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      EXHIBIT
        4.2

      REGISTRATION
        RIGHTS AGREEMENT

       

      This
        Registration Rights Agreement (the “Agreement”)
        is
        made and entered into as of December 10, 2007 (the “Effective
        Date”)
        among
        Internet America, Inc., a Texas corporation (the “Company”),
        and
        the
        parties set forth
        on
Exhibit
        A
        hereto
        (each, an “Investor”
and
        collectively, whether one or more, the “Investors”).

      

      RECITALS:

      

      A. The
        Investors have purchased shares of common stock, $0.01 par value, of the
        Company
        pursuant to the Securities Purchase Agreement (the “Securities
        Purchase Agreement”),
        dated
        as of the date hereof,
        by and
        between the Company and each Investor.

      

      B. The
        Company and the Investors desire to set forth the registration rights to
        be
        granted by the Company to the Investors.

      

      NOW,
        THEREFORE,
        in
        consideration of the mutual promises, representations, warranties, covenants,
        and conditions set forth herein, in the Securities Purchase Agreement, or
        otherwise, the parties mutually agree as follows: 

      

      AGREEMENT:

      

      1. Certain
        Definitions.
        As used
        in this Agreement, the following terms shall have the following respective
        meanings:

      

      “Blackout
        Period”
means,
        with respect to a registration, a period in each case commencing on the day
        immediately after the Company notifies the Investors that they are required,
        pursuant to Section 4(f), to suspend offers and sales of Registrable Securities
        during which the Company, in the good faith judgment of its Board of Directors,
        determines (because of the existence of, or in anticipation of, any acquisition,
        financing activity, or other transaction involving the Company, or the
        unavailability for reasons beyond the Company’s control of any required
        financial statements, disclosure of information which is in its best interest
        not to publicly disclose, or any other event or condition of similar
        significance to the Company) that the registration and distribution of the
        Registrable Securities to be covered by such registration statement, if any,
        would be seriously detrimental to the Company and its shareholders and ending
        on
        the earlier of (1) the date upon which the material non-public information
        commencing the Blackout Period is disclosed to the public or ceases to be
        material and (2) such time as the Company notifies the selling Holders that
        the
        Company will no longer delay such filing of the Registration Statement and
        recommences taking steps to make such Registration Statement effective or
        allows
        sales pursuant to such Registration Statement to resume.

      

      “Business
        Day”
means
        any day of the year, other than a Saturday, Sunday, or other day on which
        the
        Commission is required or authorized to close.

       

      
        
          
          

        

        
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      “Closing
        Date”
means
        December 10, 2007, or such other time as is mutually agreed between the Company
        and the Investors for the closing of the sale referred to in Recital A
        above.

      

      “Commission”
means
        the Securities and Exchange Commission or any other federal agency at the
        time
        administering the Securities Act.

      

      “Common
        Stock”
means
        the common stock, $0.01 par value, of the Company and any and all shares
        of
        capital stock or other equity securities of: (i) the Company which are added
        to
        or exchanged or substituted for the Common Stock by reason of the declaration
        of
        any stock dividend or stock split, the issuance of any distribution or the
        reclassification, readjustment, recapitalization or other such modification
        of
        the capital structure of the Company; and (ii) any other corporation, now
        or
        hereafter organized under the laws of any state or other governmental authority,
        with which the Company is merged, which results from any consolidation or
        reorganization to which the Company is a party, or to which is sold all or
        substantially all of the shares or assets of the Company, if immediately
        after
        such merger, consolidation, reorganization or sale, the Company or the
        stockholders of the Company own equity securities having in the aggregate
        more
        than 50% of the total voting power of such other corporation.

      

      “Exchange
        Act”
means
        the Securities Exchange Act of 1934, as amended, and the rules and regulations
        of the Commission promulgated thereunder.

      

      “Family
        Member”
means
        (a) with respect to any individual, such individual’s spouse, any descendants
        (whether natural or adopted), any trust all of the beneficial interests of
        which
        are owned by any of such individuals or by any of such individuals together
        with
        any organization described in Section 501(c)(3) of the Internal Revenue Code
        of
        1986, as amended, the estate of any such individual, and any corporation,
        association, partnership or limited liability company all of the equity
        interests of which are owned by those above described individuals, trusts
        or
        organizations and (b) with respect to any trust, the owners of the beneficial
        interests of such trust.

      

      “Form
        S-1”
means
        such form under the Securities Act as in effect on the date hereof.

       

      “Holder”
means
        each Investor or any successor or Permitted Assignee of
        an
        Investor, who acquires rights in accordance with this Agreement with respect
        to
        the Registrable Securities directly or indirectly from an Investor, including
        from any Permitted Assignee.

      

      “Inspector”
means
        any attorney, accountant, or other agent retained by
        an
        Investor for the purposes provided in Section 4(j).

      

      “Permitted
        Assignee”
means
        (a) with respect to a partnership, its partners or former partners in accordance
        with their partnership interests, (b) with respect to a corporation, its
        shareholders in accordance with their interest in the corporation, (c) with
        respect to a limited liability company, its members or former members in
        accordance with their interest in the limited liability company, (d) with
        respect to an individual party, any Family Member of such party, (e) an entity
        that is controlled by, controls, or is under common control with a transferor,
        or (f) a party to this Agreement.

       

      
        
          
          

        

        
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      The
        terms
“register,”
        “registered,”
and
        “registration”
refers
        to a registration effected by preparing and filing a registration statement
        in
        compliance with the Securities Act, and the declaration or ordering of the
        effectiveness of such registration statement.

      

      “Registrable
        Securities”
means
        shares of Common Stock issued to each Investor pursuant to the Securities
        Purchase Agreement, but in each case excluding (A) any Registrable Securities
        that have been publicly sold or may be publicly sold immediately without
        registration under the Securities Act either pursuant to Rule 144 of the
        Securities Act or otherwise; (B) any Registrable Securities sold by a person
        in
        a transaction pursuant to a registration statement filed under the Securities
        Act or (C) any Registrable Securities that are at the time subject to an
        effective registration statement under the Securities Act. 

      

      “Registration
        Statement”
means
        the registration statement required to be filed by the Company pursuant to
        Section 3(a).

      

      “Securities
        Act”
means
        the Securities Act of 1933, as amended, or any similar federal statute
        promulgated in replacement thereof, and the rules and regulations of the
        Commission thereunder, all as the same shall be in effect at the
        time.

      

      “SEC
        Effective Date”
means
        the date the Registration Statement is declared effective by the
        Commission.

      

      2. Term.
        This
        Agreement shall continue in full force and effect for a period of two (2)
        years
        from the Effective Date, unless terminated sooner hereunder.

      

      3. Registration.

      

      (a) Piggyback
        Registration.
        If the
        Company shall determine to register for sale for cash any of its Common Stock,
        for its own account or for the account of others (other than the Holders),
        other
        than (i) a registration relating solely to employee benefit plans or securities
        issued or issuable to employees, consultants (to the extent the securities
        owned
        or to be owned by such consultants could be registered on Form S-8) or any
        of
        their Family Members (including a registration on Form S-8), (ii) a registration
        relating solely to a Commission Rule 145 transaction, a registration on Form
        S-4
        in connection with a merger, acquisition, divestiture, reorganization, or
        similar event, or (iii) a registration in which the only Common Stock being
        registered is Common Stock issuable upon conversion of debt securities that
        are
        also being registered, the Company shall promptly give to the Holders written
        notice thereof (and in no event shall such notice be given less than 20 calendar
        days prior to the filing of such registration statement), and shall, subject
        to
        Section 3(b), include in such registration (and any related qualification
        under
        blue sky laws or other compliance) (a “Piggyback
        Registration”),
        all
        of the Registrable Securities specified in a written request or requests,
        made
        within 10 calendar days after receipt of such written notice from the Company,
        by any Holder or Holders. However, the Company may, without the consent of
        the
        Holders, withdraw such registration statement prior to its becoming effective
        if
        the Company or such other shareholders have elected to abandon the proposal
        to
        register the securities proposed to be registered thereby. 

       

      
        
          
          

        

        
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      (b) Underwriting.
        If a
        Piggyback Registration is for a registered public offering involving an
        underwriting, the Company shall so advise the Holders in writing or as a
        part of
        the written notice given pursuant to Section 3(a). In such event the right
        of
        any Holder to registration pursuant to Section 3(a) shall be conditioned
        upon
        such Holder’s participation in such underwriting and the inclusion of such
        Holder’s Registrable Securities in the underwriting to the extent provided
        herein. All Holders proposing to distribute their securities through such
        underwriting shall (together with the Company and any other shareholders
        of the
        Company distributing their securities through such underwriting) enter into
        an
        underwriting agreement in customary form with the underwriter or underwriters
        selected for such underwriting by the Company or selling shareholders, as
        applicable. Notwithstanding any other provision of this Section 3(b), if
        the
        underwriter or the Company determines that marketing factors require a
        limitation of the number of shares to be underwritten, the underwriter may
        exclude some or all Registrable Securities from such registration and
        underwriting. The Company shall so advise all Holders (except those Holders
        who
        failed to timely elect to distribute their Registrable Securities through
        such
        underwriting or have indicated to the Company their decision not to do so),
        and
        the number of shares of Registrable Securities that may be included in the
        registration and underwriting, if any, shall be allocated among such Holders
        as
        follows: 

      

      (i) In
        the
        event of a Piggyback Registration that is initiated by the Company, the number
        of shares that may be included in the registration and underwriting shall
        be
        allocated first to the Company and then, subject to obligations and commitments
        existing as of the date hereof, to all selling shareholders, including the
        Holders, who have requested to sell in the registration on a pro rata basis
        according to the number of shares requested to be included; and

      

      (ii) In
        the
        event of a Piggyback Registration that is initiated by the exercise of demand
        registration rights by a shareholder or shareholders of the Company (other
        than
        the Holders), then the number of shares that may be included in the registration
        and underwriting shall be allocated first to such selling shareholders who
        exercised such demand and then, subject to obligations and commitments existing
        as of the date hereof, to all other selling shareholders, including the Holders,
        who have requested to sell in the registration, on a pro rata basis according
        to
        the number of shares requested to be included.

      

      No
        Registrable Securities excluded from the underwriting by reason of the
        underwriter’s marketing limitation shall be included in such registration. If
        any Holder disapproves of the terms of any such underwriting, such Holder
        may
        elect to withdraw therefrom by written notice to the Company and the
        underwriter. The Registrable Securities and/or other securities so withdrawn
        from such underwriting shall also be withdrawn from such registration;
provided,
        however,
        that,
        if by the withdrawal of such Registrable Securities a greater number of
        Registrable Securities held by other Holders may be included in such
        registration (up to the maximum of any limitation imposed by the underwriters),
        then the Company shall offer to all Holders who have included Registrable
        Securities in the registration the right to include additional Registrable
        Securities pursuant to the terms and limitations set forth herein in the
        same
        proportion used above in determining the underwriter limitation.

       

      
        
          
          

        

        
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      (c) Right
        to Terminate Registration. The
        Company shall have the right to terminate or withdraw any registration initiated
        by it under this Section 3 prior to the effectiveness of such registration
        whether or not any Holder has elected to include securities in such
        registration. The registration expenses of such withdrawn registration shall
        be
        borne by the Company in accordance with Section 6 hereof.

      

      4. Registration
        Procedures.
        In the
        case of each registration, qualification, or compliance effected by the Company
        pursuant to Section 3 hereof, the Company will keep each Holder including
        securities therein reasonably advised in writing (which may include e-mail)
        as
        to the initiation of each registration, qualification, and compliance and
        as to
        the completion thereof. With respect to any registration statement filed
        pursuant to Section 3, the Company will use its commercially reasonable best
        efforts to:

      

      (a) prepare
        and file with the Commission with respect to such Registrable Securities,
        a
        registration statement on Form S-1, or any other form for which the Company
        then
        qualifies or which counsel for the Company shall deem appropriate, and which
        form shall be available for the sale of the Registrable Securities in accordance
        with the intended method(s) of distribution thereof, and use its commercially
        reasonable efforts to cause such registration statement to become and remain
        effective at least for a period ending with the first to occur of (i) the
        sale
        of all Registrable Securities covered by the registration statement, (ii)
        the
        availability under Rule 144 for the Holder to immediately, freely resell
        without
        restriction all Registrable Securities covered by the registration statement,
        (iii) 90 days after a Piggyback Registration is declared effective by the
        Commission (in each case, the“Effectiveness
        Period”);
        provided
        that no
        later than two business days before filing with the Commission a registration
        statement or prospectus or any amendments or supplements thereto, the Company
        shall (i) furnish to one special counsel (“Holders’
        Counsel”)
        selected by the Company for the benefit of the Holders (which Holders’ Counsel
        shall be
        the
        same Holders’ Counsel selected under the Registration Rights Agreement of the
        Company dated October 17, 2007 so long as the Investors remain a party to
        that
        agreement),
        copies
        of all such documents proposed to be filed (excluding any exhibits other
        than
        applicable underwriting documents), in substantially the form proposed to
        be
        filed, which documents shall be subject to the review of such Holders’ Counsel,
        and (ii) notify each Holder of Registrable Securities covered by such
        registration statement of any stop order issued or threatened by the Commission
        and take all reasonable actions required to prevent the entry of such stop
        order
        or to remove it if entered;

      

      (b) if
        a
        registration statement is subject to review by the Commission, promptly respond
        to all comments and diligently pursue resolution of any comments to the
        satisfaction of the Commission;

      

      (c) prepare
        and file with the Commission such amendments and supplements to such
        registration statement and the prospectus used in connection therewith as
        may be
        necessary to keep such registration statement effective during the Effectiveness
        Period (but in any event at least until expiration of the 90-day period referred
        to in Section 4(3) of the Securities Act and Rule 174, or any successor thereto,
        thereunder, if applicable), and comply with the provisions of the Securities
        Act
        with respect to the disposition of all securities covered by such registration
        statement during such period in accordance with the intended method(s) of
        disposition by the sellers thereof set forth in such registration
        statement;

       

      
        
          
          

        

        
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      (d) furnish,
        without charge, to each Holder of Registrable Securities covered by such
        registration statement (i) a reasonable number of copies of such registration
        statement (including any exhibits thereto other than exhibits incorporated
        by
        reference), each amendment and supplement thereto as such Holder may request,
        (ii) such number of copies of the prospectus included in such registration
        statement (including each preliminary prospectus and any other prospectus
        filed
        under Rule 424 under the Securities Act) as such Holders may request, in
        conformity with the requirements of the Securities Act, and (iii) such other
        documents as such Holder may reasonably request in order to facilitate the
        disposition of the Registrable Securities owned by such Holder, but only
        during
        the Effectiveness Period;

      

      (e) use
        its
        commercially reasonable best efforts to register or qualify such Registrable
        Securities under such other applicable securities or blue sky laws of such
        jurisdictions as any Holder of Registrable Securities covered by such
        registration statement reasonably requests as may be necessary for the
        marketability of the Registrable Securities (such request to be made by the
        time
        the applicable registration statement is deemed effective by the Commission)
        and
        do any and all other acts and things which may be reasonably necessary or
        advisable to enable such Holder to consummate the disposition in such
        jurisdictions of the Registrable Securities owned by such Holder; provided
        that the
        Company shall not be required to (i) qualify generally to do business in
        any
        jurisdiction where it would not otherwise be required to qualify but for
        this
        paragraph (e), (ii) subject itself to taxation in any such jurisdiction,
        or
        (iii) consent to general service of process in any such
        jurisdiction;

      

      (f) as
        promptly as practicable after becoming aware of such event, notify each Holder
        of such Registrable Securities at any time when a prospectus relating thereto
        is
        required to be delivered under the Securities Act of the happening of any
        event
        which comes to the Company’s attention if as a result of such event the
        prospectus included in such registration statement contains an untrue statement
        of a material fact or omits to state any material fact required to be stated
        therein or necessary to make the statements therein not misleading and the
        Company shall promptly prepare and furnish to such Holder a supplement or
        amendment to such prospectus (or prepare and file appropriate reports under
        the
        Exchange Act) so that, as thereafter delivered to the purchasers of such
        Registrable Securities, such prospectus shall not contain an untrue statement
        of
        a material fact or omit to state any material fact required to be stated
        therein
        or necessary to make the statements therein not misleading, unless suspension
        of
        the use of such prospectus otherwise is authorized herein or in the event
        of a
        Blackout Period, in which case no supplement or amendment need be furnished
        (or
        Exchange Act filing made) until the termination of such suspension or Blackout
        Period; 

      

      (g) comply,
        and continue to comply during the period that such registration statement
        is
        effective under the Securities Act, in all material respects with the Securities
        Act and the Exchange Act and with all applicable rules and regulations of
        the
        Commission with respect to the disposition of all securities covered by such
        registration statement, and make available to its security holders, as soon
        as
        reasonably practicable, an earnings statement covering the period of at least
        12
        months, but not more than 18 months, beginning with the first full calendar
        month after the SEC Effective Date, which earnings statement shall satisfy
        the
        provisions of Section 11(a) of the Securities Act.

       

      
        
          
          

        

        
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      (h) as
        promptly as practicable after becoming aware of such event, notify each Holder
        of Registrable Securities being offered or sold pursuant to the Registration
        Statement of the issuance by the Commission of any stop order or other
        suspension of effectiveness of the Registration Statement at the earliest
        possible time;

      

      (i) permit
        the Holders of Registrable Securities being included in the Registration
        Statement and their legal counsel, at such Holders’ sole cost and expense
        (except as otherwise specifically provided in Section 6) to review and have
        a
        reasonable opportunity to comment on the Registration Statement and all
        amendments and supplements thereto at least
        two
        Business Days prior to their filing with the Commission;

      

      (j)
         make
        available for inspection by any Holder and any Inspector retained by such
        Holder, at such Holder’s sole expense, all records
        as shall
        be reasonably necessary to enable such Holder to exercise its due diligence
        responsibility, and cause the Company’s officers, directors, and employees to
        supply all information which such Holder or any Inspector may reasonably
        request
        for purposes of such due diligence; provided,
        however, that
        such
        Holder shall hold in confidence and shall not make any disclosure of any
        record
        or other information which the Company determines in good faith to be
        confidential, and of which determination such Holder is so notified at the
        time
        such Holder receives such information, unless (i) the disclosure of such
        record
        is necessary to avoid or correct a misstatement or omission in the Registration
        Statement and a reasonable time prior to such disclosure the Holder shall
        have
        informed the Company of the need to so correct such misstatement or omission
        and
        the Company shall have failed to correct such misstatement or omission, (ii)
        the
        release of such record is ordered pursuant to a subpoena or other order from
        a
        court or governmental body of competent jurisdiction or (iii) the information
        in
        such record has been made generally available to the public other than by
        disclosure in violation of this or any other agreement. The Company shall
        not be
        required to disclose any confidential information in such records to any
        Inspector until and unless such Inspector shall have entered into a
        confidentiality agreement with the Company with respect thereto, substantially
        in the form of this Section 4(j), which agreement shall permit such Inspector
        to
        disclose records to the Holder who has retained such Inspector. Each Holder
        agrees that it shall, upon learning that disclosure of such records
        is
        sought in or by a court or governmental body of competent jurisdiction or
        through other means, give prompt notice to the Company and allow the Company,
        at
        the Company’s expense, to undertake appropriate action to prevent disclosure of,
        or to obtain a protective order for, the records deemed confidential. The
        Company shall hold in confidence and shall not make any disclosure of
        information concerning a Holder provided to the Company pursuant to this
        Agreement unless (i) disclosure of such information is necessary to comply
        with
        federal or state securities laws, (ii) disclosure of such information to
        the
        Staff of the Division of Corporation Finance is necessary to respond to comments
        raised by the Staff in its review of the Registration Statement, (iii)
        disclosure of such information is necessary to avoid or correct a misstatement
        or omission in the Registration Statement, (iv) release of such information
        is
        ordered pursuant to a subpoena or other order from a court or governmental
        body
        of competent jurisdiction, or (v) such information has been made generally
        available to the public other than by disclosure in violation of this or
        any
        other agreement. The Company agrees that it shall, upon learning that disclosure
        of such information concerning a Holder is sought in or by a court or
        governmental body of competent jurisdiction or through other means, give
        prompt
        notice to such Holder and allow such Holder, at such Holder’s expense, to
        undertake appropriate action to prevent disclosure of, or to obtain a protective
        order for, such information;

       

      
        
          
          

        

        
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      (k) use
        its
        best efforts to cause all the Registrable Securities covered by the Registration
        Statement to be listed or quoted on the principal securities market on which
        securities of the same class or series issued by the Company are then listed
        or
        traded;

      

      (l) provide
        a
        transfer agent and registrar, which may be a single entity, for the Registrable
        Securities at all times;

      

      (m) cooperate
        with the Holders of Registrable Securities being offered pursuant to the
        Registration Statement to facilitate the timely preparation and delivery
        of
        certificates (not bearing any restrictive legends) representing Registrable
        Securities to be offered pursuant to the Registration Statement and enable
        such
        certificates to be in such denominations or amounts as the Holders may
        reasonably request and registered in such names as the Holders may request;
        and

      

      (n) take
        all
        other reasonable actions necessary to expedite and facilitate disposition
        by the
        Holders of the Registrable Securities pursuant to the Registration
        Statement.

      

      5. Suspension
        of Offers and Sales.
        Each
        Holder of Registrable Securities agrees that, upon receipt of any notice
        from
        the Company of the happening of any event of the kind described in Section
        4(f)
        hereof or of the commencement of
        a
        Blackout Period, such Holder shall discontinue disposition of Registrable
        Securities pursuant to the Registration Statement
        covering
        such Registrable Securities until such Holder’s receipt of the copies of the
        supplemented or amended prospectus contemplated by Section 4(f) hereof or
        notice
        of the end of the Blackout Period, and, if so directed by the Company, such
        Holder shall deliver to the Company (at the Company’s expense) all copies
        (including, without limitation, any and all drafts), other than permanent
        file
        copies, then in such Holder’s possession, of the prospectus covering such
        Registrable Securities current at the time of receipt of such notice.

      

      6. Registration
        Expenses.
        The
        Company shall pay all expenses in connection with any registration, including,
        without limitation, all registration, filing, stock exchange and Financial
        Industry Regulatory Authority (or FINRA)
        fees,
        printing expenses, all fees and expenses of complying with securities or
        blue
        sky laws, the fees and disbursements of counsel for the Company and of its
        independent accountants, and the reasonable fees and disbursements of a Holders’
Counsel; provided that, in any underwritten registration, each party shall
        pay
        for its own underwriting discounts and commissions and transfer taxes. Except
        as
        provided above in this Section 6 and Section 9, the Company shall not be
        responsible for the expenses of any attorney or other advisor employed by
        a
        Holder of Registrable Securities.

      

      7. Assignment
        of Rights.
        No
        Holder may assign its rights under this Agreement to any party without the
        prior
        written consent of the Company; provided,
        however,
        that a
        Holder may assign its rights under this Agreement without such restrictions
        to a
        Permitted Assignee as long as (a) such transfer or assignment is effected
        in
        accordance with applicable securities laws; (b) such transferee or assignee
        agrees in writing to become subject to the terms of this Agreement; and (c)
        the
        Company is given written notice by such Holder of such transfer or assignment,
        stating the name and address of the transferee or assignee and identifying
        the
        Registrable Securities with respect to which such rights are being transferred
        or assigned.

       

      
        
          
          

        

        
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      8. Information
        by Holder.
        The
        Holder or Holders of Registrable Securities included in any registration
        shall
        furnish to the Company such information regarding such Holder or Holders
        and the
        distribution proposed by such Holder or Holders as the Company may request
        in
        writing.

      

      9. Indemnification.

      

      (a) In
        the
        event of the offer and sale of Registrable Securities held by Holders under
        the
        Securities Act, the Company shall, and hereby does, indemnify and hold harmless,
        to the fullest extent permitted by law, each Holder, its directors, officers,
        partners,
        trustees, each
        other person who participates as an underwriter in the offering or sale of
        such
        securities, and each other person, if any, who controls or is under common
        control with such Holder or any such underwriter within the meaning of Section
        15 of the Securities Act, against any losses, claims, damages or liabilities,
        joint or several, and expenses to which the Holder or any such director,
        officer, partner,
        trustee,
        or
        underwriter or controlling person may become subject under the Securities
        Act or
        otherwise, insofar as such losses, claims, damages, liabilities or expenses
        (or
        actions or proceedings, whether commenced or threatened, in respect thereof)
        arise out of or are based upon any untrue statement or alleged untrue statement
        of any material fact contained in any registration statement under which
        such
        shares were registered under the Securities Act, any preliminary prospectus,
        final prospectus or summary prospectus contained therein, or any amendment
        or
        supplement thereto, or any omission or alleged omission to state therein
        a
        material fact required to be stated therein or necessary to make the statements
        therein in light of the circumstances in which they were made not misleading,
        and the Company shall reimburse the Holder, and each such director, officer,
        partner,
        trustee,
        underwriter and controlling person for any legal or any other expenses
        reasonably incurred by them in connection with investigating, defending or
        settling any such loss, claim, damage, liability, action or proceeding; provided
        that the foregoing shall not apply to, and the Company shall not be liable,
        in
        any such case (i) to the extent that any such loss, claim, damage, liability
        (or
        action or proceeding in respect thereof) or expense arises out of or is based
        upon an untrue statement or alleged untrue statement in or omission or alleged
        omission from such registration statement, any such preliminary prospectus,
        final prospectus, summary prospectus, amendment or supplement in reliance
        upon
        and in conformity with written information furnished to the Company through
        an
        instrument duly executed by or on behalf of such Holder specifically stating
        that it is for use in the preparation thereof, (ii) provided that the Company
        has complied with its obligations hereunder to furnish such Holder with copies
        of the applicable prospectus, if the person asserting any such loss, claim,
        damage, liability (or action or proceeding in respect thereof) who purchased
        the
        Registrable Securities that are the subject thereof did not receive a copy
        of an
        amended preliminary prospectus or the final prospectus (or the final prospectus
        as amended or supplemented) at or prior to the written confirmation of the
        sale
        of such Registrable Securities to such person because of the failure of such
        Holder or underwriter to so provide such amended preliminary or final prospectus
        and the untrue statement or alleged untrue statement or omission or alleged
        omission of a material fact made in such preliminary prospectus was corrected
        in
        the amended preliminary or final prospectus (or the final prospectus as amended
        or supplemented), or (iii) provided that the plan of distribution mechanics
        described in the applicable prospectus are, in form and substance, reasonable
        and customary for transactions of this type, to the extent that the Holders
        failed to comply with the terms of such plan of distribution mechanics. Such
        indemnity shall remain in full force and effect regardless of any investigation
        made by or on behalf of the Holders, or any such director, officer, partner,
        underwriter or controlling person and shall survive the transfer of such
        shares
        by the Holder.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      (b) As
        a
        condition to including any Registrable Securities to be offered by a Holder
        in
        any registration statement filed pursuant to this Agreement, each such Holder
        agrees to be bound by the terms of this Section 9 and to indemnify and hold
        harmless, to the fullest extent permitted by law, the Company, its directors
        and
        officers, and each other person, if any, who controls the Company within
        the
        meaning of Section 15 of the Securities Act, legal counsel and accountants
        for
        the Company, any underwriter, any other Holder selling securities in such
        registration statement and any controlling person within the meaning of the
        Securities Act of any such underwriter or other Holder, against any losses,
        claims, damages or liabilities, joint or several, to which the Company or
        any
        such director or officer or controlling person may become subject under the
        Securities Act or otherwise, insofar as such losses, claims, damages or
        liabilities (or actions or proceedings, whether commenced or threatened,
        in
        respect thereof) arise out of or are based upon (i) an untrue statement or
        alleged untrue statement in or omission or alleged omission from such
        registration statement, any preliminary prospectus, final prospectus or summary
        prospectus contained therein, or any amendment or supplement thereto, if
        such
        statement or alleged statement or omission or alleged omission was made in
        reliance upon and in conformity with written information about such Holder
        as
        that Holder
        furnished to the Company, (ii) provided that the Company has complied with
        its
        obligations hereunder to furnish such Holder with copies of the applicable
        prospectus, if the person asserting any such loss, claim, damage, liability
        (or
        action or proceeding in respect thereof) who purchased the Registrable
        Securities that are the subject thereof did not receive a copy of an amended
        preliminary prospectus or the final prospectus (or the final prospectus as
        amended or supplemented) at or prior to the written confirmation of the sale
        of
        such Registrable Securities to such person because of the failure of such
        Holder
        or underwriter to so provide such amended preliminary or final prospectus
        and
        the untrue statement or alleged untrue statement or omission or alleged omission
        of a material fact made in such preliminary prospectus was corrected in the
        amended preliminary or final prospectus (or the final prospectus as amended
        or
        supplemented), or (iii) provided that the plan of distribution mechanics
        described in the applicable prospectus are, in form and substance, reasonable
        and customary for transactions of this type, to the extent that the Holders
        failed to comply with the terms of such plan of distribution mechanics. Such
        indemnity shall remain in full force and effect regardless of any investigation
        made by or on behalf of the Holders, or any such director, officer, partner,
        underwriter or controlling person and shall survive the transfer of such
        shares
        by the Holder, and such Holder shall reimburse the Company, and each such
        director, officer, legal counsel and accountants, underwriter, other Holder,
        and
        controlling person for any legal or other expenses reasonably incurred by
        them
        in connection with investigating, defending, or settling and such loss, claim,
        damage, liability, action, or proceeding; provided,
        however,
        that
        such indemnity agreement found in this Section 9(b) shall in no event exceed
        the
        gross proceeds from the offering received by such Holder. Such indemnity
        shall
        remain in full force and effect, regardless of any investigation made by
        or on
        behalf of the Company or any such director, officer or controlling person
        and
        shall survive the transfer by any Holder of such shares.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      (c) Promptly
        after receipt by an indemnified party of notice of the commencement of any
        action or proceeding involving a claim referred to in Section 9(a) or (b)
        hereof
        (including any governmental action), such indemnified party shall, if a claim
        in
        respect thereof is to be made against an indemnifying party, give written
        notice
        to the indemnifying party of the commencement of such action; provided that
        the
        failure of any indemnified party to give notice as provided herein shall
        not
        relieve the indemnifying party of its obligations under Section 9(a) or (b)
        hereof, except to the extent that the indemnifying party is actually prejudiced
        by such failure to give notice. In case any such action is brought against
        an
        indemnified party, unless in the reasonable judgment of counsel to such
        indemnified party a conflict of interest between such indemnified and
        indemnifying parties may exist or the indemnified party may have defenses
        not
        available to the indemnifying party in respect of such claim, the indemnifying
        party shall be entitled to participate in and to assume the defense thereof,
        with counsel reasonably satisfactory to such indemnified party and, after
        notice
        from the indemnifying party to such indemnified party of its election so
        to
        assume the defense thereof, the indemnifying party shall not be liable to
        such
        indemnified party for any legal or other expenses subsequently incurred by
        the
        latter in connection with the defense thereof, unless in such indemnified
        party’s reasonable judgment a conflict of interest between such indemnified and
        indemnifying parties arises in respect of such claim after the assumption
        of the
        defenses thereof or the indemnifying party fails to defend such claim in
        a
        diligent manner, other than reasonable costs of investigation. Neither an
        indemnified nor an indemnifying party shall be liable for any settlement
        of any
        action or proceeding effected without its consent. No indemnifying party
        shall,
        without the consent of the indemnified party, consent to entry of any judgment
        or enter into any settlement, which does not include as an unconditional
        term
        thereof the giving by the claimant or plaintiff to such indemnified party
        of a
        release from all liability in respect of such claim or litigation.
        Notwithstanding anything to the contrary set forth herein, and without limiting
        any of the rights set forth above, in any event any party shall have the
        right
        to retain, at its own expense, counsel with respect to the defense of a
        claim.

      

      (d) In
        the
        event that an indemnifying party does or is not permitted to assume the defense
        of an action pursuant to Section 9(c) or in the case of the expense
        reimbursement obligation set forth in Section 9(a) and (b), the indemnification
        required by Section 9(a) and (b) hereof shall be made by periodic payments
        of
        the amount thereof during the course of the investigation or defense, as
        and
        when bills received or expenses, losses, damages, or liabilities are
        incurred.

      

      (e) If
        the
        indemnification provided for in this Section 9 is held by a court of competent
        jurisdiction to be unavailable to an indemnified party with respect to any
        loss,
        liability, claim, damage or expense referred to herein, the indemnifying
        party,
        in lieu of indemnifying such indemnified party hereunder, shall (i) contribute
        to the amount paid or payable by such indemnified party as a result of such
        loss, liability, claim, damage or expense as is appropriate to reflect the
        proportionate relative fault of the indemnifying party on the one hand and
        the
        indemnified party on the other (determined by reference to, among other things,
        whether the untrue or alleged untrue statement of a material fact or omission
        relates to information supplied by the indemnifying party or the indemnified
        party and the parties’ relative intent, knowledge, access to information and
        opportunity to correct or prevent such untrue statement or omission), or
        (ii) if
        the allocation provided by clause (i) above is not permitted by applicable
        law
        or provides a lesser sum to the indemnified party than the amount hereinafter
        calculated, not only the proportionate relative fault of the indemnifying
        party
        and the indemnified party, but also the relative benefits received by the
        indemnifying party on the one hand and the indemnified party on the other,
        as
        well as any other relevant equitable considerations. No indemnified party
        guilty
        of fraudulent misrepresentation (within the meaning of Section 11(f) of the
        Securities Act) shall be entitled to contribution from any indemnifying party
        who was not guilty of such fraudulent misrepresentation. 

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      (f) Other
        Indemnification.
        Indemnification similar to that specified in the preceding subsections of
        this
        Section 9 (with appropriate modifications) shall be given by the Company
        and
        each Holder of Registrable Securities with respect to any required registration
        or other qualification of securities under any federal or state law or
        regulation or governmental authority other than the Securities Act.

      

      10. Rule
        144 Reporting.
        With a
        view to making available to the Holders the benefits of certain rules and
        regulations of the Commission which may permit the sale of the Registrable
        Securities to the public without registration, the Company agrees to use
        its
        reasonable efforts to:

      

      (a)  Make
        and
        keep public information available, as those terms are understood and defined
        in
        Rule 144 or any similar or analogous rule promulgated under the Securities
        Act,
        at all times after the effective date of the first registration
        statement filed by the Company for an offering of its securities to the general
        public;

      

      (b) 
        File
        with the Commission, in a timely manner, all reports and other documents
        required of the Company under the Exchange Act; and

      

      (c)  So
        long
        as a Holder owns any Registrable Securities, furnish to such Holder forthwith
        upon request: a written statement by the Company as to its compliance with
        the
        reporting requirements of said Rule 144 of the Securities Act, and of the
        Exchange Act (at any time after it has become subject to such reporting
        requirements); a copy of the most recent annual or quarterly report of the
        Company; and such other reports and documents as a Holder may reasonably
        request
        in availing itself of any rule or regulation of the Commission allowing it
        to
        sell any such securities without registration.

      

      11. Miscellaneous

      

      (a) Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Texas and the United States of America, both substantive and remedial.
        Any judicial proceeding brought against either of the parties to this agreement
        or any dispute arising out of this Agreement or any matter related hereto
        shall
        be brought in the courts of the State of Texas, Harris County, or in the
        United
        States District Court for the Southern District of Texas and, by its execution
        and delivery of this agreement, each party to this Agreement accepts the
        jurisdiction of such courts. The foregoing consent to jurisdiction shall
        not be
        deemed to confer rights on any person other than the parties to this
        Agreement.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (b) Successors
        and Assigns.
        Except
        as otherwise provided herein, the provisions hereof shall inure to the benefit
        of, and be binding upon, the successors, Permitted Assigns, executors and
        administrators of the parties hereto. In the event the Company merges with,
        or
        is otherwise acquired by, a direct or indirect subsidiary of a publicly traded
        company, the Company shall condition the merger or acquisition on the assumption
        by such parent company of the Company’s obligations under this Agreement.

      

      (c) Entire
        Agreement.
        This
        Agreement constitutes the full and entire understanding and agreement between
        the parties with regard to the subjects hereof.

      

      (d) Notices,
        etc.
        All
        notices or other communications which are required or permitted under this
        Agreement shall be in writing and sufficient if delivered by hand, by facsimile
        transmission, by registered or certified mail, postage pre-paid, by electronic
        mail, or by courier or overnight carrier, to the persons at the addresses
        set
        forth below (or at such other address as may be provided hereunder), and
        shall
        be deemed to have been delivered as of the date so delivered: 

      

      
        	
                If
                  to the Company:

              	 	
                Internet
                  America, Inc. 

              
	
                 

              	 	10930
                W. Sam Houston Pwky., N.
	 	 	
                Suite
                  200

              
	 	 	
                Houston,
                  Texas, 77064

              
	 	 	
                Attn:
                  William E. Ladin, Jr.

              
	 	 	
                Facsimile:
                  (281) 469-6195

              
	 	 	 
	
                With
                  a copy to:

              	 	
                Boyer
                  & Ketchand

              
	 	 	
                Nine
                  Greenway Plaza, Suite 3100

              
	 	 	
                Houston,
                  Texas 77046

              
	 	 	
                Attention:
                  Rita J. Leader

              
	 	 	
                Fax:
                  (713) 871-2024

              
	 	 	 
	
                If
                  to an Investor:

              	 	
                To
                  the address set forth immediately below such Investor’s name on the
                  signature pages hereto.

              
	 	 	 
	
                With
                  a copy to:

              	 	
                Skadden,
                  Arps, Slate, Meagher & Flom LLP

              
	 	 	
                300
                  South Grand Ave., Suite 3400

              
	
                 

              	 	Los
                Angeles, CA 90071
	 	 	
                Attention:
                  Joseph
                  J. Giunta

              
	 	 	
                Facsimile:
                  (213)
                  621-5040 

              

      

       

      or
        at
        such other address as any party shall have furnished to the other parties
        in
        writing.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (e) Delays
        or Omissions.
        No
        delay or omission to exercise any right, power or remedy accruing to any
        Holder
        of any Registrable Securities, upon any breach or default of the Company
        under
        this Agreement, shall impair any such right, power or remedy of such Holder
        nor
        shall it be construed to be a waiver of any such breach or default, or an
        acquiescence therein, or of or in any similar breach or default thereunder
        occurring; nor shall any waiver of any single breach or default be deemed
        a
        waiver of any other breach or default theretofore or thereafter occurring.
        Any
        waiver, permit, consent or approval of any kind or character on the part
        of any
        Holder of any breach or default under this Agreement, or any waiver on the
        part
        of any Holder of any provisions or conditions of this Agreement, must be
        in
        writing and shall be effective only to the extent specifically set forth
        in such
        writing. All remedies, either under this Agreement, or by law or otherwise
        afforded to any holder, shall be cumulative and not alternative.

      

      (f) Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        enforceable against the parties actually executing such counterparts, and
        all of
        which together shall constitute one instrument.

      

      (g) Severability.
        In the
        case any provision of this Agreement shall be invalid, illegal or unenforceable,
        the validity, legality and enforceability of the remaining provisions shall
        not
        in any way be affected or impaired thereby.

      

      (h) Amendments.
        The provisions of this Agreement may be amended at any time and from time
        to
        time, and particular provisions of this Agreement may be waived, with and
        only
        with an agreement or consent in writing signed by the Company and by the
        holders
        of a majority of the number of shares of Registrable Securities outstanding
        as
        of the date of such amendment or waiver. The Investors acknowledge that by
        the
        operation of this Section
        11(h),
        the holders of a majority of the outstanding Registrable Securities may have
        the
        right and power to diminish or eliminate all rights of the Investors under
        this
        Agreement.

      

      This
        Registration Rights Agreement is hereby executed as of the date first above
        written.

      

      
        	
                COMPANY:

              
	 	 
	
                INTERNET
                  AMERICA, INC.

              
	 	 
	 	 
	
                By:

              	
                /s/
                  William E. Ladin, Jr.

              
	
                Name:
                  

              	William
                E. Ladin, Jr.,
                CEO
	 	 
	
                INVESTORS:

              
	 	 
	
                THE
                  STEVEN G. MIHAYLO TRUST 

              
	 	 
	 	 
	
                By:

              	
                /s/
                  Steven G. Mihaylo

              
	
                Name:
                  

              	
                Steven
                  G. Mihaylo, Trustee

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      Exhibit
        A

      

      Investor
        Information

      

      
        	
                Name
                  and Address

              	 	
                Shares

              	 
	 	 	 	 
	
                The
                  Steven G. Mihaylo Trust

                c/o
                  Steven G. Mihaylo, Trustee

                P.O.
                  Box 19790

                Reno,
                  Nevada 89511

              	 	 	
                4,000,000

              	 

      

       

      
        
          
          

        

        
          15Unassociated Document

    NEITHER
      THIS WARRANT NOR THE UNDERLYING SECURITIES OF INTERSTATE DATA USA, INC.
      REPRESENTED HEREBY HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER THIS WARRANT NOR
      THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED,
      PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER
      SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THE COMPANY, IS
      AVAILABLE. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
      FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
      TIME.

     

    INTERSTATE
      DATA USA, INC.

     

    UNIT
      PURCHASE WARRANT

     

    
      	No. W-022	
              42,275
                Units

            

    

     

    FOR
      VALUE
      RECEIVED, Interstate Data USA, Inc., a Delaware corporation (the “Company”),
      hereby certifies that Newbridge Securities Corporation, a Virginia
      corporation (the
      “Placement
      Agent”
or
      “Warrantholder”)
      or its
      permitted assigns, are entitled to purchase from the Company, at any time or
      from time to time commencing on September 28, 2007 (the “Commencement
      Date”),
      and
      ending prior to 5:00 p.m., Eastern time, on the three year anniversary date
      hereof (the “Expiration
      Date”),
      42,275 fully paid and non-assessable units (the “Placement
      Agent Units”)
      at a
      purchase price (the “Purchase
      Price”)
      of
      $3.00 per Placement Agent Unit. Each Placement Agent Unit shall consist of
      (a)
      one (1) share of the Company's Common Stock, $0.001 par value per share (the
      “Common
      Stock”),
      and
      (b) one (1) warrant (the “Underlying
      Warrant”)
      to
      purchase one (1) share of the Common Stock at a purchase price of $4.50 per
      share. (Hereinafter, (i) “Common Stock” shall also include any other equity
      securities which may be issued by the Company with respect to or in substitution
      for the Common Stock, (ii) the aggregate purchase price payable hereunder for
      the Placement Agent Units is referred to as the “Aggregate
      Warrant Price,”
(iii)
      the price payable hereunder for each of the Placement Agent Units hereunder
      is
      referred to as the “Per
      Unit Warrant Price”
and
      (iv) this warrant and all warrants hereafter issued in exchange or substitution
      for this warrant are referred to as the “Warrants”).
      The
      Aggregate Warrant Price is not subject to adjustment. The Per Unit Warrant
      Price
      is subject to adjustment as hereinafter provided; in the event of any such
      adjustment, the number of Placement Agent Units shall be adjusted by dividing
      the Aggregate Warrant Price by the Per Unit Warrant Price in effect immediately,
      after such adjustment. The Underlying Warrants shall be identical to the
      warrants sold by the Company through the Placement Agent in its private offering
      of securities commenced in March, 2007.

     

    1. Exercise
      of Warrant.

     

    (a) This
      Warrant may be exercised, in whole at any time or in part from time to time,
      commencing on the Commencement Date, and prior to 5:00 p.m., Eastern time,
      on
      the Expiration Date, by the Warrantholder by the surrender of this Warrant
      (with
      the purchase form attached as Exhibit
      A
      duly
      executed) at the address set forth in Subsection 9(a) hereof, together with
      proper payment of the Aggregate Warrant Price, or the proportionate part thereof
      if this Warrant is exercised in part. Payment for the Placement Agent Units
      shall be made either (i) in accordance with paragraph 1(b) below, or (ii) by
      check payable to the order of the Company, in the amount of the Aggregate
      Warrant Price, or the proportionate part thereof if this Warrant is exercised
      in
      part. If this Warrant is exercised in part, this Warrant must be exercised
      for a
      number of whole Placement Agent Units, and the Warrantholder is entitled to
      receive a new Warrant covering the number of Placement Agent Units in respect
      of
      which this Warrant has not been exercised and setting forth the proportionate
      part of the Aggregate Warrant Price applicable to such Placement Agent Units.
      Upon such exercise and surrender of this Warrant, the Company will (i) issue
      a
      certificate or certificates in the name of the Warrantholder for the number
      of
      whole shares of the Common Stock to which the Warrantholder shall be entitled
      and, if this Warrant is exercised in whole, in lieu of any fractional share
      of
      the Common Stock to which the Warrantholder shall be entitled, pay cash equal
      to
      the fair value of such fractional share (determined in such reasonable manner
      as
      the Board of Directors of the Company shall determine), (ii) issue an Underlying
      Warrant in the name of the Warrantholder for the number of Underlying Warants
      to
      which the Warrantholder is entitled, and (iii) deliver the other securities
      and
      properties receivable upon the exercise of this Warrant, or the proportionate
      part thereof if this Warrant is exercised in part, pursuant to the provisions
      of
      this Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) If
      the
      shares of Common Stock are registered under Section 12 of the Securities and
      Exchange Act of 1934, as amended, the Warrantholder may elect to pay all or
      part
      of the Aggregate Warrant Price by surrendering shares of Common Stock to the
      Company, including by allowing the Company to deduct from the number of
      Placement Agent Units deliverable upon exercise of this Warrant, a number of
      such shares which has an aggregate Fair Market Value, determined as of the
      day
      preceding the date of exercise of this Warrant, equal to the Aggregate Warrant
      Price. “Fair
      Market Value”
per
      share of Common Stock on any relevant date shall be determined in accordance
      with the following provisions:

     

    
      	(i)  	
              If
                the Common Stock is at the time traded on the OTC Bulletin Board
                or other
                electronic quotation service, then the Fair Market Value shall be
                the
                closing selling price per share of Common Stock on the date in question,
                as such price is reported by the National Association of Securities
                Dealers on the OTC Bulletin Board or other electronic quotation service,
                as the case may be. If there is no closing selling price for the
                Common
                Stock on the date in question, then the Fair Market Value shall be
                the
                closing selling price on the last preceding date for which such quotation
                exists; or

            

    

     

    
      	(ii)  	
              If
                the Common Stock is at the time listed on any Exchange, then the
                Fair
                Market Value shall be the closing selling price per share of Common
                Stock
                on the date in question on the Exchange determined by the administrator
                to
                be the primary market for the Common Stock, as such price is officially
                quoted in the composite tape of transactions on such Exchange. If
                there is
                no closing selling price for the Common Stock on the date in question,
                then the Fair Market Value shall be the closing selling price on
                the last
                preceding date for which such quotation exists. “Exchange”
                shall mean any organization, association, or group of persons, whether
                incorporated or unincorporated, which constitutes, maintains, or
                provides
                a market place or facilities for bringing together purchasers and
                sellers
                of securities or for otherwise performing with respect to securities
                the
                functions commonly performed by a stock exchange as that term is
                generally
                understood, and includes the market place and the market facilities
                maintained by such exchange.

            

    

     

    2. Reservation
      of Placement Agent Units.

     

    The
      Company agrees that, prior to the expiration of this Warrant, the Company will
      at all times have authorized and in reserve, and will keep available, solely
      for
      issuance or delivery upon the exercise of this Warrant, such number of shares
      of
      the Common Stock and such amount of other securities (including, without
      limitation, Underlying Warrants) and properties as from time to time shall
      be
      deliverable to the Warrantholder upon the exercise of this Warrant, free and
      clear of all restrictions on sale or transfer (except such as may be imposed
      under applicable federal and state securities laws) and free and clear of all
      preemptive rights and all other rights to purchase securities of the
      Company.

     

    3. Fully
      Paid Stock.

     

    The
      Company agrees that the shares of the Common Stock represented by each and
      every
      certificate delivered on the exercise of this Warrant in accordance with the
      terms hereof shall, at the time of such delivery, be validly issued and
      outstanding, fully paid and non-assessable and not subject to preemptive rights
      or other contractual rights to purchase securities of the Company.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    4. Limited
      Transferability.

     

    This
      Warrant and all rights hereunder are being issued in connection with the
      issuance of the Placement Agent Units and are transferable, in whole or in
      part,
      only with the prior written consent of the Company, in compliance with this
      Section and with applicable law, upon surrender of this Warrant with a properly
      executed assignment (in the form of Exhibit
      B
      attached
      hereto) at the principal office of the Company. By acceptance hereof, the
      Warrantholder represents and warrants that this Warrant is being acquired,
      and
      all Placement Agent Units (including the securities underlying such Placement
      Agent Units) to be purchased upon the exercise of this Warrant will be acquired,
      by the Warrantholder solely for the account of such Warrantholder and not with
      a
      view to the fractionalization and distribution thereof and will not be sold
      or
      transferred except in accordance with the applicable provisions of the Act
      and
      the rules and regulations of the Securities and Exchange Commission promulgated
      thereunder, and the Warrantholder agrees that neither this Warrant nor any
      of
      the Placement Agent Units may be sold or transferred except under cover of
      a
      registration statement under the Act which is effective and current with respect
      to such Placement Agent Units or pursuant to an opinion, in form and substance
      reasonably acceptable to the Company’s counsel, that registration under the Act
      is not required in connection with such sale or transfer. The Warrantholder
      shall deliver written notice of any transfer of this Warrant permitted
      hereunder, in the form of Exhibit
      B
      hereto,
      to the Company within three (3) business days after such transfer. Such notice
      shall include the name and address of the transferee of this Warrant. Until
      any
      transfer of this Warrant is made in the Company’s warrant register, the Company
      may treat the registered holder of this Warrant as the absolute owner hereof
      for
      all purposes. 

     

    Each
      certificate or other instrument for any shares of Common Stock issued upon
      the
      exercise of this Warrant shall bear the following legend:

     

    THESE
      SECURITIES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT
      TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
      TO
      THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
      ACCEPTABLE TO THE COMPANY.

     

    5. Anti
      Dilution Adjustments.

     

    If,
      at
      any time or from time to time after the date of this Warrant, the Company shall
      (i) pay a dividend or make a distribution on its capital stock in shares of
      Common Stock, (ii) subdivide its outstanding shares of Common Stock into a
      greater number of shares, (iii) combine its outstanding shares of Common Stock
      into a smaller number of shares or (iv) issue by reclassification of its Common
      Stock any shares of capital stock of the Company, the Per Unit Warrant Price
      in
      effect immediately prior to such action shall be adjusted so that the
      Warrantholder of any Warrant thereafter exercised shall be entitled to receive
      the number of shares of Common Stock or other capital stock of the Company
      which
      he would have owned or been entitled to receive immediately following the
      happening of any of the events described above had such Warrant been exercised
      immediately prior thereto. An adjustment made pursuant to this Section 5 shall
      become effective immediately after the record date in the case of a dividend
      or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or classification. If, as a result of
      an
      adjustment made pursuant to this Section 5, the Warrantholder of any Warrant
      thereafter surrendered for exercise shall become entitled to receive shares
      of
      two (2) or more classes of capital stock or shares of Common Stock and other
      capital stock of the Company, the Board of Directors (whose determination shall
      be conclusive and shall be described in a written notice to the Warrantholder
      of
      any Warrant promptly after such adjustment) shall determine the allocation
      of
      the adjusted Per Unit Warrant Price between or among shares of such classes
      or
      capital stock or shares of Common Stock and other capital stock.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    6. Loss,
      etc. of Warrant.

     

    Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of this Warrant, and of indemnity reasonably satisfactory to
      the
      Company, if lost, stolen or destroyed, and upon surrender and cancellation
      of
      this Warrant, if mutilated, and upon reimbursement of the Company’s reasonable
      incidental expenses, the Company shall execute and deliver to the Warrantholder
      a new Warrant of like date, tenor and denomination.

     

    7. Warrantholder
      Not Shareholder.

     

    Except
      as
      otherwise provided herein, this Warrant does not confer upon the Warrantholder
      any right to vote or to consent to or receive notice as a shareholder of the
      Company, as such, in respect of any matters whatsoever, or any other rights
      or
      liabilities as a shareholder, prior to the exercise hereof.

     

    8. Communication.

     

    No
      notice
      or other communication under this Warrant shall be effective unless, such notice
      or other communication is in writing and is mailed by first-class mail, postage
      prepaid, addressed to:

     

    
      	
            	
              (a)  

            	
              
                the
                  Company at 1900 West Loop South, #1850, Houston TX 77027, or such
                  other
                  address as the Company has designated in writing to the Warrantholder;
                  or

              

            

    

     

    
      	 	
              (b)

            	
              the
                Warrantholder at its address on the books and records of the Company,
                or
                as the Warrantholder has designated in writing to the
                Company.

            

    

     

    9. Registration
      Rights.

    

    The
      Warrantholder shall be entitled to the registration rights set forth in
Exhibit
      C
      attached
      hereto and made a part hereof.

     

    10. Headings.

     

    The
      headings of this Warrant have been inserted as a matter of convenience and
      shall
      not affect the construction hereof.

     

    11. Amendment
      or Waiver.

     

    Any
      term
      of this Warrant may be amended or waived upon written consent of the Company
      and
      the Warrantholder.

     

    12. Governing
      Law and Jurisdiction.

     

    This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of Florida without giving effect to the principles of conflicts of law
      thereof. Any judicial proceeding involving any dispute, controversy or claim
      arising out of or relating to this Warrant may be brought in a court located
      in
      Broward County, Florida, and each of the Company and Warrantholder (i)
      unconditionally accepts the nonexclusive jurisdiction of such courts and any
      related appellate court and irrevocably agrees to be bound by any judgment
      rendered thereby, (ii) irrevocably waives any objection it may now or hereafter
      have as to the venue of any such proceeding brought in such a court or that
      such
      a court is an inconvenient forum.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS THEREOF, Interstate Data USA, Inc. has caused this Warrant to be signed
      by an executive officer as of this 28th day of September, 2007.

     

    
      	 	 	 
	 
 	 
 	INTERSTATE
              DATA USA, INC. 
	 	  	/s/ Randy Carpenter
	 	
              

              Randy
                Carpenter

              President

            

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      A

    

    PURCHASE
      FORM

    

    The
      undersigned, «FullName»,
      pursuant to the provisions of the foregoing Warrant, hereby agrees to subscribe
      for and purchase ______________ Placement Agent Units (each consisting of one
      (1) share of the $.001 par value per share common stock (the “Common Stock”) of
      Interstate Data USA, Inc. plus a warrant (the “Underlying Warrant”) to purchase
      one (1) share of Common Stock at a purchase price of $4.50 per share), covered
      by the Warrant, and makes payment therefore in full at the Per Unit Warrant
      Price provided by said Warrant.

    

    Please
      issue a certificate or certificates representing the shares of Common Stock
      and
      the Underlying Warrants in the name of the undersigned or in such other name
      as
      is specified below.

     

    
      	 	HOLDER:	 	 	 
	 	____________________________________ 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
              By: 
                ______________________________________ 

            	 	 	 
	 	
              Title:
                _____________________________________

               

              Adddress: _________________________________

            	 	 	 
	 	____________________________________ 	 	 	 

    

           

    
      	 	 	 
	Dated:
              _____________________	Signature: 	_________________________________________ 
	 	 	 
	 	Address: 	_________________________________________ 
	 	
            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      B

    

    ASSIGNMENT

    

    FOR
      VALUE RECEIVED, «FullName»
      hereby
      sells, assigns and transfers all of the rights of the undersigned under the
      attached Warrant with respect to the number of Placement Agent Units to purchase
      shares of Common Stock, par value $.001 per share, and warrants to purchase
      such
      Common Stock of Interstate Data USA, Inc., covered thereby set forth below,
      unto:

    

    
      	
               Name
                of
                Assignee

            	 	
               Address/Facsimile
                Number

            	 	
                No.
                of Placement Agent Units

            
	 	 	 	 	 
	 	 	 	 	 

    

      

    The
      undersigned does irrevocably constitute and appoint ______________, attorney,
      to
      transfer that part of said Warrant on the books of Interstate Data USA, Inc.
      and
      hereby certifies to the Company that the undersigned is the registered
      Warrantholder of the attached Warrant.

    
            
        
          	 	 	 
	Dated:
                  _____________________	Signature: 	_________________________________________ 
	 	 	 
	 	Address: 	_________________________________________ 
	 	
                

        

        
        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    

    REGISTRATION
      RIGHTS

    

    1. Definitions.
      As
      used
      herein, the following terms shall have the following meanings:

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      shares of the Company’s common stock, par value $0.001 per share.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and any successor
      statute.

     

    “Prospectus”
means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus. 

     

    “Registrable
      Securities”
means
      (1) the Common Stock of the Company issued or to be issued upon exercise of
      the
      Warrant, (2) any shares of Common Stock issued upon exercise of an Underlying
      Warrant (as defined herein), and (3) any shares of Common Stock of the
      Company issued as (or issuable upon the conversion or exercise of any warrant,
      right or other security which is issued as) a dividend or other distribution
      with respect to, or in exchange for or in replacement of, any shares of Common
      Stock described in clauses (1) or (2); provided, however, that the shares of
      Common Stock which are Registrable Securities shall cease to be Registrable
      Securities upon any sale or transfer of such shares pursuant to a Registration
      Statement, Section 4(1) of the Securities Act, Rule 144 under the Securities
      Act
      or otherwise.

     

    “Registration
      Statement”
means
      a
      registration statement filed by the Company with the Commission on any
      registration form prescribed by the Commission permitting a secondary offering
      or distribution, other than on Form S-4, Form S-8 or similar forms.

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and any successor statute.

     

    “Trading
      Market”
means
      any of the Pink Sheets LLC electronic quotation service, NASD OTC Bulletin
      Board, NASDAQ Global Select Market, NASDAQ Global Market, NASDAQ Capital Market,
      American Stock Exchange or the New York Stock Exchange.

     

    “Underlying
      Warrant”
      means a
      warrant to purchase Common Stock issued by the Company as part of a Unit (as
      defined herein).

     

    “Unit”
      means
      a
      security of the Company composed of one (1) share of Common Stock and one (1)
      Underlying Warrant issued to the Warrantholder or it permitted
      assignee.

     

    “Warrant”
means
      this Unit Purchase Warrant issued by the Company to the Warrantholder or its
      permitted assignee.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    2. Piggyback
      Registration.

     

    At
      any
      time and from time to time after the issuance of this Warrant, whenever the
      Company proposes to file a Registration Statement, the Company will prior to
      such filing give written notice to Warrantholder of its intention to do so
      and,
      upon the written request of Warrantholder given within thirty (30) days after
      the Company provides such notice, the Company shall use its good faith efforts
      to cause all Registrable Securities which the Company has been requested by
      Warrantholder to register to be registered under the Securities Act to the
      extent necessary to permit their sale or other disposition in accordance with
      the intended methods of distribution specified in the request of
      Warrantholder.

     

    3. Registration
      Procedures.

     

    In
      connection with the registration obligations of the Company, the Company
      shall:

     

    (a) furnish
      to the Warrantholder such number of copies of the Registration Statement and
      the
      Prospectus included therein (including each preliminary Prospectus) as the
      Warrantholder reasonably may request to facilitate the public sale or
      disposition of the Registrable Securities covered by the Registration
      Statement;

     

    (b) use
      its
      commercially reasonable efforts to register or qualify the Warrantholder’s
      Registrable Securities covered by the Registration Statement under the
      securities or “blue sky” laws of such jurisdictions within the United States as
      the Warrantholder may reasonably request, provided, however, that the Company
      shall not for any such purpose be required to qualify generally to transact
      business as a foreign corporation in any jurisdiction where it is not so
      qualified or to consent to general service of process in any such jurisdiction;
      and

     

    (c) list
      the
      Registrable Securities covered by the Registration Statement with any Trading
      Market on which the Common Stock of the Company is then listed. 

     

    4. Registration
      Expenses.

     

    All
      expenses relating to the Company’s compliance with Section 2 hereof, including,
      without limitation, all registration and filing fees, printing expenses, fees
      and disbursements of counsel and independent public accountants for the Company,
      fees and expenses (including reasonable counsel fees) incurred in connection
      with complying with state securities or “blue sky” laws, fees of the NASD,
      transfer taxes, fees of transfer agents and registrars are called “Registration
      Expenses”. All selling commissions applicable to the sale of Registrable
      Securities, including any fees and disbursements of any counsel to the
      Warrantholder, are called “Selling Expenses” and shall be the responsibility of
      the Warrantholder. The Company shall only be responsible for all Registration
      Expenses.

     

    5. Indemnification
      - Contribution.

     

    (a) Indemnification
      by the Company.
      The
      Company agrees to indemnify and hold harmless, to the full extent permitted
      by
      law, the Warrantholder, its officers, directors and each person who controls
      the
      Warrantholder (within the meaning of the Securities Act), and any agent or
      investment adviser thereof, against all losses, claims, damages, liabilities
      and
      expenses (including reasonable attorneys’ fees and costs of investigation)
      arising out of or based upon any untrue or alleged untrue statement of material
      fact contained in any Registration Statement, any amendment or supplement
      thereto, any Prospectus or preliminary Prospectus or any omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading, except insofar as
      the
      same arise out of or are based upon any such untrue statement or omission based
      upon information with respect to the Warrantholder furnished in writing to
      the
      Company by or on behalf of the Warrantholder expressly for use therein;
provided
      that, in
      the event that the Prospectus shall have been amended or supplemented and copies
      thereof as so amended or supplemented, shall have been furnished to the
      Warrantholder prior to the confirmation of any sales of Registrable Securities,
      such indemnity with respect to the Prospectus shall not inure to the benefit
      of
      the Warrantholder if the person asserting such loss, claim, damage or liability
      and who purchased the Registrable Securities from such holder did not, at or
      prior to the confirmation of the sale of the Registrable Securities to such
      person, receive a copy of the Prospectus as so amended or supplemented and
      the
      untrue statement or omission of a material fact contained in the Prospectus
      was
      corrected in the Prospectus as so amended or supplemented.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    (b) Indemnification
      by the Warrantholder.
      In
      connection with any Registration Statement in which the Warrantholder is
      participating, the Warrantholder will furnish to the Company in writing such
      information with respect to the name and address of the Warrantholder and such
      other information as may be reasonably required for use in connection with
      any
      such Registration Statement or Prospectus and agrees to indemnify, to the full
      extent permitted by law, the Company, its directors and officers and each person
      who controls the Company (within the meaning of the Securities Act) against
      any
      losses, claims, damages, liabilities and expenses resulting from any untrue
      statement of a material fact or any omission of a material fact required to
      be
      stated in the Registration Statement or Prospectus or any amendment thereof
      or
      supplement thereto or necessary to make the statements therein not misleading,
      to the extent, but only to the extent, that such untrue or alleged untrue
      statement is contained in or such omission or alleged omission relates to any
      information with respect to the Warrantholder so furnished in writing by the
      Warrantholder specifically for inclusion in any Prospectus or Registration
      Statement; provided,
      however,
      that
      the Warrantholder shall not be liable in any such case to the extent that prior
      to the filing of any such Registration Statement or Prospectus or amendment
      thereof or supplement thereto, the Warrantholder has furnished in writing to
      the
      Company information expressly for use in such Registration Statement or
      Prospectus or any amendment thereof or supplement thereto which corrected or
      made not misleading information previously furnished to the Company. In no
      event
      shall the liability of the Warrantholder hereunder be greater in amount than
      the
      dollar amount of the proceeds received by the Warrantholder upon the sale of
      the
      Registrable Securities giving rise to such indemnification
      obligation.

     

    (c) Conduct
      of Indemnification Proceedings.
      Any
      person entitled to indemnification hereunder agrees to give prompt written
      notice to the indemnifying party after the receipt by such person of any written
      notice of the commencement of any action, suit, proceeding or investigation
      or
      threat thereof made in writing for which such person will claim indemnification
      or contribution pursuant to the provisions hereof and, unless in the judgment
      of
      counsel of such indemnified party a conflict of interest may exist between
      such
      indemnified party and the indemnifying party with respect to such claim, permit
      the indemnifying party to assume the defense of such claim. Whether or not
      such
      defense is assumed by the indemnifying party, the indemnifying party will not
      be
      subject to any liability for any settlement made without its consent (but such
      consent will not be unreasonably withheld). No indemnifying party will consent
      to entry of any judgment or enter into any settlement which does not include
      as
      an unconditional term thereof the giving by the claimant or plaintiff to such
      indemnified party of a release from all liability in respect of such claim
      or
      litigation. If the indemnifying party is not entitled to, or elects not to,
      assume the defense of a claim, it will not be obligated to pay the fees and
      expenses of more than one counsel (plus such local counsel, if any, as may
      be
      reasonably required in other jurisdictions) with respect to such claim, unless
      in the judgment of any indemnified party a conflict of interest may exist
      between such indemnified party and any other of such indemnified parties with
      respect to such claim, in which event the indemnifying party shall be obligated
      to pay the fees and expenses of such additional counsel or counsels. For the
      purposes of this Section 5(c), the term “conflict of interest” shall mean that
      there are one or more legal defenses available to the indemnified party that
      are
      different from or additional to those available to the indemnifying party or
      such other indemnified parties, as applicable, which different or additional
      defenses make joint representation inappropriate.

     

    (d) Contribution.
      If the
      indemnification from the indemnifying party provided for in this Section 5
      is
      unavailable to an indemnified party hereunder in respect of any losses, claims,
      damages, liabilities or expenses referred to therein, then the indemnifying
      party, in lieu of indemnifying such indemnified party, shall contribute to
      the
      amount paid or payable by such indemnified party as a result of such losses,
      claims, damages, liabilities or expenses in such proportion as is appropriate
      to
      reflect the relative fault of the indemnifying party and indemnified parties
      in
      connection with the actions which resulted in such losses, claims, damages,
      liabilities or expenses, as well as any other relevant equitable considerations.
      The relative fault of such indemnifying patty and indemnified parties shall
      be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact, has been
      made by, or relates to information supplied by, such indemnifying party or
      indemnified parties, and the parties intent, knowledge, access to information
      and opportunity to correct or prevent such action. The amount paid or payable
      by
      a party as a result of the losses, claims, damages, liabilities and expenses
      referred to above shall be deemed to include, subject to the limitations set
      forth in Section 5(c), any reasonable legal or other fees or expenses reasonably
      incurred by such party in connection with any investigation or
      proceeding.

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation which does not take account of the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no underwriter shall be
      required to contribute any amount in excess of the amount by which the total
      price at which the Registrable Securities underwritten by it and distributed
      to
      the public were offered to the public exceeds the amount of any damages which
      such underwriter has otherwise been required to pay by reason of such untrue
      or
      alleged untrue statement or omission or alleged omission, and no Warrantholder
      shall be required to contribute any amount in excess of the amount by which
      the
      total price at which the Registrable Securities of the Warrantholder were
      offered to the public exceeds the amount of any damages which the Warrantholder
      has otherwise been required to pay by reason of such untrue statement or
      omission. No person guilty of fraudulent misrepresentation (within the meaning
      of Section 11(f) of the Securities Act) shall be entitled to contribution from
      any person who was not guilty of such fraudulent misrepresentation.

     

    (e) If
      indemnification is available under this Section 5, the indemnifying parties
      shall indemnify each indemnified party to the full extent provided in Sections
      5(a) and (b) without regard to the relative fault of said indemnifying party
      or
      indemnified party or any other equitable consideration provided for in this
      Section 5(d).

     

    6. Amendment.

     

    Except
      as
      otherwise provided herein, the provisions hereof may not be amended, modified
      or
      supplemented, and waivers or consents to departures from the provisions hereof
      way not be given unless the Company has obtained the prior written consent
      of
      the Warrantholder.

     

    
      
        
        

      

      
        C-4

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