would have owned immediately following such
      subdivision had such Warrant been exercised immediately prior thereto. If the
      Company at any time after the date of issuance of this Warrant combines (by
      combination, reverse stock split or otherwise) one or more classes of its
      outstanding shares of Common Stock into a smaller number of shares, the Exercise
      Price in effect immediately prior to such combination and the number of shares
      of Common Stock obtainable upon exercise of this Warrant prior to such
      combination shall be adjusted so that the Holder of any Warrant thereafter
      exercised shall be entitled to receive the number of shares of capital stock
      of
      the Company that such Holder would have owned immediately following such
      combination had such Warrant been exercised immediately prior thereto. Any
      adjustment under this Section 8(a) shall become effective at the close of
      business on the date the subdivision or combination becomes
      effective.

     

    (b) Adjustment
      of Warrant Exercise Price upon a Stock Dividend.
      If the
      Company at any time after the date of issuance of this Warrant shall declare
      a
      dividend or any other distribution upon the Common Stock which
      is
      payable in shares of Common Stock or securities convertible into shares of
      Common Stock,
      the
      Exercise Price in effect immediately prior to the declaration of such dividend
      or distribution will be reduced to the quotient obtained by dividing (i) the
      number of shares of Common outstanding immediately prior to such declaration
      multiplied by the then effective Exercise Price by (ii) the total number of
      shares of Common Stock outstanding immediately after such
      declaration.

     

    
      
         

      

      
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    (c) Adjustment
      of Warrant Exercise Price upon Certain Issuances.
      If the
      Company at any time after the date of issuance of this Warrant shall (a) issue
      any shares of Common Stock at per share price below the Threshold Price, (b)
      issues any other securities that are convertible into or exercisable or
      exchangeable for shares of Common Stock at a per share price below the Threshold
      Price or (c) enters into any transaction that is indexed to or provides a return
      based on a price per share of Common Stock that is below the Threshold Price,
      then the Exercise Price then in effect shall be decreased by an amount equal
      to
      the product of (I) the excess of the Threshold Price over the relevant issue,
      conversion, exercise, exchange, index or other reference price that resulted
      in
      such condition being satisfied and (II) 1.2; provided that no adjustment shall
      be made under this Section 8(c) with respect to (x) any shares, options or
      warrants that are outstanding on the issuance date of this Warrant, (y) up
      to
      5,000,000 shares of Common Stock issued as a result of any shares, options
      or
      warrants that are issued or granted after such issuance date to any directors
      or
      employees of the Company under any stock incentive plan duly adopted and
      maintained by the Company) and (z) any shares issued in any merger with any
      other entity or acquisition of any other business which is approved by the
      Company’s board of directors and where such board has determined that the value
      of the merged entity or acquired business is at least equal to the fair market
      value of such shares. As used herein, the “Threshold Price” shall initially be
      $1.00, and shall from time to time be adjusted in the same manner as the
      Exercise Price pursuant to Sections 8(a) and (b) above.

     

    (d) Notices.
      Immediately upon any adjustment of the Exercise Price, the Company will give
      written notice thereof to the holder of this Warrant, setting forth in
      reasonable detail, and certifying, the calculation of such
      adjustment.

     

    Section
      9. Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.
      Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent liquidation)
      stock, securities or assets with respect to or in exchange for Common Stock
      is
      referred to herein as an “Organic
      Change.”
      Prior to
      the consummation of any (i) sale of all or substantially all of the Company’s
      assets to an acquiring Person or (ii) other Organic Change following which
      the
      Company is not a surviving entity, the Company will secure from the Person
      purchasing such assets or the successor resulting from such Organic Change
      (in
      each case, the “Acquiring
      Entity”)
      a
      written agreement to deliver to each holder of Warrants in exchange for such
      Warrants, a security of the Acquiring Entity evidenced by a written instrument
      substantially similar in form and substance to this Warrant and reasonably
      satisfactory to the holders of the Warrants. Prior to the consummation of any
      other Organic Change, the Company shall make appropriate provision to insure
      that each of the holders of the Warrants will thereafter have the right to
      acquire and receive in lieu of or in addition to (as the case may be) the shares
      of Common Stock immediately theretofore acquirable and receivable upon the
      exercise of such holder’s Warrants (without regard to any limitations on the
      exercise of this Warrant), such shares of stock, securities or assets that
      would
      have been issued or payable in such Organic Change with respect to or in
      exchange for the number of shares of Common Stock which would have been
      acquirable and receivable upon the exercise of such holder’s Warrant as of the
      date of such Organic Change (without regard to any limitations on the exercise
      of this Warrant).

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    Section
      10. Lost,
      Stolen, Mutilated or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
      on
      receipt of an indemnification undertaking (or, in the case of a mutilated
      Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
      this Warrant so lost, stolen, mutilated or destroyed.

     

    Section
      11. Notice.
      All
      notices, requests, consents, waivers or other communications hereunder shall
      be
      in writing and shall be deemed effectively given: (a) upon delivery to the
      party
      to be notified; (b) when received by confirmed facsimile or (c) one (1) business
      day after deposit with a nationally recognized overnight courier, specifying
      next business day delivery, with written verification of receipt; provided
      that,
      with respect to Exercise Delivery Documents, such documents shall not be deemed
      received until actually received by the recipient. All notices, requests,
      consents, waivers or other communications shall be sent to the Company or to
      the
      Holder as follows or at such other addresses as the Company or Holder may
      designate upon written notice to the other party:

     

    If
      to the
      Company:

     

    
      	
              Innofone.com,
                Incorporated

              Attn:
                Alex Lightman

              1431
                Ocean Avenue, Suite 1500

              Santa
                Monica, CA 90401

              Telephone:
                (310) 458-3233

              Fax:
                (310) 458-2844

            

    

    

     

    If
      to the
      Holder of this Warrant, to it at the address and facsimile number set forth
      on
      Appendix 1 to this Warrant or at such other address and facsimile as shall
      be
      delivered to the Company upon the issuance or transfer of this Warrant.

     

    Section
      12. Remedies,
      Other Obligations, Breaches and Injunctive Relief.
      The
      remedies provided in this Warrant shall be cumulative and in addition to all
      other remedies available under this Warrant and the Purchase Agreement, at
      law
      or in equity (including a decree of specific performance and/or other injunctive
      relief), and nothing herein shall limit the right of the holder of this Warrant
      right to pursue actual damages for any failure by the Company to comply with
      the
      terms of this Warrant. The Company acknowledges that a breach by it of its
      obligations hereunder will cause irreparable harm to the holder of this Warrant
      and that the remedy at law for any such breach may be inadequate. The Company
      therefore agrees that, in the event of any such breach or threatened breach,
      the
      holder of this Warrant shall be entitled, in addition to all other available
      remedies, to an injunction restraining any breach, without the necessity of
      showing economic loss and without any bond or other security being
      required.

     

    Section
      13. Amendment
      and Waiver.
      Except
      as otherwise provided herein, this Warrant may not be modified or amended except
      pursuant to an instrument in writing signed by the Company and the holder of
      the
      Warrant. No provision hereunder may be waived other than in a written instrument
      executed by the waiving party.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    Section
      14. 
      Governing Law; Jurisdiction; Service of Process.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York and the federal law of the United States of America. Any
      action or proceeding seeking to enforce any provision of, or based on any right
      arising out of, this Warrant shall be brought against any of the parties in
      the
      courts of the State of New York, County of New York, or, if it has or can
      acquire jurisdiction, in the United States District Court of the Southern
      District of New York, and each of the parties consents to the jurisdiction
      of
      such courts (and of the appropriate appellate courts) in any such action or
      proceeding and waives any objection to venue laid therein. Process in any action
      or proceeding referred to in the preceding sentence may be served on any party
      anywhere in the world.

     

    Section
      15. Construction;
      Headings.
      This
      Warrant shall be deemed to be jointly drafted by the Company and the Purchaser
      (as defined in the Purchase Agreement) and shall not be construed against any
      person as the drafter hereof. The headings of this Warrant are for convenience
      of reference and shall not form part of, or affect the interpretation of, this
      Warrant. 

     

    [Signature
      Page Follows]

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be signed as of the
      2nd
      day of
      June, 2006.

     

    

     

    INNOFONE.COM,
      INCORPORATED

     

    

    
      	
               

            
	 	
              By:
                /s/
                Alex Lightman

            
	
              Name:

            	
              Alex
                Lightman

            
	
              Title:  
                

            	
              Chief
                Executive Officer

            
	 	 

    

    

     

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    

    APPENDIX
      1

     

    

     

    
      	
              Innofone.com,
                Incorporated

              1431
                Ocean Avenue, Suite 1500

              Santa
                Monica, CA 90401

              Attention:
                Alex Lightman

              Facsimile:
                310-458-2844

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      I

     

    EXERCISE
      AGREEMENT

     

    
      	
              To:

            	
              Dated:

            

    

    

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (Warrant No. ______), hereby irrevocably subscribes for the purchase of
      _______________ shares of the Warrant Stock covered by such Warrant and makes
      payment herewith in full therefor at the price per share provided by such
      Warrant. The undersigned requests that a certificate for such shares be issued
      in the name of [the undersigned] and be delivered to [the undersigned] at the
      address stated below. The undersigned further requests that, if the number
      of
      shares subscribed for herein shall not be all of the shares purchasable
      hereunder, that a new Warrant of like tenor for the balance of the shares
      purchasable hereunder be delivered to [the undersigned].

     

    

    

    Signature___________________________ 

     

    Address____________________________

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      II

     

    FORM
      OF CASHLESS EXERCISE

     

    
      	
              To:

            	
              Dated:

            

    

    

    The
      undersigned hereby irrevocably elects a Cashless Exercise of the Warrant
      represented by the attached Warrant (Warrant No. ________) to purchase the
      shares of Common Stock issuable upon the exercise in accordance with Section
      2(b)(ii) of the Warrant and requests that certificates for such shares be issued
      in the name of:

     

    

    Please
      insert social security or other

    identifying
      number

    ____________________________

    ____________________________

    

    (Please
      print name and address)

    
      ______________________________________________________

      ______________________________________________________

    

     

    If
      such
      number of Warrants shall not be all the Warrants evidenced by the Warrant,
      a new
      Warrant for the balance remaining of such Warrant shall be registered in the
      name of and delivered to:

    

    Please
      insert social security or other

    identifying
      number

    ____________________________

    ____________________________

    

    (Please
      print name and address)

    ______________________________________________________

    ______________________________________________________

    

    

    Dated:________________,___              
      _______________________________

    (i) Signature

     

    (Signature
      must conform in all respects to name of holder as specified on the face of
      this
      Warrant Certificate)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      III

     

    FORM
      OF ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, ____________hereby sells, assigns and transfers all of the rights
      of
      the undersigned under the attached Warrant (Warrant No. _____________) with
      respect to the number of shares of the Warrant Stock covered thereby set forth
      below, unto:

    

    
      	
              Name
                of Assignee

            	
              Address

            	
              No.
                of Shares

            

    

    

     

    

     

    
      	
              Dated:

            	
              Signature_____________________

            
	 	 
	 	 
	 	
              Witness______________________Exhibit

10.1     Thirteenth Amendment between Redhook Ale Brewery, Incorporated and U.S.
         Bank National Association

                              THIRTEENTH AMENDMENT

                    TO AMENDED AND RESTATED CREDIT AGREEMENT

This Thirteenth Amendment to Amended and Restated Credit Agreement
("Amendment"), effective as of June 1, 2006, is made and entered into by and
between REDHOOK ALE BREWERY, INCORPORATED, a Washington corporation
("Borrower"), and U.S. BANK NATIONAL ASSOCIATION, a national banking
association, ("U.S. Bank"). Words and phrases with initial capital letters have
the meanings given to them in Article I of this Amendment.

RECITALS:
A.       On or about June 5, 1995, U.S. Bank and Borrower entered into that
         certain amended and restated credit agreement (together with all
         amendments, supplements, exhibits, and modifications thereto, the
         "Credit Agreement"), whereby U.S. Bank agreed to make loans and
         advances of credit to Borrower on the terms and conditions set forth
         therein.
B.       Borrower and U.S. Bank have entered into twelve amendments to the
         Credit Agreement dated as of July 25, 1996; September 15, 1997;
         February 22, 1999; August 10, 2000; June 19, 2001; December 31, 2001;
         as of June 21, 2002; as of March 18, 2003; as of October 31, 2003; as
         of February 9, 2004; as of September 28, 2004 and as of January 30,
         2006.
C.       Borrower and U.S. Bank have agreed to amend the Credit Agreement again
         as set forth in this Amendment.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions set
forth herein, the parties agree as follows:

                      ARTICLE I. DEFINITIONS AND AMENDMENT

1.1      Defined Terms
As used in this Amendment, words and phrases with initial capital letters shall
have the meanings given to them in the Credit Agreement, except as otherwise
defined herein, or as the context otherwise requires.

1.2      Incorporation of Recitals and Exhibits
The foregoing recitals are incorporated into this Amendment by reference. All
references to "Exhibits" contained herein are references to exhibits attached to
this Amendment, the terms and conditions of which are made a part of this
Amendment for all purposes.

                                       5
<PAGE>

1.3      Amendment
The Credit Agreement and the other Loan Documents are hereby amended as set
forth herein. Except as specifically provided herein, all of the terms and
conditions of the Credit Agreement and each of the other Loan Documents and all
amendments thereto shall remain in full force and effect throughout the terms of
the Loans and any extensions or renewals thereof.

                       ARTICLE II. TERM LOAN AND TERM NOTE

2.1      Balance
As of June 1, 2006, the unpaid principal balance of the Term Loan and Term Note
is $4,950,000 with interest paid through June 1, 2006.

2.2      Maturity Date
The maturity date of the Term Loan and Term Note is extended from June 5, 2007
to June 5, 2012.

2.3      Repayment
Borrower shall continue to pay to U.S. Bank in arrears an amount equal to all
accrued interest on the first day of each month and to make monthly payments of
principal in installments of $37,500 on the first day of each month until June
5, 2012, the maturity date, at which time the entire principal and any accrued
and unpaid interest on the Term Loan and Term Note shall be paid in full.

2.4      Term Loan Fee
Concurrently with the execution and delivery of this Amendment, Borrower shall
pay a non-refundable fee in the amount of $6,188.

                        ARTICLE III. CONDITIONS PRECEDENT

U.S. Bank shall have no obligation to modify the terms of the Credit Agreement
as provided in this Amendment unless the following conditions have been
fulfilled to the satisfaction of U.S. Bank:

(a) U.S. Bank shall have received this Amendment, duly executed and delivered by
Borrower.
(b) There shall not then exist any Default or Event of Default as of the date
hereof.
(c) All representations and warranties of Borrower contained herein or made in
writing in connection herewith shall be true and correct as of the date hereof.
(d) U.S. Bank shall have received, duly executed and delivered by Borrower, such
financing statements or other instruments, in form and substance satisfactory to
U.S. Bank, that U.S. Bank may deem appropriate to perfect its security interests
in any Collateral.
(e) All corporate proceedings of Borrower and its Subsidiaries shall be
satisfactory in form and substance to U.S. Bank, and U.S. Bank shall have
received all information and copies of all documents, including records of all
corporate proceedings, that U.S. Bank has requested in connection therewith,
such documents where appropriate to be certified by proper corporate authorities
or Governmental Bodies.

                                       6
<PAGE>

                         ARTICLE IV. GENERAL PROVISIONS

4.1      Representations and Warranties
Borrower hereby represents and warrants to U.S. Bank that, to the best knowledge
and belief of Borrower, as of the date of this Amendment, there exists no
Default or Event of Default. All representations and warranties of Borrower
contained in the Credit Agreement and the other Loan Documents, or otherwise
made in writing in connection therewith, are true and correct as of the date of
this Amendment. Borrower acknowledges and agrees that all of Borrower's
Indebtedness to U.S. Bank is payable without offset, defense, counterclaim or
claim of recoupment.

4.2      Security
The parties acknowledge and agree that all security agreements, financing
statements, and other Loan Documents creating, perfecting, or evidencing U.S.
Bank's security interest in the Collateral shall remain in full force and effect
and shall secure and shall continue to secure payment and performance of all
Loans and other Indebtedness of Borrower to U.S. Bank

4.3      Guaranties
The parties hereby acknowledge and agree that all guaranties now existing or
hereafter obtained by U.S. Bank shall remain in full force and effect, are valid
and enforceable in accordance with their terms, and are not subject to offset,
defense, counterclaim or claim of recoupment.

4.4      Expenses
Borrower shall reimburse U.S. Bank for all of its out-of-pocket expenses
incurred in connection with this Amendment promptly upon demand. Such expenses
shall include, without limitation, reasonable attorney fees, examination
expenses, and filing fees.

4.5      Counterparts
This Amendment may be executed in one or more counterparts, each of which shall
constitute an original agreement, but all of which together shall constitute one
and the same agreement.

4.6      Statutory Notice
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR
FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. IN
WITNESS WHEREOF, U.S. Bank and Borrower have caused this Amendment to be duly
executed by their respective duly authorized officers or agents as of the date
first above written.

Borrower:

REDHOOK ALE BREWERY, INCORPORATED

                                       7
<PAGE>

By:       /s/ David Mickelson
         ----------------------
         David Mickelson, President and Chief Financial Officer

Bank:

U.S. BANK NATIONAL ASSOCIATION

By:      /s/ J.Corey Limbaugh
         --------------------
         J.Corey Limbaugh, Vice President

By execution of this Amendment, the undersigned Guarantor approves of the
changes to the Credit Agreement set forth herein, reaffirms its Guaranty, and
acknowledges and agrees that its obligations under its Guaranty are not subject
to any defense, offset, counterclaim or claim of recoupment.

REDHOOK OF NEW HAMPSHIRE, INC.

By:      /s/ Paul Shipman
         ------------------
         Paul Shipman, Chief Executive Officer

                                       8

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