Document:

EX-4.1 FORM OF SUBSCRIPTION RIGHTS CERTIFICATE

Exhibit 4.1

	RIGHTS CERTIFICATE #: NUMBER OF RIGHTS : THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS DATED      , 2009
(THE “PROSPECTUS”) AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM MORROW & CO., LLC., THE INFORMATION AGENT.
Intelligent Systems Corporation Incorporated under the laws of the State of Georgia NON — TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE Evidencing Non —
Transferable Subscription Rights to Purchase Shares of Common Stock of Intelligent Systems Corporation Subscription Price: $0.70 per Share THE SUBSCRIPTION
RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN DAYLIGHT TIME, ON      , 2009, UNLESS EXTENDED BY THE COMPANY REGISTERED OWNER:
THIS CERTIFIES THAT the registered owner whose name is inscribed hereon is the owner of the number of non-transferable subscription rights (“Rights”)
set forth above. Each whole Right entitles the holder thereof to subscribe for and purchase one share of Common Stock, with a par value of $0.01 per
share, of Intelligent Systems Corporation, a Georgia corporation, at a subscription price of $  per share (the “Basic Subscription Privilege”), pursuant
to a rights offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the Prospectus and the “Instructions for Use of
Intelligent Systems Corporation Subscription Rights Certificates” accompanying this Subscription Rights Certificate. If any shares of Common Stock
available for purchase in the Rights Offering are not purchased by other holders of Rights pursuant to the exercise of their Basic Subscription
Privilege (the “Excess Shares”), any Rights holder that exercises its Basic Subscription Privilege in full may subscribe for a number of Excess Shares
pursuant to the terms and conditions of the Rights Offering, subject to proration, as described in the Prospectus (the “Over- Subscription Privilege”).
The Rights represented by this Subscription Rights Certificate may be exercised by completing Form 1 and any other appropriate forms on the reverse side
hereof and by retuning the full payment of the subscription price for each share of Common Stock in accordance with the “Instructions for Use of
Intelligent Systems Corporation Subscription Rights Certificates” that accompany this Subscription Rights Certificate. This Subscription Rights
Certificate is not valid unless countersigned by the subscription agent and registered by the registrar. Witness the seal of Intelligent Systems
Corporation and the signatures of its duly authorized officers. Dated: President, Chief Executive Officer Vice President, and Principal Executive
Officer Chief Financial Officer and Secretary 

 

 

	DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE Delivery other than in the manner or to the addresses listed below will not constitute
valid delivery. American Stock Transfer & Trust Company 6201 15th Avenue Brooklyn, New York 11219 Telephone: (877) 248-6417 PLEASE PRINT ALL
INFORMATION CLEARLY AND LEGIBLY. FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS To subscribe for shares pursuant to your Basic Subscription Right,
please complete lines (a) and (c) and sign under Form 4 below. To subscribe for shares pursuant to your Over-Subscription Right, please also complete
line (b) and sign under Form 4 below. To the extent you subscribe for more Shares than you are entitled under either the Basic Subscription Right
or the Over- Subscription Right, you will be deemed to have elected to purchase the maximum number of shares for which you are entitled to subscribe
under the Basic Subscription Right or Over-Subscription Right, as applicable. (a) EXERCISE OF BASIC SUBSCRIPTION RIGHT: I apply for
            shares x $ =$0.70 (no. of new shares) (subscription price) (amount enclosed) (b) EXERCISE OF OVER-SUBSCRIPTION RIGHT If you have
exercised your Basic Subscription Right in full and wish to subscribe for up to 400,000 additional shares of Common Stock: I apply for
shares x $ =$0.70 (no. of new shares) (subscription price) (amount enclosed) (c) Total Amount of
Payment Enclosed =$ METHOD OF PAYMENT (CHECK ONE) ?? Cashier’s or Certified Check or bank draft drawn on a U.S. bank, or postal
telegraphic or express. ?? Wire transfer of immediately available funds directly to the account maintained by American
Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes of accepting subscriptions in this Rights Offering
at JPMorgan Chase Bank, 55 Water Street, New York, New York 10005, ABA #021000021, Account # American Stock Transfer
FBO Intelligent Systems Corporation, with reference to the rights holder’s name. FORM 2-TRANSFER TO DESIGNATED TRANSFEREE To transfer your
subscription rights to another person, complete this Form 2 and have your signature guaranteed under Form 5. For value received
of the subscription rights represented by this Subscription Rights Certificate are assigned to:
Social Security # Signature(s): IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of this
Subscription Rights Certificate in every particular, without alteration or enlargement, or any other change whatsoever.
FORM 3-DELIVERY TO DIFFERENT ADDRESS If you wish for the Common Stock underlying your subscription rights, a certificate representing unexercised
subscription rights or the proceeds of any sale of subscription rights to be delivered to an address different from that shown on the face of this
Subscription Rights Certificate, please enter the alternate address below, sign under Form 4 and have your signature guaranteed under Form 5. FORM 4-SIGNATURE TO SUBSCRIBE: I acknowledge that I have received the Prospectus for this Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above on the terms and conditions specified in the Prospectus. Signature(s): IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of this Subscription
 Rights Certificate in every particular, without alteration or enlargement, or any other change whatsoever. FORM 5-SIGNATURE GUARANTEE This form must be completed if you have completed any portion of Forms 2 or 3. Signature Guaranteed: (Name of Bank or Firm) By: (Signature of Officer) IMPORTANT: The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership in an approved signature guarantee medallion program p
ursuant to Securities and Exchange Commission Rule 17Ad-15.EX-4.2 SUBSCRIPTION AGENT AGREEMENT

Exhibit 4.2

SUBSCRIPTION AGENT AGREEMENT

______ ___, 2009

American Stock Transfer & Trust Company

59 Maiden Lane

New York, New York 10038

Ladies and Gentlemen:

In connection with your appointment as Subscription Agent in the transaction described herein,
Intelligent Systems Corporation (the “Company”), hereby confirms its arrangements with you as
follows:

	1.	 	Rights Offering — The Company is offering
(the “Rights Offering”) to the holders of  shares of its
Common Stock, par value $0.01 per share (“Common Stock”), on ______ ___, 2009 (the
“Record Date”), the right (“Rights”) to subscribe
for Units (“Units”), each Unit consisting of
one share of Common Stock. Rights shall
cease to be exercisable at 5:00 p.m., New York City time, on ______ ___, 2009 or such later date
of which the Company notifies you orally and confirms in writing (the
“Expiration Date”). One
Right is being issued for each share of Common Stock held on the Record Date. One Right and
payment in full of the subscription price of $0.70 (the “Subscription Price”) is required to
subscribe for one Unit. Rights are evidenced by non-transferable subscription certificates in
registered form (“Subscription Certificates”). Each holder of Subscription Certificate(s) who
exercises the holder’s right to subscribe for all Units that can be subscribed for with the
Rights evidenced by such Subscription Certificate(s) (the “Basic Subscription Right”) will
have the right to subscribe for additional Units, if any, available as a result of any
unexercised Rights (such additional subscription right being referred to hereafter as the
“Additional Subscription Privilege”). The Rights Offering will be conducted in the manner and
upon the terms set forth in the Company’s Prospectus dated __________, 2009 (the
“Prospectus”), which is incorporated herein by reference and made a part hereof as if set
forth in full herein.
	 
	2.	 	Appointment of Subscription Agent — You are hereby appointed as Subscription Agent to
effect the Rights Offering in accordance with the Prospectus. Each reference to you in this
letter is to you in your capacity as Subscription Agent unless the context indicates
otherwise.
	 
	3.	 	Delivery of Documents — Enclosed herewith are the following, the receipt of which you
acknowledge by your execution hereof:

	 	(a)	 	a copy of the Prospectus;
	 
	 	(b)	 	the form of Subscription Certificate (with instructions); and
	 
	 	(c)	 	resolutions adopted by the Board of Directors of the Company in connection with the
Rights Offering, certified by the secretary of the Company;

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     As soon as is reasonably practical, you shall mail or cause to be mailed to each holder of
Common Stock at the close of business on the Record Date a Subscription Certificate evidencing the
Rights to which such holder is entitled, a Prospectus and an
envelope addressed to you. Prior to mailing, the Company will provide you with blank Subscription
Certificates which you will prepare and issue in the names of holders of Common Stock of record at
the close of business on the Record Date and for the number of Rights to which they are entitled.
The Company will also provide you with a sufficient number of copies of each of the documents to be
mailed with the Subscription Certificates.

	4.	 	Subscription Procedure  —

	 	(a)	 	Upon your receipt prior to 5:00 p.m., New York City time, on the Expiration Date (by
mail or delivery), as Subscription Agent, of (i) any Subscription Certificate completed and
endorsed for exercise, as provided on the reverse side of the Subscription Certificate, and (ii) payment in full of the Subscription
Price in U.S. funds by check, bank draft or money order payable at par (without deduction
for bank service charges or otherwise) to the order of American Stock Transfer & Trust
Company, you shall as soon as practicable after the Expiration Date, but after performing
the procedures described in subparagraphs (b) and (c) below, mail to the subscriber’s
registered address on the books of the Company certificates representing the securities
underlying each Unit duly subscribed for (pursuant to the Basic Subscription Right and the
Additional Subscription Privilege) and furnish a list of all such information to the
Company.
	 
	 	(b)	 	As soon as practicable after the Expiration Date you shall calculate the number of Units
to which each subscriber is entitled pursuant to the Additional Subscription Privilege. The
Additional Subscription Privilege may only be exercised by holders who subscribe to all the
Units that can be subscribed for under the Basic Subscription Right. The Units available
for additional subscriptions will be those that have not been subscribed and paid for
pursuant to the Basic Subscription Right (the “Remaining Units”). Where there are
sufficient Remaining Units to satisfy all additional subscriptions by holders exercising
their rights under the Additional Subscription Privilege, each holder shall be allotted the
number of Remaining Units subscribed for up to a maximum of 500,000 Remaining Units. If the
aggregate number of Units subscribed for under the Additional Subscription Privilege exceeds
the number of Remaining Units, the number of Remaining Units allotted to each participant in
the Additional Subscription Privilege shall be the product obtained by multiplying the
number of Remaining Units by a fraction of which the numerator is the number of Units
subscribed for by that participant under the Basic Subscription Right and the denominator is
the aggregate number of Units subscribed for under the Basic Subscription Right by all
participants who are exercising their Additional Subscription Privilege. However, no holder
shall be allocated more Remaining Units than such holder subscribed for. Any fractional
Unit to which persons exercising their Additional Subscription Privilege would otherwise be
entitled pursuant to such allocation shall be rounded to the next whole Unit.
	 
	 	(c)	 	Upon calculating the number of Units to which each subscriber is entitled pursuant to
the Additional Subscription Privilege and the amount overpaid, if any, by each subscriber,
you shall, as soon as practicable, furnish a list of all such information to the Company.

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	 	(d)	 	Upon calculating the number of Units to which each subscriber is entitled pursuant to
the Additional Subscription Privilege and assuming payment for the additional Units
subscribed for has been delivered, you shall mail, as contemplated in subparagraph (a)
above, the certificates representing the additional securities which the subscriber has been
allotted. If a lesser number of Units is allotted to a subscriber under the Additional
Subscription Privilege than the subscriber has tendered payment for, you shall remit the
difference to the subscriber without interest or deduction at the same time as certificates
representing the securities allotted pursuant to the Additional Subscription Privilege are
mailed.
	 
	 	(e)	 	Funds received by you pursuant to the Basic Subscription Right and the Additional
Subscription Privilege shall be held by you in a segregated account. Upon mailing
certificates representing the securities and refunding subscribers for additional Units
subscribed for but not allocated, if any, you shall promptly remit to the Company all funds
received in payment of the Subscription Price for Units sold in the Rights Offering.

	5.	 	Defective Exercise of Rights; Lost Subscription Certificates — The Company shall have
the absolute right to reject any defective exercise of Rights or to waive any defect in
exercise. Unless requested to do so by the Company, you shall not be under any duty to give
notification to holders of Subscription Certificates of any defects or irregularities in
subscriptions. Subscriptions will not be deemed to have been made until any such defects or
irregularities have been cured or waived within such time as the Company shall determine. You
shall as soon as practicable return Subscription Certificates with the defects or
irregularities which have not been cured or waived to the holder of the Rights. If any
Subscription Certificate is alleged to have been lost, stolen or destroyed, you should follow
the same procedures followed far lost stock certificates representing Common Stock you use in
your capacity as transfer agent for the Company’s Common Stock.
	 
	6.	 	Intentionally Deleted.
	 
	7.	 	Delivery — You shall deliver to the Company the exercised Subscription Certificates
in accordance with written directions received from the Company and shall deliver to the
subscribers who have duly exercised Rights at their registered addresses certificates representing
the securities subscribed for as instructed on the reverse side of the
Subscription Certificates.

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	8.	 	Reports — You shall notify the Company by telephone on or before the close of
business on each business day during the period commencing 5 business days after the mailing
of the Rights and ending at the Expiration Date (a “daily notice”), which notice
shall thereafter be confirmed in writing, of (i) the number of Rights exercised on the day
covered by such daily notice, (ii)  the number of Rights for which defective exercises
have been received on the day covered by such daily notice, and (iii) the cumulative total of
the information set forth in clauses (i) through (ii) above. At or before 5:00 p.m., New
York City time, on the first NYSE trading day following the Expiration Date you shall certify
in writing to the Company the cumulative total through the Expiration Date of all the
information set forth in clauses (i) through (iii) above. You shall also maintain and update a listing of holders who have fully or partially
exercised their Rights, holders who have transferred their Rights and their transferees, and
holders who have not exercised their Rights. You shall provide the Company or its designees
with such information compiled by you pursuant to this paragraph 9 as any of them shall
request.
	 
	9.	 	Future Instructions — With respect to notices or instructions to be provided by the
Company hereunder, you may rely and act on any written instruction signed by any one or more
of the following authorized officers or employees of the Company:

J. Leland Strange, President and Chief Executive Officer

Bonnie L. Herron, Vice President, Secretary and Chief Financial Officer

	10.	 	Payment of Expenses — The Company will pay you compensation for acting in your
capacity as Subscription Agent hereunder in the amount of $20,000.00 plus your reasonable
out-of-pocket expenses. The Company will pay an additional fee equal to one-third of the
Subscription Agent fee for each extension of the Offering, plus any out-of-pocket expenses
associated with such extension.
	 
	11.	 	Counsel — You may consult with counsel satisfactory to you, which may be counsel to
the Company, and the advice or opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by you
hereunder in good faith and in accordance with such advice and opinion of such counsel.

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	12.	 	Indemnification — The Company covenants and agrees to indemnify and hold you
harmless against any costs, expenses (including reasonable fees of legal counsel), losses or
damages, which may be paid, incurred or suffered by or to which you may become subject
arising from or out of, directly or indirectly, any claim or liability resulting from your
actions as Subscription Agent pursuant hereto; provided that such covenant and agreement
does not extend to such costs, expenses, losses and damages incurred or suffered by you as a
result of, or arising out of, your own gross negligence, misconduct or bad faith or that of
any employees, agents or independent contractors used by you in connection with performance
of your duties as Subscription Agent hereunder.
	 
	13.	 	Notices —  Unless otherwise provided herein, all reports, notices and other
communications required or permitted to be given hereunder shall be in writing and delivered
by hand or confirmed telecopy or by first class U.S. mail, postage prepaid, shall be deemed
given if by hand or telecopy, upon receipt or if by U.S. mail, three business days after
deposit in the U.S. mail and shall be addressed as follows

	 	(a)	 	If to the Company, to:

	 	 	 	Intelligent Systems Corporation

4355 Shackleford Road

Norcross GA 30093

Attn: Bonnie Herron

Telephone: 770-564-5504

Telecopy: 770-381-2808

	 	(b)	 	If to you, to:

	 	 	 	American Stock Transfer & Trust Company

59 Maiden Lane

New York, N.Y. 10038

Attention: George Karfunkel

Telephone: (718) 921-8200

Telecopy: (718) 236-4588

	14.	 	Prior Agreements. Nothing herein contained shall amend, replace or supersede any
agreement between the Company and you to act as the Company’s transfer agent which agreement
shall remain of full force and effect.

Yours truly,

	 	 	 	 	 
	 	INTELLIGENT SYSTEMS CORPORATION

 	 
	 	By:  	 	 
	 
	 	Name:  	 	 
	 
	 	Title:  	 	 

5

 

	 	 	 	 	 

	 	 	 	 	 
	Agreed & Accepted:

AMERICAN STOCK TRANSFER & TRUST COMPANY

 	 	 

By:_______________________________

Name:____________________________

Title:___________________________

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Fee Schedule

Flat fee of $20,000.00

Plus reasonable out-of-pocket expenses.

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