Document:

EXHIBIT 10.4

            CERTIFICATE OF DESIGNATIONS OF PREFERENCES AND RIGHTS OF
                      SERIES A CONVERTIBLE PREFERRED STOCK
                                       OF
                              USURF AMERICA, INC.,
                              a Nevada corporation

      The undersigned, Douglas O. McKinnon certifies that:

      1. He is the duly acting President of USURF America, Inc. a corporation
organized and existing under the Corporation Code of the State of Nevada (the
"Corporation").

      2. Pursuant to authority conferred upon the Board of Directors by the
Articles of Incorporation of the Corporation, and pursuant to the provisions of
Chapter 78 of the Nevada Revised Statutes, said Board of Directors, pursuant to
a Unanimous Written Consent of the Executive Committee of the Board of
Directors, dated September 29, 2004, adopted a resolution establishing the
rights, preferences, privileges and restrictions of, and the number of shares
comprising, the Corporation's Series A Convertible Preferred Stock, which
resolution is as follows:

      RESOLVED, that a series of Preferred Stock in the Corporation, having the
rights, preferences, privileges and restrictions, and the number of shares
constituting such series and the designation of such series, set forth below be,
and it hereby is, authorized by the Board of Directors of the Corporation
pursuant to authority given by the Corporation's Certificate of Incorporation.

      NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors hereby fixes
and determines the Designations of, the number of shares constituting, and the
rights, preferences, privileges and restrictions relating to, a new series of
Preferred Stock as follows:

      (a) Determination. The series of Preferred Stock is hereby designated
Series A Convertible Preferred Stock (the "Series A Preferred Stock").

      (b) Authorized Shares. The number of authorized shares constituting the
Series A Preferred Stock shall be ten thousand (10,000) shares of such series.

      (c) Dividends. The holder of the Series A Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors, out of
any assets of the Corporation legally available therefore, such dividends as may
be declared from time to time by the Board of Directors.

      (d) Liquidation Preference.

            (i) Preference upon Liquidation, Dissolution or Winding Up. In the
event of any dissolution or winding up of the Corporation, whether voluntary or
involuntary, holders of each outstanding share of Series A Preferred Stock shall
be entitled to be paid first out of the assets of the Corporation available for
distribution to shareholders, whether such assets are capital, surplus or
earnings, an amount equal to $100.00 (the "Series A Purchase Price") per share
of Series A Preferred Stock held (as adjusted for any stock splits, stock
dividends or recapitalizations of the Series A Preferred Stock) and any declared
but unpaid dividends on such share, before any payment shall be made to the
holders of the Common Stock, or any other stock of the Corporation ranking
junior to the Series A Preferred Stock with regard to any distribution of assets
upon liquidation, dissolution or winding up of the Corporation. The holders of
the Series A Preferred Stock shall be entitled to share ratably, in accordance
with the respective preferential amounts payable on such stock, in any
distribution which is not sufficient to pay in full the aggregate of the amounts
payable thereon. If, upon any liquidation, dissolution or winding up of the
Corporation, the assets to be distributed to the holders of the Series A
Preferred Stock shall be insufficient to permit payment to such shareholders of
the full preferential amounts aforesaid, then all of the assets of the
Corporation available for distribution to shareholders shall be distributed to
the holders of Series A Preferred Stock. Each holder of the Series A Preferred
Stock shall be entitled to receive that portion of the assets available for
distribution as the number of outstanding shares of Series A Preferred Stock
held by such holder bears to the total number of shares of Series A Preferred
Stock. Such payment shall constitute payment in full to the holders of the
Series A Preferred Stock upon the liquidation, dissolution or winding up of the
Corporation. After such payment shall have been made in full, or funds necessary
for such payment shall have been set aside by the Corporation in trust for the
account of the holders of Series A Preferred Stock, so as to be available for
such payment, such holders of Series A Preferred Stock shall be entitled to no
further participation in the distribution of the assets of the Corporation.

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            (ii) Consolidation, Merger and Other Corporate Events. A
consolidation or merger of the Corporation (except into or with a subsidiary
corporation) or a sale, lease, mortgage, pledge, exchange, transfer or other
disposition of all or substantially all of the assets of the Corporation or any
reclassification of the stock of the Corporation (other than a change in par
value or from no par to par, or from par to no par or as the result of an event
described in subsection (iv), (v), (vi) or (viii) of paragraph (f)), shall be
regarded as a liquidation, dissolution or winding up of the affairs of the
Corporation within the meaning of this paragraph (d), provided, however, in the
case of a merger, if (a) the Corporation is the surviving entity, (b) the
Corporation's shareholders hold a majority of the shares of the surviving
entity, and (c) the Corporation's directors hold a majority of the seats on the
board of directors of the surviving entity, then such merger shall not be
regarded as a liquidation, dissolution or winding up within the meaning of this
paragraph (d). In no event shall the issuance of new classes of stock, whether
senior, junior or on a parity with the Series A Preferred Stock, or any stock
splits, be deemed a "reclassification" under or otherwise limited by the terms
hereof.

            (iii) Distribution of Cash and Other Assets. In the event of a
liquidation, dissolution or winding up of the Corporation resulting in the
availability of assets other than cash for distribution to the holders of the
Series A Preferred Stock, the holders of the Series A Preferred Stock shall be
entitled to a distribution of cash and/or assets equal to the value of the
liquidation preference stated in subsection (i) of this paragraph (d), which
valuation shall be made solely by the Board of Directors, and provided that such
Board of Directors was acting in good faith, shall be conclusive.

            (iv) Distribution to Junior Security Holders. After the payment or
distribution to the holders of the Series A Preferred Stock of the full
preferential amounts aforesaid, the holders of Series A Preferred Stock shall
have no further rights in respect at such Series A Stock which shall become null
and void, and the holders of the Common Stock then outstanding, or any other
stock of the Corporation ranking as to assets upon liquidation, dissolution or
winding up of the Corporation junior to the Series A Preferred Stock, shall be
entitled to receive ratably all of the remaining assets of the Corporation.

<PAGE>

            (v) Preference; Priority. References to a stock that is "senior" to,
on a "parity" with or "junior" to other stock as to liquidation shall refer,
respectively, to rights of priority of one series or class of stock over another
in the distribution of assets on any liquidation, dissolution or winding up of
the Corporation. The Series A Preferred Stock shall be senior to the Common
Stock of the Corporation and senior to any subsequent series of Preferred Stock
issued by the Corporation.

      (e) Voting Rights. Except as otherwise required by law, the holder of
shares of Series A Preferred Stock shall not have the right to vote on matters
that come before the shareholders.

      (f) Conversion Rights. The holders of Series A Preferred Stock will have
the following conversion rights:

            (i) Right to Convert. Subject to and in compliance with the
provisions of this paragraph (f), any issued and outstanding shares of Series A
Preferred Stock may, at the option of the holder, be converted at any time or
from time to time into fully paid and non-assessable shares of Common Stock at
the conversion rate in effect at the time of conversion, determined as provided
herein; provided, that a holder of Series A Preferred Stock may at any given
time convert only up to that number of shares of Series A Preferred Stock so
that, upon conversion, the aggregate beneficial ownership of the Corporation's
Common Stock (calculated pursuant to Rule 13d-3 of the Securities Exchange Act
of 1934, as amended) of such holder and all persons affiliated with such holder
is not more than 9.99% of the Corporation's Common Stock then outstanding.

            (ii) Mechanics of Conversion. Before any holder of Series A
Preferred Stock shall be entitled to convert the same into shares of Common
Stock, he shall surrender the certificate or certificates therefor, duly
endorsed, at the office of the Corporation or of any transfer agent for the
Common Stock, and shall give written notice to the Corporation at such office
that he elects to convert the same and shall state therein the number of shares
of Series A Preferred Stock being converted. Thereupon, the Corporation shall
promptly issue and deliver at such office to such holder of Series A Preferred
Stock a certificate or certificates for the number of shares of Common Stock to
which he shall be entitled. Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of the
shares of Series A Preferred Stock to be converted, and the person or persons
entitled to receive the shares of Common Stock issuable upon such conversion
shall be treated for all purposes as the record holder or holders of such shares
of Common Stock on such date.

            (iii) Conversion Price. The number of shares into which one share of
Series A Preferred Stock shall be convertible shall be determined by dividing
the Series A Purchase Price by the then existing Conversion Price (as set forth
below) (the "Conversion Ratio"). The "Conversion Price" per share for the Series
A Preferred Stock shall be equal to eighty-five percent (85%) of the Market
Price (as defined below and subject to adjustment as described below), rounded
to the nearest thousandth; provided, however, that subject to the provisions of
the next sentence, in no event shall the Conversion Price be less than $0.05 per
share (the "Floor Price") or exceed $0.075 (the "Ceiling Price"). The Floor
Price and Ceiling Price shall be further adjusted upon the occurrence of any
event in paragraph (f) (iv)-(vi).

<PAGE>

            For purposes of determining the Conversion Price, the "Market Price"
shall be the average of the intra-day trading prices of the Corporation's Common
Stock (which need not occur on consecutive trading days) during the 10 trading
days immediately preceding the conversion date (which may include trading days
prior to the original issue date), provided, that such 10 trading day period
shall be extended by the number of trading days during such period on which (i)
trading in the Corporation's Common Stock is suspended by, or not traded on, the
OTC Bulletin Board or a subsequent market on which the common stock is then
traded, or (ii) after the date of Registration Statement (the "Registration
Statement") for the underlying shares of common stock of the Corporation into
which the Series A Preferred Stock may be converted is declared effective by the
SEC, the prospectus included in the Registration Statement may not be used by
the holder for resale of underlying shares of common stock, is suspended by, or
not traded on, the OTC Bulletin Board or a subsequent market on which the common
stock is then listed, or (iii) after the date the Registration Statement is
declared effective by the SEC, the prospectus included in the Registration
Statement for the underlying shares may not be used by the holder for the resale
of underlying shares of common stock (provided such inability to use the
prospectus is not (a) caused by the holder or (b) as a result of the Company's
filing of post-effective amendments to the Registration Statement.)

            For purposes of illustration only, if the Market Price is $.08 at
time of conversion, the Conversion Ratio will be $100.00/$0.068, allowing the
10,000 shares of Series A Preferred Stock to be converted into 14,705,882 shares
of Common Stock. On the other hand, if the Market Price is $0.10 at time of
conversion, the Conversion Ratio will be $100.00/$0.075, allowing the 10,000
shares of Preferred Stock to be converted into 13,333,333 shares of Common
Stock.

            (iv) Adjustment for Stock Splits and Combinations. If the
Corporation shall at any time, or from time to time after the date shares of the
Series A Preferred Stock are first issued (the "Original Issue Date"), effect a
subdivision of the outstanding Common Stock, the Floor Price and Ceiling Price
in effect immediately prior thereto shall be proportionately decreased, and
conversely, if the Corporation shall at any time or from time to time after the
Original Issue Date combine the outstanding shares of Common Stock, the Floor
Price and Ceiling Price then in effect immediately before the combination shall
be proportionately increased. Any adjustment under this paragraph (f)(iv) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

            (v) Adjustment for Certain Dividends and Distributions. In the event
the Corporation at any time, or from time to time after the Original Issue Date,
shall make or issue, or fix a record date for the determination of holders of
Common Stock entitled to receive, a dividend or other distribution payable in
additional shares of Common Stock, then and in each such event the Floor Price
and Ceiling Price then in effect shall be decreased as of the time of such
issuance or, in the event such a record date shall have been fixed, as of the
close of business on such record date, by multiplying the Floor Price and
Ceiling Price then in effect by a fraction:

<PAGE>

            (A) the numerator of which shall be the total number of shares of
      Common Stock issued and outstanding immediately prior to the time of such
      issuance or the close of business on such record date, and

            (B) the denominator of which shall be the total number of shares of
      Common Stock issued and outstanding immediately prior to the time of such
      issuance or the close of business on such record date plus the number of
      shares of Common Stock issuable in payment of such dividend or
      distribution; provided, -------- however, if such record date shall have
      been fixed and such dividend is not fully paid or if such distribution is
      not fully made on the date fixed therefor, the Floor Price and Ceiling
      Price shall be recomputed accordingly as of the close of business on such
      record date and thereafter, the Floor Price and Ceiling Price shall be
      adjusted pursuant to this paragraph (f)(v) as of the time of actual
      payment of such dividends or distributions.

            (vi) Adjustments for Other Dividends and Distributions. In the event
the Corporation at any time or from time to time after the Original Issue Date
shall make or issue, or fix a record date for the determination of holders of
Common Stock entitled to receive, a dividend or other distribution payable in
securities of the Corporation other than shares of Common Stock, then and in
each such event provision shall be made so that the holders of such Series A
Preferred Stock shall receive upon conversion thereof in addition to the number
of shares of Common Stock receivable thereupon, the amount of securities of the
Corporation that they would have received had their Series A Preferred Stock
been converted into Common Stock on the date of such event and had thereafter,
during the period from the date of such event to and including the conversion
date, retained such securities receivable by them as aforesaid during such
period giving application to all adjustments called for during such period under
this paragraph (f) with respect to the rights of the holders of the Series A
Preferred Stock.

            (vii) Adjustment for Reclassification Exchange or Substitution. If
the Common Stock issuable upon the conversion of the Series A Preferred Stock
shall be changed into the same or a different number of shares of any class or
classes of stock, whether by capital reorganization, reclassification or
otherwise (other than a subdivision or combination of shares or stock dividend
provided for above, or a reorganization, merger, consolidation or sale of assets
provided for elsewhere in this paragraph (f)), then and in each such event the
holder of each share of Series A Preferred Stock shall have the right thereafter
to convert such share into the kind and amount of shares of stock and other
securities and property receivable upon such reorganization, reclassification or
other change, by holders of the number of shares of Common Stock into which such
shares of Series A Preferred Stock might have been converted immediately prior
to such reorganization, reclassification, or change, all subject to further
adjustment as provided herein.

            (viii) Reorganization, Mergers, Consolidations or Sales of Assets.
If at any time or from time to time there shall be a capital reorganization of
the Common Stock (other than a subdivision, combination, reclassification or
exchange of shares provided for elsewhere in this paragraph (f)) or a merger or
consolidation of the Corporation with or into another corporation, or the sale
of all or substantially all of the Corporation's properties and assets to any
other person, then, as a part of such reorganization, merger, consolidation or
sale, provision shall be made so that the holders of the Series A Preferred
Stock shall thereafter be entitled to receive upon conversion of such Series A
Preferred Stock, the number of shares of stock or other securities or property
of the Corporation or of the successor corporation resulting from such merger or
consolidation or sale, to which a holder of Common Stock deliverable upon
conversion would have been entitled on such capital reorganization, merger,
consolidation or sale. In any such case, appropriate adjustment shall be made in
the application of the provisions of this paragraph (f) with respect to the
rights of the holders of the Series A Preferred Stock after the reorganization,
merger, consolidation or sale to the end that the provisions of this paragraph
(f) (including adjustment of the Floor Price and Ceiling Price then in effect
and the number of shares purchasable upon conversion of the Series A Preferred
Stock) shall be applicable after that event as nearly equivalent as may be
practicable.

<PAGE>

            (ix) Sale of Common Stock or Securities Convertible Into Common
Stock. In the event the Corporation sells Common Stock or other securities
convertible into or exerciseable for Common Stock at a per share price, exercise
price or conversion price lower than the Conversion Price then in effect (other
than in connection with an acquisition of the securities, assets or business of
another company, joint ventures and employee stock options), the Conversion
Price shall be subject to weighted average anti-dilution adjustments.

            (x) Certificate of Adjustment. In each case of an adjustment or
readjustment of the Floor Price and Ceiling Price or the securities issuable
upon conversion of the Series A Preferred Stock, the Corporation shall compute
such adjustment or readjustment in accordance herewith and the Corporation's
Principal Accounting Officer shall prepare and sign a certificate showing such
adjustment or readjustment, and shall mail such certificate by first class mail,
postage prepaid, to each registered holder of the Series A Preferred Stock at
the holder's address as shown in the Corporation's books. The certificate shall
set forth such adjustment or readjustment, showing in detail the facts upon
which such adjustment or readjustment is based.

            (xi) Notices of Record Date. In the event of (A) any taking by the
Corporation of a record of the holders of any class or series of securities for
the purpose of determining the holders thereof who are entitled to receive any
dividend or other distribution or (B) any reclassification or recapitalization
of the capital stock of the Corporation, any merger or consolidation of the
Corporation or any transfer of all or substantially all of the assets of the
Corporation to any other corporation, entity or person, or any voluntary or
involuntary dissolution, liquidation or winding up of the Corporation, the
Corporation shall mail to each holder of Series A Preferred Stock at least 10
days prior to the record date specified therein, a notice specifying (1) the
date on which any such record is to be taken for the purpose of such dividend or
distribution and a description of such dividend or distribution, (2) the date on
which any such reorganization, reclassification, transfer, consolidation,
merger, dissolution, liquidation or winding up is expected to become effective
and (3) the time, if any is to be fixed, as to when the holders of record of
Common Stock (or other securities) shall be entitled to exchange their shares,
of Common Stock (or other securities) for securities or other property
deliverable upon such reorganization, reclassification, transfer, consolidation,
merger, dissolution, liquidation or winding up.

<PAGE>

            (xii) Fractional Shares. No fractional shares of Common Stock shall
be issued upon conversion of the Series A Preferred Stock. In lieu of any
fractional shares to which the holder would otherwise be entitled, the
Corporation shall round down to the nearest whole number.

            (xiii) Reservation of Stock Issuable Upon Conversion. The
Corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock, solely for the purpose of effecting the
conversion of the shares of the Series A Preferred Stock, Twenty Million
(20,000,000) shares of Common Stock, and if at any time the number of authorized
but unissued shares of Common Stock shall not be sufficient to effect the
conversion of all then outstanding shares of Series A Preferred Stock, the
Corporation will take such corporate action as may, in the opinion of its
counsel, be necessary to increase its authorized but unissued shares of Common
Stock to such number of shares as shall be sufficient for such purpose.

            (xiv) Notices. Any notice required by the provisions of this
paragraph (f) to be given to the holders of shares of Series A Preferred Stock
shall be deemed given (A) if deposited in the United States mail, postage
prepaid, or (B) if given by any other reliable or generally accepted means
(including by facsimile or by a nationally recognized overnight courier
service), in each case addressed to each holder of record at his address (or
facsimile number) appearing on the books of the Corporation.

            (xv) Payment of Taxes. The Corporation will pay all transfer taxes
and other governmental charges that may be imposed in respect of the issue or
delivery of shares of Common Stock upon conversion of shares of Series A
Preferred Stock.

            (xvi) No Dilution or Impairment. The Corporation shall not amend its
Articles of Incorporation or participate in any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, for the purpose of avoiding or seeking to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by the Corporation, without the approval of a majority of the then
outstanding Series A Preferred Stock.

      (g) No Re-issuance of Preferred Stock. Any shares of Series A Preferred
Stock acquired by the Corporation by reason of purchase, conversion or otherwise
shall be canceled, retired and eliminated from the shares of Series A Preferred
Stock that the Corporation shall be authorized to issue. All such shares shall
upon their cancellation become authorized but unissued shares of Preferred Stock
and may be reissued as part of a new series of Preferred Stock subject to the
conditions and restrictions on issuance set forth in the Articles of
Incorporation or in any certificate of Determination creating a series of
Preferred Stock or any similar stock or as otherwise required by law.

<PAGE>

      (h) Severability. If any right, preference or limitation of the Series A
Preferred Stock set forth herein is invalid, unlawful or incapable of being
enforced by reason of any rule, law or public policy, all other rights,
preferences and limitations set forth herein that can be given effect without
the invalid, unlawful or unenforceable right, preference or limitation shall
nevertheless remain in full force and effect, and no right, preference or
limitation herein shall be deemed dependent upon any other such right,
preference or limitation unless so expressed herein.

            3. The number of authorized shares of Preferred Stock of the
Corporation is 100,000,000, and the number of shares of Series A Stock, none of
which has been issued, is 10,000.

            The undersigned declares under penalty of perjury that the matters
set out in the foregoing Certificate are true of his own knowledge. Executed at
Colorado Springs, Colorado on this ___th day of October 2004.

                                       /s/ Douglas O. McKinnon
                                       -----------------------------------------
                                       Douglas O. McKinnon
                                       Chief Executive Officer and PresidentEXHIBIT 10.5

                          REGISTRATION RIGHTS AGREEMENT

THIS AGREEMENT dated as of October 29, 2004, between MERCATOR MOMENTUM FUND,
L.P., MERCATOR MOMENTUM FUND III, L.P, MONARCH POINTE FUND, LTD. (each, a "Fund"
and collectively, the "Funds") and MERCATOR ADVISORY GROUP, LLC ("MAG") (the
Funds and MAG are referred to individually as a "Holder" and collectively as the
"Holders"), and USURF AMERICA, INC., a Nevada corporation (the "Company").

      WHEREAS, the Funds have purchased, for an aggregate of $1,000,000, an
aggregate of 10,000 shares of Series A Convertible Preferred Stock (the "Series
A Stock") from the Company, and have the right to cause their Series A Stock to
be converted into shares of Common Stock, $.0001 par value (the "Common Stock"),
of the Company, pursuant to the conversion formula set forth in the Certificate
of Designation;

      WHEREAS, each Fund and MAG have acquired Warrants (together, the
"Warrants") from the Company, pursuant to which the Holders have the right to
purchase in the aggregate up to 7,000,000 shares of the Common Stock through the
exercise of the Warrants;

      WHEREAS, the Company desires to grant to the Holders the registration
rights set forth herein with respect to the shares of Common Stock issuable upon
the conversion of the Series A Stock and the exercise of the Warrants.

      NOW, THEREFORE, the parties hereto mutually agree as follows:

      1. Registrable Securities. As used herein the terms "Registrable Security"
means each of the shares of Common Stock (i) issued upon the conversion of the
Series A Stock (the "Conversion Shares") or (ii) upon exercise of the Warrants
(the "Warrant Shares"), provided, however, that with respect to any particular
Registrable Security, such security shall cease to be a Registrable Security
when, as of the date of determination that (a) it has been effectively
registered under the Securities Act of 1933, as amended (the "Securities Act"),
and disposed of pursuant thereto, or (b) registration under the Securities Act
is no longer required for the immediate public distribution of such security.
The term "Registrable Securities" means any and/or all of the securities falling
within the foregoing definition of a "Registrable Security." In the event of any
merger, reorganization, consolidation, recapitalization or other change in
corporate structure affecting the Common Stock, such adjustment shall be made in
the definition of "Registrable Security" as is appropriate in order to prevent
any dilution or enlargement of the rights granted pursuant to this Section 1.

      2. Registration.

            (a) The Company shall file a registration statement (the
"Registration Statement") with the Securities and Exchange Commission (the
"SEC") within forty-five (45) days after the date of this Agreement in order to
register the resale of the Registrable Securities under the Securities Act. Once
effective, the Company shall maintain the effectiveness of the Registration
Statement until the earlier of (i) the date that all of the Registrable
Securities have been sold, or (ii) the date that the Company receives an opinion
of counsel to the Company that all of the Registrable Securities may be freely
traded without registration under the Securities Act, under Rule 144 promulgated
under the Securities Act or otherwise.

            Page 11
<PAGE>

      (b) The Company will initially include in the Registration Statement as
Registrable Securities Twenty-Seven Million (27,000,000) shares of Common Stock.

      3. Covenants of the Company with Respect to Registration.

      The Company covenants and agrees as follows:

            (a) The Company shall use best efforts to cause the Registration
Statement to become effective with the SEC as promptly as possible and in no
event more than 120 days after the date of this Agreement. If any stop order
shall be issued by the SEC in connection therewith, the Company shall use
commercially reasonable efforts to obtain promptly the removal of such order.
Following the effective date of the Registration Statement, the Company shall,
upon the request of any Holder, forthwith supply such reasonable number of
copies of the Registration Statement, preliminary prospectus and prospectus
meeting the requirements of the Securities Act, and any other documents
necessary or incidental to the public offering of the Registrable Securities, as
shall be reasonably requested by the Holder to permit the Holder to make a
public distribution of the Holder's Registrable Securities. The obligations of
the Company hereunder with respect to the Holder's Registrable Securities are
subject to the Holder's furnishing to the Company such appropriate information
concerning the Holder, the Holder's Registrable Securities and the terms of the
Holder's offering of such Registrable Securities as the Company may reasonably
request in writing.

            (b) The Company shall pay all costs, fees and expenses in connection
with the Registration Statement filed pursuant to Section 2 hereof including,
without limitation, the Company's legal and accounting fees, printing expenses,
and blue sky fees and expenses; provided, however, that each Holder shall be
solely responsible for the fees of any counsel retained by the Holder in
connection with such registration and any transfer taxes or underwriting
discounts, commissions or fees applicable to the Registrable Securities sold by
the Holder pursuant thereto.

            (c) The Company will take all actions which may be required to
qualify or register the Registrable Securities included in the Registration
Statement for the offer and sale under the securities or blue sky laws of such
states as are reasonably requested by each Holder of such securities, provided
that the Company shall not be obligated to execute or file any general consent
to service of process or to qualify as a foreign corporation to do business
under the laws of any such jurisdiction.

                                                                         Page 12
<PAGE>

      4. Additional Terms.

            (a) The Company shall indemnify and hold harmless the Holders and
each underwriter, within the meaning of the Securities Act, who may purchase
from or sell for any Holder, any Registrable Securities, from and against any
and all losses, claims, damages and liabilities caused by any untrue statement
of a material fact contained in the Registration Statement, any other
registration statement filed by the Company under the Securities Act with
respect to the registration of the Registrable Securities, any post-effective
amendment to such registration statements, or any prospectus included therein or
caused by any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such
untrue statement or omission based upon information furnished or required to be
furnished in writing to the Company by the Holders or underwriter expressly for
use therein, which indemnification shall include each person, if any, who
controls any Holder or underwriter within the meaning of the Securities Act and
each officer, director, employee and agent of each Holder and underwriter;
provided, however, that the indemnification in this Section 4(a) with respect to
any prospectus shall not inure to the benefit of any Holder or underwriter (or
to the benefit of any person controlling any Holder or underwriter) on account
of any such loss, claim, damage or liability arising from the sale of
Registrable Securities by the Holder or underwriter, if a copy of a subsequent
prospectus correcting the untrue statement or omission in such earlier
prospectus was provided to such Holder or underwriter by the Company prior to
the subject sale and the subsequent prospectus was not delivered or sent by the
Holder or underwriter to the purchaser prior to such sale and provided further,
that the Company shall not be obligated to so indemnify any Holder or any such
underwriter or other person referred to above unless the Holder or underwriter
or other person, as the case may be, shall at the same time indemnify the
Company, its directors, each officer signing the Registration Statement and each
person, if any, who controls the Company within the meaning of the Securities
Act, from and against any and all losses, claims, damages and liabilities caused
by any untrue statement of a material fact contained in the Registration
Statement, any registration statement or any prospectus required to be filed or
furnished by reason of this Agreement or caused by any omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading, insofar as such losses, claims, damages or
liabilities are caused by any untrue statement or omission based upon
information furnished in writing to the Company by the Holder or underwriter
expressly for use therein.

            (b) If for any reason the indemnification provided for in the
preceding section is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, claim, damage, liability or
expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by the indemnified party as a result of such loss, claim, damage
or liability in such proportion as is appropriate to reflect the relative fault
of the indemnified party and the indemnifying party, as well as any other
relevant equitable considerations.

                                                                         Page 13
<PAGE>

            (c) Neither the filing of a Registration Statement by the Company
pursuant to this Agreement nor the making of any request for prospectuses by the
Holder shall impose upon any Holder any obligation to sell the Holder's
Registrable Securities.

            (d) Each Holder, upon receipt of notice from the Company that an
event has occurred which requires a Post-Effective Amendment to the Registration
Statement or a supplement to the prospectus included therein, shall promptly
discontinue the sale of Registrable Securities until the Holder receives a copy
of a supplemented or amended prospectus from the Company, which the Company
shall provide as soon as practicable after such notice.

            (e) If the Company fails to keep the Registration Statement referred
to above continuously effective during the requisite period, then the Company
shall, promptly upon the request of any Holder, use commercially reasonable
efforts to update the Registration Statement or file a new registration
statement covering the Registrable Securities remaining unsold, subject to the
terms and provisions hereof.

            (f) Each Holder agrees to provide the Company with any information
or undertakings reasonably requested by the Company in order for the Company to
include any appropriate information concerning the Holder in the Registration
Statement or in order to promote compliance by the Company or the Holder with
the Securities Act.

            (g) The Company agrees that it shall cause each of its directors,
officers and shareholders owning ten percent (10%) or more of the Company's
outstanding Common Stock to refrain from selling any shares of the Company's
Common Stock until the Registration Statement has been declared effective.

            23. (h) Each Holder, on behalf of itself and its affiliates, hereby
covenants and agrees not to, directly or indirectly, offer to "short sell",
contract to "short sell" or otherwise "short sell" any securities of the
Company, including, without limitation, shares of Common Stock that will be
received as a result of the conversion of the Series A Stock or the exercise of
the Warrants.

            24.

      5. Governing Law. The Registrable Securities will be, if and when issued,
delivered in California. This Agreement shall be deemed to have been made and
delivered in the State of California and shall be governed as to validity,
interpretation, construction, effect and in all other respects by the internal
substantive laws of the State of California, without giving effect to the choice
of law rules thereof.

      6. Amendment. This Agreement may only be amended by a written instrument
executed by the Company and the Holders.

      7. Entire Agreement. This Agreement along with that certain Subscription
Agreement of even date herewith and the Securities and Transaction Documents
(each, as defined in the Subscription Agreement) constitute the entire agreement
of the parties hereto with respect to the subject matter hereof, and supersedes
all prior agreements and understandings of the parties, oral and written, with
respect to the subject matter hereof.

                                                                         Page 14
<PAGE>

      8. Execution in Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document.

      9. Notices. All communications hereunder shall be in writing and shall be
hand delivered, mailed by first-class mail, couriered by next-day air courier or
by facsimile at the addresses set forth below.

               If to the Holders,        Mercator Advisory Group, LLC
                                         Mercator Momentum Fund, L.P.
                                         Mercator Momentum Fund III, L.P.
                                         Monarch Pointe Fund, Ltd.
                                         555 South Flower Street, Suite 4500
                                         Los Angeles, CA  90071
                                         Attention: David Firestone

               With a copy to            Sheppard Mullin Richter & Hampton LLP
                                         333 South Hope Street
                                         48th Floor
                                         Los Angeles, CA 90071-1448
                                         Telephone No.: (213) 620-1780
                                         Facsimile No.:  (213) 620-1398
                                         Attention:        David C. Ulich

                                         If to the Company:

                                         USURF America, Inc.
                                         6005 Delmonico Drive, Suite 140
                                         Colorado Springs, Colorado 80919
                                         Attention:  Chief Executive Officer
                                         Telephone:  (719) 260-6455
                                         Facsimile:  (719) 260-6456

               With a copy to:

                                         Morrison & Foerster LLP
                                         370 17th Street
                                         Suite 5200
                                         Denver, Colorado 80202
                                         Attn: Brian V. Caid, Esq.
                                         Telephone:  (303) 592-1500
                                         Facsimile:  (303) 591-1510

                                                                         Page 15
<PAGE>

All such notices and communications shall be deemed to have been duly given: (i)
when delivered by hand, if personally delivered; (ii) five business days after
being deposited in the mail, postage prepaid, if mailed certified mail, return
receipt requested; (iii) one business day after being timely delivered to a
next-day air courier guaranteeing overnight delivery; (iv) the date of
transmission (as evidenced by telecopier confirmation sheet) if sent via
facsimile to the facsimile number as set forth in this Section or the signature
page hereof prior to 6:00 p.m. on a business day, or (v) the business day
following the date of transmission if sent via facsimile at a facsimile number
set forth in this Section (as evidenced by telecopier confirmation sheet) or on
the signature page hereof after 6:00 p.m. or on a date that is not a business
day. Change of a party's address or facsimile number may be designated hereunder
by giving notice to all of the other parties hereto in accordance with this
Section.

      10. Binding Effect; Benefits. Any Holder may assign its rights hereunder.
This Agreement shall inure to the benefit of, and be binding upon, the parties
hereto and their respective heirs, legal representatives, successors and
assigns. Nothing herein contained, express or implied, is intended to confer
upon any person other than the parties hereto and their respective heirs, legal
representatives and successors, any rights or remedies under or by reason of
this Agreement.

      11. Headings. The headings contained herein are for the sole purpose of
convenience of reference, and shall not in any way limit or affect the meaning
or interpretation of any of the terms or provisions of this Agreement.

      12. Severability. Any provision of this Agreement which is held by a court
of competent jurisdiction to be prohibited or unenforceable in any
jurisdiction(s) shall be, as to such jurisdiction(s), ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

      13. Jurisdiction. Each of the parties irrevocably agrees that any and all
suits or proceedings based on or arising under this Agreement may be brought
only in and shall be resolved in the federal or state courts located in the City
of Los Angeles, California and consents to the jurisdiction of such courts for
such purpose. Each of the parties irrevocably waives the defense of an
inconvenient forum to the maintenance of such suit or proceeding in any such
court. Each of the parties further agrees that service of process upon such
party mailed by first class mail to the address set forth in Section 9 shall be
deemed in every respect effective service of process upon such party in any such
suit or proceeding. Nothing herein shall affect the right of either party to
serve process in any other manner permitted by law. Each of the parties agrees
that a final non-appealable judgment in any such suit or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on such judgment
or in any other lawful manner.

      14. Attorneys' Fees and Disbursements. If any action at law or in equity
is necessary to enforce or interpret the terms of this Agreement, the prevailing
party or parties shall be entitled to receive from the other party or parties
reasonable attorneys' fees and disbursements in addition to any other relief to
which the prevailing party or parties may be entitled.

                                                                         Page 16
<PAGE>

             [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                                                         Page 17
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto as of the date first above written.

                                        USURF AMERICA, INC.

                                        By: /s/ Douglas O. McKinnon
                                            ------------------------------------
                                        Name:  Douglas O. McKinnon
                                        Its:   Chief Executive Officer and
                                               President

                                        HOLDERS:

                                        MONARCH POINTE FUND, LTD.

                                        By: /s/ David Firestone
                                            ------------------------------------
                                        Name: David Firestone
                                        Its:  President

                                        MERCATOR ADVISORY GROUP, LLC

                                        By: /s/ David Firestone
                                            ------------------------------------
                                        Name: David Firestone
                                        Its:  Managing Member

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