Document:

Shaanxi Longmen Iron & Steel Group Co., Ltd.
                           General Steel Holdings Inc.
                             Joint Venture Agreement

                  Shaanxi Longmen Iron & Steel Group Co., Ltd.
                           General Steel Holdings Inc.

                                    June 2007

<PAGE>

                             JOINT VENTURE AGREEMENT

1. GENERAL PROVISIONS

1.1   In  accordance  with the Law of the People's  Republic of China on Company
      Establishment  ("Company  Law")  and  other  relevant  published  laws and
      regulations  of China,  the  following  Parties  hereby enter this initial
      joint  venture  agreement  ("Agreement")  with the  intention of forming a
      joint venture enterprise:

      Party A: Shaanxi Longmen Iron and Steel Group Co., Ltd. (Long Steel)

      Party B: General Steel Holdings Inc. (GSHO)

2. PARTIES TO THE JOINT VENTURE

2.1   Parties to this Agreement are as follows:

      Party A: Shaanxi Longmen Iron and Steel Group Co., Ltd.

      Legal Representative: Zhang, Dan Li

      Party B: General Steel Holidings Inc.
        (Investing  in  Joint  Venture  through  its  subsidiaries   Tianjin
        Daqiuzhuang  Metal  Sheet  Co.,  Ltd.  and  Tianjin  Jing Qiu  Steel
        Company)

      Legal Representative: Yu, Zuo Sheng

      Parties A and B may be hereinafter  referred to  individually as a "Party"
      and collectively as the "Parties."

      Each of the Parties  hereby  presents and warrants  that it has full legal
      authority  and  power  to  enter  into  this  Agreement  and  perform  its
      obligations  hereunder and that its legal  representatives named above are
      duly  authorized to sign this  Agreement and other  relevant  documents on
      behalf of such Party.

3. ESTABLISHMENT OF THE JOINT VENTURE

3.1   In accordance with the Company Law and other relevant laws and regulations
      of the People's Republic of China, the Parties hereby agree to establish a
      Joint Venture Limited Liability Company (hereinafter referred to as "Joint
      Venture" or "JV").

<PAGE>

3.2   The English name of the Joint Venture is:  Shaanxi  Longmen Iron and Steel
      Co., Ltd.  This name may be subject to change and future  amendment by the
      Board of Directors of the Joint Venture.

      The legal address of the Joint Venture is: Longmen County, Han Cheng City,
      Shaanxi Province, China.

3.3   All  activities  of the Joint  Venture  conducted  shall be  governed  and
      protected by the laws,  decrees and relevant rules and  regulations of the
      People's Republic of China.

3.4   The form of organization of the Joint Venture shall be a limited liability
      company.  The  liability  of  each  Party  is  limited  to  their  capital
      contribution  to the  registered  capital in accordance  with Section 5 of
      this Agreement, including increases and decreases in each Party's share of
      ownership  interest made in compliance with the Chinese  regulations.  The
      profit of the Joint Venture will be distributed  according to the ratio of
      registered capital contributed by each Party. Within the first three years
      of operation of the Joint  Venture,  40% of the profit will be distributed
      to Party A, and 60% will be distributed to Party B.

4: PURPOSES, SCOPE AND SCALE OF PRODUCTION AND BUSINESS

4.1   The  purposes  of the  establishment  of the  Joint  Venture  shall  be in
      conformity with the mutual desires of each Party:  to strengthen  economic
      cooperation  and technical  exchanges,  to improve the product quality and
      the production capacity,  to develop new products and gain competitiveness
      in both domestic and  international  markets in terms of quality,  variety
      and price by  adopting  advanced  technology  in the  production  of steel
      products,  and the  adoption  of  advanced  management  methods,  so as to
      constantly  raise  economic  results  and  ensure  satisfactory   economic
      benefits for each Party.

4.2   The  production  and  business  scope of the  Joint  Venture  shall be the
      production of steel  products,  mainly steel products  classified as "long
      products."  The  products  shall  be sold in both  domestic  and  overseas
      markets.

4.3   The targeted production capacity of the Joint Venture operations will be 5
      million metric tons annually.

5: TOTAL INVESTMENT, REGISTERED CAPITAL AND OWNERSHIP

5.1   The  total  amount  of  investment  is  500,000,000   RMB   (approximately
      USD$65,780,000).

<PAGE>

      Party A will invest using its relevant  net assets  valued at  200,000,000
      RMB (Refer to Contributed Relevant Net Assets sheet for details).

      Tianjin  Daqiuzhuang  Metal Sheet Co., Ltd. will invest  160,000,000  RMB,
      representing 32% of total registered capital.

      Tianjin  QiuSteel  Investment  Co.,  Ltd.  will  invest  140,000,000  RMB,
      representing 28% of total registered capital.

      The investment for registered capital will be contributed step by step.

      The Parties will invest subject to physical materials and cash.

      Investment of physical  materials  shall be subject to the appraisal value
      evaluated by the appraisal agency employed by the Parties, cash investment
      shall be subject to  capital  verification,  which will be valid only upon
      the agreement between the Parties.

5.2 Ownership Interest

      Party A will own 40% ownership  interest in the Joint Venture according to
      its capital contribution.

      Party B will own 60% ownership  interest in the Joint Venture according to
      its capital contribution.

6: RESPONSIBILITIES OF THE PARTIES

6.1   Responsibilities of the Party A:

      6.1.1 Party A shall actively cooperate with Party B to sign and or provide
            all necessary  documents to assist Party B in the preparation of all
            necessary procedures for the purpose of Business Registration.

      6.1.2 Party A shall provide all relevant  documents about this stock right
            provide  to  Party  B.  Party  A shall  not  withhold  any  relevant
            information from Party B.

      6.1.3 Party A verifies that except the data and  information  disclosed to
            Party B pursuant to this agreement, Party A is not be liable for any
            other debt and  liability,  and is not  involved  in any other legal
            proceedings involving economic dispute and threat.

      6.1.4 Party A shall ensure that from the signing date of this Agreement to
            the date of the Joint Venture establishment, to maintain the current
            business  activity of Party A. Without the consent of Party B, Party
            A shall not alter the conditions of Party A's operations at the date
            of  signing  this  contract  (including  but  not  limited  to:  the
            financial  situation  of Party A disclosed to the public and various
            contacts  signed with others) and not enter into any agreement  that
            will hinder the stock interest  described in this Agreement.  In the
            event Party A does not comply with this section of the Joint Venture
            Agreement,  Party A  agrees  to  compensate  Party B for all  losses
            caused hereby.

<PAGE>

      6.1.5 Upon the establishment of the Joint Venture, Party A ensures that it
            shall provide the Joint Venture at reasonable prices which shall not
            be higher than prevailing  market prices the necessary raw material,
            including,  but not limited to: iron  powder,  oxygen,  electricity,
            water,  heating,  for the Joint  Venture to operate at its  targeted
            levels of capacity.

6.2   Responsibilities of Party B.

      Party B shall contribute  registered  capital  contributions in accordance
      with term 5.1 of this Agreement.

      Party  B  shall,  within  reasonable  levels  of  operating   efficiencies
      necessary to  accomplish  the stated goals in this  Agreement of the Joint
      Venture,  endeavor to create  maximum  employment  opportunities  in Joint
      Venture operations for the existing workforce of Party A.

7. FURTHER COOPERATION

7.1   In the event Party A desires to sell any  subsidiary  not included as part
      of the relevant assets  contributed to the Joint Venture as stated in this
      Agreement,  Party A will  give  Party B first  right  of  refusal  for any
      purchase.

7.2   Pertaining to the further  development as of the date of this Agreement of
      the Daxigou Mine owned by Party A, Party A will offer Party B the right of
      first refusal for any development project. In the event Party B elects not
      to  participate  with Party A in a  development  project of Daxigou  Mine,
      Party B will  have the right to  approve  any other  entity  that  Party A
      desires  to work with in any  related  development  project.  In the event
      Party B elects not to  participate  with Party A in a development  project
      and Party B approves  another  entity  with which Party A may work with in
      the development project, products derived from the project, including, but
      not  limited to iron ore,  shall be offered  first to Party B at rates not
      higher than prevailing market rates.

<PAGE>

8. PRODUCTION AND SALES OF PRODUCTS

8.1   The products of the Joint Venture shall be sold in the domestic market and
      the best efforts will be made in order to sell part of the products in the
      overseas market.

8.2   The products of the Joint Venture shall be sold  throughout  China without
      geographic  restriction  and may be sold by the Joint Venture  directly or
      indirectly  through  approved  distributors.  The sales methods and prices
      shall be determined by the General Manager of the Joint Venture  following
      recommendation of the Board of Directors of the Joint Venture based on the
      domestic  market  conditions,  competitiveness  of the  products  and  the
      economic  situation of the Joint Venture.  The Joint Venture shall be free
      to determine  and raise the selling  prices of its products and to sell at
      its own discretion, in accordance with the preceding provisions.

9: BOARD OF DIRECTORS

9.1   Members  of the  Board  of  Directors  for  the  Joint  Venture  shall  be
      established as follows:

      Party A will appoint two of the directors; and

      Party B will appoint three of the directors.

9.2   The Members of the Board of  Directors  at the  commencement  of the Joint
      Venture are as follows:

      1. Yu, Zuo Sheng
      2. Zhang, Danli
      3. Yu, Ye An
      4. Yang, Shi Li
      5. Su, Xiao Gang

      The term of office for each Member of the Board of  Directors is three (3)
      years.  The term of a Member of the Board of Directors can be renewed upon
      expiration.

9.3   The Board of Directors shall decide all major issues  concerning the Joint
      Venture.  In handling all important matters,  the Board of Directors shall
      reach its decision through consultation among the Members in the principle
      of equality and mutual  benefit.  All issues of the Joint Venture shall be
      discussed  and  approved  by a minimum  two  thirds  majority  vote of the
      Members of the Board of Directors. The Shareholder Meeting shall prescribe
      those  significant  issues which need to be approved by all Members of the
      Board of Directors.

9.4   The Board of  Directors  shall  appoint a  Chairman  that shall be elected
      through Board Meeting.  The legal  representative of the Joint Venture can
      either be the Chairman or another Member of the Board of Directors elected
      by the Board of  Directors.  The legal  representative  will carry out all
      rights on behalf of the Joint Venture.

<PAGE>

9.5   The Board of Directors  shall convene at least two meetings each year. The
      meetings shall be called and presided over by the Chairman of the Board of
      Directors.  The General  Manager and the Vice General Manager of the Joint
      Venture  may attend as  non-voting  members  the  meetings of the Board of
      Directors.  Venues for the Board of Directors meetings shall be decided by
      mutual  agreement  of both  Parties.  The  Chairman  may  convene  interim
      meetings  based on proposals made by more than one third of the Members of
      the Board of  Directors.  The minutes of all Board of  Directors  meetings
      will be kept on file. The Members of the Board of Directors have the right
      to  be   represented   at  Board  of  Director   Meetings  by   designated
      representatives which shall have proxy voting ability.

9.6   A decision  signed by all the  Members of the Board of  Directors  has the
      same  validity as a decision  made during an official  Board of  Directors
      meeting.

10: BUSINESS MANAGEMENT ORGANIZATION

10.1  The Joint  Venture  shall  establish a  management  office  which shall be
      responsible for its daily management. The management office shall have one
      (1) General Manager, one (1) Vice General Manager as listed below:

      1.    Zhang, Dan Li

      2.    Su, Xiao Gang

      The term of office shall be three (3) years.

10.2  The  responsibilities  of the  General  Manager  shall be to carry out the
      decisions of the Board of Directors,  and to organize and direct the daily
      management of the Joint Venture in accordance  with the provisions of this
      Agreement and the Articles of Incorporation.  Department managers shall be
      responsible  for the work in the  respective  departments  of  production,
      technology,  business  operation,  finance and  administration,  and other
      matters as may be  delegated  by the General  Manager and the Vice General
      Manager.  The General  Manager shall present to the Board of Directors for
      approval the organizational  structure of the Joint Venture and the annual
      operational budget, including proposed appointments of department managers
      as well as their remuneration.

10.3  The General  Manager and Vice General Manager shall not serve as employees
      of other entities,  and shall not serve or act on behalf of other economic
      entities in competition  with the Joint Venture except that either of them
      may be an officer, director or employee of their respective Party.

<PAGE>

10.4  The  Joint  Venture  shall  establish   company   regulations,   including
      regulations on internal  control and auditing by  international  standards
      according  to the  requirements  as  may be  required  by  American  Stock
      Exchange or similar relevant entity.

10.5  The Chief  Financial  Officer of the Joint  Venture  shall be appointed by
      Party B.

11: LABOR MANAGEMENT

11.1  Policies  relating  to  matters  such as the total  number  of  employees,
      recruitment, dismissal, wages, welfare, benefits, labor insurance, bonuses
      and  labor  discipline  shall be  determined  by the  General  Manager  in
      accordance  with  Labor  Law  and  other  promulgated  relevant  laws  and
      regulations of the People's Republic of China,  policies stipulated by the
      Board of Directors, and the financial condition of the Joint Venture.

11.2  The Joint  Venture  shall  have the right to  recruit  and hire  employees
      directly from any available sources including, but not limited to existing
      operations  of Party A. In all cases,  the Joint Venture shall employ only
      those  employees  who  are  sufficiently  qualified  for  employment,   as
      determined through tests and/or examinations.

11.3  The  Joint  Venture,   acting  through  the  General  Manager,  will  sign
      individual labor agreements with each employee. Each labor agreement shall
      include  type of work,  technical  ability  and  wages  of such  employee,
      according to the framework  duly  approved by the Board of Directors,  and
      shall be filed for reference at the local labor management department.

11.4  The labor  agreements  of all  employees  likely to  receive  confidential
      information  and/or  particular  training  from the Joint  Venture or from
      Party  B shall  include,  in  addition  to  confidentiality  undertakings,
      non-competition  clauses  pursuant to which they shall not be permitted to
      work for an  enterprise  or  organization  in the same  field as the Joint
      Venture for a period of two (2) years after leaving the Joint Venture.

12: TAXES, FINANCE, AUDIT AND PROFIT DISTRIBUTION

12.1  The Joint Venture shall pay various taxes in accordance with relevant laws
      and regulations of the People's Republic of China.

<PAGE>

12.2  Employees of the Joint Venture shall be  responsible  for paying their own
      individual income tax or personal income adjustment tax in accordance with
      relevant laws and regulations of the People's Republic of China.

12.3  The Joint  Venture  shall  pursue all  favorable  government  policies and
      programs relevant to commercial  enterprises with operations  contributing
      to the  development  of the  Western  Region of the  People's  Republic of
      China.

12.4  The fiscal year of the Joint  Venture  shall be from January 1 to December
      31. All vouchers,  receipts,  statistical statements,  reports and account
      books shall be written in Chinese,  provided that any such  documents upon
      request of Party B shall be translated  into English.  Monthly,  quarterly
      and annual financial  reports shall be prepared in Chinese and English and
      submitted to the Board of Directors.

12.5  The Joint  Venture  shall engage a public  accounting  firm  registered in
      People's  Republic  of China to  conduct  annual  financial  auditing  and
      routine  functions  as may be required by  relevant  laws of the  People's
      Republic of China.  In addition,  the Joint  Venture shall engage a public
      accounting  firm  registered in the United States to conduct  annual audit
      and routine  functions as may be required by the United States  Securities
      and Exchange Commission.

12.6  The Joint  Venture  shall  establish  bylaws,  operating  regulations  and
      general governance procedures based on those customarily used and required
      for  publicly  traded  companies  in  the  United  States.  The  fees  for
      establishing and maintain said bylaws,  operating  regulations and general
      governance procedures shall be borne by the Joint Venture.

12.7  During the first three (3) months of each year, the General  Manager shall
      prepare the balance  sheet,  profit and loss  statement and a proposal for
      profit  allocation of the prior year, which will be submitted to the Board
      of Directors for review.

13: DURATION OF THE JOINT VENTURE

13.1  The duration of the Joint  Venture  shall be 30 years from the stated date
      of establishment.  The date of establishment of the Joint Venture shall be
      the  issuance  date of the  business  license.  The  duration of the Joint
      Venture  can be  extended  by either  Party  through  a  written  proposal
      submitted  to the Board of  Directors at least six (6) months prior to the
      stated expiration date.  Approval of the duration of the Joint Venture can
      only be determined by a vote at the shareholder meeting.

<PAGE>

14: DISPOSAL OF ASSETS UPON LIQUIDATION OF THE JOINT VENTURE

14.1  Upon  termination of the Joint Venture,  liquidation  shall be carried out
      according to relevant  laws and  regulations  of the People's  Republic of
      China.  The remaining  assets after  liquidation  shall be  distributed in
      proportion  to the  capital  contribution  made by  each  Party  upon  the
      discharge of all liabilities of the Joint Venture.

15: INSURANCE

15.1  The Joint Venture shall maintain all appropriate  insurance  policies with
      an insurance company in the People's  Republic of China. The types,  value
      and  duration of  insurance  shall be decided by the Board of Directors in
      accordance with prevailing market standards.

16. TERMINATION OF CONTRACT AND BREACH

      If any of  following  events  occur  after  the  effective  date  of  this
      Agreement  and the  establishment  of the Joint  Venture,  either Party by
      terminate this Agreement.

      (i) Any event or situation that will cause significant negative effect;

      (ii)  Information or guarantees made by Party A relevant to this Agreement
      are verified to be unauthentic or inaccurate;

      (iii) Party A breaches promises made in this Agreement; or

      (iv) Based on commercial,  legal and accounting due diligence verification
      of the on-going business of Party A, Party B reasonably considers that the
      capital  invested  by  Party A, as  defined  by this  Agreement,  receives
      significant  devaluation  from  the  signing  of  this  Agreement  to  the
      establishment  of  the  Joint  Venture,   or  shall  receive   significant
      devaluation  by those  effects that can not be  controlled by Party B in a
      short period of time after the establishment of the Joint Venture.

17: FORCE MAJEURE

17.1  Should the performance of this Agreement be directly affected or should it
      become  impossible  to  perform  this  Agreement  in  accordance  with the
      prescribed  terms as a result of a force majeure event such as earthquake,
      typhoon, flood, fire, war, civil disorder,  unforeseeable events where the
      occurrences and consequences  are  unpreventable  and unavoidable  without
      limitation,  the Party  affected  by such  event  shall  notify  the other
      Parties by telegram or  facsimile  without any delay and,  within  fifteen
      (15) days thereafter, provide the detailed information on such event and a
      valid certification  document giving reasons for such Party's inability to
      perform all or part of this Agreement or its delay of the performance.

<PAGE>

17.2  If possible,  the said document  shall be issued by a notary public office
      at the location  where the force majeure  event occurs.  The Parties shall
      decide  through  consultations  whether to terminate  this Agreement or to
      waive part of the  obligations to be performed  under this Agreement or to
      delay the  performance of this  Agreement  according to the effects of the
      force majeure event on the performance of this Agreement.

18: APPLICABLE LAW

18.1  The execution, validity,  interpretation and performance of this Agreement
      and  dispute  resolution  under  this  Agreement  shall  be  governed  and
      protected by the laws of China.

19: DISPUTE RESOLUTION

19.1  Any dispute  arising  from the  execution  of or in  connection  with this
      Agreement shall first be settled through  friendly  consultations  between
      the  Parties.  In the event  that no  settlement  can be  reached  through
      consultations,  the disputes shall be submitted to the China International
      Economic  and  Trade  Arbitration   Commission   located  in  Beijing  for
      conciliation. The arbitration shall be final and binding on both Parties.

19.2  When the dispute,  controversy  or claim  arising out of or in  connection
      with  this   Agreement  are  being  resolved   either   through   friendly
      consultation or through arbitration,  the Parties should take the interest
      of the whole into  account and shall not hinder or affect the  performance
      of the  provisions  other than in dispute,  so as to guarantee  the smooth
      operation of the Joint Venture to the extent possible.

20: LANGUAGE

19.1  The Agreement is written in Chinese and English  versions,  both languages
      are equally authentic.

21: OTHERS

21.2  The  precondition of projected  establishment of the Joint Venture in this
      Agreement  is that  Party B shall be  satisfied  about the  audit  results
      carried by those certified public accountants  appointed by Party B on the
      business of and assets  invested by Party A according to the  requirements
      of United States General Accepted Accounting Principle.

<PAGE>

21.2  This  Agreement  together  with  its  appendices   constitute  the  entire
      agreement of the Parties with  respect of the subject  matters  hereof and
      shall supersede all prior agreements between both Parties.

21.3  The Parties  shall take all such efforts to carry out the purposes of this
      Agreement  and its  appendices.  Neither  Party shall take any action that
      might have an adverse  competitive  effect of adverse  consequence  on the
      operation of the Joint Venture.

21.4  Any  waiver  by  either  Party  at any  time of a  breach  of any  term or
      provision of this  Agreement  shall not be construed as a waiver by such a
      Party of any subsequent breach,  its rights to such term or provision,  or
      any of its other rights hereunder.

21.5  If any one or more of the  provisions  contained in this  Agreement or the
      appendices  hereto  shall be  invalid,  illegal  or  unenforceable  in any
      respect under any applicable law, the validity legality and enforceability
      of the remaining  provision  contained  herein or therein shall not in any
      way be affected or impaired.

21.6  Unless otherwise specifically provided, notices or other communications to
      either Party  required or  permitted  hereunder  shall be: (a)  personally
      delivered;  (b)  transmitted by postage prepaid  registered  airmail or by
      international  courier;  or (c)  transmitted  by telex or  facsimile  with
      answerback or followed by registered airmail or air courier. The addresses
      of the Parties listed in this Agreement shall be their respective  mailing
      addresses and their respective facsimile numbers.

21.7  In  witness   whereof,   the  Parties  have  signed  this   Agreement  on:
      _________________________  ,2007 by their duly authorized  representatives
      in six  originals,  each Party  receiving  one  original in each  version,
      Chinese and English.

<PAGE>

      Parties:

      Party A: Shaanxi Longmen Iron & Steel Group Co., Ltd.

      Signature:
      Legal representative:

      Party B: General Steel Holdings Inc.

      Signature:
      Legal representativeEXHIBIT
      10.1

     

    PROMISSORY
      NOTE

    

    
      	$150,000.00 	
              Houston,
                Texas

            	
              June
                15,
                2007 

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, INTERNET AMERICA, INC., a Texas corporation (the
      “Maker”), hereby promises to pay to the order of WILLIAM E. LADIN, JR. (the
“Payee”), the principal sum of One Hundred Fifty Thousand Dollars ($150,000.00),
      with interest on the unpaid balance thereof from the date hereof until maturity
      at the rate or rates hereinafter provided, principal payable at the Maturity
      Date and interest payable monthly by the 15th
      day of
      the preceding month as hereinafter provided in lawful money of the United States
      of America, to Payee at 5722 Indian Circle, Houston, Texas 77057, or at such
      other place within Harris County, Texas, as from time to time may be designated
      by the holder of this Promissory Note (the “Note”).

    

    As
      herein
      provided the unpaid Principal Amount of this Note, or portions thereof, from
      time to time outstanding, shall bear interest prior to maturity at the
      Applicable Rate, provided that in no event shall the Applicable Rate exceed
      the
      Maximum Rate. Notwithstanding the foregoing, if at any time the Applicable
      Rate
      exceeds the Maximum Rate, the rate of interest payable under this Note shall
      be
      limited to the Maximum Rate, but any subsequent reductions in the Applicable
      Rate shall not reduce the Applicable Rate below the Maximum Rate until the
      total
      amount of interest accrued on this Note equals the total amount of interest
      which would have accrued at the Applicable Rate if the Applicable Rate had
      at
      all times been in effect.

     

    As
      used
      in this Note, the following terms shall have the meanings indicated opposite
      them:

    

    “Applicable
      Rate.” The Applicable Rate shall mean the prime rate of interest plus 3% on
      money of money center banks as published in the Wall Street Journal on the
      date
      of issuance of this Note, fixed for the term of the Note.

    

    “Default
      Rate.” The Default Rate shall be the Maximum Rate.

    

    “Equity
      Raise.” An Equity Raise shall mean any sale by Maker of its equity securities to
      one or more investors in a financing.

    

    “Maturity
      Date.” The Maturity Date shall be the earlier to occur of July 1, 2008 and the
      date on which Maker receives funding in an Equity Raise; provided, however,
      that
      if the amount of the Equity Raise is less than the amount of principal and
      interest outstanding under this Note, then this Note shall be prepaid to the
      extent of the amount of the Equity Raise and the balance of the principal shall
      remain outstanding until maturity on July 1, 2008. 

    

    “Maximum
      Rate.” The maximum interest rate permitted under applicable law, it being
      understood that, if applicable law provides for a ceiling under Chapter 301,
      Subchapter A of the Texas Credit Title (as may be amended from time to
      time), such ceiling shall be the Aweekly”
      ceiling. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Principal
      Amount.” That principal portion of the loan evidenced hereby as is from time to
      time outstanding. 

    

    In
      the
      event of an Equity Raise, Payee shall have the right to accept in lieu of cash
      in payment in full of the principal and unpaid interest due under this Note,
      equity securities of the same type, at the same price and on the same terms
      and
      conditions as are available to the investors in the Equity Raise.
      Maker
      shall provide Payee full information regarding the definitive terms of the
      Equity Raise at least ten calendar days prior to its intended closing. Payee
      shall provide notice to Maker of its election whether or not to participate
      in
      the Equity Raise in full satisfaction of the amounts due hereunder within seven
      calendar days after its receipt of notice from Maker. The closing of the sale
      of
      equity securities to Payee in satisfaction of this Note shall be held at the
      same time as the closing of the Equity Raise. The failure by Payee to elect
      to
      participate in the Equity Raise shall not affect the right to receive payment
      under the Note on the Maturity Date. 

    

    Maker
      shall have the right to prepay this Note, in whole or in part, without premium
      or penalty, and upon the payment of all accrued interest on the amount prepaid
      (and any interest which has accrued at the Default Rate, if applicable, and
      other sums that may be payable hereunder) to the date so fixed.

     

    Interest
      on the Principal Amount will be payable monthly by the 15th
      day of
      the preceding month. Notwithstanding anything to the contrary contained in
      this
      Note, at the option of the holder of this Note and upon notice to the Maker
      at
      any time after the occurrence of a Default, as defined below, from and after
      such notice and during the continuance of such Default, the unpaid principal
      of
      this Note from time to time outstanding and all past due installments of
      interest shall, to the extent permitted by applicable law, bear interest at
      the
      Default Rate, provided that in no event shall such interest rate be more than
      the Maximum Rate. 

     

    A
      “Default” shall have occurred in the event any of the following occurs: (i)
      Payee shall cease to be the Chief Executive Officer of Maker for any reason,
      (ii) a failure to pay interest or principal when due, (iii) a levy be made
      under
      any process on, or a receiver be appointed for, property of Maker, and such
      levy
      or appointment shall not be removed or dismissed within thirty (30) days, (iv)
      (x) Maker shall make an assignment for the benefit of creditors or be unable
      to
      pay its debts generally as they become due; (y) Maker shall petition or apply
      to
      any tribunal for the appointment of a trustee, receiver, or liquidator of it,
      or
      of any substantial part of its assets, or shall commence any proceedings
      relating to Maker under any bankruptcy, reorganization, compromise, arrangement,
      insolvency, readjustment of debts, conservatorship, moratorium, dissolution,
      liquidation or other debtor relief laws of any jurisdiction, whether now or
      hereafter in effect; or (z) any such petition or application shall be filed,
      or
      any such proceedings shall be commenced, against Maker, and Maker consents
      thereto or the same is not dismissed or otherwise discharged within thirty
      (30)
      days, or an order, judgment or decree shall be entered appointing any such
      trustee, receiver or liquidator, or approving the petition in any such
      proceedings, or (v) a change in control of Maker, which for purposes of this
      Note shall occur when (a) any "person" (as such term is used in Section 13(d)
      of
      the Securities Exchange Act of 1934) becomes a beneficial owner, directly or
      indirectly, of securities of Maker representing 40% or more of the combined
      voting power of Maker’s then outstanding securities; (b) individuals who were
      members of the Board of Directors of Maker immediately prior to a meeting of
      the
      stockholders of Maker involving a contest for the election of directors do
      not
      constitute a majority of the Board following such election; (c) the stockholders
      of Maker approve an agreement to merge or consolidate, or otherwise reorganize,
      with or into one or more entities which are not subsidiaries of Maker, as a
      result of which less than 50% of the outstanding voting securities of the
      surviving or resulting entity are, or are to be, owned by former stockholders
      of
      Maker; or (d) the stockholders of Maker approve the sale of all or substantially
      all of Maker’s business and/or assets to a person or entity which is not a
      subsidiary of Maker.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    Upon
      the
      occurrence of any Default, Payee shall at its option be entitled to (i)
      accelerate the indebtedness and declare all of the indebtedness immediately
      due
      and payable, and (ii) cumulatively exercise all other rights, options and
      privileges provided by law. 

    All
      interest accruing under this Note shall be calculated on the basis of a 360-day
      year applied to the actual number of days in each month. The Maker shall make
      each payment which it owes hereunder not later than twelve o’clock, noon,
      Houston, Texas, time, on the date such payment becomes due and payable (or
      the
      date any voluntary prepayment is made), in immediately available funds. Any
      payment received by the Payee after such time will be deemed to have been made
      on the next following business day. As used herein, the term “business day”
shall mean a day on which commercial banks are open for business with the public
      in Houston, Texas. 

    

    This
      Note
      is unsecured.

    Payee
      and
      Maker intend in the execution of this Note to contract in strict compliance
      with
      applicable usury law. In furtherance thereof, Payee and Maker stipulate and
      agree that none of the terms and provisions contained in this Note, or in any
      other instrument executed in connection herewith, shall ever be construed to
      create a contract to pay for the use, forbearance or detention of money,
      interest at a rate in excess of the Maximum Rate; neither Maker nor any
      endorsers or other parties now or hereafter becoming liable for payment of
      this
      Note shall ever be obligated or required to pay interest on this Note at a
      rate
      in excess of the Maximum Rate that may be lawfully charged under applicable
      law,
      and the provisions of this paragraph shall control over all other provisions
      of
      this Note and any other instruments now or hereafter executed in connection
      herewith which may be in apparent conflict herewith. Payee, including each
      holder of this Note, expressly disavows any intention to charge or collect
      excessive unearned interest or finance charges in the event the maturity of
      this
      Note is accelerated. If the maturity of this Note shall be accelerated for
      any
      reason or if the Principal Amount is paid prior to the end of the term of this
      Note, and as a result thereof the interest received for the actual period of
      existence of the Loan exceeds the amount of interest that would have accrued
      at
      the Maximum Rate, the Payee or other holder of this Note shall, at its option,
      either refund to Maker the amount of such excess or credit the amount of such
      excess against the Principal Amount and thereby shall render inapplicable any
      and all penalties of any kind provided by applicable law as a result of such
      excess interest. In the event that Payee or any other holder of this Note shall
      contract for, charge or receive any amounts and/or any other thing of value
      which are determined to constitute interest which would increase the effective
      interest rate on this Note to a rate in excess of that permitted to be charged
      by applicable law, all such sums determined to constitute interest in excess
      of
      the amount of interest at the lawful rate shall, upon such determination, at
      the
      option of the Payee or other holder of this Note, be either immediately returned
      to Maker or credited against the Principal Amount, in which event any and all
      penalties of any kind under applicable law as a result of such excess interest
      shall be inapplicable. By execution of this Note, Maker acknowledges that it
      believes the Loan evidenced by this Note to be non-usurious and agrees that
      if,
      at any time, Maker should have reason to believe that the Loan is in fact
      usurious, it will give the Payee or other holder of this Note notice of such
      condition and Maker agrees that the Payee or other holder shall have ninety
      (90)
      days in which to make appropriate refund or other adjustment in order to correct
      such condition if in fact such exists. The term “applicable law” as used in this
      Note shall mean the laws of the state of Texas or the laws of the United States,
      whichever laws allow the greater rate of interest, as such laws now exist or
      may
      be changed or amended or come into effect in the future.

    

    Should
      the indebtedness represented by this Note or any part thereof be collected
      at
      law or in equity or through any bankruptcy, receivership, probate or other
      court
      proceedings or if this Note is placed in the hands of attorneys for collection
      after default, Maker and all endorsers of this Note jointly and severally agree
      to pay to the Payee or other holder of this Note in addition to the principal
      and interest due and payable hereon reasonable attorneys’ and collection
      fees.

     

    Maker
      and
      all endorsers and all other persons obligated or to become obligated on this
      Note severally waive presentment for payment, demand, notice of demand and
      of
      dishonor and nonpayment of this Note, notice of intention to accelerate the
      maturity of this Note, protest and notice of protest, diligence in collecting,
      and the bringing of suit against any other party, and agree to all renewals,
      extensions, modifications, partial payments, with or without notice, before
      or
      after maturity.

    

    MAKER
      HEREBY IRREVOCABLY WAIVES THE RIGHT TO A JURY TRIAL IN ANY ACTION, PROCEEDING
      OR
      COUNTERCLAIM BROUGHT UNDER THIS NOTE.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    THIS
      NOTE
      AND THE PARTIES’ RIGHTS AND OBLIGATIONS HEREUNDER AND THEREUNDER SHALL IN ALL
      RESPECTS BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
      LAWS
      OF THE STATE OF TEXAS (WITHOUT GIVING EFFECT TO TEXAS’ PRINCIPLES OF CONFLICTS
      OF LAW) AND THE LAWS OF THE UNITED STATES APPLICABLE TO TRANSACTIONS IN SUCH
      STATE. MAKER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF
      ANY
      TEXAS OR FEDERAL COURT SITTING IN HARRIS COUNTY, TEXAS OVER ANY SUIT, ACTION
      OR
      PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, AND MAKER HEREBY AGREES
      AND
      CONSENTS THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR
      UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR
      PROCEEDING IN ANY TEXAS OR FEDERAL COURT SITTING IN HARRIS COUNTY, TEXAS MAY
      BE
      MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO
      MAKER AT THE PRINCIPAL EXECUTIVE OFFICES OF MAKER, AND SERVICE SO MADE SHALL
      BE
      COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED.

    

    Signed
      as
      of the 15th day of June, 2007.

    

    
      	 	 	 
	 	MAKER:
	Address for Notice: 	 
	 	 
	10930 W. Sam Houston Pkwy., N. 	INTERNET AMERICA, INC., a Texas
              corporation 
	Suite 200 	 
	Houston, Texas 77064 	 
	 	 
 	 
 
	 	By:  	/s/
              Jennifer S. LeBlanc
	 	
              
Jennifer
              S. LeBlanc, Chief Financial
              Officer

    
      
         

      

      
        4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]