Document:

THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “ACT”) OR ANY STATE SECURITIES LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE
      SOLD, OFFERED FOR SALE, OR OTHERWISE TRANSFERRED UNLESS
      AND UNTIL REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR
      UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
      THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    2008-_____

    WARRANT
      TO PURCHASE SHARES

    OF
      THE COMMON STOCK OF

    

    ASKMENOW,
      INC.

    

    (Void
      after Expiration Date - ____________, 2013)

    

    Issue
      Date: __________, 2008

    

    This
      certifies that ___________________, a __________________ with a principal
      business address of ___________________ (or
      any
      valid transferee thereof, the “Holder”),
      for
      value received, shall be entitled to purchase from AskMeNow, Inc., a Delaware
      corporation having its principal place of business at 26 Executive Park, Suite
      250, Irvine, California 92614 (together with its successors and assigns, the
      “Company”),
      subject to the terms and conditions set forth herein, _________________ (#)
      fully paid and non-assessable shares of the Company’s common stock, par value
      $.01 per share (“Common
      Stock”),
      at a
      price equal to $.10 per share, at any time and from time to time commencing
      as
      of the issue date set forth above (the “Issue
      Date”)
      and
      continuing up to and including 12:00 p.m. (California time) on ___________,
      2013
      (“Expiration
      Date”);
      provided,
      however,
      if such
      date is not a Business Day, then on the Business Day immediately following
      such
      date. The shares purchasable upon exercise of this Warrant, and the purchase
      price per share, each as adjusted from time to time pursuant to the provisions
      of this Warrant, are hereinafter sometimes referred to as the “Warrant
      Shares”
and
      the
“Exercise
      Price,”
      respectively.

     

    This
      Warrant is being issued to the Holder in connection with the Company’s
      $1,000,000 offering (the “Offering”)
      of up
      to 1,000,000 shares of Series D Convertible Preferred Stock, $.01 par value,
      of
      the Company (the “Series
      D Stock”)
      that
      are automatically convertible into shares of the Company’s Common Stock upon the
      earlier to occur of the six month anniversary of the date of the final sale
      of
      shares of Series D Stock in the Offering (the “Closing
      Date”)
      or a
      Change of Control Transaction (as such term is defined in the Certificate of
      Designations, Preferences, Privileges, Powers and Rights for the Series D
      Stock). This Warrant is one of several that will be issued in the Offering,
      all
      identical except for names and amounts. An aggregate of 2,000,000 warrants
      will
      be issued by the Company if the full $1,000,000 Offering is completed. Such
      warrants are being issued on the basis of two (2) warrants for every one (1)
      dollar invested. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1. Exercise;
      Issuance of Certificates; Payment for Shares.

     

    1. Mechanics
      of Exercise.
      This
      Warrant is exercisable, in whole at any time or in part from time to time,
      commencing on the Issue Date and prior to 12:00 P.M. (California time) on the
      Expiration Date, upon the surrender to the Company at its principal place of
      business (or at such other location as the Company may advise the Holder in
      writing) of this Warrant properly endorsed and delivery of an exercise notice
      in
      substantially the form attached hereto as Schedule
      A
      duly
      completed and signed, accompanied by payment in full of the aggregate Exercise
      Price for the number of Warrant Shares for which this Warrant is being exercised
      as determined in accordance with the provisions hereof. Payment shall be made
      by
      cash, certified or bank check or wire transfer of immediately available funds
      to
      the Company. This Warrant is exercisable in whole or in part, in increments
      of
      5,000 shares, and in no event shall any exercise hereof be for fewer than 5,000
      Warrant Shares unless fewer than 5,000 Warrant Shares are then purchasable
      under
      this Warrant. In
      the
      case of the exercise for less than all of the Warrant Shares represented by
      this
      Warrant, the Company shall cancel this Warrant certificate upon the surrender
      hereof and shall execute and deliver a new Warrant certificate or certificates
      of like tenor for the balance of the Warrant Shares for which this Warrant
      has
      not yet been exercised. The
      Company agrees that the shares of Common Stock purchased under this Warrant
      shall be deemed to be issued to the Holder hereof, and the Holder deemed to
      be
      the record owner of such shares, as of immediately prior to the close of
      business on the date on which the exercise notice attached hereto as
Schedule
      A
      is
      delivered, and this Warrant surrendered, to the Company as provided herein
      (such
      date, the “Exercise
      Date”).
      Certificates for the shares of Common Stock purchased upon exercise, together
      with any other securities or property to which the Holder is entitled upon
      such
      exercise, shall be delivered to the Holder by the Company at the Company’s
      expense within a reasonable time after the rights represented by this Warrant
      have been so exercised, and in any event within 10 business days of the Exercise
      Date. Each Common Stock certificate so delivered shall be in such denominations
      as may be requested by the Holder hereof and shall be registered on the
      Company’s books in the name designated by such Holder.

    

    1.2 Shares
      to be Fully Paid; Reservation of Shares.
      The
      Company covenants and agrees that all shares of Common Stock which may be issued
      upon the exercise of the rights represented by this Warrant will, upon issuance,
      be duly authorized, validly issued, fully paid and nonassessable and free from
      all preemptive rights of any shareholder and free of all taxes, liens and
      charges with respect to the issue thereof. The Company further covenants and
      agrees that, during the period within which the rights represented by this
      Warrant may be exercised, the Company will at all times have authorized and
      reserved, for the purpose of issue or transfer upon exercise of the subscription
      rights evidenced by this Warrant, a sufficient number of shares of authorized
      but unissued Common Stock when and as required to provide for the exercise
      of
      the rights represented by this Warrant. The Company will take all such action
      as
      may be reasonably necessary to assure that such shares of Common Stock may
      be
      issued as provided herein without violation of any applicable law or regulation,
      or of any requirements of any domestic securities exchange upon which the Common
      Stock or other securities may be listed; provided,
      however,
      that
      the Company shall not be required to effect a registration under federal or
      state securities laws with respect to any exercise hereunder. 

     

    
      
        
        

      

      
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    2. Determination
      or Adjustment of Exercise Price and Number of Shares.
      The
      Exercise Price and the number of Warrant Shares purchasable upon the exercise
      of
      this Warrant shall be subject to adjustment from time to time upon the
      occurrence of certain events described in this Section 2. Upon each adjustment
      of the Exercise Price, the Holder of this Warrant shall thereafter be entitled
      to purchase, at the Exercise Price resulting from such adjustment, the number
      of
      shares obtained by multiplying the Exercise Price in effect immediately prior
      to
      such adjustment by the number of shares purchasable pursuant hereto immediately
      prior to such adjustment, and dividing the product thereof by the Exercise
      Price
      resulting from such adjustment. 

     

    2.1 Subdivision
      or Combination of Common Stock.
      If at
      any time after the Issue Date hereof and prior to the exercise or Expiration
      Date hereof the Company shall subdivide or reclassify its outstanding shares
      of
      Common Stock into a greater number of shares, the Exercise Price in effect
      immediately prior to such subdivision shall be proportionately reduced, and
      conversely, in case the outstanding shares of Common Stock of the Company shall
      be combined or reclassified into a smaller number of shares, the Exercise Price
      in effect immediately prior to such combination shall be proportionately
      increased. Any adjustment under this Subsection 2.1 shall become effective
      at
      the close of business on the date the subdivision or combination becomes
      effective.

     

    2.2 Dividends
      in Common Stock or Other Stock or Securities.
      If at
      any time or from time to time after the Issue Date hereof and prior to the
      exercise or Expiration Date hereof the holders of Common Stock (or any shares
      of
      stock or other securities at the time receivable upon the exercise of this
      Warrant) shall have received or become entitled to receive, without payment
      therefor, shares of Common Stock or any shares of capital stock or other
      securities which are at any time directly or indirectly convertible into or
      exchangeable for Common Stock, or any rights or options to subscribe for,
      purchase or otherwise acquire any of the foregoing by way of dividend or other
      distribution, then and in each such case, the Holder shall, upon the exercise
      of
      this Warrant, be entitled to receive, in addition to the number of shares of
      Common Stock or other capital stock receivable thereupon, and without payment
      of
      any additional consideration therefor, the amount of stock and other securities
      which such Holder would hold on the date of such exercise had the Holder been
      the holder of record of such Common Stock as of the date on which holders of
      Common Stock received or became entitled to receive such shares or all other
      additional stock and other securities.

     

    2.3 Reorganization,
      Reclassification, Consolidation, Merger or Sale.
      If at
      any time after the Issue Date hereof and prior to the exercise or Expiration
      Date hereof any
      recapitalization, reclassification or reorganization of the capital stock of
      the
      Company, or any consolidation or merger of the Company with another corporation,
      or the sale of all or substantially all of its assets or other transaction
      shall
      be effected in such a way that holders of Common Stock shall be entitled to
      receive stock, securities, or other assets or property (an “Organic
      Change”),
      then,
      as a condition of such Organic Change, lawful and adequate provisions shall
      be
      made by the Company whereby the Holder hereof shall thereafter have the right,
      upon exercise of this Warrant, to purchase and receive (in lieu of the shares
      of the Common Stock of the Company immediately theretofore purchasable and
      receivable upon the exercise of the rights represented by this Warrant) such
      shares of stock, securities or other assets or property as may be issued or
      payable with respect to or in exchange for a number of outstanding shares of
      such Common Stock equal to the number of shares of such stock immediately
      theretofore purchasable and receivable upon the exercise of the rights
      represented by this Warrant. In the event of any Organic Change, appropriate
      provision shall be made by the Company with respect to the rights and interests
      of the Holder of this Warrant to the end that the provisions hereof (including,
      without limitation, provisions for adjustments of the Exercise Price and of
      the
      number of shares purchasable and receivable upon the exercise of this Warrant)
      shall thereafter be applicable, in relation to any shares of stock, securities
      or assets thereafter deliverable upon the exercise hereof.

     

    
      
        
        

      

      
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    2.4 No
      Adjustments in Certain Cases.
      No
      adjustment in the number of Warrant Shares purchasable pursuant to this Warrant
      shall be required unless the adjustment would require an increase or decrease
      of
      at least one percent (1.0%) in the number of Warrant Shares then purchasable
      upon the exercise of this Warrant. Except as provided in this Section 2, no
      other adjustments in the number, kind or price of shares constituting Warrant
      Shares shall be made during the term, or upon the exercise, of this Warrant.
      Further, no adjustments shall be made pursuant to this Section 2 hereof in
      connection with the grant or exercise of presently authorized or outstanding
      options to purchase, or the issuance of shares of Common Stock under, the
      Company’s director or employee benefit, option and incentive plans.

     

    3. Issue
      Tax. The
      issuance of certificates for shares of Common Stock issuable upon the exercise
      of this Warrant shall be made without charge to the Holder for any issue tax
      (other than any applicable income taxes) in respect thereof; provided,
      however,
      that
      the Company shall not be required to pay any tax which may be payable in respect
      of any transfer of this Warrant or any Warrant Shares.

    

    4. No
      Voting or Dividend Rights; Limitation of Liability.
      Nothing
      contained in this Warrant shall be construed as conferring upon the Holder
      hereof the right to vote, give consent or receive notices as a shareholder
      of
      the Company. No dividends or interest shall be payable or accrued in respect
      of
      this Warrant, the interest represented hereby, or the shares purchasable
      hereunder until, and only to the extent that, this Warrant shall have been
      exercised. No provisions hereof, in the absence of affirmative action by the
      Holder to purchase shares of Common Stock, and no mere enumeration herein of
      the
      rights or privileges of the Holder hereof, shall give rise to any liability
      of
      such Holder for the Exercise Price or as a shareholder of the Company, whether
      such liability is asserted by the Company or by its creditors.

    

    5. Representations
      and Covenants of the Holder.
      This
      Warrant has been entered into by the Company in reliance upon the following
      representations and covenants of the Holder:

    

    5.1 Investment
      Purpose.
      This
      Warrant and, if exercised, the Warrant Shares issuable upon exercise of this
      Warrant, will be acquired for the Holder’s own account for investment only and
      not with a view to the sale or distribution of any part hereof or thereof,
      and
      the Holder has no present intention of selling or engaging in any public
      distribution of the same except pursuant to a registration or exemption
      therefrom under the Securities Act of 1933, as amended (the “Act”).

    

    5.2 Private
      Issue.
      The
      Holder understands that (a) this Warrant and the Warrant Shares issuable upon
      exercise of this Warrant are not registered under the Act or qualified under
      applicable state securities laws on the ground that the issuance contemplated
      by
      this Warrant will be exempt from the registration and qualifications
      requirements thereof, and (b) that the Company’s reliance on such exemption is
      predicated on the representations set forth in this Section 5.

     

    
      
        
        

      

      
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    5.3 Disposition
      of Holder’s Rights.
      In no
      event will the Holder make a disposition of this Warrant or the Warrant Shares
      issuable upon exercise of this Warrant unless and until (a) the Holder shall
      have notified the Company of the proposed disposition, and (b) if requested
      by
      the Company, the Holder shall have furnished the Company with an opinion of
      counsel (which counsel may either be inside or outside counsel to the Holder)
      satisfactory to the Company and its counsel to the effect that (i) appropriate
      action necessary for compliance with the Act has been taken, or (ii) an
      exemption from the registration requirements of the Act is available.
      Notwithstanding the foregoing, the restrictions imposed upon the transferability
      of any of its rights to acquire Common Stock issuable on the exercise of such
      rights do not apply to transfers from the beneficial owner of any of the
      aforementioned securities to its nominee or from such nominee to its beneficial
      owner, and shall terminate as to any particular share of stock when (1) such
      security shall have been effectively registered under the Act and sold by the
      Holder thereof in accordance with such registration or (2) such security shall
      have been sold without registration in compliance with Rule 144 under the Act,
      or (3) a letter shall have been issued to the Holder at its request by the
      staff
      of the Securities and Exchange Commission or a ruling shall have been issued
      to
      the Holder at its request by such Commission stating that no action shall be
      recommended by such staff or taken by such Commission, as the case may be,
      if
      such security is transferred without registration under the Act in accordance
      with the conditions set forth in such letter or ruling and such letter or ruling
      specifies that no subsequent restrictions on transfer are required. Whenever
      the
      restrictions imposed hereunder shall terminate, as hereinabove provided, the
      Holder or holder of a share of stock then outstanding as to which such
      restrictions have terminated shall be entitled to receive from the Company,
      without expense to such Holder, one or more new certificates for the Warrant
      or
      for such shares of stock not bearing any restrictive legend.

    

    5.4 Financial
      Risk.
      The
      Holder has such knowledge and experience in financial and business matters
      as to
      be capable of evaluating the merits and risks of an investment in the Company,
      and has the ability to bear the economic risks of such investment.

    

    5.5 Accredited
      Investor or Non-U.S. Person.
      The
      Holder is either an “accredited investor” within the meaning of Regulation D
      promulgated under the Act or not a “U.S. person” as defined in Rule 902 of
      Regulation S promulgated under the Act. 

    

    6. Modification
      and Waiver.
      This
      Warrant and any provision hereof may be changed, waived, discharged or
      terminated only by an instrument in writing signed by the party against which
      enforcement of the same is sought.

    

    7. Transfer;
      Legends.
      

    

    (a) The
      Holder may sell, transfer, assign, pledge or otherwise dispose of this Warrant
      or the Warrant Shares, in whole or in part, so long as such sale or other
      disposition is made pursuant to an effective registration statement or an
      exemption from the registration requirements of the Act and applicable state
      securities laws and compliance with Section 5.3 above, and provided
      that no
      sale, transfer, pledge or other disposition may be made to a competitor, direct
      or indirect, of the Company at any time. Upon such transfer or other disposition
      (other than a pledge), the Holder shall deliver this Warrant to the Company
      together with a written notice to the Company, substantially in the form of
      the
      transfer notice attached hereto as Schedule
      B,
      indicating the person or persons to whom this Warrant shall be transferred
      and,
      if less than all of this Warrant is transferred, the number of Warrant Shares
      to
      be covered by the part of this Warrant to be transferred to each such person.
      Within ten (10) business days of receiving a transfer notice and the original
      of
      this Warrant, the Company shall deliver to the each transferee designated by
      the
      Holder another Warrant(s) of like tenor and terms for the appropriate number
      of
      Warrant Shares and, if less than all this Warrant is transferred, shall deliver
      to the Holder another Warrant for the remaining number of Warrant Shares not
      so
      transferred. Until this Warrant is transferred on the books of the Company
      (with
      the Company’s consent), the Company may treat the person in whose name this
      Warrant is issued as the absolute
      owner hereof for all purposes, notwithstanding any notice to the
      contrary.

     

    
      
        
        

      

      
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    (b) Each
      Warrant and certificate representing Warrant Shares shall bear a legend
      substantially in the following form:

     

    “THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “ACT”) OR ANY STATE SECURITIES LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE
      SOLD, OFFERED FOR SALE, OR OTHERWISE TRANSFERRED UNLESS
      AND UNTIL REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR
      UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
      THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    The
      foregoing legend shall be removed from the certificates representing any Warrant
      Shares, at the request of the holder thereof, at such time as they become
      eligible for resale pursuant to Rule 144 under the Act.

     

    8. Notices.
      Any
      notice required or permitted hereunder shall be given in writing (unless
      otherwise specified herein) and shall be deemed effectively given upon (a)
      personal delivery, against written receipt thereof, (b) delivery via facsimile
      with written confirmation, (c) one business day after deposit with Federal
      Express or another nationally recognized overnight courier service, or (d)
      five
      business days after being mailed, postage paid, via certified or registered
      mail, return receipt requested, addressed to each of the other parties thereunto
      entitled, at the addresses set forth on in the introductory paragraph hereof
      or
      at such other addresses as a party may designate by 10 days advance written
      notice.

    

    9. Binding
      Effect.
      This
      Warrant shall be binding upon and inure to the benefit of the parties hereto
      and
      their respective heirs, personal representatives, successors and permitted
      assigns.

    

    10. Descriptive
      Headings and Governing Law.
      The
      description headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      This
      Warrant shall be construed and enforced in accordance with, and the rights
      of
      the parties shall be governed by the laws of the State of Delaware.

     

    
      
        
        

      

      
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    11. Lost
      Warrants.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction, or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction, upon receipt of an indemnity agreement or bond reasonably
      satisfactory to the Company, or in the case of any such mutilation upon
      surrender and cancellation of this Warrant, the Company, at its expense, will
      make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen,
      destroyed or mutilated Warrant.

    

    12. Fractional
      Shares.
      No
      fractional shares shall be issued upon exercise of this Warrant. The Company
      shall,
      in
      lieu
      of issuing any fractional share, pay the Holder entitled to such fraction a
      sum
      in cash equal to such fraction multiplied by the then-effective Market
      Price.

    

    13. Redemption.
      The
      Company may, at any time subsequent to the earlier of the third anniversary
      of
      the Closing Date and the date the Common Stock trades at or above $1.00 per
      share for twenty (20) consecutive trading days, redeem this Warrant in whole
      or
      in part at a price of $0.01 per share (the “Redemption
      Price”).
      The
      Company may exercise such redemption right by written notice thereof delivered
      to the Holder in accordance with Section 8 above, which notice shall indicate
      the portion of this Warrant the Company is electing to redeem. No later than
      ten
      (10) business days following delivery of such exercise notice, the Holder
      shall surrender
      to the Company at its principal place of business (or at such other location
      as
      the Company may advise the Holder in writing) this Warrant for redemption.
      The
      Company shall thereafter promptly remit payment to the Holder in full of the
      aggregate Redemption Price for the number of Warrant Shares for which this
      Warrant is being redeemed. Payment shall be made by cash, certified or bank
      check or wire transfer of immediately available funds. In
      the
      case of the redemption for less than all of the Warrant Shares represented
      by
      this Warrant, the Company shall cancel this Warrant certificate upon the
      surrender hereof and shall execute and deliver a new Warrant certificate or
      certificates of like tenor for the balance of the Warrant Shares for which
      this
      Warrant has not yet been redeemed. 

    
      
        
        

      

      
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    In
      Witness Whereof, the
      Company has caused this Warrant to be duly executed by its officers, thereunto
      duly authorized this ______ day of ____________, 2008.

     

    
      	 	 	 
	 	
              AskMeNow,
                Inc.,
                

               a
                Delaware corporation

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
              Darryl Cohen
	 	Title:
              President and CEO
	 	
              Address:

              AskMeNow,
                Inc. 

              26
                Executive Park, Suite 250

              Irvine,
                CA 92614

              Phone: (949)
                861-2590   

              Fax:
                (949) 861-2591

              E-mail:
                dcohen@askmenow.com 

            

    

     

    
      
        
        

      

      
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    SCHEDULE
      A

     

    EXERCISE
      NOTICE

     

    Date:
      _________________, _______

     

    AskMeNow,
      Inc.

    Attn:
      Chief Executive Officer

     

    Ladies
      and Gentlemen:

     

    The
      undersigned hereby elects to exercise the Warrant issued to it by AskMeNow,
      Inc.
      (“Company”)
      dated
      ___________ __, 2008 (Warrant No. _____), which Warrant shall be surrendered
      herewith, and pursuant to the terms thereof hereby elects to exercise rights
      represented by said Warrant for, and to purchase thereunder, __________________
      shares of the Company’s Common Stock covered by said Warrant, at an Exercise
      Price of $____ per share, and tenders herewith payment of the purchase price
      in
      full for such shares of $_________, by cash, through the delivery of a certified
      or official bank check, or wire transfer or immediately available
      funds.

     

    The
      undersigned hereby requests that certificates for such shares (or any other
      securities or other property issuable upon such exercise) be issued in the
      name
      of and delivered to the undersigned at the address set forth below, or as
      otherwise set forth below.

     

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 
 	 
 	 
 
	
            	
            	 
	 	
              

              Name:

              Address:

            

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B

     

    TRANSFER
      NOTICE

    

    To
      Be
      Executed by the Holder

    in
      Order
      to Assign Warrants

    

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

     

    
      	
              Name
                of Assignee

            	 	
              Address

            	 	
              No.
                of Shares

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    The
      undersigned hereby irrevocably constitutes and appoints the Chief Executive
      Officer of the Company as the undersigned’s attorney to transfer this Warrant
      certificate on the books of the Company, with full power of substitution in
      the
      premises.

     

    Dated:
      _____________________    Signature:
      _____________________________

     

    Signature
      Guaranteed:

     

    By:
      _______________________

     

    The
      signature should be guaranteed by an eligible guarantor institution (banks,
      stockbrokers, savings and loan associations and credit unions with membership
      in
      an approved signature guarantee medallion program) pursuant to Rule 17A
      under the Securities Exchange Act of 1934, as amended.EXHIBIT
      4.12.1

    

    INITIAL
      WARRANT

    

    THE
      WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF COMMON STOCK
      DELIVERABLE UPON EXERCISE HEREUNDER, HAVE BEEN AND WILL BE ISSUED WITHOUT
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”) AND MAY
      NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT
      REGISTRATION UNDER THE ACT UNLESS EITHER (A) THE COMPANY HAS RECEIVED AN OPINION
      OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO
      THE
      EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION
      OR
      (B) THE SALE OF SUCH SECURITIES IS MADE PURSUANT TO SECURITIES AND EXCHANGE
      COMMISSION RULE 144.

    

    Date:                                          
      , 2008

    

    WARRANT
      TO PURCHASE COMMON STOCK

    

    OF

    

    INTERMETRO
      COMMUNICATIONS, INC.

    

    THIS
      CERTIFIES THAT, for value
      received,                                                  
(“Holder”),
      is
      entitled, subject to the terms and conditions of this Warrant, at any time
      or
      from time to time on or after the date hereof, to purchase up to
      (                      
) shares of Common Stock (the “Warrant Shares”), from InterMetro Communications,
      Inc., a Nevada corporation (the “Company”),
      at an
      exercise price per share equal to one dollar ($1.00) (as adjusted from time
      to
      time, the “Purchase Price). This Warrant shall expire at 5:00 p.m. Pacific time
      on                                         
 , 2013 (the “Expiration
      Date”).
      Both
      the number of shares of Common Stock purchasable upon exercise of this Warrant
      (the “Warrant
      Shares”)
      and
      the Purchase Price are subject to adjustment and change as provided herein.
      This
      Warrant is one constituent part of a multi-part Unit issued pursuant to the
      Loan
      and Security Agreement dated January 16, 2008, between the Company, the
      Subsidiaries, the Agent and the Lenders named therein, including Holder (the
      “Loan Agreement”).

    

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

    

    “1933
      Act”
shall
      mean the Securities Act of 1933, as amended.

    

    “Common
      Stock”
shall
      mean the Common Stock, par value $0.001 per share, of the Company and any other
      securities at any time receivable or issuable upon exercise of this
      Warrant.

    

    “Fair
      Market Value”
or
      “FMV”
of
      a
      share of Common Stock as of a particular date shall mean:

    

    (a)
      If
      traded on a national securities exchange or the Nasdaq Capital Market, the
      Fair
      Market Value shall be deemed to be the average of the closing prices of the
      Common Stock of the Company on such exchange or market over the five (5) trading
      days ending immediately prior to the applicable date of valuation;

    

    (b)
      If
      actively traded over-the-counter, the Fair Market Value shall be deemed to
      be
      the average of the closing bid prices over the 10 trading days ending
      immediately prior to the applicable date of valuation; and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)
      If
      there is no active public market, the Fair Market Value shall be the value
      as
      determined in good faith by the Company’s Board of Directors upon a review of
      relevant factors, including due consideration of the Holder’s determination of
      the value of the Company. The foregoing notwithstanding, if Holder advises
      the
      Board of Directors in writing that Holder disagrees with such determination,
      then the Company and Holder shall promptly agree upon a reputable investment
      banking firm to undertake such valuation. If the valuation of such investment
      banking firm is greater than that determined by the board of directors, then
      all
      fees and expenses of such investment banking firm shall be paid by the Company.
      In all other circumstances, such fees and expenses shall be paid by
      Holder.

    

    “Note”
shall
      mean the Company’s Secured Convertible Promissory Note issued to Holder pursuant
      to the Loan Agreement.

    

    “SEC”
shall
      mean the Securities and Exchange Commission.

     

    2.
      EXERCISE
      OF WARRANT

    

    2.1
      Payment.
      Subject
      to compliance with the terms and conditions of this Warrant and applicable
      securities laws and subject to the limitation in Section 21.2 hereof, this
      Warrant may be exercised, in whole or in part at any time or from time to time,
      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 address of the Company as set forth herein,
      and
      as soon as practicable after such date,

    

    (a)
      surrendering this Warrant at the address of the Company, and either

    

    (b)
      providing payment, by check or by wire transfer, or, if applicable, by
      cancellation of any debt of the Company to the Holder or Section 21 Payment
      (as
      defined in Section 21) payable to the Holder as of immediately prior to such
      exercise, 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”),
      or

    

    (c)
      electing, by written notice to the Company on the Notice of Exercise duly
      executed by the Holder, to receive a number of Warrant Shares, determined in
      accordance with the formula set forth below (the “Election”), in which event the
      Company shall issue to the Holder a number of Warrant Shares computed using
      the
      following formula:

    

    X=
      Y(A-B)

    A

    

    Where
      X =
      The number of Warrant Shares to be issued to the Holder upon an
      Election.

    

    
      	
               

            	
              Y
                =

            	
              The
                number of Warrant Shares in respect of which this Warrant is being
                exercised.

            

    

    

    
      	 	
              A
                =

            	
              The
                FMV of one Warrant Share on the date that the relevant Notice of
                Exercise
                is received by the Company.

            

    

    

    
      	 	
              B
                =

            	
              The
                Purchase Price (as adjusted to the date of the Election) in accordance
                with Section 4 hereof

            

    

    

    2.2
      Common
      Stock Certificates; Fractional Shares.
      As soon
      as practicable on or after the date of an exercise of this Warrant and in any
      event within 10 days thereafter, the Company shall deliver to the person or
      persons entitled to receive the same a certificate or certificates for the
      number of whole shares of Common Stock issuable upon such exercise. No
      fractional shares or scrip representing fractional shares of Common Stock shall
      be issued upon an exercise of this Warrant. In lieu thereof the Company shall
      pay Holder the Fair Market Value of such fractional share.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.3
      Partial
      Exercise: Effective Date of Exercise.
      In case
      of any partial exercise of this Warrant, the Holder and 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 Company acknowledges that 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 Holder is deemed to have exercised this Warrant.

    

    3.
      TAXES.
      The
      Company shall pay all taxes and other governmental charges that may be imposed
      in respect of the delivery of shares upon exercise of this Warrant; provided,
      however
      , that
      the Company shall not be required to pay any tax or other charge imposed in
      connection with any transfer involved in the delivery of any certificate for
      shares of Common Stock in any name other than that of the Holder of this
      Warrant, and in such case the Company shall not be required to deliver any
      stock
      certificate 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 OF COMMON STOCK.
      The
      number of shares of Common Stock deliverable upon exercise of this Warrant
      (or
      any shares of stock or other securities or property receivable upon exercise
      of
      this Warrant) and the Purchase Price are subject to adjustment upon occurrence
      of the following:

    

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

    

    4.2
      Adjustment
      for Dividends or Distributions of Stock or Other Securities or
      Property.
      In case
      the Company shall make or issue, or shall fix a record date for the
      determination of eligible holders entitled to receive, a dividend or other
      distribution with respect to the Common Stock (or any shares of stock or other
      securities at the time issuable upon exercise of the Warrant) payable in (a)
      securities of the Company or (b) assets (excluding cash dividends paid or
      payable solely out of retained earnings), then, in each such case, the Holder
      of
      this Warrant on exercise hereof at any time after the consummation, effective
      date or record date of such dividend or other distribution, shall receive,
      in
      addition to the shares of Common Stock (or such other stock or securities)
      issuable on such exercise prior to such date, and without the payment of
      additional consideration therefor, the securities or such other assets of the
      Company to which such Holder would have been entitled upon such date if such
      Holder had exercised this Warrant immediately prior to such making, issuance
      or
      record date.

    

    4.3
      Reclassification,
      Conversion.
      If the
      Company, by reclassification of securities or conversion 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 if this
      Warrant had been exercised immediately prior to such reclassification or
      conversion or other change and the Purchase Price therefore shall be
      appropriately adjusted, all subject to further adjustment as provided in this
      Section 4. 

    

    4.4
      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 the number of shares of stock or other securities or property
      that
      a 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 4.4 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.
      If the per-share consideration payable to the Holder hereof for shares in
      connection with any such transaction is in a form other than cash or marketable
      securities, then the value of such consideration shall be determined in good
      faith by the Company’s Board of Directors. 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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.5
      Notice
      of Adjustment.
      Whenever the number of shares of Common Stock purchasable upon the exercise
      of
      this Warrant or the Purchase Price is adjusted, or the Company’s Board of
      Directors makes a determination of Fair Market Value in connection with any
      such
      adjustment, the Company shall promptly notify the Holder in writing of any
      such
      adjustment or FMV determination, setting forth a brief statement of the facts
      requiring such adjustment, the computation by which such adjustment was made,
      and the basis for the FMV determination.

    

    4.6 No
      Impairment.
      The
      Company will not, by any voluntary action, avoid or seek to avoid the observance
      or performance of any of the terms of this Warrant to be observed or performed
      by the Company, but shall at all times in good faith assist in the carrying
      out
      of all provisions of this Section 4 and in the taking of all such action as
      may
      be necessary or appropriate in order to protect the rights of the Holder of
      this
      Warrant against impairment.

    

    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 cause to be executed and
      delivered in lieu thereof a new Warrant of like tenor as the lost, stolen,
      destroyed or mutilated Warrant.

    

    6.
      REPRESENTATION
      AND COVENANT.
      The
      Company hereby represents and warrants that all shares issuable pursuant to
      this
      Warrant, when delivered pursuant to the terms hereof, shall be validly issued,
      fully paid and nonassessable and 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. Further, the Company hereby covenants
      to
      reserve such number of authorized but unissued shares of Common Stock as needed
      for issuance pursuant to this Warrant.

    

    7.
      TRANSFER.
      Subject
      to Section 10, this Warrant and all rights hereunder may be transferred by
      the
      Holder upon delivery of the form of Assignment attached hereto as Exhibit
      2
      (the
“Assignment”),
      duly
      executed by the Holder, surrender of this Warrant properly endorsed at the
      address of the Company and payment of any necessary transfer tax or other
      governmental charge imposed upon such transfer. Upon any partial transfer,
      the
      Holder and Company will cause to be issued and delivered to the Holder a new
      Warrant or Warrants with respect to the portion of this Warrant 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 Holder hereof as the owner for all purposes.

    

    8.
      REGISTRATION
      RIGHTS.
      Pursuant to the terms of a Registration Rights Agreement of even date herewith
      between the Company and Holders of Registrable Securities (as defined in the
      Registration Rights Agreement) the Holder shall have and be entitled to exercise
      the rights of registration with respect to the shares of Common Stock issued
      pursuant to this Agreement as provided for in such Agreement.

    

    9.
      PUT
      OPTION.
      Any
      time after the Maturity Date of the Note until the first anniversary of the
      date
      thereof, the Holder may submit this Warrant to the Company for cancellation
      and
      receive an amount in cash equal to 15% of the Purchase Price times the number
      of
      Warrant Shares then purchasable upon exercise of this Warrant (the “Put
      Option”). The Company shall make such payment within 10 days of Holder’s
      delivery of the Warrant to the Company for cancellation. Upon payment by the
      Company of the amount due hereunder, all of Holder’s rights hereunder, including
      the right to receive any Section 21 Payment, shall terminate.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    10.
      RESTRICTIONS
      ON TRANSFER.
      The
      Holder, by acceptance hereof, agrees that, absent an effective registration
      statement filed with the SEC under the 1933 Act, covering the disposition or
      sale of this Warrant or the Common Stock issued or issuable pursuant hereto,
      and
      registration or qualification under applicable state securities laws, such
      Holder will not sell, transfer, pledge, or hypothecate any or all such Warrants
      or Common Stock, as the case may be, unless either (i) the Company has received
      an opinion of counsel, in form and substance reasonably satisfactory to the
      Company, to the effect that such registration is not required in connection
      with
      such disposition or (ii) the sale of such securities is made pursuant to SEC
      Rule 144.

    

    11.
      COMPLIANCE
      WITH SECURITIES LAWS.
      By
      acceptance of this Warrant, the Holder hereby represents, warrants and covenants
      that he/she/it is an “accredited investor” as that term is defined under Rule
      501 of Regulation D, that any shares of stock purchased upon exercise of this
      Warrant or acquired pursuant hereto 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 this Warrant for an indefinite period;
      that the Holder understands that the shares of stock acquired pursuant to this
      Warrant will not be registered under the 1933 Act (unless otherwise required
      pursuant to exercise by the Holder of the registration rights, if any,
      previously granted to the Holder) and will be “restricted securities” within the
      meaning of Rule 144 under the 1933 Act and that the exemption from registration
      under Rule 144 will not be available for at least six months from the date
      the
      shares are acquired, 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 pursuant to this Warrant may have affixed thereto a legend substantially
      in the following form:

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE.
      THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
      AND
      MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
      FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER
      OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
      SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE
      IS
      IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.

    

    12.
      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. Until the Holder acquires Common Stock pursuant
      to
      this Warrant, 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
      shareholder of the Company for any purpose.

    

    13.
      NOTICES.
      All
      notices and other communications required or permitted hereunder shall be in
      writing and shall be delivered by registered or certified mail, postage prepaid,
      return receipt requested, or by telecopier, or by email or otherwise delivered
      by hand or by messenger, addressed, telecopied or emailed to the person to
      whom
      such notice or communication is being given at its address set forth after
      its
      signature hereto. In order to be effective, a copy of any notice or
      communication sent by telecopier or email must be sent by registered or
      certified mail, postage prepaid, return receipt requested, by nationally
      recognized overnight courier or delivered personally to the person to whom
      such
      notice or communication is being at its address set forth after its signature
      hereto. If notice is provided by mail, notice shall be deemed to be given five
      (5) business days after proper deposit with the United States mail or the next
      business day after deposit with a nationally recognized overnight courier,
      or
      immediately upon personal delivery thereof. If notice is provided by telecopier,
      notice shall be deemed to be given upon confirmation by the telecopier machine
      of the receipt of such notice. If notice is provided by email, notice shall
      be
      deemed to be given upon confirmation by the sender’s email program that the
      recipient received the email. The addresses set forth after the signatures
      hereto may be changed by written notice complying with the terms of this Section
      13.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    14.
      HEADINGS.
      The
      headings in this Warrant are for purposes of convenience in reference only,
      and
      shall not be deemed to constitute a part hereof.

    

    15.
      LAW
      GOVERNING AND VENUE.
      This
      Warrant shall be construed and enforced in accordance with, and governed by,
      the
      laws of the State of California, without giving effect to the principles of
      conflicts of law. The Company and Holder agree that the sole jurisdiction and
      venue for any litigation arising out of this Warrant involving the Company
      or
      Holder shall be in the appropriate federal or state court located in Los Angeles
      County, California.

    

    16.
      NOTICES
      OF RECORD DATE.
      In
      case:

    

    16.1
      the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of this Warrant), for
      the
      purpose of entitling them to receive any dividend or other distribution, or
      any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities or to receive any other right; or

    

    16.2
      of
      any consolidation or merger of the Company with or into another corporation,
      any
      capital reorganization of the Company, any reclassification of the capital
      stock
      of the Company, or any conveyance of all or substantially all of the assets
      of
      the Company to another corporation in which holders of the Company’s stock are
      to receive stock, securities or property of another corporation; or

    

    16.3
      of
      any voluntary or involuntary dissolution, liquidation or winding-up of the
      Company; or

    

    16.4
      of
      any redemption of any outstanding capital stock of the Company; then, and in
      each such case, the Company will mail or cause to be mailed to the Holder of
      this Warrant a notice specifying, as the case may be, (i) the date on which
      a
      record is to be taken for the purpose of such dividend, distribution or right
      and the amount and character of any such dividend, distribution or right, or
      (ii) the date on which such reorganization, reclassification, consolidation,
      merger, conveyance, dissolution, liquidation, winding-up, redemption or
      conversion is to take place, and the time, if any is to be fixed, as of which
      the holders of record of Common Stock (or such stock or securities as at the
      time are receivable upon the exercise of this Warrant) shall be entitled to
      exchange their shares of Common Stock (or such other stock or securities) for
      securities or other property deliverable upon such reorganization,
      reclassification, consolidation, merger, conveyance, dissolution, liquidation
      or
      winding-up. Such notice shall be delivered at least thirty (30) days prior
      to
      the date therein specified.

    

    17.
      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.

    

    18.
      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.

    

    19.
      SATURDAYS,
      SUNDAYS AND HOLIDAYS.
      If the
      Expiration Date falls on a Saturday, Sunday or legal holiday, the Expiration
      Date shall automatically be extended until 5:00 p.m. on the next business
      day.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    20.
      ATTORNEY’S
      FEES.
      Should
      either party hereto institute any action or proceeding to enforce or interpret
      this Warrant or any provisions hereof or for a declaration of rights under
      this
      Warrant, the prevailing party in such action or proceeding shall be entitled
      to
      receive from the other party all costs and expenses, including reasonable
      attorney’s fees, in connection therewith.

    

    21.
      CERTAIN
      PAYMENTS.
      To the
      extent that this Warrant is unexercised on February 1, 2009, the following
      payment (the “Section 21 Payment”) shall be payable to the Holder
      hereof:

    

    21.1 Amount
      of Payment.
      The
      amount of the Section 21 Payment shall be equal to the product of (a) the
      amount, if any, by which $1.00 exceeds the 30 Day VWAP determined as of January
      30, 2009 multiplied by (b) the number of Warrant Shares for which this Warrant
      is then exercisable (with the dollar amount and number of shares being subject
      to adjustment for stock splits, stock subdivisions or combinations of shares
      of
      Common Stock). If the 30 Day VWAP determined as of January 30, 2009 is equal
      to
      $1.00 or more (with such dollar amount being subject to adjustment for stock
      splits, stock subdivisions or combinations of shares of Common Stock), there
      shall be no Section 21 Payment and the provisions of this Section 21 shall
      immediately terminate. 

    

    21.2 Form
      of Payment.
      The
      Section 21 Payment shall be made by the Company in the form of cash or Common
      Stock. The choice of form of payment shall be in the sole discretion of the
      Company. If the Company elects to pay in Common Stock and not cash, then the
      Holder’s right to exercise this Warrant pursuant to Section 2 shall thereafter
      be limited to a number of shares of Common Stock which, together with the number
      of shares of Common Stock previously delivered as a Section 21 Payment, does
      not
      exceed the number of shares for which this Warrant was originally exercisable
      (with such share amounts being subject to adjustment for stock splits,
      subdivisions, or combinations of shares of Common Stock).

    

    21.3 Timing
      of Payment.
      The
      Section 21 Payment shall be made, in whole or in part, at
      such
      time or times as the Holder shall, in its sole discretion, determine by notice
      to the Company, provided that such payment may be requested no earlier than
      February 1, 2009 and no later than the Expiration Date. The amount requested
      by
      Holder to be paid (whether in cash or Common Stock) shall be delivered by the
      Company promptly, but in any event within 10 days of receipt of the Holder’s
      notice.

    

    21.4 Valuation
      of Common Stock.
      In the
      event that the Company elects to make a Section 21 Payment in the form of Common
      Stock, such Common Stock shall be valued at the Fair Market Value thereof on
      the
      date of the Holder’s notice requesting payment. In no event shall the Company be
      obligated to issue a number of shares of Common Stock as a Section 21 Payment
      which, together with shares issued upon prior exercise of this Warrant, exceed
      the number of shares for which this Warrant was originally exercisable (with
      such share amounts being subject to adjustment for stock splits, stock
      subdivisions or combinations of shares of Common Stock). In the event that,
      but
      for the preceding sentence, the Section 21 Payment would, if paid in shares
      of
      Common Stock, exceed the share limitation in the preceding sentence, the Company
      shall not be obligated to make any additional cash payment hereunder and the
      stock issuance contemplated by the preceding sentence shall be the entire
      Section 21 Payment obligation of the Company. 

     

    21.5 Call
      Option.
      If a
      Section 21 Payment is due Holder, in lieu of making such payment, the Company
      shall have the right (“Call Option”) to cancel this Warrant and terminate
      Holder’s rights hereunder by payment to Holder of an amount in cash equal to
      $3.00 times the number of shares for which this Warrant is exercisable on
      February 1, 2009, payable with the notice referred to in Section 21.6 (with
      such
      dollar and share amounts being subject to adjustment for stock splits, stock
      subdivisions or combinations of shares of Common Stock).

    

    21.6 Put
      Option.
      In the
      event that shares of Common Stock are issued as the Section 21 Payment, at
      any
      time after the Maturity Date of the Note until the first anniversary of the
      date
      thereof, the Holder may submit the shares of Common Stock as the Section 21
      Payment to the Company for cancellation and receive an amount in cash equal
      to
      $0.15 per share (with such dollar amount being subject to adjustment for stock
      splits, stock subdivisions or combinations of shares of Common Stock). The
      Company shall make such payment within 10 days of Holder’s delivery of the
      certificates representing such shares to the Company for cancellation. Upon
      payment by the Company of the amount due hereunder, all of Holder’s rights as a
      shareholder with respect to such shares shall terminate.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    21.7 Notice.
      No
      later than February 10, 2009, the Company shall send a notice to the Holder
      which shall state (i) the amount of the Section 21 Payment, (ii) the
      Company’s election to make the Section 21 Payment in cash or in Common Stock,
      which election shall be irrevocable, or (iii) that the Company elects to
      exercise its Call Option in lieu of making the Section 21 Payment. 

    

    21.8 Definition
      of VWAP.
      VWAP
      means, for any date, the price determined by the first of the following clauses
      that applies: (a) if the Common Stock is then traded on a national securities
      exchange or the NASDAQ Capital Market), the daily volume weighted average price
      of the Common Stock for such date (or the nearest preceding date) on the primary
      trading market on which the Common Stock is then listed or quoted as reported
      by
      Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. EST to 4:02
      p.m.
      Eastern Time) using the VAP function or (b) if the Common Stock is not then
      listed or quoted on such a trading market and if prices for the Common Stock
      are
      then reported in the “Pink Sheets” published by the Pink Sheets, LLC (or a
      similar organization or agency succeeding to its functions of reporting prices),
      the most recent bid price per share of the Common Stock so
      reported.

    

    22. Survival.
      Anything to the contrary notwithstanding, Sections 13, 14, 15, 17, 19 and 20
      hereof shall survive any cancellation or termination of this
      Warrant.

    

    [SIGNATURE
      PAGE TO FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	
              INTERMETRO
                COMMUNICATIONS, INC.

            	 	 HOLDER:
	 	 	 	 	 	 
	
              By:

            	 	 	 	
            
	
              Name: 
                Charles
                Rice

            	 	
              Signature
                

            	
            
	
              Title: 
                President
                and Chief Executive Officer

            	 	 	 	
            
	 	 	 	 	
            
	 	 	 	
              Print
                Name

            	
            
	 	 	 	 	 	
            
	 	 	 	 	
            
	 	 	 	
              Title
                if applicable

            	
            
	 	 	 	 	 	
            
	
              Address
                for Notices:

            	 	Address
              for Notices:	
            
	 	 	 	 	 
	
              2685
                Park Center Drive, Building

            	 	   
	
            
	
              Simi
                Valley, California 93065

            	 	  
	
            
	
              Fax:

            	 	 	Fax:	
               

            	 
	
              Email:
                Charles.Rice@Intermetro.net

            	 	
              Email:

            	
               

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      1

    

    NOTICE
      OF EXERCISE

    

    (To
      be
      executed upon exercise of Warrant)

    

    
      	
              _________________

            	
              WARRANT
                NO. ___

            

    

    

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

    
       

    

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

              

      

      
        	
              	o	
                Elects
                  to convert the Warrant pursuant to the cashless exercise feature
                  set forth
                  in Section 2.1(c) as to ____________
                  Warrant Shares.

              

      

    

     

    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 or with the name of the assignee appearing in the
      assignment form below.

    

    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)

            	
              WARRANT
                NO.__

            

    

    

    For
      value
      received, _________ hereby sells, assigns and transfers unto
      _______________________ the within Warrant Certificate, 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:
      __________ , 200_

    

    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; signature(s) must be guaranteed by an eligible guarantor
      institution (banks, stock brokers, savings and loan associations and credit
      unions with membership in an approved signature guarantee medallion program)
      pursuant to Securities and Exchange Commission Rule l7Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]