Document:

EXHIBIT  4.1

                              COLLATERAL AGREEMENT

COLLATERAL  AMOUNT                                 $1,837,500
INTEREST  RATE                                     8%  per  annum
ISSUANCE  DATE                                     September  19,  2005

     FOR  THE  COLLATERAL  POSTED  to  Network  Installation  Corp.,  a  Nevada
corporation (the "Company"), (OTC BB: NWKI) hereby acknowledges DUTCHESS PRIVATE
EQUITIES  FUND,  II,  L.P. (the "Guarantor") has posted the Collateral Amount of
One  Million  Eight  Hundred  and  Thirty-Seven  Thousand  Five  Hundred Dollars
($1,837,500)  U.S.,  upon  the  Closing  of  the  acquisition  between  Kelley
Communication  Company,  Inc. and the Company, specifically for the Nevada First
Bank  and  Bank  of  America  Loans  currently  outstanding. (this "Agreement").

ARTICLE  1          Interest

     The  Company  shall  pay eight percent (8%) annual coupon on the Collateral
Amount  of  this Agreement at such times and in such amounts as outlined in this
section.  The Company will make payments, in advance, on the interest ("Interest
Payment"),  with  the  minimum  Interest  Payments for each month the Collateral
Amount  remains  posted,  pro-rata  for  partial  posted  periods,  and  herein
incorporated  by  reference  in  the  amount  of twelve thousand one hundred and
twenty dollars ($12,120.00) per month   The first Interest Payment is due on the
19th  day  of  each  month  (a  "Closing:").

ARTICLE  2          Method  of  Payment

     Interest  Payments  made  by  the  Company  in satisfaction of the Interest
outlined in Section 1 (each a "Payment," and collectively, the "Payments") shall
be  made in the form of a Convertible Debenture (an "Interest Debenture").   The
Interest  Debenture  shall  have  the  same rights and provisions as outlined in
Article  4  ("Default  and  Remedies")  for  the Convertible Debenture.    First
Payment  will  be  due on the 19th day of the month. ("Payment Date" or "Payment
Dates")  and all subsequent Payments will be made at the on the 19th day of each
month  until  the  Collateral  Amount is paid returned in full to the Guarantor

ARTICLE  3             Reserved

ARTICLE  4          Defaults  and  Remedies

Section 4.1     Events of Default.  An "Event of Default" or "Default" occurs if
     (a) the Company does not make the Interest Payment on the Collateral Amount
of  this  Agreement within two (2) business days of the applicable Payment Date;
(b)  the  Company,  pursuant  to or within the meaning of any Bankruptcy Law (as
hereinafter  defined):  (i)  commences  a  voluntary  case; (ii) consents to the
entry  of  an order for relief against it in an involuntary case; (iii) consents
to  the  appointment of a Custodian (as hereinafter defined) of it or for all or
substantially  all  of  its  property;  (iv)  makes a general assignment for the
benefit  of  its  creditors;  or (v) a court of competent jurisdiction enters an
order  or  decree  under any Bankruptcy Law that:  (A) is for relief against the
Company  in  an involuntary case; (B) appoints a Custodian of the Company or for
all  or  substantially all of its property; or (C) orders the liquidation of the
Company,  and  the order or decree remains unstayed and in effect for sixty (60)
calendar  days;  (c)  the  Company's  $0.001 par value common stock (the "Common
Stock")  is  suspended  or  is  no  longer  listed  on  any recognized exchange,
including  an  electronic  over-the-counter bulletin board, for in excess of two
(2) consecutive trading days; or (d) any portion or the entire Collateral Amount
is  garnished  by  the  institution  that  is  using it as security ("Collateral
Reduction  Amount")  (e) the Company fails to comply with any of the Articles of
this  Agreement  as outlined.  As used in this Section 4.1, the term "Bankruptcy
Law"  means  Title  11 of the United States Code or any similar federal or state
law  for  the  relief  of  debtors.  The  term  "Custodian"  means any receiver,
trustee,  assignee,  liquidator  or  similar  official under any Bankruptcy Law.

     In the Event of Default, the Guarantor may elect to secure a portion of the
Company's  assets  not to exceed 200% of the Collateral Amount of the Agreement,
including, but not limited to: accounts receivable, cash, marketable securities,
equipment,  building,  land  or  inventory.  The  Guarantor  may  also  elect to
garnishee Revenue from the Company in an amount that will repay the Guarantor on
the  schedules  outlined  in  this  Agreement.

     For each Event of Default, as outlined in this Agreement, the Guarantor can
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exercise  its  right  to  increase the Collateral Amount of the Debenture by ten
percent  (10%)  as  an initial penalty.  In addition, the Guarantor may elect to
increase the Collateral Amount by two and one-half percent (2.5%) per month paid
as  a  penalty  for Liquidated Damages.  The Liquated Damages will be compounded
daily.  It  is  the  intention  and  acknowledgement  of  both  parties that the
Liquidated  Damages  not  be  deemed  as  interest.

     In  the  event  of a Default hereunder, the Guarantor shall have the right,
but  not  the  obligation,  to  1)  switch  the Collateral Reduction Amount to a
three-year  ("Convertible  Maturity  Date"),  ten percent (10%) interest bearing
convertible  debenture  at  the terms described in Section 4.2 (the "Convertible
Debenture").  At  such  time  of  Default,  the  Convertible  Debenture shall be
considered  closed  ("Convertible  Closing  Date").  If the Guarantor chooses to
convert  the Collateral Reduction Amount to a Convertible Debenture, the Company
shall  have  twenty  (20) business days after notice of the same (the "Notice of
Convertible  Debenture")  to file a registration statement covering an amount of
shares  equal to three hundred percent (300%) of the Collateral Reduction Amount
("Filing  Date").  Such registration statement shall be declared effective under
the Securities Act of 1933, as amended (the "Securities Act"), by the Securities
and  Exchange  Commission  (the "Commission") within forty (40) business days of
the  date  the  Company  files  such  Registration Statement.   In the event the
Company  does  not file such registration statement within twenty (20)  business
days  of the Guarantor's request, or such registration statement is not declared
by  the  Commission  to  be  effective  under the Securities Act within the time
period  described  above  ,  the Residual Amount shall increase by five thousand
dollars  ($5,000)  per  day.  In  the  event the Company is given the option for
accelerated effectiveness of the registration statement, it agrees that it shall
cause such registration statement to be declared effective as soon as reasonably
practicable.  In  the event that the Company is given the option for accelerated
effectiveness  of  the  registration  statement,  but  chooses not to cause such
registration  statement  to be declared effective on such accelerated basis, the
Collateral Reduction Amount shall increase by five thousand dollars ($5,000) per
day  commencing  on  the  earliest  date as of which such registration statement
would  have  been  declared  to  be  effective  if  subject  to  accelerated
effectiveness;  or  2)  the  Guarantor may increase the Payment Amount described
under  Article  1  to fulfill the repayment of the Residual Amount.  The Company
shall  provide  full cooperation to the Guarantor in directing funds owed to the
Guarantorr.    In  the  event  the  Company  is  not  diligently  fulfilling its
obligation  to  direct  funds owed to the Guarantor, as reasonably determined by
the  Guarantor,  the  Guarantor  may,  after giving the Company two (2) business
days'  advance  notice to cure the same, elect to increase the Collateral Amount
of  the  Agreement  by  2.5%  each  day,  compounded  daily.

     Section  4.2  Conversion  Privilege

(a)     The  Guarantor shall have the right to convert the Convertible Debenture
into  shares  of Common Stock at any time following the Convertible Closing Date
and which is before the close of business on the Convertible Maturity Date.  The
     number  of  shares  of  Common  Stock  issuable  upon the conversion of the
Convertible  Debenture  shall  be  determined  pursuant  to Section 4.3, but the
number  of  shares  issuable shall be rounded up or down, as the case may be, to
the  nearest  whole  share.

(b)     The Convertible Debenture may be converted, whether in whole or in part,
     at  any  time  and  from  time  to  time.

(c)     In  the  event  all  or any portion of the Convertible Debenture remains
outstanding  on the Convertible Maturity Date (the "Debenture Residual Amount"),
the  unconverted  portion  of  such  Convertible Debenture will automatically be
converted  into  shares  of Common Stock on such date in the manner set forth in
Section  4.3.

     Section  4.3  Conversion  Procedure.

     The Residual Amount may be converted, in whole or in part any time and from
time  to time, following the Convertible Closing Date.  Such conversion shall be
effectuated  by  surrendering  to  the Company, or its attorney, the Convertible
Debenture  to  be  converted together with a facsimile or original of the signed
notice  of  conversion  (the  "Notice  of  Conversion").   The date on which the
Notice  of Conversion is effective ("Conversion Date") shall be deemed to be the
date on which the Guarantor has delivered to the Company a facsimile or original
of  the  signed  Notice  of  Conversion,  as  long  as  the original Convertible
Debenture(s)  to  be  converted  are  received  by  the  Company within five (5)
business  days thereafter.  At such time that the original Convertible Debenture
has  been  received  by  the  Company,  the  Guarantor  can  elect  to whether a
reissuance of the Convertible Debenture is warranted, or whether the Company can
retain  the Convertible Debenture as to a continual conversion by the Guarantor.
Notwithstanding  the  above,  any Notice of Conversion received by 4:00 P.M. EST
shall  be deemed to have been received the following business day (receipt being
via  a  confirmation  of  the  time  such facsimile to the Company is received).

(a)     Common  Stock  to  be Issued.     Upon the conversion of any Convertible
Debentures  and  upon  receipt  by the Company or its attorney of a facsimile or
original  of  the  Guarantor's  signed  Notice  of Conversion, the Company shall
instruct  its  transfer  agent  to  issue stock certificates without restrictive
legends  or  stop  transfer  instructions,  if  at  that time the aforementioned
registration  statement described in Section 4.1 has been declared effective (or
with  proper  restrictive  legends  if the registration statement has not as yet
been  declared  effective),  in such denominations to be specified at conversion
representing the number of shares of Common Stock issuable upon such conversion,
     as  applicable.   In  the  event  that  the  Debenture is aged one year and
deemed  sellable under Rule 144, the Company shall, upon a Notice of Conversion,
instruct  the  transfer  agent  to  issue  free  trading  certificates  without
restrictive  legends,  subject to other applicable securities laws.  The Company
is  responsible to provide all costs associated with the issuance of the shares,
including  but  not limited to the opinion letter, FedEx of the certificates and
any  other  costs  that  arise.  The  Company  shall  act as registrar and shall
maintain an appropriate ledger containing the necessary information with respect
to  each Convertible Debenture. The Company warrants that no instructions, other
than  these instructions, have been given or will be given to the transfer agent
and that the Common Stock shall otherwise be freely resold, except as may be set
forth  herein  or  subject  to  applicable  law.

(b)     Conversion  Rate.  Guarantor  is  entitled  to  convert  the  Collateral
Reduction  Amount  ,  plus  accrued  interest, anytime following the Convertible
Maturity  Date,  at  the  lesser of (i) seventy-five percent (75%) of the lowest
closing  bid  price  during  the  fifteen  (15) trading  immediately preceding a
Conversion  (ii)  100%  of the lowest bid price for the twenty (20) trading days
immediately  preceding  the  Filing  Date  ("Fixed  Conversion  Price").   No
fractional  shares  or  scrip representing fractions of shares will be issued on
conversion,  but  the  number of shares issuable shall be rounded up or down, as
the  case  may  be,  to  the  nearest  whole  share.

(c)     Nothing  contained  in  the  Convertible  Debenture  shall  be deemed to
establish  or  require  the  payment  of  interest to the Guarantor at a rate in
excess  of  the  maximum rate permitted by governing law.  In the event that the
rate  of  interest  required  to  be  paid exceeds the maximum rate permitted by
governing  law,  the  rate  of  interest required to be paid thereunder shall be
automatically  reduced to the maximum rate permitted under the governing law and
such excess shall be returned with reasonable promptness by the Guarantor to the
     Company.

(d)     It  shall  be the Company's responsibility to take all necessary actions
and  to  bear  all  such  costs  to  issue  the Common Stock as provided herein,
including  the  responsibility and cost for delivery of an opinion letter to the
transfer  agent, if so required.  Guarantor shall be treated as a shareholder of
record  on  the  date  Common Stock is issued to the Guarantor. If the Guarantor
shall  designate  another  person  as  the entity in the name of which the stock
certificates  issuable  upon  conversion  of the Convertible Debenture are to be
issued  prior  to the issuance of such certificates, the Guarantor shall provide
to  the Company evidence that either no tax shall be due and payable as a result
of  such  transfer  or that the applicable tax has been paid by the Guarantor or
such  person.  Upon  surrender  of  any  Convertible  Debentures  that are to be
converted  in  part,  the Company shall issue to the Guarantor a new Convertible
Debenture  equal  to  the  unconverted amount, if so requested in writing by the
Guarantor.

(e)     Within  five  (5)  business  days  after  receipt  of  the documentation
referred  to  above in Section 4.2, the Company shall deliver a certificate, for
the number of shares of Common Stock issuable upon the conversion.  In the event
     the  Company  does  not  make delivery of the Common Stock as instructed by
Guarantor  within five (5) business days after the Conversion Date, then in such
event  the  Company  shall  pay to the Guarantor one percent (1%) in cash of the
dollar  value  of the Debenture Residual Amount remaining after said conversion,
compounded  daily, per each day after the fifth (5th) business day following the
Conversion  Date  that  the  Common  Stock  is  not  delivered to the Purchaser.

           The Company acknowledges that its failure to deliver the Common Stock
within five (5) business days after the Conversion Date will cause the Guarantor
to  suffer  damages  in  an  amount  that  will  be  difficult  to  ascertain.
Accordingly,  the  parties  agree  that  it  is  appropriate  to include in this
Agreement  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.  The payment of liquidated damages shall not relieve the
Company  from  its obligations to deliver the Common Stock pursuant to the terms
of  this  Convertible  Debenture.

(f)     The  Company  shall  at  all  times reserve (or make alternative written
arrangements  for  reservation or contribution of shares) and have available all
Common  Stock necessary to meet conversion of the Convertible Debentures  by the
Guarantor  of  the entire amount of Convertible Debentures then outstanding. If,
at  any  time  the Guarantor submits a Notice of Conversion and the Company does
not  have  sufficient  authorized  but  unissued  shares  of  Common  Stock  (or
alternative  shares  of Common Stock as may be contributed by stockGuarantors of
the  Company)  available  to  effect,  in  full, a conversion of the Convertible
Debentures  (a  "Conversion Default," the date of such default being referred to
herein  as  the  "Conversion  Default  Date"),  the  Company  shall issue to the
Guarantor  all of the shares of Common Stock which are available, and the Notice
of Conversion as to any Convertible Debentures requested to be converted but not
     converted  (the  "Unconverted  Convertible Debentures"), may be deemed null
and  void upon written notice sent by the Guarantor to the Company.  The Company
shall provide notice of such Conversion Default ("Notice of Conversion Default")
to  the  Guarantor,  by facsimile within three (3) business days of such default
(with  the  original  delivered  by  overnight mail or two day courier), and the
Guarantor shall give notice to the Company by facsimile within five (5) business
days  of receipt of the original Notice of Conversion Default (with the original
delivered  by  overnight  mail  or  two  day  courier) of its election to either
nullify  or  confirm  the  Notice  of  Conversion.

     The  Company  agrees to pay the Guarantor payments for a Conversion Default
("Conversion  Default  Payments")  in  the  amount  of (N/365) multiplied by .24
multiplied  by the initial issuance price of the outstanding or tendered but not
converted  Convertible  Debentures held by the Guarantor where N = the number of
days  from  the  Conversion  Default Date to the date (the "Authorization Date")
that  the  Company  authorizes  a sufficient number of shares of Common Stock to
effect  conversion  of  all remaining Convertible Debentures.  The Company shall
send  notice ("Authorization Notice") to the Guarantor that additional shares of
Common  Stock  have  been  authorized, the Authorization Date, and the amount of
Guarantor's accrued Conversion Default Payments.  The accrued Conversion Default
shall  be  paid  in  cash  or  shall  be  convertible  into  Common Stock at the
conversion  rate set forth in the first sentence of this paragraph, upon written
notice  sent  by the Guarantor to the Company, which Conversion Default shall be
payable  as follows:  (i) in the event the Guarantor elects to take such payment
in cash, cash payments shall be made to the Guarantor  by the fifth (5th) day of
the following calendar month, or (ii) in the event Guarantor elects to take such
payment  in  stock,  the  Guarantor  may convert such payment amount into Common
Stock  at  the conversion rate set forth in the first sentence of this paragraph
at  any time after the fifth (5th) day of the calendar month following the month
in  which  the  Authorization  Notice  was received, until the expiration of the
mandatory  three  (3)  year  conversion  period.

     The  Company  acknowledges that its failure to maintain a sufficient number
of authorized but unissued shares of Common Stock to effect in full a conversion
of  the  Convertible Debentures will cause the Guarantor to suffer damages in an
amount that will be difficult to ascertain.  Accordingly, the parties agree that
it  is  appropriate  to  include  in  this  Agreement 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.  The
payment of liquidated damages shall not relieve the Company from its obligations
to deliver the Common Stock pursuant to the terms of this Convertible Debenture.

(g)     If,  by  the  third  (3rd) business day after the Conversion Date of any
portion of the Convertible Debentures to be converted (the "Delivery Date"), the
     transfer  agent  fails  for  any  reason  to  deliver the Common Stock upon
conversion  by  the  Guarantor  and  after  such  Delivery  Date,  the Guarantor
purchases,  in  an  open market transaction or otherwise, shares of Common Stock
(the  "Covering  Shares")  solely in order to make delivery in satisfaction of a
sale  of  Common Stock by the Guarantor (the "Sold Shares"), which delivery such
Guarantor anticipated to make using the Common Stock issuable upon conversion (a
"Buy-In"),  the  Company  shall  pay  to the Guarantor, in addition to any other
amounts due to Guarantor pursuant to this Convertible Debenture, and not in lieu
thereof,  the  Buy-In  Adjustment  Amount  (as  defined  below).  The  "Buy  In
Adjustment  Amount"  is  the  amount  equal  to  the  excess, if any, of (x) the
Guarantor's  total  purchase price (including brokerage commissions, if any) for
the  Covering  Shares over (y) the net proceeds (after brokerage commissions, if
any)  received  by  the Guarantor from the sale of the Sold Shares.  The Company
shall pay the Buy-In Adjustment Amount to the Guarantor in immediately available
funds  within five (5) business days of written demand by the Guarantor.  By way
of  illustration  and  not  in  limitation  of  the  foregoing, if the Guarantor
purchases  shares  of  Common  Stock  having  a  total purchase price (including
brokerage  commissions)  of  $11,000 to cover a Buy-In with respect to shares of
Common  Stock  it sold for net proceeds of $10,000, the Buy-In Adjustment Amount
which  the  Company  will  be  required  to pay to the Guarantor will be $1,000.

     (h)     The  Company shall defend, protect, indemnify and hold harmless the
Guarantor and all of  its shareholders, officers, directors, employees, counsel,
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  "Section  4.3(h) 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
Section  4.3(h)  Indemnitee  is  a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the  "Section  4.3(h) Indemnified Liabilities"), incurred by any Section 4.3(h)
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
Section  4.3(h) 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 Common Stock
underlying  the  Convertible  Debenture ("Securities"), or (v) the status of the
Guarantor  or  Guarantor of the Securities as an investor in the Company, except
insofar  as  any such misrepresentation, breach or any untrue statement, alleged
untrue  statement, omission, or alleged omission is made in reliance upon and in
conformity with written information furnished to the Company by the Guarantor or
the  Investor which is specifically intended by the Guarantor or the Investor to
be  relied upon by the Company, including for use in the preparation of any such
registration  statement,  preliminary  prospectus, or prospectus, or is based on
illegal  trading  of  the  Common Stock by the Guarantor or the Investor. 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 that is permissible under
applicable  law.  The indemnity provisions contained herein shall be in addition
to  any  cause  of  action  or  similar  rights  the Guarantor may have, and any
liabilities  the  Guarantor  may  be  subject  to.

Article  5  Additional  Financing  and  Registration  Statements

     The  Company  will not enter into any additional financing agreements, debt
or  equity,  without  prior  expressed written consent from the Guarantor, which
shall not be unreasonably withheld.  Failure to do so will result in an Event of
Default  and  the  Guarantor may elect to take the action outlined in Article 4.

     The  Company agrees that it shall not file any registration statement which
includes  any  of its Common Stock, including those on Form S-8, until such time
as  the  Agreement  is  paid off in full ("Lock-Up Period") or without the prior
written consent of the Guarantor.  The Guarantor shall also reserve the right to
switch  to  the  terms  of  the  new  financing  ("Most  Favored  Nations").

     The  Company  agrees that any and all its officers, insiders, affiliates or
other  related  parties shall refrain from selling any Stock, during the Lock-Up
Period.

Article  6     Notice.

     Any  notices,  consents,  waivers  or  other  communications  required  or
permitted  to  be given under the terms of this 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:

     Jeffrey  Hultman,  CEO
     Network  Installations  Corp
     15235  Alton  Parkway,  Suite  200
     Irvine,  CA  92618
     Telephone:  949-753-7551
     Facsimile:  949-753-7499

If  to  the  Guarantor:

     Dutchess  Private  Equities  Fund,  II,  LP
     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.

Article  7     Time
     Where  this  Agreement  authorizes  or requires the payment of money or the
performance of a condition or obligation on a Saturday or Sunday or a holiday in
which  the United States Stock Markets ("US Markets") are closed ("Holiday"), or
authorizes or requires the payment of money or the performance of a condition or
obligation  within,  before  or  after  a period of time computed from a certain
date,  and such period of time ends on a Saturday or a Sunday or a Holiday, such
payment  may be made or condition or obligation performed on the next succeeding
business  day,  and  if the period ends at a specified hour, such payment may be
made  or condition performed, at or before the same hour of such next succeeding
business  day,  with  the  same  force  and  effect  as  if made or performed in
accordance  with the terms of this Agreement.  A "business day" shall mean a day
on  which  the  US  Markets  are  open  for  a  full day or half day of trading.

Article  8     No  Assignment
     This  Agreement  shall  not  be  assigned.

Article  9     Rules  of  Construction.
     In  this  Agreement,  unless  the  context otherwise requires, words in the
singular  number include the plural, and in the plural include the singular, and
words  of the masculine gender include the feminine and the neuter, and when the
tense  so  indicates,  words  of the neuter gender may refer to any gender.  The
numbers  and  titles  of  sections  contained  in the Agreement are inserted for
convenience  of  reference  only, and they neither form a part of this Agreement
nor are they to be used in the construction or interpretation hereof.  Wherever,
in  this  Agreement, a determination of the Company is required or allowed, such
determination  shall  be  made  by  a  majority of the Board of Directors of the
Company  and,  if  it  is made in good faith, it shall be conclusive and binding
upon  the  Company  and  the  Guarantor.

Article  10     Governing  Law
     The validity, terms, performance and enforcement of this Agreement shall be
governed  and construed by the provisions hereof and in accordance with the laws
of  the  Commonwealth  of  Massachusetts  applicable  to  agreements  that  are
negotiated,  executed,  delivered  and  performed  solely in the Commonwealth of
Massachusetts.

Article  11     Litigation

     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.

Article  12        Indemnification

     In  consideration  of  the  Guarantor's  execution  and  delivery  of  this
Agreement  and  the  acquisition  and  funding by the Guarantor of the Agreement
hereunder  and  in  addition to all of the Company's other obligations under the
documents  contemplated hereby, the Company shall defend, protect, indemnify and
hold  harmless  the  Guarantor and all of its shareholders, officers, directors,
employees,  counsel,  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  "Indemnities") 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 Agreement, 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
Agreement  or any other certificate, instrument or document  contemplated hereby
or  thereby,  except insofar as any such misrepresentation, breach or any untrue
statement,  alleged  untrue  statement,  omission or alleged omission is made in
reliance  upon  and  in  conformity  with  written  information furnished to the
Company by, or on behalf of, the Guarantor or is based on illegal trading of the
Common  Stock  by the Guarantor. 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  that  is permissible under applicable law. The indemnity provisions
contained  herein  shall be in addition to any cause of action or similar rights
the  Guarantor  may  have,  and any liabilities the Guarantor may be subject to.

Article  13  Use  of  Proceeds

     For  security against Kelley Technologies current debt with Bank of America
and  Nevada  First  Bank

Article  14       Rules  of  Construction.

     In  this  Agreement,  unless  the  context otherwise requires, words in the
singular  number include the plural, and in the plural include the singular, and
words  of the masculine gender include the feminine and the neuter, and when the
tense  so  indicates,  words  of  the neuter gender may refer to any gender. The
numbers  and  titles  of  sections  contained  in the Agreement are inserted for
convenience  of  reference  only, and they neither form a part of this Agreement
nor  are they to be used in the construction or interpretation hereof. Wherever,
in  this  Agreement, a determination of the Company is required or allowed, such
determination  shall  he  made  by  a  majority of the Board of Directors of the
Company and if it in made in good faith, it shall be conclusive and binding upon
the  Company  and  the  Guarantor  of  this  Agreement.

Article  15     Waiver

The  Guarantor'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 Guarantor under this Agreement
to  demand  strict  compliance  and  performance  herewith.  Any  waiver  by the
Guarantor  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 Guarantor, 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  Guarantor.

Article  16     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.

                                       ***

     Any  misrepresentations  shall  be  considered  a breach of contract and an
Event of Default under this Agreement and the Guarantor may seek to take actions
as  described  under  Article  4  of  this  Agreement.

     IN  WITNESS WHEREOF, the Company has duly executed this Agreement as of the
date  first  written  above.
                              NETWORK  INSTALLATION,  INC.

                         By  /s/  Jeffrey  Hultman
                             ---------------------
                      Name:       Jeffrey  Hultman
                      Title:      Chief  Financial  Officer  &  Chairman

                              DUTCHESS  PRIVATE  EQUITIES  FUND,  II,  L.P.
                              BY  ITS  GENERAL  PARTNER  DUTCHESS
                              CAPITAL  MANAGEMENT,  LLC

                         By:  /s/  Douglas  H.  Leighton
                              --------------------------
                         Name:     Douglas  H.  Leighton
                         Title:    A  Managing  MemberEXHIBIT 4.2

                                FORM OF DEBENTURE

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 OF 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.

FACE  AMOUNT                                        $750,000
PRICE                                               $625,000
INTEREST  RATE                                      8%  per  year
DEBENTURE  NUMBER                                   September-2005-102
ISSUANCE  DATE                                      September  22,  2005
MATURITY  DATE                                      September  22,  2010

     FOR  VALUE  RECEIVED,  Network  Installation Corpa Nevada corporation (the
"Company"),  hereby  promises  to  pay to the order of DUTCHESS PRIVATE EQUITIES
FUND, II, L.P.  (the "Holder") on September 22, 2010, (the "Maturity Date"), the
principal  amount  of  Seven Hundred and Fifty Thousand Dollars ($750,000) U.S.,
and  to  pay  interest  on the principal amount hereof, in such amounts, at such
times  and  on  such  terms  and  conditions  as  are  specified  herein.

Article  1          Interest

     The  Company  shall  pay  interest  on  the unpaid principal amount of this
Debenture (the "Debenture") each month until the principal amount hereof is paid
in  full  or has been converted. The Debentures shall pay eight percent (8%) per
annum  and  is due every thirty (30) days from the date specified in Article 1a,
in cash, to the Holder. The closing shall be deemed to have occurred on the date
the funds (less escrow fees, attorney fees and those amounts payable pursuant to
the  terms  sheet)  are  received  by  the  Company  (the  "Closing  Date"). The
Debentures are subject to automatic conversion at the end of five (5) years from
the  date  of  issuance  at  which  time  all  Debentures  outstanding  will  be
automatically  converted  based  upon  the  formula  set  forth  in Section 3.2.

Article  2          Method  of  Payment

     This  Debenture  must be surrendered to the Company in order for the Holder
to  receive  payment of the principal amount hereof.  The Company shall have the
option  of  paying  the  interest  on  this  Debenture  in United States dollars
pursuant  to  Article 1 hereof.  The Company may draw a check for the payment of
interest  to  the  order  of  the  Holder  of  this Debenture and mail it to the
Holder's  address  as  follows:

Dutchess  Private  Equities  Fund,  II,  L.P.
50  Commonwealth  Ave,  Suite  2
Boston,  Massachusetts  02116
Telephone:  617-301-4700
Facsimile:  617-249-0947

Interest and principal payments shall be subject to withholding under applicable
United  States  Federal  Internal  Revenue  Service  Regulations.

Article  3          Conversion

Section  3.1     Conversion  Privilege

(a)     The  Holder  of  this  Debenture shall have the right to convert it into
shares  of  Common  Stock  at  any time following the Closing Date and  which is
before  the  close  of  business  on  the  Maturity Date, except as set forth in
Section  3.1(c)  below.  The  number of shares of Common Stock issuable upon the
conversion  of this Debenture is determined pursuant to Section 4.2 and rounding
the  result  to  the  nearest  whole  share.

(b)     This Debenture may not be converted, whether in whole or in part, except
     in  accordance  with  Article  3.

(c)     In the event all or any portion of this Debenture remains outstanding on
     the  Maturity  Date,  the  unconverted  portion  of  such  Debenture  will
automatically  be  converted  into  shares  of  Common Stock on such date in the
manner  set  forth  in  Section  3.2.

Section  3.2     Conversion  Procedure.

(a)     Conversion  Procedures.  The  face  amount  of  this  Debenture  may  be
converted,  in  whole  or  in  part,  any time following the Closing Date.  Such
conversion shall be effectuated by surrendering to the Company, or its attorney,
     this Debenture to be converted together with a facsimile or original of the
signed  Notice  of  Conversion which evidences Holder's intention to convert the
Debenture  indicated.  The  date  on which the Notice of Conversion is effective
("Conversion  Date")  shall  be  deemed  to  be the date on which the Holder has
delivered  to  the  Company  a  facsimile  or  original  of the signed Notice of
Conversion, as long as the original Debenture(s) to be converted are received by
the  Company  within  five  (5) business days thereafter.  At such time that the
original  Debenture  has  been submitted to the Company, the Holder can elect to
whether  a  reissuance of the debenture is warranted, or whether the Company can
retain  the  Debenture  as to a continual conversion by Holder.  Notwithstanding
the  above,  any Notice of Conversion received by 4:00 P.M. EST, shall be deemed
to  have  been  received  the  previous  business  day.  Receipt  being  via  a
confirmation  of  time  of  facsimile  of  the  Holder.

(b)     Common Stock to be Issued.     Upon the conversion of any Debentures and
     upon  receipt  by the Company or its attorney of a facsimile or original of
Holder's  signed  Notice  of  Conversion the Company shall instruct its transfer
agent  to  issue  stock certificates without restrictive legend or stop transfer
instructions,  if  at  that  time  the  Registration Statement has been declared
effective  (or  with proper restrictive legend if the Registration Statement has
not  as  yet  been declared effective), in such denominations to be specified at
conversion  representing the number of shares of Common Stock issuable upon such
conversion,  as  applicable.   The  Company  shall  act  as  Registrar and shall
maintain an appropriate ledger containing the necessary information with respect
to  each  Debenture. The Company warrants that no instructions, other than these
instructions,  have  been  given or will be given to the transfer agent and that
the  Common  Stock  shall otherwise be freely resold, except as may be set forth
herein.

(c)     Conversion  Rate.  Holder is entitled to convert the face amount of this
Debenture,  plus  accrued  interest,  anytime following the Closing Date, at the
lesser  of  (i)  75%  of  the  lowest  closing bid price during the fifteen (15)
trading  days  prior  to  the Conversion Date or (ii) 100% of the average of the
closing  bid  prices  for the twenty (20) trading days immediately preceding the
Closing  Date  ("Fixed  Conversion  Price"),  each  being  referred  to  as  the
"Conversion  Price".  No  fractional  shares  or scrip representing fractions of
shares  will be issued on conversion, but the number of shares issuable shall be
rounded  up  or  down,  as  the  case  may  be,  to  the  nearest  whole  share.

(d)     Nothing  contained  in  this  Debenture  shall be deemed to establish or
require the payment of interest to the Holder at a rate in excess of the maximum
     rate  permitted  by  governing law.  In the event that the rate of interest
required  to  be  paid  exceeds the maximum rate permitted by governing law, the
rate  of  interest required to be paid thereunder shall be automatically reduced
to  the  maximum rate permitted under the governing law and such excess shall be
returned  with  reasonable  promptness  by  the  Holder  to  the  Company.

(e)     It  shall  be the Company's responsibility to take all necessary actions
and  to  bear  all  such  costs  to  issue  the Common Stock as provided herein,
including  the  responsibility and cost for delivery of an opinion letter to the
transfer  agent,  if  so  required.  The person in whose name the certificate of
Common  Stock is to be registered shall be treated as a shareholder of record on
and  after  the conversion date. Upon surrender of any Debentures that are to be
converted  in  part, the Company shall issue to the Holder a new Debenture equal
to  the  unconverted  amount,  if  so  requested  in  writing  by  Holder.

(f)     Within  three  (3)  business  days  after  receipt  of the documentation
referred to above in Section 3.2(a), the Company shall deliver a certificate, in
     accordance  with  Section  3.2(c)  for the number of shares of Common Stock
issuable  upon  the conversion.  In the event the Company does not make delivery
of  the  Common  Stock,  as instructed by Holder, within three (3) business days
after  the  Conversion  Date, then in such event the Company shall pay to Holder
one percent (1%) in cash, of the dollar value of the Debentures being converted,
compounded  daily, per each day after the third (3rd) business day following the
Conversion  Date  that  the  Common  Stock  is  not  delivered to the Purchaser.

                The  Company acknowledges that its failure to deliver the Common
Stock  within  three  (3) business days after the Conversion Date will cause the
Holder  to  suffer  damages  in  an  amount that will be difficult to ascertain.
Accordingly,  the  parties  agree  that  it  is  appropriate  to include in this
Debenture 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.  The payment of liquidated damages shall not relieve the
Company  from  its obligations to deliver the Common Stock pursuant to the terms
of  this  Debenture.

              To  the extent that the failure of the Company to issue the Common
Stock pursuant to this Section 3.2(f) is due to the unavailability of authorized
but unissued shares of Common Stock, the provisions of this Section 3.2(f) shall
not  apply  but  instead  the  provisions  of  Section  3.2(g)  shall  apply.

              The  Company  shall  make any payments incurred under this Section
3.2(f)  in  immediately  available funds within three (3) business days from the
date the Common Stock is fully delivered.  Nothing herein shall limit a Holder's
right  to  pursue  actual  damages  or  cancel  the conversion for the Company's
failure  to  issue  and  deliver  Common  Stock  to  the Holder within three (3)
business  days  after  the  Conversion  Date.

(g)     The  Company  shall  at  all  times reserve (or make alternative written
arrangements  for  reservation or contribution of shares) and have available all
Common  Stock  necessary  to meet conversion of the Debentures by all Holders of
the entire amount of Debentures then outstanding. If, at any time Holder submits
     a  Notice of Conversion and the Company does not have sufficient authorized
but  unissued  shares  of Common Stock (or alternative shares of Common Stock as
may  be  contributed by Stockholders) available to effect, in full, a conversion
of  the  Debentures  (a  "Conversion  Default",  the  date of such default being
referred to herein as the "Conversion Default Date"), the Company shall issue to
the Holder all of the shares of Common Stock which are available, and the Notice
of  Conversion  as to any Debentures requested to be converted but not converted
(the  "Unconverted Debentures"), may be deemed null and void upon written notice
sent  by  the  Holder  to the Company.  The Company shall provide notice of such
Conversion  Default  ("Notice of Conversion Default") to all existing Holders of
outstanding  Debentures,  by  facsimile,  within  three (3) business day of such
default  (with  the original delivered by overnight or two day courier), and the
Holder  shall  give notice to the Company by facsimile within five business days
of  receipt  of  the  original  Notice  of Conversion Default (with the original
delivered  by overnight or two day courier) of its election to either nullify or
confirm  the  Notice  of  Conversion.

     The Company agrees to pay to all Holders of outstanding Debentures payments
for  a  Conversion  Default  ("Conversion  Default  Payments")  in the amount of
(N/365)  x (.24) x the initial issuance price of the outstanding and/or tendered
but  not  converted  Debentures held by each Holder where N = the number of days
from the Conversion Default Date to the date (the "Authorization Date") that the
Company  authorizes  a  sufficient  number  of  shares of Common Stock to effect
conversion  of  all  remaining  Debentures.  The  Company  shall  send  notice
("Authorization  Notice")  to  each  Holder  of  outstanding  Debentures  that
additional  shares  of Common Stock have been authorized, the Authorization Date
and  the  amount  of Holder's accrued  Conversion Default Payments.  The accrued
Conversion  Default  shall  be  paid in cash or shall be convertible into Common
Stock  at  the  Conversion  Rate,  upon written notice sent by the Holder to the
Company, which Conversion Default shall be payable as follows:  (i) in the event
Holder  elects to take such payment in cash, cash payments shall be made to such
Holder  of  outstanding  Debentures  by  the fifth day of the following calendar
month,  or  (ii)  in  the event Holder elects to take such payment in stock, the
Holder  may  convert  such  payment amount into Common Stock  at  the conversion
rate  set  forth in Section 3.2(c) at any time after the 5th day of the calendar
month  following the month in which the Authorization Notice was received, until
the  expiration  of  the  mandatory  four  (4)  year  conversion  period.
     The  Company  acknowledges that its failure to maintain a sufficient number
of authorized but unissued shares of Common Stock to effect in full a conversion
of the Debentures will cause the Holder to suffer damages in an amount that will
be  difficult  to  ascertain.  Accordingly,  the  parties  agree  that  it  is
appropriate  to  include  in  this Agreement 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.  The payment of liquidated
damages shall not relieve the Company from its obligations to deliver the Common
Stock  pursuant  to the terms of this Debenture.  Nothing herein shall limit the
Holder's  right to pursue actual damages for the Company's failure to maintain a
sufficient  number  of  authorized  shares  of  Common  Stock.

(h)     If,  by  the  third  (3rd) business day after the Conversion Date of any
portion  of  the  Debentures to be converted (the "Delivery Date"), the transfer
agent  fails  for  any reason to deliver the Common Stock upon conversion by the
Holder  and  after  such  Delivery Date, the Holder purchases, in an open market
transaction  or otherwise, shares of Common Stock (the "Covering Shares") solely
in  order  to  make  delivery  in  satisfaction of a sale of Common Stock by the
Holder (the "Sold Shares"), which delivery such Holder anticipated to make using
     the  Common  Stock issuable upon conversion (a "Buy-In"), the Company shall
pay  to  the  Holder, in addition to any other amounts due to Holder pursuant to
this  Debenture,  and  not  in  lieu  thereof,  the Buy-In Adjustment Amount (as
defined  below).  The  "Buy  In  Adjustment  Amount"  is the amount equal to the
excess,  if  any,  of (x) the Holder's total purchase price (including brokerage
commissions,  if  any)  for the Covering Shares over (y) the net proceeds (after
brokerage  commissions, if any) received by the Holder from the sale of the Sold
Shares.  The  Company  shall  pay  the Buy-In Adjustment Amount to the Holder in
immediately  available  funds within five (5) business days of written demand by
the  Holder.  By  way of illustration and not in limitation of the foregoing, if
the  Holder  purchases  shares  of  Common  Stock  having a total purchase price
(including  brokerage  commissions) of $11,000 to cover a Buy-In with respect to
shares  of  Common  Stock  it  sold  for  net  proceeds  of  $10,000, the Buy-In
Adjustment  Amount  which the Company will be required to pay to the Holder will
be  $1,000.

(i)     Prospectus and Other Documents. The Company shall furnish to Holder such
     number  of  prospectuses and other documents incidental to the registration
of the shares of Common Stock underlying the Debentures, including any amendment
of  or  supplements  thereto.

(j)     Limitation  on Issuance of Shares. If the Company's Common Stock becomes
listed  on  the Nasdaq SmallCap Market after the issuance of the Debentures, the
Company  may  be limited in the number of shares of Common Stock it may issue by
virtue  of  (X)  the number of authorized shares or (Y) the applicable rules and
regulations  of  the  principal  securities  market on which the Common Stock is
listed  or  traded,  including,  but  not  necessarily  limited  to, NASDAQ Rule
4310(c)(25)(H)(i)  or  Rule  4460(i)(1), as may be applicable (collectively, the
"Cap  Regulations").  Without  limiting  the  other  provisions thereof, (i) the
Company  will  take  all steps reasonably necessary to be in a position to issue
shares of Common Stock on conversion of the Debentures without violating the Cap
     Regulations  and  (ii)  if,  despite  taking  such steps, the Company still
cannot  issue such shares of Common Stock without violating the Cap Regulations,
the  holder  of  a  Debenture  which  cannot  be  converted as result of the Cap
Regulations  (each  such  Debenture,  an "Unconverted Debenture") shall have the
right  to  elect  either  of  the  following  remedies:

     (x)  if  permitted  by  the  Cap  Regulations, require the Company to issue
shares  of Common Stock in accordance with such holder's Notice of Conversion at
a  conversion  purchase  price equal to the average of the closing bid price per
share  of  Common  Stock  for  any five (5) consecutive trading days (subject to
certain  equitable  adjustments for certain events occurring during such period)
during the sixty (60) trading days immediately preceding the Conversion Date; or

     (y)  require the Company to redeem each Unconverted Debenture for an amount
(the  "Redemption Amount"), payable in cash, equal to the sum of (i) one hundred
thirty-three  percent  (133%) of the principal of an Unconverted Debenture, plus
(ii) any accrued but unpaid interest thereon through and including the date (the
"Redemption  Date")  on  which  the  Redemption  Amount  is  paid to the holder.

     A  holder  of  an Unconverted Debenture may elect one of the above remedies
with  respect  to  a  portion of such Unconverted Debenture and the other remedy
with  respect  to  other  portions of the Unconverted Debenture.  The Debentures
shall  contain  provisions  substantially  consistent with the above terms, with
such additional provisions as may be consented to by the Holder.  The provisions
of  this section are not intended to limit the scope of the provisions otherwise
included  in  the  Debentures.

(k)     Limitation  on  Amount  of  Conversion  and  Ownership.  Notwithstanding
anything  to  the  contrary  in  this Debenture, in no event shall the Holder be
entitled  to convert that amount of Debenture, and in no event shall the Company
permit  that  amount of conversion, into that number of shares, which when added
to  the sum of the number of shares of Common Stock beneficially owned, (as such
term  is  defined  under Section 13(d) and Rule 13d-3 of the Securities Exchange
Act  of  1934, as may be amended, (the "1934 Act")), by the Holder, would exceed
4.99%  of  the  number  of  shares of Common Stock outstanding on the Conversion
Date,  as  determined  in  accordance with Rule 13d-1(j) of the 1934 Act. In the
event  that  the  number  of shares of Common Stock outstanding as determined in
accordance  with  Section  13(d)  of the 1934 Act is different on any Conversion
Date  than it was on the Closing Date, then the number of shares of Common Stock
outstanding  on  such  Conversion  Date shall govern for purposes of determining
whether the Holder would be acquiring beneficial ownership of more than 4.99% of
     the  number  of shares of Common Stock outstanding on such Conversion Date.

(l)     Legend.  The  Holder acknowledges that each certificate representing the
Debentures,  and the Common Stock unless registered pursuant to the Registration
Rights  Agreement,  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, RULE 144 UNDER THE ACT (OR ANY SIMILAR
RULE  UNDER  SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) IF AN
EXEMPTION  FROM  REGISTRATION  UNDER  SUCH  ACT  IS  AVAILABLE.

     (m)  Prior  to  conversion  of  all  the  Debentures,  if  at  any time the
conversion  of  all  the Debentures and exercise of all the Warrants outstanding
would  result  in  an  insufficient  number of authorized shares of Common Stock
being  available  to  cover all the conversions, then in such event, the Company
will  move  to  call and hold a shareholder's meeting or have shareholder action
with  written  consent  of  the proper number of shareholders within thirty (30)
days  of  such  event, or such greater period of time if statutorily required or
reasonably necessary as regards standard brokerage house and/or SEC requirements
and/or  procedures,  for  the purpose of authorizing additional shares of Common
Stock  to  facilitate  the  conversions.   In  such  an  event management of the
Company  shall  recommend  to  all shareholders to vote their shares in favor of
increasing  the  authorized  number of shares of Common Stock. Management of the
Company  shall vote all of its shares of Common Stock in favor of increasing the
number  of  shares  of authorized Common Stock.  Company represents and warrants
that  under  no  circumstances will it deny or prevent Holder's right to convert
the  Debentures  as  permitted under the terms of this Subscription Agreement or
the  Registration  Rights  Agreement.  Nothing  in  this Section shall limit the
obligation of the Company to make the payments set forth in Section 3.2(g).  The
Holder,  at  their  option,  may  request  the  company  to  authorize and issue
additional  shares  if  the  Holder feels it is necessary for conversions in the
future  In  the event the Company's shareholder's meeting does not result in the
necessary authorization, the Company shall redeem the outstanding Debentures for
an  amount  equal  to (x) the sum of the principal of the outstanding Debentures
plus  accrued  interest  thereon  multiplied  by  (y)  133%.

Section  3.3     Fractional  Shares.  The  Company  shall  not  issue fractional
shares of Common Stock, or scrip representing fractions of such shares, upon the
     conversion of this Debenture.  Instead, the Company shall round up or down,
as  the  case  may  be,  to  the  nearest  whole  share.

Section  3.4     Taxes  on  Conversion.  The  Company shall pay any documentary,
stamp  or  similar  issue  or  transfer tax due on the issue of shares of Common
Stock  upon the conversion of this Debenture.  However, the Holder shall pay any
such  tax  which  is  due because the shares are issued in a name other than its
name.

Section  3.5     Company to Reserve Stock.  The Company shall reserve the number
of  shares  of Common Stock required pursuant to and upon the terms set forth in
the  Subscription  Agreement  to  permit  the conversion of this Debenture.  All
shares of Common Stock which may be issued upon the conversion hereof shall upon
     issuance be validly issued,  fully paid and nonassessable and free from all
taxes,  liens  and  charges  with  respect  to  the  issuance  thereof.

Section  3.6     Restrictions  on  Sale.  This Debenture has not been registered
under  the  Securities  Act of 1933, as amended, (the "Act") and is being issued
under Section 4(2) of the Act and Rule 506 of Regulation D promulgated under the
     Act.  This  Debenture  and  the  Common  Stock issuable upon the conversion
thereof may only be sold pursuant to registration under or an exemption from the
Act.

Section  3.7     Mergers,  Etc.  If  the  Company  merges  or  consolidates with
another corporation or sells or transfers all or substantially all of its assets
     to  another  person  and  the  holders  of the Common Stock are entitled to
receive  stock,  securities  or property in respect of or in exchange for Common
Stock,  then  as a condition of such merger, consolidation, sale or transfer, it
may thereafter be converted on the terms and subject to the conditions set forth
above  into the kind and amount of stock, securities or property receivable upon
such merger, consolidation, sale or transfer by a holder of the number of shares
of  Common Stock into which this Debenture might have been converted immediately
before  such  merger,  consolidation,  sale  or transfer, subject to adjustments
which  shall  be  as  nearly  equivalent  as  may  be practicable to adjustments
provided  for  in  this  Article  3.

Section  3.8     Company  Mandatory Redemption. The Company, at its sole option,
shall have the right to exercise a "Mandatory Redemption" to redeem, in whole or
     in  part,  the outstanding amount of the Debenture, as follows: The Company
must  notify  the  Holder  in  writing,  via  facsimile transmission, that it is
exercising its right of Mandatory Redemption.  The Company shall not be entitled
to  exercise  a  Mandatory  Redemption  of  any  amount  being converted once it
receives  a  Notice  of  Conversion,  unless  it  is  for  the balance remaining
unconverted  on  the Debenture. In the event the Company exercises such right of
Mandatory  Redemption  the Company shall pay the Holder in U.S. currency 130% of
that  portion  of the Debenture being redeemed, plus accrued but unpaid interest
and  liquidated  damages,  if  any.  The  redemption amount shall be paid to the
Holder  within  five  (5)  calendar days of the date the Holder receives written
notice  from  the  Company of the Mandatory Redemption notice and if not paid in
such time the Company shall not be entitled to any further Mandatory Redemption.
The  Holder  at  its  sole  option  retains  the  right to decline any Mandatory
Redemption  from  the  company.

Article  4          Mergers
     The  Company  shall  not  consolidate  or  merge  into,  or transfer all or
substantially  all  of  its assets to, any person, unless such person assumes in
writing  the  obligations  of  the  Company under this Debenture and immediately
after  such transaction no Event of Default exists.  Any reference herein to the
Company  shall  refer  to  such  surviving  or  transferee  corporation  and the
obligations  of  the  Company  shall  terminate  upon  such  written assumption.

Article  5        Reports
     The  Company  will mail to the Holder hereof at its address as shown on the
Register  a  copy  of any annual, quarterly or current report that it files with
the  Securities  and Exchange Commission promptly after the filing thereof and a
copy  of  any annual, quarterly or other report or proxy statement that it gives
to  its  shareholders  generally at the time such report or statement is sent to
shareholders.

Article  6          Defaults  and  Remedies

Section  6.1     Events  of  Default.  An  "Event  of Default" occurs if (a) the
Company  does  not  make  the  payment  of  the  principal  of this Debenture by
conversion into Common Stock within ten (10) business days of the Maturity Date,
     upon  redemption  or  otherwise,  (b)  the Company does not make a payment,
other  than  a  payment  of  principal,  for a period of three (3) business days
thereafter,  (c) any of the Company's representations or warranties contained in
the Subscription Agreement or this Debenture were false when made or the Company
fails  to  comply with any of its other agreements in the Subscription Agreement
or this Debenture and such failure continues for the period and after the notice
specified  below,  (d)  the  Company  pursuant  to  or within the meaning of any
Bankruptcy  Law  (as hereinafter defined):  (i) commences a voluntary case; (ii)
consents  to the entry of an order for relief against it in an involuntary case;
(iii)  consents to the appointment of a Custodian (as hereinafter defined) of it
or  for  all  or  substantially  all  of  its  property  or (iv) makes a general
assignment  for  the  benefit  of  its  creditors  or  (v)  a court of competent
jurisdiction  enters  an  order or decree under any Bankruptcy Law that:  (A) is
for  relief against the Company in an involuntary case; (B) appoints a Custodian
of the Company or for all or substantially all of its property or (C) orders the
liquidation  of  the  Company,  and  the order or decree remains unstayed and in
effect for sixty (60) calendar days, (e) the Company's Common Stock is suspended
or  no  longer  listed  on  any  recognized  exchange  including  electronic
over-the-counter  bulletin  board  for in excess of five (5) consecutive trading
days.  As  used in this Section 7.1, the term "Bankruptcy Law" means Title 11 of
the  United  States  Code  or any similar federal or state law for the relief of
debtors.  The term "Custodian" means any receiver, trustee, assignee, liquidator
or  similar official under any Bankruptcy Law.  A default under clause (c) above
is  not  an  Event of Default until the holders of at least 25% of the aggregate
principal  amount  of  the  Debentures  outstanding  notify  the Company of such
default  and the Company does not cure it within thirty (30) business days after
the  receipt  of  such notice, unless the Company commences to cure such default
within  such  period, which must specify the default, demand that it be remedied
and  state that it is a "Notice of Default". Prior to the expiration of the time
for  curing  a  default as set forth in the preceding sentence, the holders of a
majority in aggregate principal amount of the Debentures at the time outstanding
(exclusive  of  Debentures  then  owned  by  the  Company  or  any subsidiary or
affiliate)  may,  on  behalf  of the holders of all of the Debentures, waive any
past Event of Default hereunder (or any past event which, with the lapse of time
or  notice  and  lapse of time designated in subsection (a), would constitute an
Event  of  Default  hereunder)  and  its  consequences,  except a default in the
payment of the principal of or interest on any of the Debentures. In the case of
any  such  waiver, such default or Event of Default shall be deemed to have been
cured for every purpose of this Debenture and the Company and the holders of the
Debentures  shall  be  restored  to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or  impair  any  right  consequent  thereon.

Section  6.2     Acceleration.  If an Event of Default occurs and is continuing,
the  Holder  hereof by notice to the Company may declare the remaining principal
amount  of this Debenture, together with all accrued interest and any liquidated
damages,  to be due and payable.  Upon such declaration, the remaining principal
amount  shall  be  due  and  payable  immediately.

Section  6.3     Seniority,  No  indebtedness  of  the Company is senior to this
Debenture in right of payment, whether with respect to interest, damages or upon
     liquidation  or  dissolution  or  otherwise.

Article  7          Registered  Debentures

Section  7.1     Record Ownership.  The Company, or its attorney, shall maintain
a register of the holders of the Debentures (the "Register") showing their names
     and  addresses  and  the serial numbers and principal amounts of Debentures
issued to them.  The Register may be maintained in electronic, magnetic or other
computerized form.  The Company may treat the person named as the Holder of this
Debenture  in  the Register as the sole owner of this Debenture.   The Holder of
this  Debenture  is  the  person  exclusively  entitled  to  receive payments of
interest  on  this  Debenture,  receive  notifications  with  respect  to  this
Debenture, convert it into Common Stock and otherwise exercise all of the rights
and  powers  as  the  absolute  owner  hereof.

Section  7.2     Worn  or  Lost  Debentures.  If  this  Debenture  becomes worn,
defaced  or  mutilated  but  is still substantially intact and recognizable, the
Company  or  its  agent  may  issue  a  new  Debenture  in  lieu hereof upon its
surrender.   Where  the  Holder  of this Debenture claims that the Debenture has
been  lost,  destroyed  or  wrongfully  taken,  the  Company  shall  issue a new
Debenture  in  place  of  the  original  Debenture  if the Holder so requests by
written  notice  to  the  Company  actually received by the Company before it is
notified  that  the Debenture has been acquired by a bona fide purchaser and the
Holder  has delivered to the Company an indemnity bond in such amount and issued
by  such  surety as the Company deems satisfactory together with an affidavit of
the Holder setting forth the facts concerning such loss, destruction or wrongful
     taking  and  such  other  information  in  such  form  with  such  proof or
verification  as  the  Company  may  request.

Article  8          Notice.

     Any  notices,  consents,  waivers  or  other  communications  required  or
permitted  to  be given under the terms of this Debenture 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:
     Jeffrey  Hultman,  CEO
     Network  Installations  Corp
     15235  Alton  Parkway,  Suite  200
     Irvine,  CA  92618
     Telephone:  949-753-7551
     Facsimile:  949-753-7499

If  to  the  Holder:

     At  the  address  listed  in  the  Questionnaire.

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

Article  9          Time
     Where  this  Debenture  authorizes  or requires the payment of money or the
performance  of  a  condition  or obligation on a Saturday or Sunday or a public
holiday,  or authorizes or requires the payment of money or the performance of a
condition or obligation within, before or after a period of time computed from a
certain date, and such period of time ends on a Saturday or a Sunday or a public
holiday,  such  payment  may be made or condition or obligation performed on the
next  succeeding  business day, and if the period ends at a specified hour, such
payment  may  be made or condition performed, at or before the same hour of such
next  succeeding  business  day,  with  the  same force and effect as if made or
performed  in  accordance  with  the  terms of this Debenture.  A "business day"
shall  mean  a day on which the banks in New York are not required or allowed to
be  closed.

Article  10          No  Assignment
     This  Debenture  shall  not  be  assignable.

Article  11          Rules  of  Construction.
     In  this  Debenture,  unless  the  context otherwise requires, words in the
singular  number include the plural, and in the plural include the singular, and
words  of the masculine gender include the feminine and the neuter, and when the
sense  so  indicates,  words  of the neuter gender may refer to any gender.  The
numbers  and  titles  of  sections  contained  in the Debenture are inserted for
convenience  of  reference  only, and they neither form a part of this Debenture
nor are they to be used in the construction or interpretation hereof.  Wherever,
in  this  Debenture, a determination of the Company is required or allowed, such
determination  shall  be  made  by  a  majority of the Board of Directors of the
Company and if it is made in good faith, it shall be conclusive and binding upon
the  Company  and  the  Holder  of  this  Debenture.

Article  12          Governing  Law
     The validity, terms, performance and enforcement of this Debenture shall be
governed  and construed by the provisions hereof and in accordance with the laws
of  the  Commonwealth  of  Massachusetts  applicable  to  agreements  that  are
negotiated,  executed,  delivered  and  performed  solely in the Commonwealth of
Massachusetts.

Article  13          Litigation

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.

Article  14     Investor  Warrants

     As an additional inducement to Holder, the Company shall issue a warrant to
purchase  seven  hundred and fifty thousand (750,000) shares of its common stock
exercisable  at  eighty-six cents ($.86) per share, to Holder hereto attached in
schedule  A.  Any partial amount invested shall be pro-rated on the basis of the
investment  by  Holder.  These  shares shall have piggyback registration rights.

Article  15  Redemption

     The  Holder  shall  have  the  right  to be redeemed from the Debenture, in
whole  or  in part, at a price equal to one hundred and twenty percent (120%) of
the  outstanding  principal  amount of the Debenture, including accrued interest
(and  penalties  if  applicable).  Any  Payments, as defined in Article 2 above,
shall  apply to the Redemption Amount.  The Investor also holds the right to use
the  existing  equity  line  to  redeem  the  Debenture

Article  16     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.

Article  17     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.

ARTICLE  18     STRUCTURING  AND  ADMINISTRATION  EXPENSE

     The Company shall pay fees associated with the transaction in the amount of
twenty-five  thousand  dollars ($25,000) directly from the Closing of this Note.

                                      *.*.*

     IN  WITNESS WHEREOF, the Company has duly executed this Debenture as of the
date  first  written  above.
                         NETWORK  INSTALLATIONS  CORP.

                         By  /s/  Jeffrey  Hultman
                             ---------------------
                          Name:       Jeffrey  Hultman
                          Title:       CEO

                              DUTCHESS  PRIVATE  EQUITIES  FUND,  II,  L.P.
                              BY  ITS  GENERAL  PARTNER  DUTCHESS
                              CAPITAL  MANAGEMENT,  LLC

                         By:  /s/  Michael  A.  Novielli
                              --------------------------
                         Name:  Michael  A.  Novielli
                         Title:  A  Managing  Member

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