Document:

Exhibit 10.19

    REGISTRATION
      RIGHTS AGREEMENT

    

    Registration
      Rights Agreement (the “Agreement”),
      dated
      as of February 10, 2006, by and between Eagle Broadband, Inc., a corporation
      organized under the laws of State of Texas, with its principal executive office
      at 101 Courageous Drive, League City, TX, 77573-3925,(the “Company”),
      and
      Dutchess Private Equities Fund, L.P., a Delaware limited partnership with its
      principal office at 50 Commonwealth Avenue, Suite 2, Boston, MA 02116 (the
      “Holder”).

    

    Whereas, in
      connection with the Investment Agreement by and between the Company and the
      Investor of even date herewith (the “Investment
      Agreement”),
      the
      Company has agreed to issue and sell to the Investor an indeterminate number
      of
      shares of the Company’s Common Stock, $0.001 par value per share (the
“Common
      Stock”),
      to be
      purchased pursuant to the terms and subject to the conditions set forth in
      the
      Investment Agreement; and 

    

    Whereas, to
      induce
      the Investor to execute and deliver the Investment Agreement, the Company has
      agreed to provide certain registration rights under the Securities Act of 1933,
      as amended, and the rules and regulations thereunder, or any similar successor
      statute (collectively, the “1933
      Act”),
      and
      applicable state securities laws, with respect to the shares of Common Stock
      issuable pursuant to the Investment Agreement.

    

    Now
      therefore, in consideration of the foregoing premises and the mutual covenants
      contained hereinafter and other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the Company and the Investor
      hereby agree as follows: 

     

    Section
      1. DEFINITIONS.

    

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    “Execution
      Date”
means
      the date first written above.

    

    “Investor”
means
      Dutchess Private Equities Fund, L.P., a Delaware limited
      partnership.

    

    “Person”
means
      a
      corporation, a limited liability company, an association, a partnership, an
      organization, a business, an individual, a governmental or political subdivision
      thereof or a governmental agency. 

    

    “Potential
      Material Event”
means
      any of the following: (i)
      the
      possession by the Company of material information not ripe for disclosure in
      the
      Registration Statement, which shall be evidenced by determinations in good
      faith
      by the Board of Directors of the Company that disclosure of such information
      in
      the Registration Statement would be detrimental to the business and affairs
      of
      the Company, or (ii)
      any
      material engagement or activity by the Company which would, in the good faith
      determination of the Board of Directors of the Company, be adversely affected
      by
      disclosure in the Registration Statement at such time, which determination
      shall
      be accompanied by a good faith determination by the Board of Directors of the
      Company that the Registration Statement would be materially misleading absent
      the inclusion of such information.

    

    “Principal
      Market”
shall
      mean The American Stock Exchange, National Association of Securities Dealer’s,
      Inc. Over-the-Counter electronic bulletin board, the Nasdaq National Market
      or
      The Nasdaq SmallCap Market whichever is the principal market on which the Common
      Stock is listed. 

     

    “Register,”
      “Registered,”
and
      “Registration”
refer
      to the Registration effected by preparing and filing one (1) or more
      Registration Statements in compliance with the 1933 Act and pursuant to Rule
      415
      under the 1933 Act or any successor rule providing for offering securities
      on a
      continuous basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement(s)
      by the United States Securities and Exchange Commission (the
“SEC”).

    

    “Registrable
      Securities”
means
      (i)
      the
      shares of Common Stock issued or issuable pursuant to the Investment Agreement,
      and (ii)
      any
      shares of capital stock issued or issuable with respect to such shares of Common
      Stock, if any, as a result of any stock split, stock dividend, recapitalization,
      exchange or similar event or otherwise, which have not been (x)
      included
      in the Registration Statement that has been declared effective by the SEC or
      (y)
      sold
      under circumstances meeting all of the applicable conditions of Rule 144 (or
      any
      similar provision then in force) under the 1933 Act.

    

    “Registration
      Statement”
means
      the registration statement of the Company filed under the 1933 Act covering
      the
      Registrable Securities.

    

    All
      capitalized terms used in this Agreement and not otherwise defined herein shall
      have the same meaning ascribed to them as in the Investment Agreement.

    

    Section
      2. REGISTRATION.

    

    (a)
      The
      Company shall, within twenty-one (21) days of the date of this Agreement, file
      with the SEC the Registration Statement or Registration Statements (as is
      necessary) on Form SB-2 (or, if such form is unavailable for such a
      registration, on such other form as is available for such a registration),
      covering the resale of all of the Registrable Securities, which Registration
      Statement(s) shall state that, in accordance with Rule 416 promulgated under
      the
      1933 Act, such Registration Statement also covers such indeterminate number
      of
      additional shares of Common Stock as may become issuable upon stock splits,
      stock dividends or similar transactions. The Company shall initially register
      for resale ________ shares of Common Stock which would be issuable on the date
      preceding the filing of the Registration Statement based on the closing bid
      price of the Company’s Common Stock on such date and the amount reasonably
      calculated that represents Common Stock issuable to other parties as set forth
      in the Investment Agreement except to the extent that the SEC requires the
      share
      amount to be reduced as a condition of effectiveness.

    

    (b)
      The
      Company shall use commercially reasonable efforts to have the Registration
      Statement(s) declared effective by the SEC within ninety (90) calendar days
      after the Execution Date. 

    

    

    (c)
      The
      Company agrees not to include any other securities in the Registration Statement
      covering the Registrable Securities without Investor’s prior written consent
      which Investor may withhold in its sole discretion. Furthermore, the Company
      agrees that it will not file any other registration statement for other
      securities, until thirty calendar days after the Registration Statement for
      the
      Registrable Securities is declared effective by the SEC; provided, however,
      that
      the Company may file a registration statement required under a settlement
      agreement between the Company and The Tail Wind Fund Ltd., provided such
      registration statement is filed no earlier than May 2, 2006.

    

    Section
      3. RELATED
      OBLIGATIONS.

    

    At
      such
      time as the Company is obligated to prepare and file the Registration Statement
      with the SEC pursuant to Section 2(a), the Company will effect the registration
      of the Registrable Securities in accordance with the intended method of
      disposition thereof and, with respect thereto, the Company shall have the
      following obligations:

     

    (a)
      The
      Company shall use commercially reasonable efforts to cause such Registration
      Statement relating to the Registrable Securities to become effective within
      ninety (90) days after the Execution Date and shall keep such Registration
      Statement effective until the earlier to occur of (i)
      the date
      on which (A)
      the
      Investor shall have sold all the Registrable Securities; and (B)
      the
      Investor has no right to acquire any additional shares of Common Stock under
      the
      Investment Agreement (the “Registration
      Period”).
      The
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain any untrue statement of a
      material fact or omit to state 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. The Company shall use its commercially
      reasonable efforts to respond to all SEC comments within seven (7) business
      days
      from receipt of such comments by the Company. The Company shall use its
      commercially reasonable efforts to cause the Registration Statement relating
      to
      the Registrable Securities to become effective no later than five (5) business
      days after notice from the SEC that the Registration Statement may be declared
      effective. The Investor agrees to provide all information which it is required
      by law to provide to the Company, including the intended method of disposition
      of the Registrable Securities, and the Company’s obligations set forth above
      shall be conditioned on the receipt of such information.

    

    (b)
      The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statement and
      the
      prospectus used in connection with such Registration Statement, which prospectus
      is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
      be
      necessary to keep such Registration Statement effective during the Registration
      Period, and, during such period, comply with the provisions of the 1933 Act
      with
      respect to the disposition of all Registrable Securities of the Company covered
      by such Registration Statement until such time as all of such Registrable
      Securities shall have been disposed of in accordance with the intended methods
      of disposition by the Investor thereof as set forth in such Registration
      Statement. In the event the number of shares of Common Stock covered by the
      Registration Statement filed pursuant to this Agreement is at any time
      insufficient to cover all of the Registrable Securities, the Company shall
      amend
      such Registration Statement, or file a new Registration Statement (on the short
      form available therefor, if applicable), or both, so as to cover all of the
      Registrable Securities, in each case, as soon as practicable, but in any event
      within thirty (30) calendar days after the necessity therefor arises (based
      on
      the then Purchase Price of the Common Stock and other relevant factors on which
      the Company reasonably elects to rely), assuming the Company has sufficient
      authorized shares at that time, and if it does not, within thirty (30) calendar
      days after such shares are authorized. The Company shall use commercially
      reasonable efforts to cause such amendment and/or new Registration Statement
      to
      become effective as soon as practicable following the filing thereof.

    

    (c)
      The
      Company shall make available to the Investor whose Registrable Securities are
      included in any Registration Statement and its legal counsel without charge
      (i)
      promptly
      after the same is prepared and filed with the SEC at least one (1) copy of
      such
      Registration Statement and any amendment(s) thereto, including financial
      statements and schedules, all documents incorporated therein by reference and
      all exhibits, the prospectus included in such Registration Statement (including
      each preliminary prospectus) and, with regards to such Registration
      Statement(s), any correspondence by or on behalf of the Company to the SEC
      or
      the staff of the SEC and any correspondence from the SEC or the staff of the
      SEC
      to the Company or its representatives; (ii)
      upon the
      effectiveness of any Registration Statement, the Company shall make available
      copies of the prospectus, via EDGAR, included in such Registration Statement
      and
      all amendments and supplements thereto; and (iii)
      such
      other documents, including copies of any preliminary or final prospectus, as
      the
      Investor may reasonably request from time to time in order to facilitate the
      disposition of the Registrable Securities.

     

    (d)
      The
      Company shall use commercially reasonable efforts to (i)
      register
      and qualify the Registrable Securities covered by the Registration Statement
      under such other securities or “blue sky” laws of such states in the United
      States as any Investor reasonably requests; (ii)
      prepare
      and file in those jurisdictions, such amendments (including post-effective
      amendments) and supplements to such registrations and qualifications as may
      be
      necessary to maintain the effectiveness thereof during the Registration Period;
      (iii)
      take
      such other actions as may be necessary to maintain such registrations and
      qualifications in effect at all times during the Registration Period, and
(iv)
      take all
      other actions reasonably necessary or advisable to qualify the Registrable
      Securities for sale in such jurisdictions; provided,
      however,
      that
      the Company shall not be required in connection therewith or as a condition
      thereto to (x)
      qualify
      to do business in any jurisdiction where it would not otherwise be required
      to
      qualify but for this Section 3(d), or (y)
      subject
      itself to general taxation in any such jurisdiction. The Company shall promptly
      notify each Investor who holds Registrable Securities of the receipt by the
      Company of any notification with respect to the suspension of the registration
      or qualification of any of the Registrable Securities for sale under the
      securities or “blue sky” laws of any jurisdiction in the United States or its
      receipt of actual notice of the initiation or threatening of any proceeding
      for
      such purpose.

    

    (e)
      As
      promptly as practicable after becoming aware of such event, the Company shall
      notify Investor in writing of the happening of any event as a result of which
      the prospectus included in the Registration Statement, as then in effect,
      includes an untrue statement of a material fact or omission to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading
      (“Registration
      Default”)
      and
      use all diligent efforts to promptly prepare a supplement or amendment to such
      Registration Statement and take any other necessary steps to cure the
      Registration Default, (which, if such Registration Statement is on Form S-3,
      may
      consist of a document to be filed by the Company with the SEC pursuant to
      Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below) and to
      be
      incorporated by reference in the prospectus) to correct such untrue statement
      or
      omission, and make available copies of such supplement or amendment to each
      Investor. The Company shall also promptly notify Investor (i)
      when a
      prospectus or any prospectus supplement or post-effective amendment has been
      filed, and when the Registration Statement or any post-effective amendment
      has
      become effective (the Company will prepare notification of such effectiveness
      which shall be delivered to the Investor on the same day of such effectiveness
      and by overnight mail), additionally, the Company will promptly provide to
      the
      Investor, a copy of the effectiveness order prepared by the SEC once it is
      received by the Company; (ii)
      of any
      request by the SEC for amendments or supplements to the Registration Statement
      or related prospectus or related information, (iii)
      of
      the
      Company’s reasonable determination that a post-effective amendment to the
      Registration Statement would be appropriate, (iv)
      in the
      event the Registration Statement is no longer effective, or
      (v) if
      Registration Statement is stale as a result of the Company’s failure to timely
      file its financials or otherwise. The Company acknowledges that its failure
      to
      cure the Registration Default within ten (10) business days will cause the
      Investor to suffer damages in an amount that will be difficult to ascertain.
      Accordingly, the parties agree that it is appropriate to include a provision
      for
      liquidated damages. The parties acknowledge and agree that the liquidated
      damages provision set forth in this section represents the parties’ good faith
      effort to quantify such damages and, as such, agree that the form and amount
      of
      such liquidated damages are reasonable and will not constitute a penalty. It
      is
      the intention of the parties that interest payable under any of the terms of
      this Agreement shall not exceed the maximum amount permitted under any
      applicable law. If a law, which applies to this Agreement which sets the maximum
      interest amount, is finally interpreted so that the interest in connection
      with
      this Agreement exceeds the permitted limits, then: (1)
      any such
      interest shall be reduced by the amount necessary to reduce the interest to
      the
      permitted limit; and (2)
      any sums
      already collected (if any) from the Company which exceed the permitted limits
      will be refunded to the Company. The Investor may choose to make this refund
      by
      reducing the amount that the Company owes under this Agreement or by making
      a
      direct payment to the Company. If a refund reduces the amount that the Company
      owes the Investor, the reduction will be treated as a partial payment. In case
      any provision of this Agreement is held by a court of competent jurisdiction
      to
      be excessive in scope or otherwise invalid or unenforceable, such provision
      shall be adjusted rather than voided, if possible, so that it is enforceable
      to
      the maximum extent possible, and the validity and enforceability of the
      remaining provisions of this Agreement will not in any way be affected or
      impaired thereby.

    

    (f)
      The
      Company shall use commercially reasonable efforts to prevent the issuance of
      any
      stop order or other suspension of effectiveness of the Registration Statement,
      or the suspension of the qualification of any of the Registrable Securities
      for
      sale in any jurisdiction and, if such an order or suspension is issued, to
      obtain the withdrawal of such order or suspension at the earliest possible
      moment and to notify the Investor who holds Registrable Securities being sold
      of
      the issuance of such order and the resolution thereof or its receipt of actual
      notice of the initiation or threat of any proceeding for such
      purpose.

    

    (g)
      The
      Company shall permit the Investor and one (1) legal counsel, designated by
      the
      Investor, to review and comment upon the Registration Statement and all
      amendments and supplements thereto at least one (1) calendar day prior to their
      filing with the SEC. 

    However,
      any postponement of a filing of a Registration Statement or any postponement
      of
      a request for acceleration or any postponement of the effective date or
      effectiveness of a Registration Statement by written request of the Investor
      (collectively, the "Investor's Delay") shall not act to trigger any penalty
      of
      any kind, or any cash amount due or any in-kind amount due the Investor from
      the
      Company under any and all agreements of any nature or kind between the Company
      and the Investor. The event(s) of an Investor's Delay shall act to suspend
      all
      obligations of any kind or nature of the Company under any and all agreements
      of
      any nature or kind between the Company and the Investor. .

    

    (h)
      At the
      request of the Investor, the Company shall cause to be furnished to Investor,
      on
      the date of the effectiveness of the Registration Statement, a legal opinion,
      in
      form and substance reasonably acceptable to Investor’s counsel, dated as of such
      date, of counsel representing the Company for purposes of such Registration
      Statement. 

    

    (i)
      The
      Company shall hold in confidence and not make any disclosure of information
      concerning a Investor provided to the Company unless (i)
      disclosure
      of such information is necessary to comply with federal or state securities
      laws, (ii)
      the
      disclosure of such information is necessary to avoid or correct a misstatement
      or omission in any Registration Statement, (iii)
      the
      release of such information is ordered pursuant to a subpoena or other final,
      non-appealable order from a court or governmental body of competent
      jurisdiction, or (iv)
      such
      information has been made generally available to the public other than by
      disclosure in violation of this Agreement or any other agreement. The Company
      agrees that it shall, upon learning that disclosure of such information
      concerning a Investor is sought in or by a court or governmental body of
      competent jurisdiction or through other means, give prompt written notice to
      such Investor and allow such Investor, at the Investor’s expense, to undertake
      appropriate action to prevent disclosure of, or to obtain a protective order
      for, such information.

    

    (j)
      The
      Company shall use commercially reasonable efforts to maintain designation and
      quotation of all the Registrable Securities covered by any Registration
      Statement on the Principal Market. If, despite the Company’s commercially
      reasonable efforts, the Company is unsuccessful in satisfying the preceding
      sentence, it shall use commercially reasonable efforts to cause all the
      Registrable Securities covered by any Registration Statement to be listed on
      each other national securities exchange and automated quotation system, if
      any,
      on which securities of the same class or series issued by the Company are then
      listed, if any, if the listing of such Registrable Securities is then permitted
      under the rules of such exchange or system. The Company shall pay all fees
      and
      expenses in connection with satisfying its obligation under this Section
      3(j).

    

    (k)
      The
      Company shall cooperate with the Investor to facilitate the prompt preparation
      and delivery of certificates representing the Registrable Securities to be
      offered pursuant to the Registration Statement and enable such certificates
      to
      be in such denominations or amounts, as the case may be, as the Investor may
      reasonably request (and after any sales of such Registrable Securities by the
      Investor, such certificates not bearing any restrictive legend).

    

    (l)
      The
      Company shall provide a transfer agent for all the Registrable Securities not
      later than the effective date of the first Registration Statement filed pursuant
      hereto.

    

    (m)
      If
      requested by the Investor, the Company shall (i)
      as soon
      as reasonably practical incorporate in a prospectus supplement or post-effective
      amendment such information as such Investor reasonably determines should be
      included therein relating to the sale and distribution of Registrable
      Securities, including, without limitation, information with respect to the
      offering of the Registrable Securities to be sold in such offering; (ii)
      make all
      required filings of such prospectus supplement or post-effective amendment
      as
      soon as reasonably possible after being notified of the matters to be
      incorporated in such prospectus supplement or post-effective amendment; and
      (iii)
      supplement or make amendments to any Registration Statement if reasonably
      requested by such Investor.

    

    (n)
      The
      Company shall use commercially reasonable efforts to cause the Registrable
      Securities covered by the applicable Registration Statement to be registered
      with or approved by such other governmental agencies or authorities as may
      be
      necessary to consummate the disposition of such Registrable
      Securities.

     

    (o)
      The
      Company shall otherwise use commercially reasonable efforts to comply with
      all
      applicable rules and regulations of the SEC in connection with any registration
      hereunder.

    

    (p)
      Within
      one (1) business day after the Registration Statement which includes Registrable
      Securities is declared effective by the SEC, the Company shall deliver to the
      transfer agent for such Registrable Securities, with copies to the Investor,
      confirmation that such Registration Statement has been declared effective by
      the
      SEC.

    

    (q)
      The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investor of Registrable Securities pursuant to
      the
      Registration Statement.

    

    Section
      4. OBLIGATIONS
      OF THE INVESTOR.

     

    (a)
      At least
      five (5) calendar days prior to the first anticipated filing date of the
      Registration Statement the Company shall notify the Investor in writing of
      the
      information the Company requires from Investor if Investor elects to have any
      of
      the Registrable Securities included in such Registration Statement. It shall
      be
      a condition precedent to the obligations of the Company to complete the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of the Investor and Investor shall furnish in writing to the Company
      such information regarding itself, the Registrable Securities held by it and
      the
      intended method of disposition of the Registrable Securities held by it as
      shall
      reasonably be required to effect the registration of such Registrable Securities
      and shall execute such documents in connection with such registration as the
      Company may reasonably request. Investor covenants and agrees that, in
      connection with any sale of Registrable Securities by it pursuant to the
      Registration Statement, it shall comply with the “Plan of Distribution” section
      of the current prospectus relating to such Registration Statement.

    

    (b)
      The
      Investor, by Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of any Registration Statement hereunder, unless
      Investor has notified the Company in writing of an election to exclude all
      Investor’s Registrable Securities from such Registration Statement.

    

    (c)
      The
      Investor agrees that, upon receipt of written notice from the Company of the
      happening of any event of the kind described in Section 3(f) or the first
      sentence of 3(e), such Investor will immediately discontinue disposition of
      Registrable Securities pursuant to any Registration Statement(s) covering such
      Registrable Securities until Investor’s receipt of the copies of the
      supplemented or amended prospectus contemplated by Section 3(f) or the first
      sentence of 3(e)

    

    Section
      5. EXPENSES
      OF REGISTRATION.

    

    All
      expenses, other than underwriting discounts and commissions and other than
      as
      set forth in the Investment Agreement, incurred in connection with registrations
      including comments, filings or qualifications pursuant to Sections 2 and 3,
      including, without limitation, all registration, listing and qualifications
      fees, printing and accounting fees, and fees and disbursements of counsel for
      the Company or for the Investor shall be paid by the Company.

    

    Section
      6. INDEMNIFICATION.

    

    In
      the
      event any Registrable Securities are included in the Registration Statement
      under this Agreement:

     

    (a)
      To the
      fullest extent permitted by law, the Company will, and hereby does, indemnify,
      hold harmless and defend Investor who holds Registrable Securities, the
      directors, officers, partners, employees, counsel, agents, representatives
      of,
      and each Person, if any, who controls, any Investor within the meaning of the
      1933 Act or the Securities Exchange Act of 1934, as amended (the “1934
      Act”)
      (each,
      an “Indemnified
      Person”),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, attorneys’ fees, amounts paid in settlement or expenses, joint
      or several (collectively, “Claims”),
      incurred in investigating, preparing or defending any action, claim, suit,
      inquiry, proceeding, investigation or appeal taken from the foregoing by or
      before any court or governmental, administrative or other regulatory agency,
      body or the SEC, whether pending or threatened, whether or not an indemnified
      party is or may be a party thereto (“Indemnified
      Damages”),
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i)
      any
      untrue statement or alleged untrue statement of a material fact in the
      Registration Statement or any post-effective amendment thereto or in any filing
      made in connection with the qualification of the offering under the securities
      or other “blue sky” laws of any jurisdiction in which the Investor has requested
      in writing that the Company register or qualify the Shares (“Blue
      Sky Filing”),
      or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein, in light of the
      circumstances under which the statements therein were made, not misleading,
      (ii)
      any
      untrue statement or alleged untrue statement of a material fact contained in
      the
      final prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading, or (iii)
      any
      violation or alleged violation by the Company of the 1933 Act, the 1934 Act,
      any
      other law, including, without limitation, any state securities law, or any
      rule
      or regulation thereunder relating to the offer or sale of the Registrable
      Securities pursuant to the Registration Statement (the matters in the foregoing
      clauses (i) through (iii) being, collectively, “Violations”).
      Subject to the restrictions set forth in Section 6(c) the Company shall
      reimburse the Investor and each such controlling person, promptly as such
      expenses are incurred and are due and payable, for any reasonable legal fees
      or
      other reasonable expenses incurred by them in connection with investigating
      or
      defending any such Claim. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(a):
(i)
      shall
      not apply to a Claim arising out of or based upon a Violation which is due
      to
      the inclusion in the Registration Statement of the information furnished to
      the
      Company by any Indemnified Person expressly for use in connection with the
      preparation of the Registration Statement or any such amendment thereof or
      supplement thereto; (ii)
      shall
      not be available to the extent such Claim is based on (a)
      a
      failure of the Investor to deliver or to cause to be delivered the prospectus
      made available by the Company or (b)
      the
      Indemnified Person’s use of an incorrect prospectus despite being promptly
      advised in advance by the Company in writing not to use such incorrect
      prospectus; (iii)
      any
      claims based on the manner of sale of the Registrable Securities by the Investor
      or of the Investor’s failure to register as a dealer under applicable securities
      laws; (iv)
      any
      omission of the Investor to notify the Company of any material fact that should
      be stated in the Registration Statement or prospectus relating to the Investor
      or the manner of sale; and (v)
      any
      amounts paid in settlement of any Claim if such settlement is effected without
      the prior written consent of the Company, which consent shall not be
      unreasonably withheld. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of the Indemnified Person
      and shall survive the resale of the Registrable Securities by the Investor
      pursuant to the Registration Statement.

    

    (b)
      In
      connection with any Registration Statement in which Investor is participating,
      Investor agrees to severally and jointly indemnify, hold harmless and defend,
      to
      the same extent and in the same manner as is set forth in Section 6(a), the
      Company, each of its directors, each of its officers who signs the Registration
      Statement, each Person, if any, who controls the Company within the meaning
      of
      the 1933 Act or the 1934 Act and the Company’s agents (collectively and together
      with an Indemnified Person, an “Indemnified
      Party”),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
      or
      Indemnified Damages arise out of or are based upon any Violation, in each case
      to the extent, and only to the extent, that such Violation is due to the
      inclusion in the Registration Statement of the written information furnished
      to
      the Company by such Investor expressly for use in connection with such
      Registration Statement; and, subject to Section 6(c), such Investor will
      reimburse any legal or other expenses reasonably incurred by them in connection
      with investigating or defending any such Claim; provided,
      however,
      that
      the indemnity agreement contained in this Section 6(b) and the agreement with
      respect to contribution contained in Section 7 shall not apply to amounts paid
      in settlement of any Claim if such settlement is effected without the prior
      written consent of such Investor, which consent shall not be unreasonably
      withheld; provided, further, however, that the Investor shall be liable under
      this Section 6(b) for only that amount of a Claim or Indemnified Damages as
      does
      not exceed the net proceeds to such Investor as a result of the sale of
      Registrable Securities pursuant to such Registration Statement. Such indemnity
      shall remain in full force and effect regardless of any investigation made
      by or
      on behalf of such Indemnified Party and shall survive the resale of the
      Registrable Securities by the Investor pursuant to the Registration Statement.
      Notwithstanding anything to the contrary contained herein, the indemnification
      agreement contained in this Section 6(b) with respect to any preliminary
      prospectus shall not inure to the benefit of any Indemnified Party if the untrue
      statement or omission of material fact contained in the preliminary prospectus
      were corrected on a timely basis in the prospectus, as then amended or
      supplemented. This indemnification provision shall apply separately to each
      Investor and liability hereunder shall not be joint and several.

    

    (c)
      Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own counsel with the fees and expenses to
      be
      paid by the indemnifying party, if, in the reasonable opinion of counsel
      retained by the Indemnified Person or Indemnified Party, the representation
      by
      counsel of the Indemnified Person or Indemnified Party and the indemnifying
      party would be inappropriate due to actual or potential differing interests
      between such Indemnified Person or Indemnified Party and any other party
      represented by such counsel in such proceeding. The indemnifying party shall
      pay
      for only one (1) separate legal counsel for the Indemnified Persons or the
      Indemnified Parties, as applicable, and such counsel shall be selected by the
      Investor, if the Investor are entitled to indemnification hereunder, or the
      Company, if the Company is entitled to indemnification hereunder, as applicable.
      The Indemnified Party or Indemnified Person shall cooperate fully with the
      indemnifying party in connection with any negotiation or defense of any such
      action or Claim by the indemnifying party and shall furnish to the indemnifying
      party all information reasonably available to the Indemnified Party or
      Indemnified Person which relates to such action or Claim. The indemnifying
      party
      shall keep the Indemnified Party or Indemnified Person fully appraised at all
      times as to the status of the defense or any settlement negotiations with
      respect thereto. No indemnifying party shall be liable for any settlement of
      any
      action, claim or proceeding effected without its written consent, provided,
      however, that the indemnifying party shall not unreasonably withhold, delay
      or
      condition its consent. No indemnifying party shall, without the consent of
      the
      Indemnified Party or Indemnified Person, consent to entry of any judgment or
      enter into any settlement or other compromise which does not include as an
      unconditional term thereof the giving by the claimant or plaintiff to such
      Indemnified Party or Indemnified Person of a release from all liability in
      respect to such Claim. Following indemnification as provided for hereunder,
      the
      indemnifying party shall be surrogated to all rights of the Indemnified Party
      or
      Indemnified Person with respect to all third parties, firms or corporations
      relating to the matter for which indemnification has been made. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is prejudiced in its ability
      to
      defend such action.

    

    (d)
      The
      indemnity agreements contained herein shall be in addition to (i)
      any
      cause of action or similar right of the Indemnified Party or Indemnified Person
      against the indemnifying party or others, and (ii)
      any
      liabilities the indemnifying party may be subject to pursuant to the
      law.

    

    Section
      7. CONTRIBUTION.

    

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided,
      however,
      that:
(i)
      no
      contribution shall be made under circumstances where the maker would not have
      been liable for indemnification under the fault standards set forth in Section
      6; (ii)
      no
      seller of Registrable Securities guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from any seller of Registrable Securities who was not guilty of fraudulent
      misrepresentation; and (iii)
      contribution
      by any seller of Registrable Securities shall be limited in amount to the net
      amount of proceeds received by such seller from the sale of such Registrable
      Securities.

    

    Section
      8. REPORTS
      UNDER THE 1934 ACT.

    

    With
      a
      view to making available to the Investor the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the Investor to sell securities of the Company to the public
      without registration (“Rule
      144”),
      provided that the Investor holds any Registrable Securities are eligible for
      resale under Rule 144 (k), the Company agrees to:

    

    (a) make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

    

    (b) file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the 1933 Act and the 1934 Act so long as the Company remains
      subject to such requirements (it being understood that nothing herein shall
      limit the Company’s obligations under Section 5(c) of the Investment Agreement)
      and the filing of such reports and other documents is required for the
      applicable provisions of Rule 144; and

    

    (c) furnish
      to the Investor, promptly upon request, (i)
      a
      written statement by the Company that it has complied with the reporting
      requirements of Rule 144, the 1933 Act and the 1934 Act, (ii)
      a copy
      of the most recent annual or quarterly report of the Company and such other
      reports and documents so filed by the Company, and (iii)
      such
      other information as may be reasonably requested to permit the Investor to
      sell
      such securities pursuant to Rule 144 without registration.

    

    

    Section
      9. NO
      ASSIGNMENT OF REGISTRATION RIGHTS.

    

    The
      rights under this Agreement shall not be assignable.

     

    

    

    Section
      10. AMENDMENT
      OF REGISTRATION RIGHTS.

    

    Provisions
      of this Agreement may be amended only with the written consent of the Company
      and Investor. 

    

    

    Section
      11. MISCELLANEOUS.

    

    (a)
      Any
      notices or other communications required or permitted to be given under the
      terms of this Agreement that must be in writing will be deemed to have been
      delivered (i)
      upon
      receipt, when delivered personally; (ii)
      upon
      receipt, when sent by facsimile (provided a confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii)
      one (1)
      day after deposit with a nationally recognized overnight delivery service,
      in
      each case properly addressed to the party to receive the same. The addresses
      and
      facsimile numbers for such communications shall be:

    

    If
      to the
      Company:

    

    Eagle
      Broadband, Inc.

    101
      Courageous Drive

    League
      City, TX 77573-3925

    Telephone:
      281-538-6000

    Facsimile:
      281-538-4730

    

    If
      to the
      Investor:

    

    Dutchess
      Private Equities Fund, LP

    50
      Commonwealth Ave, Suite 2

    Boston,
      MA 02116

    Telephone:
       617-301-4700

    Facsimile:
       617-249-0947

    

    Each
      party shall provide five (5) business days prior notice to the other party
      of
      any change in address, phone number or facsimile number.

    

    (b)
      Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

    

    (c)
      The laws
      of the Commonwealth of Massachusetts shall govern all issues arising from or
      related to this Agreement without regard to the principles of conflict of laws.
      Each party hereby irrevocably submits to the exclusive jurisdiction of the
      state
      and federal courts sitting in the City of Boston, County of Suffolk, for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. If any provision of this
      Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
      or unenforceability shall not affect the validity or enforceability of the
      remainder of this Agreement in that jurisdiction or the validity or
      enforceability of any provision of this Agreement in any other
      jurisdiction.

    

    (d)
      This
      Agreement and the Transaction Documents constitute the entire agreement among
      the parties hereto with respect to the subject matter hereof and thereof. There
      are no restrictions, promises, warranties or undertakings, other than those
      set
      forth or referred to herein and therein.

    

    (e)
      This
      Agreement and the Transaction Documents supersede all prior agreements and
      understandings among the parties hereto with respect to the subject matter
      hereof and thereof.

    

    (f)
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof. Whenever required by the context
      of this Agreement, the singular shall include the plural and masculine shall
      include the feminine. This Agreement shall not be construed as if it had been
      prepared by one of the parties, but rather as if all the parties had prepared
      the same.

    

    (g)
      This
      Agreement may be executed in two or more identical counterparts, each of which
      shall be deemed an original but all of which shall constitute one and the same
      agreement. This Agreement, once executed by a party, may be delivered to the
      other party hereto by facsimile transmission of a copy of this Agreement bearing
      the signature of the party so delivering this Agreement.

    

    (h)
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

    

    Section
      12. DISPUTES
      SUBJECT TO ARBITRATION GOVERNED BY MASSACHUSETTS LAW

    

    All
      disputes arising under this agreement shall be governed by and interpreted
      in
      accordance with the laws of the Commonwealth of Massachusetts, without regard
      to
      principles of conflict of laws. The parties to this agreement will submit all
      disputes arising under this agreement to arbitration in Boston, Massachusetts
      before a single arbitrator of the American Arbitration Association (“AAA”). The
      arbitrator shall be selected by application of the rules of the AAA, or by
      mutual agreement of the parties, except that such arbitrator shall be an
      attorney admitted to practice law in the Commonwealth of Massachusetts. No
      party
      to this agreement will challenge the jurisdiction or venue provisions as
      provided in this section. 

    

    Section
      13. WAIVER
      OF JURY TRIAL. 

    

    AS
      A
      MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION. 

    

    *
      * *

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SIGNATURE
      PAGE OF REGISTRATION RIGHTS AGREEMENT

    

     

    Your
      signature on this Signature Page evidences your agreement to be bound by the
      terms and conditions of the Investment Agreement and the Registration Rights
      Agreement as of the date first written above. 

     

     

    The
      undersigned signatory hereby certifies that he has read and understands the
      Registration Rights Agreement, and the representations made by the undersigned
      in this Registration Rights Agreement are true and accurate, and agrees to
      be
      bound by its terms. 

     

    

    DUTCHESS
      PRIVATE EQUITIES FUND, L.P.,

    BY
      ITS
      GENERAL PARTNER,

    DUTCHESS
      CAPITAL MANAGEMENT, LLC

    

    

    

    By:
      /s/Douglas H. Leighton

    Douglas
      H. Leighton, Managing Member

    

    

    

    EAGLE
      BROADBAND, INC.

    

    

    By:
      /s/David Micek 

    David
      Micek, President and CEO

    

    

    By:
      /s/Richard Sanger

    Richard
      Sanger, Jr., Vice President of AdministrationExhibit 10.20

    ____________________

    

    Eagle
      Broadband Inc.

    ____________________

     

    This
      offering consists of $822,500 of the Company’s 5 Year Convertible

    Debentures
      convertible into the

    Company’s
      Common Stock.

    ____________________

     

    SUBSCRIPTION
      AGREEMENT

    ___________________

    

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SUBSCRIPTION
      PROCEDURES

    

    

    Convertible
      Debentures of Eagle
      Broadband Inc. (the
      “Company”) are being offered (the “Debentures”). This offering is being made in
      accordance with the exemptions from registration provided for under Section
      4(2)
      of the Securities Act of 1933, as amended (the “1933 Act”) and Rule 506 of
      Regulation D promulgated under the 1933 Act. 

    

    In
      order
      to purchase Debentures, each subscriber must complete and execute a
      questionnaire (the “Questionnaire”) and a subscription agreement (the
“Subscription Agreement”). In addition, the Holder, as defined herein, must make
      a payment for the amount being purchased directly to the Company. All
      subscriptions are subject to acceptance by the Company, which shall not occur
      until the Company has returned the signed Company Signature Page. 

    

    The
      Questionnaire is designed to enable the Holder to demonstrate the minimum legal
      requirements under federal and state securities laws to purchase the Debentures.
      The Signature Page for the Questionnaire and the Subscription Agreement contain
      representations relating to the subscription and should be reviewed carefully
      by
      each subscriber.

    

    If
      you
      are a foreign person or foreign entity, you may be subject to a withholding
      tax
      equal to thirty percent (30%) of any dividends paid by the Company. In order
      to
      eliminate or reduce such withholding tax you must submit a properly executed
      I.R.S. Form 4224 (Exemption from Withholding of Tax on Income Effectively
      Connected with the Conduct of a Trade or Business in the United States) or
      I.R.S. Form 1001 (Ownership Exemption or Reduced Trade Certificate), claiming
      exemption from withholding or eligibility for treaty benefits in the form of
      a
      lower rate of withholding tax on interest or dividends.

    

    Payment
      of the full subscription amount will be made by wire transfer by Dutchess
      Private Equities Fund, LP (the “Holder”) on or prior to the closing per the wire
      instructions that will be established. In the event of a termination of the
      offering or the rejection of a subscription, subscription funds will be returned
      by the Company without interest or charges. 

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THE
      SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED AND SOLD
      IN
      RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS. THE
      SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
      NOT
      BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SUCH LAWS PURSUANT TO
      REGISTRATION OR AN EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN APPROVED
      OR
      DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY OTHER REGULATORY
      AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED
      THE
      MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS.
      ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

    

    

    SUBSCRIPTION
      AGREEMENT

    

    

    To: Eagle
      Broadband Inc.

    

    This
      Subscription Agreement is made between Eagle
      Broadband Inc.,
      a Texas
      corporation (the “Company”), and the undersigned prospective Holder (the
“Holder”) who is subscribing hereby for the Company’s convertible debentures
      (the “Debentures”) on February 10, 2006. This subscription is submitted to you
      in accordance with and subject to the terms and conditions described in this
      Subscription Agreement, together with any Exhibits thereto, relating to an
      offering (the “Offering”) of Eight Hundred and Twenty-two Thousand Five Hundred
      dollars ($822,500) of Debentures. The Offering is limited to accredited
      Investors and is made in accordance with the exemptions from registration
      provided for under Section 4(2) of the 1933 Act and Rule 506 of Regulation
      D
      promulgated under the 1933 Act (“Regulation D”).

    

    Contemporaneously
      with the execution and delivery of this Agreement, the parties hereto are
      executing and delivering a Debenture Registration Rights Agreement, the
      Debenture Agreement, Security Agreement and Warrant Agreement (collectively,
      the
      "Transaction Documents").

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1. SUBSCRIPTION.

    

    (a) The
      closing shall be deemed to have occurred on the date in the preamble of this
      document (the “Closing Date” or a “Closing”). The Company shall pay twelve
      percent (12%) annual coupon on the unpaid principal amount of this Debenture
      (the “Debenture”) at such times and in such amounts as outlined in the Debenture
      Agreement. 

    

    (b) Upon
      receipt by the Company of the requisite payment for the Debentures being
      purchased, the Debentures so purchased will be forwarded by the Company to
      the
      Holder or its broker, as listed on the signature page, and the name of such
      Holder will be registered on the Debenture transfer books of the Company as
      the
      record owner of such Debentures. 

    

    (c) As
      long
      as the Holder owns the Debenture, the Holder shall have the right to change
      the
      terms for the balance of the Debenture it then holds, to match the terms of
      any
      other offering of securities made by the Company.

    

    (d) The
      Holder shall fund four hundred and forty-seven thousand five hundred dollars
      ($447,500) upon the initial closing and an additional three hundred and
      seventy-five thousand dollars ($375,000) simultaneously on the date the
      registration statement covering this Offering is filed with the United States
      Securities and Exchange Commission ("SEC").

    

    (e) The
      Holder will be granted a security interest in all the assets currently owned
      or
      hereinafter acquired (except for the Exclusions, as defined in the Security
      Agreement), including ownership of Subsidiaries as defined in Schedule 3(a)
      of
      this Agreement, and the assets of the Subsidiaries to be memorialized in the
      Security and Pledge Agreement between the Company and the Holder of this
      date.

    

    2. REPRESENTATIONS
      AND WARRANTIES OF THE HOLDER.

     

    The
      Holder hereby represents and warrants to, and agrees with, the Company as
      follows:

     

    

    (a) The
      Holder has been furnished with, and has carefully read the applicable form
      of
      Debenture Registration Rights Agreement, and the Debenture and
      is
      familiar with and understands the terms of the Offering. With respect to tax
      and
      other economic considerations involved in his investment, the Holder is not
      relying on the Company. The Holder has carefully considered and has, to the
      extent the Holder believes such discussion necessary, discussed with the Holder
      's professional legal, tax, accounting and financial advisors the suitability
      of
      an investment in the Company, by purchasing the Debentures, for the Holder
      's
      particular tax and financial situation and has determined that the investment
      being made by the Holder is a suitable investment for the Holder.

    

    (b) The
      Holder acknowledges that all documents, records, and books pertaining to this
      investment which the Holder has requested, have been made available for
      inspection, or the Holder has had access thereto.

    

    (c) The
      Holder has had a reasonable opportunity to ask questions of and receive answers
      from a person or persons acting on behalf of the Company concerning the
      Offering, and if such opportunity was taken, then all such questions have been
      answered to the full satisfaction of the Holder.

    

    (d) The
      Holder will not sell, or otherwise dispose of the Debentures or the Common
      Stock
      issued upon conversion of the Debentures without registration under the 1933
      Act
      or applicable state securities laws or compliance with an exemption therefrom
      including but not limited to: Rule 144A, 144(k), as promulgated under the
      Securities Act of 1933 (herein after referred to as an "Exemption"). The
      Debentures have not been registered under the 1933 Act or under the securities
      laws of any state. Resales of the Common Stock underlying the Debentures or
      issued in payment of accrued interest on the Debentures are to be registered
      by
      the Company pursuant to the terms of the Debenture Registration Rights Agreement
      incorporated herein and made a part hereof. 

    

    (e) The
      Holder recognizes that an investment in the Debentures involves substantial
      risks, including loss of the entire amount of such investment. Further, the
      Holder has carefully read and considered the schedules attached
      hereto.

    

    (f)
       The
      Holder acknowledges that each certificate representing the Debentures (and
      the
      shares of Common Stock issued upon conversion of the Debentures, unless
      registered or with an Exemption) or in payment of interest on the Debentures
      shall be stamped or otherwise imprinted with a legend substantially in the
      following form:

    

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE OFFERED OR SOLD,
      TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT (i) PURSUANT
      TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, (ii) TO THE EXTENT APPLICABLE, PURSUANT TO RULE 144 UNDER THE ACT
      (OR
      ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES),
      OR
      (iii) PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SUCH
      ACT.

    

    If
      the
      Holder sends a Notice of Conversion (See Exhibit A attached hereto), and
      provided a registration statement under the Securities Act of 1933 is in effect
      as to the sale, then in such event the Company shall have its transfer agent
      send Holder the appropriate number of shares of Common Stock without restrictive
      legends (other than a legend referring to the resale registration and prospectus
      delivery requirements) and not subject to stop transfer instructions.

    

    (g) If
      this
      Subscription Agreement is executed and delivered on behalf of a corporation
      or
      legal entity other than a natural person: (i) such corporation or other entity
      has the full legal right and power and all authority and approval required
      (a)
      to execute and deliver, or authorize execution and delivery of this Subscription
      Agreement and all other Transaction Documents executed and delivered by or
      on
      behalf of such corporation in connection with the purchase of the Debentures,
      and (b) to purchase and hold the Debentures; and (ii) the signature of the
      party
      signing on behalf of such corporation or entity is binding upon such
      corporation. 

    

    (h) The
      Holder is not subscribing for the Debentures as a result of, or pursuant to,
      any
      advertisement, article, notice or other communication published in any
      newspaper, magazine or similar media or broadcast over television or radio
      or
      presented at any seminar or meeting.

    

    (i) The
      Holder is purchasing the Debentures for its own account for investment, and
      not
      with a view toward the resale or distribution thereof, except pursuant to sales
      registered or exempted from registration under the 1933 Act. The Holder has
      not
      offered or sold any portion of the Debentures being acquired nor does the Holder
      have any present intention of dividing the Debentures with others or of selling,
      distributing or otherwise disposing of any portion of the Debentures either
      currently or after the passage of a fixed or determinable period of time or
      upon
      the occurrence or non-occurrence of any predetermined event or circumstance
      in
      violation of the 1933 Act provided, however, that by making the representations
      herein, Holder does not agree to hold any of the Debentures for any minimum
      or
      other specific term and reserves the right to dispose of the Debentures at
      any
      time in accordance with or pursuant to a registration statement or an exemption
      under the 1933 Act. Holder is neither an underwriter of, nor a dealer in, the
      Debentures or the Common Stock issuable upon conversion thereof or upon the
      payment of interest thereon and is not participating in the distribution or
      resale of the Debentures or the Common Stock issuable upon conversion or
      exercise thereof. 

    

    (j) The
      Holder or the Holder's representatives, as the case may be, has such knowledge
      and experience in financial, tax and business matters so as to enable the Holder
      to utilize the information made available to the Holder in connection with
      the
      Offering to evaluate the merits and risks of an investment in the Debentures
      and
      to make an informed investment decision with respect thereto. 

    

    3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

    

    Except
      as
      set forth in the Schedules attached hereto, the Company represents and warrants
      to the Holder that:

    

    a. Organization
      and Qualification.
      The
      Company and its “SUBSIDIARIES” (which for purposes of this Subscription
      Agreement means any entity in which the Company, directly or indirectly, owns
      capital stock or holds an equity or similar interest) (a complete list of which
      is set forth in Schedule 3(a)) are corporations duly organized and validly
      existing in good standing under the laws of the respective jurisdictions of
      their incorporation, and have the requisite corporate power and authorization
      to
      own their properties and to carry on their business as now being conducted.
      Both
      the Company and its Subsidiaries are duly qualified to do business and are
      in
      good standing in every jurisdiction in which their ownership of property or
      the
      nature of the business conducted by them makes such qualification necessary,
      except to the extent that the failure to be so qualified or be in good standing
      would not have a Material Adverse Effect. As used in this Subscription
      Agreement, “MATERIAL ADVERSE EFFECT” means any material adverse effect on the
      business, properties, assets, operations, results of operations, financial
      condition or prospects of the Company and its Subsidiaries, if any, taken as
      a
      whole, or on the transactions contemplated hereby or by the agreements and
      instruments to be entered into in connection herewith, or on the authority
      or
      ability of the Company to perform its obligations under the Transaction
      Documents.

    

    b.
       Authorization;
      Enforcement; Compliance with Other Instruments.
      (i) The
      Company has the requisite corporate power and authority to enter into and
      perform its obligations under the Transaction Documents, and to issue the
      Debentures in accordance with the terms hereof and thereof, (ii) the execution
      and delivery of the Transaction Documents by the Company and the consummation
      by
      it of the transactions contemplated hereby and thereby, including without
      limitation the reservation for issuance and the issuance of the Debentures
      pursuant to this Subscription Agreement, have been duly and validly authorized
      by the Company's Board of Directors and no further consent or authorization
      is
      required by the Company, its Board of Directors, or its shareholders, (iii)
      the
      Transaction Documents have been duly and validly executed and delivered by
      the
      Company, and (iv) the Transaction Documents constitute the valid and binding
      obligations of the Company enforceable against the Company in accordance with
      their terms, except as such enforceability may be limited by general principles
      of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
      liquidation or similar laws relating to, or affecting generally, the enforcement
      of creditors' rights and remedies.

    

    c.
       Capitalization.
      As of
      the date hereof, the authorized capital stock of the Company consists of
      350,000,000 shares of Common Stock, of which as of the date hereof, 303,086,275
      shares are issued and outstanding. All of such outstanding shares have been,
      or
      upon issuance will be, validly issued and are fully paid for and nonassessable.
      Except as disclosed in the SEC Documents (as defined in Section 3(f) below)
      or
      Schedule 3(c) which is attached hereto and made a part hereof (i) no shares
      of
      the Company's capital stock are subject to preemptive rights or any other
      similar rights or any liens or encumbrances suffered or permitted by the
      Company, (ii) there are no outstanding debt securities, (iii) there are no
      outstanding shares of capital stock, options, warrants, scrip, rights to
      subscribe to, calls or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      Company or any of its Subsidiaries, or contracts, commitments, understandings
      or
      arrangements by which the Company or any of its Subsidiaries is or may become
      bound to issue additional shares of capital stock of the Company or any of
      its
      Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities or rights
      convertible into, any shares of capital stock of the Company or any of its
      Subsidiaries, (iv) there are no agreements or arrangements under which the
      Company or any of its Subsidiaries is obligated to register the sale of any
      of
      their securities under the 1933 Act (except the as otherwise set forth in the
      Transaction Documents), (v) there are no outstanding securities of the Company
      or any of its Subsidiaries which contain any redemption or similar provisions,
      and there are no contracts, commitments, understandings or arrangements by
      which
      the Company or any of its Subsidiaries is or may become bound to redeem a
      security of the Company or any of its Subsidiaries, (vi) there are no securities
      or instruments containing anti-dilution or similar provisions that will be
      triggered by the issuance of the Securities as described in this Subscription
      Agreement, (vii) the Company does not have any stock appreciation rights or
      "phantom stock" plans or agreements or any similar plan or agreement and (viii)
      there is no dispute as to the class of any shares of the Company's capital
      stock. The Company has furnished to the Holder, or the Holder has had access
      through EDGAR to, true and correct copies of the Company's Articles of
      Incorporation, as in effect on the date hereof (the “ARTICLES OF
      INCORPORATION”), and the Company's By-laws, as in effect on the date hereof (the
“BY-LAWS”).

    

    d. Issuance
      of Debentures.
      A
      sufficient number of Debentures issuable pursuant to this Subscription
      Agreement, but not more than 4.99% of the shares of Common Stock outstanding
      as
      of the date hereof, has been duly authorized and reserved for issuance pursuant
      to this Subscription Agreement. Upon issuance in accordance with this
      Subscription Agreement, the Debentures will be validly issued, fully paid for
      and nonassessable and free from all taxes, liens and charges with respect to
      the
      issue thereof. In the event the Company cannot register a sufficient number
      of
      shares of Common Stock, due to the remaining number of authorized shares of
      Common Stock being insufficient, the Company will use its best efforts to
      register the maximum number of shares it can based on the remaining balance
      of
      authorized shares and will use its best efforts to increase the number of its
      authorized shares as soon as reasonably practicable.

    

    e.
       No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated hereby
      and
      thereby will not (i) result in a violation of the Articles of Incorporation,
      any
      Certificate of Designations, Preferences and Rights of any outstanding series
      of
      preferred stock of the Company or the By-laws or (ii) conflict with, or
      constitute a material default (or an event which with notice or lapse of time
      or
      both would become a material default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation of, any material agreement,
      contract, indenture mortgage, indebtedness or instrument to which the Company
      or
      any of its Subsidiaries is a party, or result in a violation of any law, rule,
      regulation, order, judgment or decree, including United States federal and
      state
      securities laws and regulations and the rules and regulations of the principal
      securities exchange or trading market on which the Common Stock is traded or
      listed (the “Principal Market”), applicable to the Company or any of its
      Subsidiaries or by which any property or asset of the Company or any of its
      Subsidiaries is bound or affected. Except as disclosed in the SEC Documents,
      neither the Company nor its Subsidiaries is in violation of any term of, or
      in
      default under, the Articles of Incorporation, any Certificate of Designations,
      Preferences and Rights of any outstanding series of preferred stock of the
      Company or the By-laws or their organizational charter or by-laws, respectively,
      or any contract, agreement, mortgage, indebtedness, indenture, instrument,
      judgment, decree or order or any statute, rule or regulation applicable to
      the
      Company or its Subsidiaries, except for possible conflicts, defaults,
      terminations, amendments, accelerations, cancellations and violations that
      would
      not individually or in the aggregate have a Material Adverse Effect. The
      business of the Company and its Subsidiaries is not being conducted, and shall
      not be conducted, in violation of any law, statute, ordinance, rule, order
      or
      regulation of any governmental authority or agency, regulatory or
      self-regulatory agency, or court, except for possible violations the sanctions
      for which either individually or in the aggregate would not have a Material
      Adverse Effect. Except as specifically contemplated by this Subscription
      Agreement and as required under the 1933 Act, the Company is not required to
      obtain any consent, authorization, permit or order of (except the listing
      approval of the Principal Market), or make any filing or registration (except
      the filing of a registration statement) with, any court, governmental authority
      or agency, regulatory or self-regulatory agency or other third party in order
      for it to execute, deliver or perform any of its obligations under, or
      contemplated by, the Transaction Documents in accordance with the terms hereof
      or thereof. All consents, authorizations, permits, orders, filings and
      registrations which the Company is required to obtain pursuant to the preceding
      sentence have been obtained or effected on or prior to the date hereof and
      are
      in full force and effect as of the date hereof (except the listing approval
      and
      registration statement). The Company and its Subsidiaries are unaware of any
      facts or circumstances which might give rise to any of the foregoing. The
      Company is not, and will not be, in violation of the listing requirements of
      the
      Principal Market as in effect on the date hereof and on each of the Closing
      Dates and is not aware of any facts which would reasonably lead to delisting
      of
      the Common Stock by the Principal Market in the foreseeable future.

    

    f.
       SEC
      Documents; Financial Statements.
      The
      Company has filed all reports, schedules, forms, statements and other documents
      required to be filed by it with the Securities and Exchange Commission (“SEC”)
      pursuant to the reporting requirements of the Securities and Exchange Act of
      1934 (“1934 Act”) (all of the foregoing filed since the date hereof and all
      exhibits included therein and financial statements and schedules thereto and
      documents incorporated by reference therein being hereinafter referred to as
      the
      "SEC DOCUMENTS"). The Company has delivered to the Holder or its
      representatives, or they have had access through EDGAR, to true and complete
      copies of the SEC Documents. As of their respective dates, the SEC Documents
      complied in all material respects with the requirements of the 1934 Act and
      the
      rules and regulations of the SEC promulgated thereunder applicable to the SEC
      Documents, and none of the SEC Documents, at the time they were filed with
      the
      SEC, contained any untrue statement of a material fact or omitted to state
      a
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances under which they were made, and are
      not
      misleading. As of their respective dates, the financial statements of the
      Company included in the SEC Documents complied as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the SEC with respect thereto. Such financial statements have
      been
      prepared in accordance with generally accepted accounting principles,
      consistently applied, during the periods involved (except (i) as may be
      otherwise indicated in such financial statements or the notes thereto, or (ii)
      in the case of unaudited interim statements, to the extent they may exclude
      footnotes or may be condensed or summary statements) and fairly present in
      all
      material respects the financial position of the Company as of the dates thereof
      and the results of its operations and cash flows for the periods then ended
      (subject, in the case of unaudited statements, to normal year-end audit
      adjustments). No other written information provided by or on behalf of the
      Company to the Holder which is not included in the SEC Documents, including,
      without limitation, information referred to in Section 3(d) of this Subscription
      Agreement, contains any untrue statement of a material fact or omits to state
      any material fact necessary to make the statements therein, in the light of
      the
      circumstance under which they are or were made, and are not
      misleading.

    

    g.
       Absence
      of Certain Changes.
      Except
      for the Company’s intention to sell its security monitoring business and as set
      forth in the SEC Documents filed at least thirty (30) days prior to the date
      hereof, there has been no change or development in the business, properties,
      assets, operations, financial condition, results of operations or prospects
      of
      the Company or its Subsidiaries which has had or reasonably could have a
      Material Adverse Effect. The Company has not taken any steps, and does not
      currently expect to take any steps, to seek protection pursuant to any
      bankruptcy law nor does the Company or its Subsidiaries have any knowledge
      or
      reason to believe that its creditors intend to initiate involuntary bankruptcy
      proceedings.

    

    h.
       Absence
      of Litigation.
      Except
      as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry
      or investigation before or by any court, public board, government agency,
      self-regulatory organization or body pending or, to the knowledge of the
      executive officers of Company or any of its Subsidiaries, threatened against
      or
      affecting the Company, the Common Stock or any of the Company's Subsidiaries
      or
      any of the Company's or the Company's Subsidiaries' officers or directors in
      their capacities as such, in which an adverse decision could have a Material
      Adverse Effect.

    

    i.
       Acknowledgment
      Regarding the Purchase of Debentures.
      The
      Company acknowledges and agrees that the Holder is acting solely in the capacity
      of an arm's length investor with respect to the Transaction Documents and the
      transactions contemplated hereby and thereby. The Company further acknowledges
      that the Holder is not acting as a financial advisor or fiduciary of the Company
      (or in any similar capacity) with respect to the Transaction Documents and
      the
      transactions contemplated hereby and thereby and any advice given by the Holder
      or any of its respective representatives or agents in connection with the
      Transaction Documents and the transactions contemplated hereby and thereby
      is
      merely incidental to the Holder's purchase of the Debentures. The Company
      further represents to the Holder that the Company's decision to enter into
      the
      Transaction Documents has been based solely on the independent evaluation by
      the
      Company and its representatives.

    

    j. Intentionally
      omitted.

    

    k.
       Employee
      Relations.
      Neither
      the Company nor any of its Subsidiaries is involved in any union labor dispute
      nor, to the knowledge of the Company or any of its Subsidiaries, is any such
      dispute threatened. Neither the Company nor any of its Subsidiaries is a party
      to a collective bargaining agreement, and the Company and its Subsidiaries
      believe that relations with their employees are good. No executive officer
      (as
      defined in Rule 501(f) of the 1933 Act) has notified the Company that such
      officer intends to leave the Company's employ or otherwise terminate such
      officer's employment with the Company.

    

    l.
       Intellectual
      Property Rights.
      All
      patents, patent applications, trademark registrations and applications for
      trademark registration held by the Company are owned free and clear of all
      mortgages, liens, charges or encumbrances whatsoever. No licenses have been
      granted with respect to these items and the Company and its Subsidiaries do
      not
      have any knowledge of any infringement by the Company or its Subsidiaries of
      trademark, trade name rights, patents, patent rights, copyrights, inventions,
      licenses, service names, service marks, service mark registrations, trade secret
      or other similar rights of others, and, except as set forth on Schedule 3(l),
      there is no claim, action or proceeding being made or brought against, or to
      the
      Company's knowledge, being threatened against, the Company or its Subsidiaries
      regarding trademark, trade name, patents, patent rights, invention, copyright,
      license, service names, service marks, service mark registrations, trade secret
      or other infringement; and the Company and its Subsidiaries are unaware of
      any
      facts or circumstances which might give rise to any of the foregoing. The
      Company and its Subsidiaries have taken reasonable security measures to protect
      the secrecy, confidentiality and value of all of their intellectual
      property.

    

    m.
       Environmental
      Laws.
      The
      Company and its Subsidiaries (i) are in compliance with any and all applicable
      foreign, federal, state and local laws and regulations relating to the
      protection of human health and safety, the environment or hazardous or toxic
      substances or wastes, pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii)
      have received all permits, licenses or other approvals required of them under
      applicable Environmental Laws to conduct their respective businesses, and (iii)
      are in compliance with all terms and conditions of any such permit, license
      or
      approval where, in each of the three foregoing cases, the failure to so comply
      would have, individually or in the aggregate, a Material Adverse
      Effect.

    

    n.
       Title.
      The
      Company and its Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and marketable title to all personal property owned
      by
      them which is material to the business of the Company and its Subsidiaries,
      in
      each case free and clear of all liens, encumbrances and defects except such
      as
      are described in the SEC Documents or Schedule 3(n) or such as do not materially
      affect the value of such property and do not interfere with the use made and
      proposed to be made of such property by the Company or any of its Subsidiaries.
      Any real property and facilities held under lease by the Company or any of
      its
      Subsidiaries are held by them under valid, subsisting and enforceable leases
      with such exceptions as are not material and do not interfere with the use
      made
      and proposed to be made of such property and buildings by the Company and its
      Subsidiaries.

    

    o.
       Insurance.
      The
      Company and each of its Subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and its Subsidiaries are engaged. Neither the Company
      nor
      any such Subsidiary has been refused any insurance coverage sought or applied
      for and neither the Company nor any such Subsidiary has any reason to believe
      that it will not be able to renew its existing insurance coverage as and when
      such coverage expires or to obtain similar coverage from similar insurers as
      may
      be necessary to continue its business at a cost that would not have a Material
      Adverse Effect.

    

    p.
       Regulatory
      Permits.
      The
      Company and its Subsidiaries have in full force and effect all certificates,
      approvals, authorizations and permits from the appropriate federal, state,
      local
      or foreign regulatory authorities and comparable foreign regulatory agencies,
      necessary to own, lease or operate their respective properties and assets and
      conduct their respective businesses, and neither the Company nor any such
      Subsidiary has received any notice of proceedings relating to the revocation
      or
      modification of any such certificate, approval, authorization or permit, except
      for such certificates, approvals, authorizations or permits which if not
      obtained, or such revocations or modifications which, would not have a Material
      Adverse Effect.

    

    q.
       Internal
      Accounting Controls.
      The
      Company and each of its Subsidiaries maintain a system of internal accounting
      controls sufficient to provide reasonable assurance that (i) transactions are
      executed in accordance with management's general or specific authorizations,
      (ii) transactions are recorded as necessary to permit preparation of financial
      statements in conformity with generally accepted accounting principles and
      to
      maintain asset accountability, (iii) access to assets is permitted only in
      accordance with management's general or specific authorization, and (iv) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals and appropriate action is taken with respect to any
      differences.

    

    r.
       No
      Materially Adverse Contracts.
      Neither
      the Company nor any of its Subsidiaries is subject to any charter, corporate
      or
      other legal restriction, or any judgment, decree, order, rule or regulation
      which in the judgment of the Company's officers has or is expected in the future
      to have a Material Adverse Effect. Neither the Company nor any of its
      Subsidiaries is a party to any contract or agreement which in the judgment
      of
      the Company's officers has or is expected to have a Material Adverse
      Effect.

    

    s.
       Tax
      Status.
      The
      Company has filed all federal and state income tax returns, as required and
      the
      Company and each of its Subsidiaries has made or filed all United States federal
      and state income and all other tax returns, reports and declarations required
      by
      any jurisdiction to which it is subject. Except as disclosed in the SEC
      Documents, there are no unpaid taxes in any material amount claimed to be due
      by
      the taxing authority of any jurisdiction, and the officers of the Company know
      of no basis for any such claim.

    

    t.
       Certain
      Transactions.
      Except
      as set forth in the SEC Documents filed at least ten days prior to the date
      hereof and except for arm's length transactions pursuant to which the Company
      makes payments in the ordinary course of business upon terms no less favorable
      than the Company could obtain from third parties and other than the grant of
      stock options disclosed in the SEC Documents, none of the officers, directors,
      or employees of the Company is presently a party to any transaction with the
      Company or any of its Subsidiaries (other than for services as employees,
      officers and directors), including any contract, agreement or other arrangement
      providing for the furnishing of services to or by, providing for rental of
      real
      or personal property to or from, or otherwise requiring payments to or from
      any
      officer, director or such employee or, to the knowledge of the Company, any
      corporation, partnership, trust or other entity in which any officer, director,
      or any such employee has a substantial interest or is an officer, director,
      trustee or partner.

    

    u.
       Dilutive
      Effect.
      The
      Company understands and acknowledges that the number of shares of Common Stock
      issuable upon purchases pursuant to this Subscription Agreement will increase
      in
      certain circumstances including, but not necessarily limited to, the
      circumstance wherein the trading price of the Common Stock declines following
      the effective date of the registration statement covering the Common Stock
      underlying the Debentures (the “Effective Date”). The Company’s executive
      officers and directors have studied and fully understand the nature of the
      transactions contemplated by this Subscription Agreement and recognize that
      they
      have a potential dilutive effect. The board of directors of the Company has
      concluded, in its good faith business judgment that such issuance is in the
      best
      interests of the Company. The Company specifically acknowledges that, subject
      to
      such limitations as are expressly set forth in the Transaction Documents, its
      obligation to issue shares of Common Stock upon purchases pursuant to this
      Subscription Agreement is absolute and unconditional regardless of the dilutive
      effect that such issuance may have on the ownership interests of other
      shareholders of the Company.

    

    v. Additional
      Financings.
      The
      Company shall not, directly nor indirectly, without the prior written consent
      of
      the Holder, offer, sell, grant any option to purchase, or otherwise dispose
      of
      (or announce any offer, sale, grant or any option to purchase or other
      disposition) any of its Common Stock or securities convertible into Common
      Stock, or file any registration statement, including those on Form S-8 for
      any
      securities (a "SUBSEQUENT FINANCING"), in either case ending on the earlier
      to
      occur of (i) 360 (three hundred and sixty) days after the effective date of
      the
      registration statement covering resale of the shares of Common Stock underlying
      the Debentures (the “Effective Date”) and (ii) the date on which the full Face
      Amount, accrued interest and penalties, if any, on the Debentures have been
      paid
      ("Lock Up Period"), as set forth in the Debenture Agreement.

    

    After
      May
      2, 2006, the Holder shall permit one (1) issuance and registration of the
      Company’s Common Stock for The Tail Wind Fund, solely for settlement of the
      current lawsuit.

    

    During
      the twelve (12) month period following Closing, or if there is any outstanding
      balance on the Debentures, the Holder shall retain a first right of refusal
      for
      any additional financings. The Company must submit to the Holder a duly
      authorized term sheet of the financing and the Holder may elect, in writing
      within five (5) days, to exercise its right to finance the Company upon the
      same
      terms and conditions, as set forth in the Debenture Agreement. In the event
      the
      Holder does not elect to complete such financing within such period, the Company
      may proceed with the proposed third-party financing on the same terms and
      conditions as contained in the notice to Holder. 

    

    If
      at any
      time while the Debenture or Warrants are outstanding, if the Company issues
      or
      agrees to issue any Common Stock or securities convertible into or exercisable
      for shares of Common Stock (or modify any of the foregoing which may be
      outstanding prior to the execution of this Agreement) to any person or entity
      at
      a price per share or conversion or exercise price per share less than the Fixed
      Conversion Price, or if less than the Warrant exercise price in respect of
      the
      Warrant Shares, with or without the consent of the Holder, the Fixed Conversion
      Price and Warrant Exercise Price shall automatically be reduced to a price
      twenty percent (20%) lower than the price of the new issuance. Additionally,
      if
      the Company shall, issue or agree to issue any of the aforementioned services
      to
      any person, firm or corporation at terms deemed by the Holder to be more
      favorable to the other person or entity than the terms or conditions of this
      Offering, then the Holder is granted the right, at its election, to modify
      any
      term of this Offering to match any more favorable term provided by the Company
      to such person or entity. The rights of the Holder in this Section (v) are
      in
      addition to any other right the Holder has pursuant to this Subscription
      Agreement and the Transaction Documents.

    

    In
      the
      event the exercise of the rights described in the preceding paragraph
would
      result in the issuance of an amount of Common Stock of the Company that would
      exceed the maximum amount that may be issued to the Holder calculated in the
      manner described in Section 3 (d) of this Agreement, then the issuance of such
      additional shares of Common Stock of the Company to such Subscriber will be
      deferred in whole or in part until such time as such Subscriber is able to
      beneficially own such Common Stock without exceeding the maximum amount set
      forth calculated in the manner described in Section 3 (d) of this Agreement.
      The
      determination of when such common stock may be issued shall be made by each
      Holder.

    

    w. Sarbanes-Oxley
      Compliance. The
      Company hereby acknowledges that they are current with the requirement of
      Sarbanes-Oxley Act of 2002 (“Sarbox”), and will remain compliant with Sarbox and
      its rules and regulations for reporting requirements in the time frame required
      by Sarbox, and any updates to deadlines imposed by Sarbox.

    

    x. Code
      of Ethics.
      The
      Company has adopted a Code of Ethics and has filed the Code with the
      SEC.

    

    y. No
      Disagreements with Accountants, Auditors and Lawyers.
      There
      are no disagreements of any kind presently existing, or reasonably anticipated
      by the Company to arise, between the Company and the accountants, auditors
      and
      lawyers formerly or presently employed by the Company, including but not limited
      to disputes or conflicts over payment owed to such accountants, auditors or
      lawyers.

    

    z. Investment
      Company.
      Neither
      the Company nor any Affiliate is an "investment company" within the meaning
      of
      the Investment Company Act of 1940.

    

    aa. Company
      Predecessor. All
      representations made by or relating to the Company of a historical nature and
      all undertaking described herein shall relate and refer to the Company, its
      predecessors, and the Subsidiaries. 

    

    bb. Option
      Plan Restrictions.
      The
      only officer, director, employee and consultant stock option or stock incentive
      plan currently in effect or contemplated by the Company has been submitted
      to
      the Holder or is described in past filings with the SEC. No other plan will
      be
      adopted nor may any options or equity not included in such plan be issued until
      after the Debenture is paid in full.

    

    4. COVENANTS
      OF THE COMPANY

    

    a.
       Best
      Efforts.
      The
      Company shall use its best efforts timely to satisfy each of the conditions
      to
      be satisfied by it as provided in this Subscription Agreement.

     

    b.
       Blue
      Sky.
      The
      Company shall, at its sole cost and expense, make all filings and reports
      relating to the offer and sale of the Debentures and the Common Stock underlying
      the Debentures as required under the applicable securities or “Blue Sky” laws of
      such states of the United States as specified by the Holder or as required
      by
      law.

    

    c.
       Reporting
      Status.
      Until
      the earlier of (i) the date that the Holder may sell all of the Common Stock
      underlying the Debentures acquired pursuant to this Subscription Agreement
      without restriction pursuant to Rule 144(k) promulgated under the 1933 Act
      (or
      successor thereto), or (ii) the date on which the Holder shall have sold all
      the
      Common Stock underlying the Debentures, the Company shall file all reports
      required to be filed with the SEC pursuant to the 1934 Act, and the Company
      shall not terminate its status as a reporting company under the 1934
      Act.

    

    d. Use
      of
      Proceeds.
      The
      Company shall use the entire proceeds from this Debenture exclusively to further
      the growth and interest of the Company. Any other use of the funds contemplated
      herein, shall be considered a breach of contract and an event of
      Default.

    

    e. Conditions
      to Closing.
      The
      Company shall sign and be in compliance with the Transaction Documents with
      the
      Holder. 

    

    f.
       Financial
      Information.
      The
      Company agrees to make available to the Holder via EDGAR or other electronic
      means the following: (i) within five (5) business days after the filing thereof
      with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports
      on Form 10-Q, any Current Reports on Form 8-K and any Registration Statements
      or
      amendments filed pursuant to the 1933 Act; (ii) on the same day as the release
      thereof, facsimile copies of all press releases issued by the Company or any
      of
      its Subsidiaries, (iii) copies of any notices and other information made
      available or given to the shareholders of the Company generally,
      contemporaneously with the making available or giving thereof to the
      shareholders and (iv) within two (2) calendar days of filing or delivery
      thereof, copies of all documents filed with, and all correspondence sent to,
      the
      Principal Market, any securities exchange or market, or the National Association
      of Securities Dealers, Inc. 

    

    g. Reservation
      of Common Stock.
      Subject
      to the following sentence, the Company shall take all action necessary to at
      all
      times have authorized, and reserved for the purpose of issuance, a sufficient
      number of shares of Common Stock to provide for the issuance of the Common
      Stock
      underlying the Debentures. In the event that the Company determines that it
      does
      not have a sufficient number of authorized shares of Common Stock to reserve
      and
      keep available for issuance, the Company shall use its best efforts to increase
      the number of authorized shares of Common Stock by seeking shareholder approval
      for the authorization of such additional shares. The Holder shall have the
      right
      to reasonably determine the amount of shares to be re-registered such as are
      necessary to satisfy the terms of the Agreement. 

    

    h.
       Listing.
      The
      Company shall promptly secure the listing of all of the Common Stock underlying
      the Debentures upon the Principal Market and each other national securities
      exchange and automated quotation system, if any, upon which shares of Common
      Stock are then listed (subject to official notice of issuance) and shall
      maintain, such listing. The Company shall maintain the Common Stock's
      authorization for quotation on the Principal Market, unless the Holder and
      the
      Company agree otherwise. Neither the Company nor any of its Subsidiaries shall
      take any action which would be reasonably expected to result in the delisting
      or
      suspension of the Common Stock on the Principal Market (excluding suspensions
      of
      not more than one trading day resulting from business announcements by the
      Company). The Company shall promptly provide to the Holder copies of any notices
      it receives from the Principal Market regarding the continued eligibility of
      the
      Common Stock for listing on such automated quotation system or securities
      exchange. The Company shall pay all fees and expenses in connection with
      satisfying its obligations under this Section.

     

    i. Transactions
      With Affiliates.
      During
      the Lock-Up Period, set forth in Section 3 (v), the Company shall not, and
      shall
      cause each of its Subsidiaries not to, enter into, amend, modify or supplement,
      or permit any Subsidiary to enter into, amend, modify or supplement, any
      agreement, transaction, commitment or arrangement with any of its or any
      Subsidiary's officers, directors, persons who were officers or directors at
      any
      time during the previous two years, shareholders who beneficially own five
      percent (5%) or more of the Common Stock, or affiliates or with any individual
      related by blood, marriage or adoption to any such individual or with any entity
      in which any such entity or individual owns a five percent (5%) or more
      beneficial interest (each a “RELATED PARTY”) during the Lock Up Period; except
      for (i) customary employment arrangements and benefit programs on reasonable
      terms (including changes currently under discussion with the Company's Board
      of
      Directors concerning the compensation, to be payable in stock, of the Chairman
      of the Board), (ii) any agreement, transaction, commitment or arrangement on
      an
      arms-length basis on terms no less favorable than terms which would have been
      obtainable from a person other than such Related Party, or (iii) any agreement,
      transaction, commitment or arrangement which is approved by a majority of the
      disinterested directors of the Company. For purposes hereof, any director who
      is
      also an officer of the Company or any Subsidiary of the Company shall not be
      a
      disinterested director with respect to any such agreement, transaction,
      commitment or arrangement. “AFFILIATE” for purposes hereof means, with respect
      to any person or entity, another person or entity that, directly or indirectly,
      (i) has a five percent (5%) or more equity interest in that person or entity,
      (ii) has five percent (5%) or more common ownership with that person or entity,
      (iii) controls that person or entity, or (iv) shares common control with that
      person or entity. “CONTROL” or "CONTROLS" for purposes hereof means that a
      person or entity has the power, direct or indirect, to conduct or govern the
      policies of another person or entity.

    

    j.
       Corporate
      Existence.
      The
      Company shall use its commercially reasonable best efforts to preserve and
      continue the corporate existence of the Company.

    

    k. Notice
      of Certain Events Affecting Registration.
      The
      Company shall promptly notify Holder upon the occurrence of any of the following
      events in respect of a registration statement or related prospectus covering
      the
      Common Stock underlying the Debentures: (i) receipt of any request for
      additional information by the SEC or any other federal or state governmental
      authority during the period of effectiveness of the registration statement
      for
      amendments or supplements to the registration statement or related prospectus;
      (ii) the issuance by the SEC or any other federal or state governmental
      authority of any stop order suspending the effectiveness of any registration
      statement or the initiation of any proceedings for that purpose; (iii) receipt
      of any notification with respect to the suspension of the qualification or
      exemption from qualification of any of the Common Stock underlying the
      Debentures for sale in any jurisdiction or the initiation or threatening of
      any
      proceeding for such purpose; (iv) the happening of any event that makes any
      statement made in such registration statement or related prospectus or any
      document incorporated or deemed to be incorporated therein by reference untrue
      in any material respect or that requires the making of any changes in the
      registration statement, related prospectus or documents so that, in the case
      of
      a registration statement, it will not contain any 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, and that in the case
      of
      the related prospectus, it will not contain any 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, in the light of the circumstances
      under which they were made, not misleading; and (v) the Company's reasonable
      determination that a post-effective amendment to the registration statement
      would be appropriate, and the Company shall promptly make available to the
      Holder any such supplement or amendment to the related prospectus. 

    

    l. Indemnification.
      In
      consideration of the Holder’s execution and delivery of this Agreement and the
      Debenture Registration Rights Agreement and acquiring the Debentures hereunder
      and in addition to all of the Company's other obligations under the Transaction
      Documents, the Company shall defend, protect, indemnify and hold harmless the
      Holder and all of its shareholders, officers, directors, employees and direct
      or
      indirect investors and any of the foregoing person's agents or other
      representatives (including, without limitation, those retained in connection
      with the transactions contemplated by this Agreement) (collectively, the
      "Indemnitees") from and against any and all actions, causes of action, suits,
      claims, losses, costs, penalties, fees, liabilities and damages, and expenses
      in
      connection therewith (irrespective of whether any such Indemnitee is a party
      to
      the action for which indemnification hereunder is sought), and including
      reasonable attorneys' fees and disbursements (the “Indemnified Liabilities”),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (i)
      any misrepresentation or breach of any representation or warranty made by the
      Company in the Transaction Documents or any other certificate, instrument or
      document contemplated hereby or thereby, (ii) any breach of any covenant,
      agreement or obligation of the Company contained in the Transaction Documents
      or
      any other certificate, instrument or document contemplated hereby or thereby,
      (iii) any cause of action, suit or claim brought or made against such Indemnitee
      by a third party and arising out of or resulting from the execution, delivery,
      performance or enforcement of the Transaction Documents or any other
      certificate, instrument or document contemplated hereby or thereby, (iv) any
      transaction financed or to be financed in whole or in part, directly or
      indirectly, with the proceeds of the issuance of the Debentures, (v) the status
      of the Holder as an investor in the Company, except, in the case of any of
      such
      clauses, insofar as any such Indemnified Liability was attributable to gross
      negligence, willful misconduct or any illegal activity on the part of Holder
      and, in the case of clause, (v) only, insofar as any such Indemnified Liability
      was attributable to an untrue statement, alleged untrue statement, omission
      or
      alleged omission made in reliance upon and in conformity with written
      information furnished to the Company by the Holder which is specifically
      intended by the Holder for use in the preparation of any Registration Statement,
      preliminary prospectus or prospectus. To the extent that the foregoing
      undertaking by the Company may be unenforceable for any reason, the Company
      shall make the maximum contribution to the payment and satisfaction of each
      of
      the Indemnified Liabilities which is permissible under applicable law. The
      indemnity provisions contained herein shall be in addition to any cause of
      action or similar rights the Holder may have, and any liabilities to which
      the
      Holder may be subject. Notwithstanding the foregoing, the Company shall have
      no
      indemnification responsibility in the event Holder fails to timely notify the
      Company of a claim or potential claim for which indemnification is sought,
      but
      only to the extent the Company is prejudiced thereby. The Company shall have
      the
      right to control the defense of any such claim and the Holder shall not consent
      to any settlement of any such claim without the prior written consent of the
      Company (which shall not be unreasonably withheld or delayed). The Holder shall
      provide indemnification comparable in scope and coverage to the Company and
      corresponding related persons in respect of any Indemnified Liability if and
      to
      the extent attributable to gross negligence, willful misconduct or any illegal
      activity on the part of Holder, and shall be obligated to reimburse the Company
      and such persons to the same extent as the Company’s reimbursement obligations
      under Section 4(m) below. 

    

    m. Reimbursement.
      If (i)
      the Holder, other than by reason of its gross negligence or willful misconduct,
      becomes involved in any capacity in any action, proceeding or investigation
      brought by any shareholder of the Company, in connection with or as a result
      of
      the consummation of the transactions contemplated by the Transaction Documents,
      or if the Holder is impleaded in any such action, proceeding or investigation
      by
      any person, or (ii) the Holder, other than by reason of its gross negligence
      or
      willful misconduct or by reason of its trading of the Common Stock in a manner
      that is illegal under the federal securities laws, becomes involved in any
      capacity in any action, proceeding or investigation brought by the SEC against
      or involving the Company or in connection with or as a result of the
      consummation of the transactions contemplated by the Transaction Documents,
      or
      if the Holder is impleaded in any such action, proceeding or investigation
      by
      any person, then in any such case, the Company will reimburse the Holder for
      its
      reasonable legal and other expenses (including the cost of any investigation
      and
      preparation) incurred in connection therewith, as such expenses are incurred.
      In
      addition, other than with respect to any matter in which the Holder is a named
      party, the Company will pay to Holder the charges, as mutually
      agreed by
      the
      Holder and the Company, for the time of any officers or employees of the Holder
      devoted to appearing and preparing to appear as witnesses, assisting in
      preparation for hearings, trials or pretrial matters, or otherwise with respect
      to inquiries, hearing, trials, and other proceedings relating to the subject
      matter of this Subscription Agreement. The reimbursement obligations of the
      Company under this section shall be in addition to any liability which the
      Company may otherwise have, shall extend upon the same terms and conditions
      to
      any affiliates of Holder that are actually named in such action, proceeding
      or
      investigation, and partners, directors, agents, employees, attorneys,
      accountants, auditors and controlling persons (if any), as the case may be,
      of
      Holder and any such affiliate, and shall be binding upon and inure to the
      benefit of any successors of the Company, Holder and any such affiliate and
      any
      such person.

    

    n.
      Transfer
      Agent.
      The
      Company covenants and agrees that, in the event that the Company's agency
      relationship with the transfer agent should be terminated for any reason prior
      to the Maturity Date (as defined in the Debenture Agreement), the Company shall
      immediately appoint a new transfer agent immediately. 

    

    5. OPINION
      LETTER/BOARD RESOLUTION

    

    Prior
      to
      or on the Closing Date the Company shall deliver to the Holder an opinion letter
      signed by counsel for the Company in the form attached hereto as Exhibit D.
      

    

    If
      so
      requested by the Holder, the Company shall instruct counsel to write a 144
      opinion letter provided the necessary paperwork has been submitted and the
      Exemption applies (as defined in the Debenture Agreement). If the Company’s
      counsel fails to provide a Rule 144 opinion letter in a timely manner, then
      the
      Company shall: (a) pay the Investor’s counsel to write said Rule 144 opinion
      letter; and (b) instruct the designated transfer agent to accept and rely upon
      the Rule 144 Opinion letter. Also, prior to or on the Closing Date, the Company
      shall deliver to the Holder a signed Board Resolution authorizing this Offering,
      which shall be attached hereto as Exhibit E.

    

    6. DELIVERY
      INSTRUCTIONS; FEES  

    

    The
      Debentures being purchased hereunder shall be delivered the Holder on the
      Closing Date at which time funds will be wired to the Company and the Debentures
      will be delivered to the Holder, per the Holder’s instructions.

     

    7. UNDERSTANDINGS.

    

    The
      Holder understands, acknowledges and agrees as follows:

    

    a. No
      U.S.
      federal or state agency or any agency of any other jurisdiction has made any
      finding or determination as to the fairness of the terms of the Offering for
      investment nor any recommendation or endorsement of the Debentures or the
      Company.

    

    b. The
      representations, warranties and agreements of the Holder and the Company
      contained herein shall be true and correct in all material respects on and
      as of
      the date of the sale of the Debentures as if made on and as of such date and
      shall survive the execution and delivery of this Subscription Agreement and
      the
      purchase of the Debentures.

    

    c. In
      making
      an investment decision, the Holder is relying on its own examination of the
      Company and the terms of the Offering, including the merits and risks involved.
      The shares have not been recommended by any federal or state securities
      commission or regulatory authority. Furthermore, the foregoing authorities
      have
      not confirmed the accuracy or determined the adequacy of this document. Any
      representation to the contrary is a criminal offense.

    

    d. The
      Offering is intended to be exempt from registration by virtue of Section 4(2)
      of
      the 1933 Act and the provisions of Regulation D thereunder, which is in part
      dependent upon the truth, completeness and accuracy of the statements made
      by
      the undersigned herein and in the Questionnaire.

    

    e. It
      is
      understood that in order not to jeopardize the Offering’s exempt status under
      Section 4(2) of the 1933 Act and Regulation D, the Holder may, at a minimum,
      be
      required to fulfill the investor suitability requirements
      thereunder.

    

    f. The
      shares may not be resold except as permitted under the securities act and
      applicable state securities laws, pursuant to registration or exemption
      therefrom. Holder should be aware that they will be required to bear the
      financial risks of this investment for an indefinite period of
      time.

    

    
      	
              8.

            	
              DISPUTES
                SUBJECT TO ARBITRATION GOVERNED BY MASSACHUSETTS
                LAW.

            

    

    

    a.
       All
      disputes arising under this agreement shall be governed by and interpreted
      in
      accordance with the laws of the Commonwealth of Massachusetts, without regard
      to
      principles of conflict of laws. The parties to this agreement will submit all
      disputes arising under this agreement to arbitration in Boston, Massachusetts
      before a single arbitrator of the American Arbitration Association (“AAA”). The
      arbitrator shall be selected by application of the rules of the AAA, or by
      mutual agreement of the parties, except that such arbitrator shall be an
      attorney admitted to practice law in the Commonwealth of Massachusetts. No
      party
      to this agreement will challenge the jurisdiction or venue provisions as
      provided in this section. 

    

    9. MISCELLANEOUS.

    

    a. Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Subscription Agreement must be in writing and
      will
      be deemed to have been delivered (i) upon receipt, when delivered personally;
      (ii) upon receipt, when sent by facsimile (provided a confirmation of
      transmission is mechanically or electronically generated and kept on file by
      the
      sending party); or (iii) one (1) day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same. The addresses and facsimile numbers for such communications
      shall be:

    

    If
      to the
      Company:

     

    David
      Micek

    Eagle
      Broadband, Inc. Corp

    101
      COURAGEOUS DRIVE

    LEAGUE
      CITY, TEXAS 77573

    Telephone:
      (281) 538-6000

    Facsimile:
      (281) 538-4730

    

    If
      to the
      Holder:

    

    Dutchess
      Capital Management, LLC 

    Douglas
      Leighton

    50
      Commonwealth Ave, Suite 2

    Boston,
      MA 02116

    (617)
      301-4700

    (617)
      249-0947

    

     

    Each
      party shall provide five (5) business days prior notice to the other party
      of
      any change in address, phone number or facsimile number.

    

    b. All
      pronouns and any variations thereof used herein shall be deemed to refer to
      the
      masculine, feminine, impersonal, singular or plural, as the identity of the
      person or persons may require.

    

    c. Neither
      this Subscription Agreement nor any provision hereof shall be waived, modified,
      changed, discharged, terminated, revoked or canceled, except by an instrument
      in
      writing signed by the party effecting the same against whom any change,
      discharge or termination is sought.

    

    d. Notices
      required or permitted to be given hereunder shall be in writing and shall be
      deemed to be sufficiently given when personally delivered or sent by facsimile
      transmission: (i) if to the Company, at it’s executive offices, or (ii) if to
      the Holder, at the address for correspondence set forth in the Questionnaire,
      or
      at such other address as may have been specified by written notice given in
      accordance with this paragraph.

    

    e. This
      Subscription Agreement shall be enforced, governed and construed in all respects
      in accordance with the laws of the Commonwealth of Massachusetts, as such laws
      are applied by Massachusetts courts to agreements entered into, and to be
      performed in, Massachusetts by and between residents of Massachusetts, and
      shall
      be binding upon the undersigned, the undersigned's heirs, estate and legal
      representatives and shall inure to the benefit of the Company and its
      successors. If any provision of this Subscription Agreement is invalid or
      unenforceable under any applicable statue or rule of law, then such provisions
      shall be deemed inoperative to the extent that it may conflict therewith and
      shall be deemed modified to conform with such statute or rule of law. Any
      provision hereof that may prove invalid or unenforceable under any law shall
      not
      affect the validity or enforceability of any other provision
      hereof.

    

    f. This
      Agreement shall not be assignable.

    

    g. This
      Subscription Agreement, together with Exhibits A, B, C, D and E attached hereto
      and made a part hereof, constitute the entire agreement between the parties
      hereto with respect to the subject matter hereof and may be amended only by
      a
      writing executed by both parties hereto.

    

    h. This
      Subscription Agreement may be executed in two or more counterparts, all of
      which
      taken together shall constitute one instrument. Execution and delivery of this
      Subscription Agreement by exchange of facsimile copies bearing the facsimile
      signature of a party shall constitute a valid and binding execution and delivery
      of this Subscription Agreement by such party. Such facsimile copies shall
      constitute enforceable original documents.

    

    i.
       When
      in
      this Agreement or the Transaction Documents, reference is made to any party,
      such reference shall be deemed to include the successors, assigns, heirs and
      legal representatives of such party. No party hereto may transfer any rights
      under this Agreement or the Transaction Documents, unless the transferee agrees
      to be bound by, and comply with all of the terms and provision of this Agreement
      and the Transaction Documents, as if an original signatory hereto on the date
      hereof.

    

    10.
      Intentionally Omitted.

    

    11.
      WAIVER.

    

    The
      Holder's delay or failure at any time or times hereafter to require strict
      performance by Company of any undertakings, agreements or covenants shall not
      waiver, affect, or diminish any right of the Holder under this Agreement to
      demand strict compliance and performance herewith. Any waiver by the Holder
      of
      any Event of Default shall not waive or affect any other Event of Default,
      whether such Event of Default is prior or subsequent thereto and whether of
      the
      same or a different type. None of the undertakings, agreements and covenants
      of
      the Company contained in this Agreement, and no Event of Default, shall be
      deemed to have been waived by the Holder, nor may this Agreement be amended,
      changed or modified, unless such waiver, amendment, change or modification
      is
      evidenced by an instrument in writing specifying such waiver, amendment, change
      or modification and signed by the Holder. 

    

    12.
      No Oral Agreements

    

    This
      Written Agreement and the accompanying Transaction Documents represent the
      FINAL
      AGREEEMENTS between the Company and the Holders and may not be contradicted
      by
      evidence of prior, contemporaneous, or subsequent oral agreements of the
      parties; there are no unwritten oral agreements among the
      parties.

    

    

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK)

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Eagle
      Broadband Inc.

    

    QUESTIONNAIRE

    

    

    The
      information contained in this Questionnaire is being furnished in order to
      determine whether the undersigned’s subscription to purchase the Debentures
      described in the Subscription Agreement may be accepted.

    

    ALL
      INFORMATION CONTAINED IN THIS QUESTIONNAIRE WILL BE TREATED CONFIDENTIALLY.
      The
      undersigned understands, however, that the Company may present this
      Questionnaire to such parties as it deems appropriate if called upon to
      establish that the proposed offer and sale of the Securities is exempt from
      registration under the 1933 Act, as amended. Further, the undersigned
      understands that the offering is required to be reported to the Securities
      and
      Exchange Commission, and to various state securities and “blue sky”
regulators.

    

    IN
      ADDITION TO SIGNING THE SIGNATURE PAGE, IF REQUESTED BY THE COMPANY, THE
      UNDERSIGNED MUST COMPLETE FORM W-9.

    

    I. PLEASE
      CHECK EACH OF THE STATEMENTS BELOW THAT APPLIES.

    

    1. The
      undersigned: (a) has total assets in excess of $5,000,000; (b) was not formed
      for the specific purpose of acquiring the securities; and (c) has its principal
      place of business in ___________.

     

    2. The
      undersigned is a natural person whose individual net worth* or joint net worth
      with his or her spouse exceeds $1,000,000.

    

    3. The
      undersigned is a natural person who had an individual income* in excess of
      $200,000 in each of the two most recent years and who reasonably expects an
      individual income in excess of $200,000 in the current year. Such income is
      solely that of the undersigned and excludes the income of the undersigned’s
      spouse.

    

    4. The
      undersigned is a natural person who, together with his or her spouse, has had
      a
      joint income* in excess of $300,000 in each of of the two most recent years
      and
      who reasonably expects a joint income in excess of $300,000 in the current
      year.

    

    * For
      purposes of this Questionnaire, the term “net worth” means the excess of total
      assets over total liabilities. In determining “income”, an investor should add
      to his or her adjusted gross income any amounts attributable to tax-exempt
      income received, losses claimed as a limited partner in any limited partnership,
      deductions claimed for depletion, contributions to IRA or Keogh retirement
      plan,
      alimony payments and any amount by which income from long-term capital gains
      has
      been reduced in arriving at adjusted gross income.

    

    

    5. The
      undersigned is:

    

    (a) a
      bank as
      defined in Section 3(a)(2) of the 1933 Act; or

    

    (b) a
      savings
      and loan association or other institution as defined in Section 3(a)(5)(A)
      of
      the 1933 Act whether acting in its individual or fiduciary capacity;
      or

    

    (c) a
      broker
      or dealer registered pursuant to Section 15 of the 1934 Act; or

    

    (d) an
      insurance company as defined in Section 2(13) of the 1933 Act; or

    

    (e) An
      investment company registered under the Investment Company Act of 1940 or a
      business development company as defined in Section 2(a)(48) of the Investment
      Company Act of 1940; or 

    

    (f) a
      small
      business investment company licensed by the U.S. Small Business Administration
      under Section 301 (c) or (d) of the Small Business Investment Act of 1958;
      or

    

    X  6. The
      undersigned is an entity in which all of the equity owners are accredited
      investors.

    
      
        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    II. HOLDER
      INFORMATION.

    

    Name
      of
      Entity ___Dutchess
      Private Equities Fund, , L.P._

    

    Person’s
      Name Douglas
      Leighton
      Title:_Managing
      Member

    

    State
      of
      Organization ____Delaware___________________
      

    

    Principal
      Business Address ___50 Commonwealth Ave__ 

    

    City,
      State, Zip Code ______Boston,
      MA 02116__________
      

    

    Taxpayer
      Identification Number _________________________ 

    

    - Phone
      __617-301-4700________
      Fax ___617-249-0947___
      

    

    Send
      Correspondence to:

    ____________50
      Commonwealth Ave, Suite 2__________ 

    ____________Boston,
      MA 02116____________________ 

    _______________________________________________
      

    

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Eagle
      Broadband Inc.

    SIGNATURE
      PAGE

    

    Your
      signature on this Signature Page evidences your agreement to be bound by the
      Questionnaire, Subscription Agreement and Debenture Registration Rights
      Agreement. 

    

    1. The
      undersigned hereby represents that (a) the information contained in the
      Questionnaire is complete and accurate and (b) the undersigned will notify
      the
      Company
      immediately if any material change in any of the information occurs prior to
      the
      acceptance of the undersigned’s subscription and will promptly send the
Company
      written
      confirmation of such change.

    

    2. The
      undersigned signatory hereby certifies that he/she has read and understands
      the
      Subscription Agreement and Questionnaire, and the representations made by the
      undersigned in the Subscription Agreement and Questionnaire are true and
      accurate.

    

     

    

    $822,500    
  February
      10, 2006

    ______________________________  ________________________
      

    Amount
      of
      Debentures being purchased    Date

    

    

    Dutchess
      Private Equities Fund, LP

    

     

    By:
      /s/Douglas H. Leighton 

    (Signature)

    

    Name:
       Douglas
      H. Leighton 

    ----------------------------------------------

    (Please
      Type or Print)

    

    Title:
      Managing Member,

    Dutchess
      Capital Management, LLC;

    General
      Partner to:

    Dutchess
      Private Equities Fund, LP 

    ----------------------------------------------

    (Please
      Type or Print)

    

    

    

    

    COMPANY
      ACCEPTANCE PAGE

    

    

    This
      Subscription Agreement accepted and agreed 

    to
      this
      10th day of February, 2006.

    

    

    By
      Eagle Broadband Inc.
      and duly
      authorized to sign on behalf of the Company:

    

    

    By:
      /s/David Micek      

    Name: David
      Micek

    Title: President
      and Chief Executive Officer

    

    

    

    By:
      /s/Richard Sanger, Jr.      

    Name: Richard
      Sanger, Jr.

    Title: Vice
      President of Administration

    

    
      
        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LIST
      OF
      EXHIBITS

    -----------------

    

    

    EXHIBIT
      A   Notice
      of
      Conversion

    EXHIBIT
      B   Debenture
      Registration Rights Agreement

    EXHIBIT
      C   Debenture
      Agreement

    EXHIBIT
      D   Opinion
      of Company's Counsel

    EXHIBIT
      E   Board
      Resolution

    

    

    

    

    

    LIST
      OF
      SCHEDULES

    -----------------

    

    Schedule
      3(a)  Subsidiaries

    Schedule
      3(c)  Capitalization

    Schedule
      3(n)  Liens

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    NOTICE
      OF CONVERSION

    

    (To
      be
      Executed by the Registered Owner in order to Convert Debenture)

    TO:
      EAGLE
      BROADBAND INC.

    The
      undersigned hereby irrevocably elects, as of ________________, to convert
      $________________ of its convertible debenture (the “Debenture”) into Common
      Stock of Eagle Broadband Inc. (the “Company”) according to the conditions set
      forth in the Debenture issued by the Company.

    

    Date
      of
      Conversion________________________________________________

    

    

    Applicable
      Conversion Price________________________________________

    

    

    Number
      of
      Debentures Issuable upon this Conversion_______________________

    

    

    Name(Print)_
      Dutchess Private Equities Fund, LP_____

    

    Address______________50
      Commonwealth Ave, Boston, MA 02116_________

    

    

    Phone_____617-301-4700_____________
      Fax________617-249-0947___________

    

    

    

    

    

    By:_______________________________________

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D OPINION OF COMPANY'S COUNSEL

    

    

    Holders
      of [Company] [Describe Securities]  _______________,
      2006

    

    

    Re: Eagle
      Broadband Inc.

    Ladies
      and Gentlemen:

    

    As
      counsel to Eagle
      Broadband Inc.
      (the
“Company”), we are familiar with its Articles of Incorporation and Bylaws and
      with the corporate proceedings taken by it in connection with the proposed
      issuance and sale of convertible debentures (the “Securities”) pursuant to the
      related Subscription Agreement (including all Exhibits and Appendices thereto)
      (collectively the “Agreements”).

    

    We
      have
      been furnished with copies, certified or otherwise identified to our
      satisfaction, of the Agreements, and have examined such other documents,
      agreements and records as we deemed necessary to render the opinions set forth
      below.

    

    In
      conducting our examination, we have assumed the following: (i) that each of
      the
      Agreements has been executed by each of the parties thereto in the same form
      as
      the forms which we have examined, (ii) the genuineness of all signatures, the
      legal capacity of natural persons, the authenticity and accuracy of all
      documents submitted to us as originals, and the conformity to originals of
      all
      documents submitted to us as copies, (iii) that each of the Agreements has
      been
      duly and validly authorized, executed and delivered by the party or parties
      thereto other than the Company, and (iv) that each of the Agreements constitutes
      the valid and binding agreement of the party or parties thereto other than
      the
      Company, enforceable against such party or parties in accordance with the
      Agreements’ terms.

    

    Based
      upon the subject to the foregoing, we are of the opinion that:

    

    1. The
      Company has been duly incorporated and is validly existing as a corporation
      in
      good standing under the laws of the State of Nevada, and has all requisite
      corporate power and authority to own its properties and conduct its business
      as
      presently conducted.

    

    2. The
      authorized capital stock of the Company consists of -_______ shares of Common
      Stock, .001 par value per share, (“Common Stock”). 

    

    3. To
      our
      knowledge, (i)the Company’s equity securities are not registered under Section
      12(b) or Section 12(g) of the Securities Exchange Act of 1934, as amended (the
      “Exchange Act”) and (ii) the Company is required to file reports with the
      Securities and Exchange Commission pursuant to Section 15(d) of the Exchange
      Act.;

    

    4. When
      duly
      countersigned by the Company’s transfer agent and registrar, and delivered to
      you or upon your order against payment of the agreed consideration therefor
      in
      accordance with the provisions of the Agreements, the Securities [and any Common
      Stock to be issued upon the conversion of the Securities] as described in the
      Agreements represented thereby will be duly authorized and validly issued,
      fully
      paid and nonassessable;

    

    5 The
      Company has the requisite corporate power and authority to enter into the
      Subscription Agreement and to sell and deliver the Securities and the Common
      Stock to be issued upon the conversion of the Securities as described in the
      Agreements; each of the Agreements has been duly and validly authorized by
      all
      necessary corporate action by the Company to our knowledge, no approval of
      any
      governmental or other body is required for the execution and delivery of each
      of
      the Agreements by the Company or the consummation of the transactions
      contemplated thereby; each of the Agreements has been duly and validly executed
      and delivered by and on behalf of the Company, and is a valid and binding
      agreement of the Company, enforceable in accordance with its terms, except
      as
      enforceability may be limited by general equitable principles, public policy,
      bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
      other laws affecting creditors rights generally, and except as to compliance
      with federal, state, and foreign securities laws, as to which no opinion is
      expressed;

    

    6. Neither
      the execution, delivery and performance of the Subscription Agreement and
      Securities by the Company and the performance of its obligations thereunder
      do
      not and will not constitute a breach or violation of any of the terms and
      provisions of, or constitute a default under or conflict with or violate any
      provision of (i) the Company’s Certificate of Incorporation or By-Laws, (ii) any
      indenture, mortgage, deed of trust, agreement or other instrument to which
      the
      Company is party or by which it or any of its property is bound, (iii) any
      applicable statute or regulation or as other, (iv) or any judgment, decree
      or
      order of any court or governmental body having jurisdiction over the Company
      or
      any of its property.

    

    7. To
      the
      best of our knowledge, there is no pending or threatened litigation,
      investigation or other proceedings against the Company.

    

    8. The
      Company complies with the eligibility requirements for the use of Form SB-2,
      under the Securities Act of 1933, as amended.

    

    This
      opinion is rendered only with regard to the matters set out in the numbered
      paragraphs above. No other opinions are intended nor should they be inferred.
      This opinion is based solely upon the laws of the United States and the State
      of
      New York and the Nevada General Corporation Law and does not include an
      interpretation or statement concerning the laws of any other state or
      jurisdiction. Insofar as the enforceability of the Subscription Agreement and
      Securities may be governed by the laws of other states, we have assumed that
      such laws are identical in all respects to the laws of the State of New
      York.

    

    The
      opinions expressed herein are given to you solely for your use in connection
      with the transaction contemplated by the Subscription Agreement and Securities
      and may not be relied upon by any other person or entity or for any other
      purpose without our prior consent.

    

    Very
      truly yours,

    

    

    

    

    By: _____________________

    

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHBIT
      E

     
      RESOLUTIONS OF THE BOARD OF DIRECTORS OF 

    EAGLE
      BROADBAND, INC. 

    EFFECTIVE
      February 10, 2006

    

    The
      undersigned Directors of Eagle Broadband, Inc., Inc. (the "Company") takes
      the
      following actions by consent with a meeting. 

    

    IT
      HAS BEEN RESOLVED: 

    

    The
      officers of the Company are instructed to take all actions necessary to execute,
      deliver, and perform the steps required of the Company in connection with
      registration of shares pursuant to the Debenture Agreement, Warrant Agreement
      and Subscription Agreement of this date. All shares have been fully paid and
      should be issued without restrictive legend, or if the shares have been not
      registered for sale under the Securities Act of 1933, as amended, then the
      certificates shall be marked with proper legend. 

    

    FURTHER,
      IT HAS BEEN RESOLVED: 

    

    That
      each
      member of the Board jointly and individual hereby agree not to issue a stop
      transfer order on any of the shares defined herein, if to Dutchess Private
      Equities Fund, LP. ("Dutchess") 

    

    FURTHER,
      IT HAS BEEN RESOLVED: 

    

    The
      officers do hereby consent to the appointment of Douglas Leighton of Dutchess
      Capital Management, LLC to issue shares pursuant to the shares due to the Holder
      as outlined in the Irrevocable Transfer Agent Agreement solely for the benefit
      of Dutchess. 

    

    FURTHER,
      IT HAS BEEN RESOLVED: 

    

    That
      the
      board has given the requisite authority for the Company to enter into the
      Subscription Agreement, Warrant Agreement, Security Agreement, Debenture
      Agreement, Debenture Registration Rights Agreement, Stock Transfer Agent
      Agreement, Investment Agreement and Equity Line Registration Rights Agreement
      (collectively, the "Transaction Documents") with Dutchess Private Equities
      Fund,
      LP ("Dutchess") dated February 10, 2006 

    

    FURTHER,
      IT HAS BEEN RESOLVED: 

    

    That
      in
      the event counsel for the Company is unable to write an opinion regarding the
      issuance of Shares for any of the Transactions Documents, where required, that
      the Transfer Agent shall accept the opinion of the Holder's counsel, Amy
      Trombly, Esq. 

    

    FURTHER,
      IT HAS BEEN RESOLVED: 

    

    That
      the
      board shall issue up to two hundred and forty-six thousand seven hundred and
      fifty dollars ($246,750) worth of shares of Common Stock pursuant to the Warrant
      Agreement between the Company and Dutchess; and, up to the amount of shares
      registered for resale in the SB-2 filed for Dutchess' underlying Debentures.
      

    

    This
      resolution is signed by the Board, to be effective as of February 10, 2006
      

    

    Date:
      February 10, 2006

    

    

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ________________________________
      

    David
      Micek

    Chief
      Excectutive Officer

     

    

    

    _______________________________
      

    Robert
      Bach

    Director

     

    

    ________________________________
      

    H.
      Dean Cubley

    Director

     

    

    

    

    ________________________________
      

    Glenn
      A. Goerke

    Director

     

    

    ________________________________
      

    C.
      J. Reinhartsen

    Director

     

    

    ________________________________
      

    Lorne
      E. Persons

    Director

    

     

    ________________________________
      

    James
      D. Yarbrough

    Director

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    

    SCHEDULE
      3(a)
      SUBSIDIARIES

    

    Name    State
      of
      Incorporation    EIN

    ________                              
       ________________                        
      ________

    

    Atlantic
      Pacific Communications, Inc.  Texas    7606387219

    

    Avery
      Telecom Services,
      L.L.C.                         Texas                                       
      32003915165

    

    Clearworks
      Communications,
      Inc.                   
  Texas                                       
      32001289712

    

    Clearworks
      Home Systems,
      Inc.                       
 Texas                                          7606451247

    

    Clearworks
      Integration Services,
      Inc.               
Texas                                         
      7605145006

    

    Clearworks
      Land Development,
      Inc.                  Texas                                       
      32002033408

    

    Clearworks
      Structured Wiring Services, Inc.    Texas                                         
      7605486475

    

    Clearworks.net,
      Inc.                                           
Delaware                                      7605765423

    

    Contact
      Wireless,
      Inc.                                          Texas                                         4605064527

    

    Eagle
      Home Systems,
      Inc.                                   
Texas                                       
      32007753133

    

    EBI
      Funding
      Corp.                                                
Texas                                           
      201208911

    

    Etoolz,
      Inc.                                                             
Texas                                         
      7429390937

    

    Link-Two
      Communications,
      Inc.                        
Texas                                          
      7605130081

    

    Northpointe
      Telecom Services,
      L.L.C.               Texas    32001445991

    

    Stonegate
      Telecom,
      L.L.C.                                  
Texas                                        32001898132

    

    Teravista
      Telecom Services,
      L.L.C.                   
Texas                                        
      32002199365

    

    UCGI
      Corporation                                                 
Texas                                         3522018970

    

    United
      Computing Group, Inc.   Texas    7605778038

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3(c) CAPITALIZATION

    

    Securities
      or instruments containing anti-dilution or similar provisions that will be
      triggered by the issuance of the Securities as described in this
      Agreement.

    

    
      	·  	
              Common
                Stock Purchase Warrant issued to Crestview Capital Master, L.L.C.,
                dated
                June 1, 2004 for the purchase of 479,715
                shares.

            

    

    

    
      	·  	
              Common
                Stock Purchase Warrant issued to Bristol Investment Fund, Ltd., dated
                June
                1, 2004 for the purchase of 137,061
                shares.

            

    

    

    
      	·  	
              Common
                Stock Purchase Warrant issued to Crescent International Ltd., dated
                June
                1, 2004 for the purchase of 175,000
                shares.

            

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3(n)
      LIENS

    

    On
      December 5, 2005, the State of Texas filed a tax lien against Clearworks
      Communications, Inc., a wholly owned subsidiary of the Company, in Galveston
      and
      Harris Counties, Texas, related to a state sales tax assessment.

    

    On
      January 10, 2006, the State of Texas filed a tax lien against D.S.S. Security,
      Inc., a wholly owned subsidiary of the Company, in Harris County, Texas, related
      to a state sales tax assessment.

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