Document:

Exhibit
      10.23

     

    

      PRIVATE
        EQUITY CREDIT AGREEMENT

      

      BY
        AND BETWEEN

      

      EAGLE
        BROADBAND, INC.

      

      AND

      

      BRITTANY
        CAPITAL MANAGEMENT LIMITED

      

      Dated
        

       

      January
        12, 2007

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      THIS
        PRIVATE EQUITY CREDIT AGREEMENT is entered into as of the 12th day of January,
        2007 (this “AGREEMENT”), by and between BRITTANY CAPITAL MANAGEMENT
        LIMITED,
        a
        corporation organized and existing under the laws of the Bahamas (“INVESTOR”),
        and EAGLE BROADBAND, INC., a Texas corporation (the “COMPANY”). 

      

      WHEREAS,
        the parties desire that, upon the terms and subject to the conditions contained
        herein, the Company shall issue and sell to Investor, from time to time as
        provided herein, and Investor shall purchase, up to Five Million Dollars
        ($5,000,000) of the Common Stock (as defined below) and

      

      WHEREAS,
        such investments will be made in reliance upon the provisions of Section
        4(2)
        (“SECTION 4(2)”) of the Securities Act of 1933, Regulation D, and the rules and
        regulations promulgated thereunder (the “SECURITIES ACT”), and/or upon such
        other exemption from the registration requirements of the Securities Act
        as may
        be available with respect to any or all of the investments in Common Stock
        to be
        made hereunder.

      

      NOW,
        THEREFORE, the parties hereto agree as follows:

      

      ARTICLE
        I

      

      CERTAIN
        DEFINITIONS

      

      Section
        1.1 DEFINED TERMS as used in this Agreement, the following terms shall have
        the
        following meanings specified or indicated (such meanings to be equally
        applicable to both the singular and plural forms of the terms defined)

      

      

      “AGREEMENT”
        shall have the meaning specified in the preamble hereof.

      

      “AVERAGE
        DAILY VOLUME” shall mean the Average of the Daily Volume for the relevant
        days.

      

      “BLACKOUT
        NOTICE” shall have the meaning specified in the Registration Rights
        Agreement.

      

      “BLACKOUT
        SHARES” shall have the meaning specified in Section 2.6.

      

      “BYLAWS”
        shall have the meaning specified in Section 4.8.

      

      “CERTIFICATE”
        shall have the meaning specified in Section 4.8.

      

      “CLOSING”
        shall mean one of the closings of a purchase and sale of shares of Common
        Stock
        pursuant to Section 2.3.

      

      “CLOSING
        BID PRICE” shall mean the closing bid price of the Common Stock on the Principal
        Market.

      

      “CLOSING
        DATE” shall mean, with respect to a Closing, the [seventh (7th)]
        Trading Day following the Put Date related to a Closing, or such earlier
        date as
        the Company and Investor shall agree, provided all conditions to a Closing
        have
        been satisfied on or before such Trading Day. 

      

      “COMMITMENT
        PERIOD” shall mean the period commencing on the Effective Date, and ending on
        the earlier of (i) the date on which Investor shall have purchased Put Shares
        pursuant to this Agreement for an aggregate Purchase Price of the Maximum
        Commitment Amount, (ii) the date this Agreement is terminated pursuant to
        Section 2.5, or (iii) the date occurring thirty-six (36) months from the
        Effective Date. 

      

      “COMMON
        STOCK” shall mean the Company’s common stock, $0.001 par value per share, and
        any shares of any other class of common stock whether now or hereafter
        authorized, having the right to participate in the distribution of dividends
        (as
        and when declared) and assets (upon liquidation of the Company). 

      

      “COMMON
        STOCK EQUIVALENTS” shall mean any securities that are convertible into or
        exchangeable for Common Stock or any options or other rights to subscribe
        for or
        purchase Common Stock or any such convertible or exchangeable
        securities.

      

      “COMPANY”
        shall have the meaning specified in the preamble to this Agreement.

      

      “CONDITION
        SATISFACTION DATE” shall have the meaning specified in Section 7.2.

      

      “DAMAGES”
        shall mean any loss, claim, damage, liability, costs and expenses (including,
        without limitation, reasonable attorneys’ fees and disbursements and costs and
        expenses of expert witnesses and investigation).

      

      “DISCOUNT”
        shall mean seven percent (7%).

      

      “DTC”
        shall have the meaning specified in Section 2.3.

      

      “DWAC”
        shall have the meaning specified in Section 2.3.

      

      “EFFECTIVE
        DATE” shall mean the date on which the SEC first declares effective a
        Registration Statement registering resale of the Registrable Securities as
        set
        forth in Section 7.2(a). 

      

      “EXCHANGE
        ACT” shall mean the Securities Exchange Act of 1934, as amended and the rules
        and regulations promulgated thereunder. 

      

      “FAST”
        shall have the meaning specified in Section 2.3.

      

      “INVESTMENT
        AMOUNT” shall mean the aggregate dollar amount (within the range specified in
        Section 2.2) to be invested by Investor to purchase Interim Put Shares and
        Put
        Shares with respect to any Put as notified by the Company to Investor in
        accordance with Section 2.2.

      

      “INVESTOR”
        shall have the meaning specified in the preamble to this Agreement.

      

      “LEGEND”
        shall have the meaning specified in Section 8.1.

      

      “MARKET
        PRICE” in respect of given Put shall mean the lowest Closing Bid Price during
        the Valuation Period.

      

      “MATERIAL
        ADVERSE EFFECT” shall mean any effect on the business, operations, properties,
        prospects or financial condition of the Company that is material and adverse
        to
        the Company or to the Company and such other entities controlling or controlled
        by the Company, and/or any condition, circumstance, or situation that would
        prohibit or otherwise materially interfere with the ability of the Company
        to
        enter into and perform its obligations under any of (a) this Agreement and
        (b)
        the Registration Rights Agreement.

      

      “MAXIMUM
        COMMITMENT AMOUNT” shall mean Five Million Dollars ($5,000,000).

      

      “MAXIMUM
        PUT AMOUNT” shall mean, with respect to any Put, the lesser of (a) $500,000.00,
        or (b) Two Hundred (200%) percent of the product of (i) Average Daily Volume,
        and (ii) the Average Closing Bid Price for the three (3) trading days
        immediately preceding the Put Date.

      

      “MINIMUM
        PUT AMOUNT” shall mean, with respect to any Put, Fifty Thousand Dollars
        ($50,000).

      

      “NASD”
        shall mean the National Association of Securities Dealers, Inc.

      

      “NEW
        BID
        PRICE” shall have the meaning specified in Section 2.6.

      

      “OLD
        BID
        PRICE” shall have the meaning specified in Section 2.6.

      

      “OUTSTANDING”
        shall mean, with respect to the Common Stock, at any date as of which the
        number
        of shares of Common Stock is to be determined, all issued and outstanding
        shares
        of Common Stock, including all shares of Common Stock issuable in respect
        of
        outstanding convertible securities, scrip or any certificates representing
        fractional interests in shares of Common Stock; provided, however, that
        Outstanding shall not include any shares of Common Stock then directly or
        indirectly owned or held by or for the account of the Company.

      

      “PERSON”
        shall mean an individual, a corporation, a partnership, an association, a
        trust
        or other entity or organization, including a government or political subdivision
        or an agency or instrumentality thereof.

      

      “PRINCIPAL
        MARKET” shall mean the Nasdaq National Market, the Nasdaq SmallCap Market, the
        Over the Counter Bulletin Board, the American Stock Exchange or the New York
        Stock Exchange, whichever is at the time the principal trading exchange or
        market for the Common Stock.

      

      “PURCHASE
        PRICE” shall mean the Market Price less the product of the Discount and the
        Market Price.

      

      “PUT”
        shall mean each occasion that the Company elects to exercise its right to
        tender
        a Put Notice requiring Investor to purchase shares of Common Stock, subject
        to
        the terms and conditions of this Agreement.

      

      “PUT
        DATE” shall mean the Trading Day during the Commitment Period that a Put Notice
        is deemed delivered pursuant to Section 2.2(b).

      

      “PUT
        NOTICE” shall mean a written notice, substantially in the form of Exhibit B
        hereto, to Investor setting forth the Investment Amount with respect to which
        the Company intends to require Investor to purchase shares of Common Stock
        pursuant to the terms of this Agreement.

      

      PUT
        SHARES” shall be the number of Put Shares deliverable on a Closing Date equal to
        the Investment Amount divided by the Purchase Price.

      

      “REGISTRABLE
        SECURITIES” shall mean the (a) Put Shares, (b) the Blackout Shares and (c) any
        securities issued or issuable with respect to any of the foregoing by way
        of
        exchange, stock dividend or stock split or in connection with a combination
        of
        shares, recapitalization, merger, consolidation or other reorganization or
        otherwise. As to any particular Registrable Securities, once issued such
        securities shall cease to be Registrable Securities when (i) a Registration
        Statement has been declared effective by the SEC and such Registrable Securities
        have been disposed of pursuant to a Registration Statement, (ii) such
        Registrable Securities have been sold under circumstances under which all
        of the
        applicable conditions of Rule 144 are met, (iii) such time as such Registrable
        Securities have been otherwise transferred to holders who may trade such
        shares
        without restriction under the Securities Act, and the Company has delivered
        a
        new certificate or other evidence of ownership for such securities not bearing
        a
        restrictive legend or (iv) in the opinion of counsel to the Company, which
        counsel shall be reasonably acceptable to Investor, such Registrable Securities
        may be sold without registration under the Securities Act the need for an
        exemption from any such registration requirements and without any time, volume
        or manner limitations pursuant to Rule 144(k) (or any similar provision then
        in
        effect) under the Securities Act.

      

      “REGISTRATION
        RIGHTS AGREEMENT” shall mean the registration rights agreement in the form of
        Exhibit A hereto.

      

      “REGISTRATION
        STATEMENT” shall mean a registration statement on Form S-1 (if use of such form
        is then available to the Company pursuant to the rules of the SEC and, if
        not,
        on such other form promulgated by the SEC for which the Company then qualifies
        and which counsel for the Company shall deem appropriate and which form shall
        be
        available for the resale of the Registrable Securities to be registered
        thereunder in accordance with the provisions of this Agreement and the
        Registration Rights Agreement and in accordance with the intended method
        of
        distribution of such securities), for the registration of the resale by Investor
        of the Registrable Securities under the Securities Act.

      

      “REGULATION
        D” shall have the meaning specified in the recitals of this
        Agreement.

      

      “RULE
        144” shall mean Rule 144 under the Securities Act or any similar provision then
        in force under the Securities Act.

      

      “SEC”
        shall mean the Securities and Exchange Commission.

      

      “SECTION
        4(2)” shall have the meaning specified in the recitals of this
        Agreement.

      

      “SECURITIES
        ACT” shall have the meaning specified in the recitals of this
        Agreement.

      

      “SEC
        DOCUMENTS” shall mean, as of a particular date, all reports and other documents
        file by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act
        since
        the beginning of the Company’s then most recently completed fiscal year as of
        the time in question (provided that if the date in question is within ninety
        days of the beginning of the Company’s fiscal year, the term shall include all
        documents filed since the beginning of the second preceding fiscal
        year).

      

      “SUBSCRIPTION
        DATE” shall mean the date on which this Agreement is executed and delivered by
        the Company and Investor.

      

      “TRADING
        DAY” shall mean any day during which the Principal Market shall be open for
        business.

      

      “TRANSACTION
        DOCUMENTS” means the Private Equity Credit Agreement, the Registration Rights
        Agreement, and the Closing Certificate.

      

      “TRANSFER
        AGENT” shall mean the transfer agent for the Common Stock (and to any substitute
        or replacement transfer agent for the Common Stock upon the Company’s
        appointment of any such substitute or replacement transfer agent).

      

      “UNDERWRITER”
        shall mean any underwriter participating in any disposition of the Registrable
        Securities on behalf of Investor pursuant to a Registration
        Statement.

      

      “VALUATION
        EVENT” shall mean an event in which the Company at any time during a Valuation
        Period takes any of the following actions:

      

      
        	 	
                (a)

              	
                subdivides
                  or combines the Common Stock;

              

      

      

      
        	 	
                (b)

              	
                pays
                  a dividend in shares of Common Stock or makes any other distribution
                  of
                  shares of Common Stock, except for dividends paid with respect
                  to the
                  Preferred Stock;

              

      

      

      
        	 	
                (c)

              	
                issues
                  any options or other rights to subscribe for or purchase shares
                  of Common
                  Stock other than pursuant to this Agreement and the price per share
                  for
                  which shares of Common Stock may at any time thereafter be issuable
                  pursuant to such options or other rights shall be less than the
                  Bid Price
                  in effect immediately prior to such
                  issuance;

              

      

      

      
        	 	
                (d)

              	
                issues
                  any securities convertible into or exchangeable for shares of Common
                  Stock
                  and the consideration per share for which shares of Common Stock
                  may at
                  any time thereafter be issuable pursuant to the terms of such convertible
                  or exchangeable securities shall be less than the Bid Price in
                  effect
                  immediately prior to such issuance;

              

      

      

      
        	 	
                (e)

              	
                issues
                  shares of Common Stock otherwise than as provided in the foregoing
                  subsections (a) through (d), at a price per share less, or for
                  other
                  consideration lower, than the Bid Price in effect immediately prior
                  to
                  such issuance, or without
                  consideration;

              

      

      

      
        	 	
                (f)

              	
                makes
                  a distribution of its assets or evidences of indebtedness to the
                  holders
                  of Common Stock as a dividend in liquidation or by way of return
                  of
                  capital or other than as a dividend payable out of earnings or
                  surplus
                  legally available for dividends under applicable law or any distribution
                  to such holders made in respect of the sale of all or substantially
                  all of
                  the Company’s assets (other than under the circumstances provided for in
                  the foregoing subsections (a) through (e);
                  or

              

      

      

      
        	 	
                (g)

              	
                takes
                  any action affecting the number of Outstanding Common Stock, other
                  than an
                  action described in any of the foregoing subsections (a) through
                  (f)
                  hereof, inclusive, which in the opinion of the Company’s Board of
                  Directors, determined in good faith, would have a materially adverse
                  effect upon the rights of Investor at the time of a
                  Put.

              

      

      

      “VALUATION
        PERIOD” shall mean the period of five (5) Trading Days immediately following the
        date on which the applicable Put Notice is deemed to be delivered and during
        which the Purchase Price of the Common Stock is valued; provided, however,
        that
        if a Valuation Event occurs during any Valuation Period, a new Valuation
        Period
        shall begin on the Trading Day immediately after the occurrence of such
        Valuation Event and end on the fifth (5th) Trading Day thereafter.

      

      ARTICLE
        II

      

      PURCHASE
        AND SALE OF COMMON STOCK

      

      Section
        2.1 INVESTMENTS.

      

      (a) PUTS.
        Upon the terms and conditions set forth herein (including, without limitation,
        the provisions of Article VII), on any Put Date the Company may exercise
        a Put
        by the delivery of a Put Notice. 

       

      (b) FLOOR
        PRICE. In
        the
        event that during a Valuation Period, the Closing Bid Price on any Trading
        Day
        falls below [seventy-five percent (75%)] of the Bid Price for the three (3)
        Trading Days immediately prior to a Put Date (a “Low Bid Price”), for each such
        Trading Day the Company shall be under no obligation to sell one-fifth (1/5)
        of
        the Investment Amount specified in the Put Notice, and the Investment Amount
        shall accordingly be deemed reduced by such amount. In the event that during
        a
        Valuation Period there exists Low Bid Prices for any three (3) Trading Days—not
        necessarily consecutive—then, unless the Company confirms in writing by the
        close of business on the third such Trading Day of its desire to sell the
        full
        Investment Amount by waiving the Low Bid Price, the balance of each party’s
        obligation for the Investment Amount under such Put Notice shall terminate
        on
        such third Trading Day (“Termination Day”), and the Investment Amount shall be
        adjusted to include only one-fifth of the initial Investment Amount for each
        Trading Day during the Valuation Period prior to the Termination Day that
        the
        Closing Bid Price equals or exceeds the Low Bid Price.

      

      Section
        2.2 MECHANICS.

      

      (a) PUT
        NOTICE. At any time during the Commitment Period (and with respect to any
        Put
        Notice other than the first Put Notice after the prior Closing Date), the
        Company may deliver a Put Notice to Investor, subject to the conditions set
        forth in Section 7.2; provided, however, the Investment Amount for each Put
        as
        designated by the Company in the applicable Put Notice shall be neither less
        than the Minimum Put Amount nor more than the Maximum Put Amount.

      

      (b) DATE
        OF
        DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the
        Trading Day it is received by facsimile or otherwise by Investor if such
        notice
        is received on or prior to 12:00 noon New York time, or (ii) the immediately
        succeeding Trading Day if it is received by facsimile or otherwise after
        12:00
        noon New York time on a Trading Day or at anytime on a day which is not a
        Trading Day. 

      

      Section
        2.3 CLOSINGS. On or prior to each Closing Date for a Put, the Company shall
        deliver to the Investor one or more certificates representing the Put Shares
        to
        be purchased by Investor pursuant to Section 2.1 herein, registered in the
        name
        of Investor within one (1) business day after the Closing Date, and Investor
        shall deliver to the Company the Investment Amount by wire transfer of
        immediately available funds to an account designated by the Company. In lieu
        of
        delivering physical certificates representing the Common Stock issuable in
        accordance with clause (a) of this Section 2.3, and provided that the Transfer
        Agent then is participating in the Depository Trust Company (“DTC”) Fast
        Automated Securities Transfer (“FAST”) program, upon request of Investor, the
        Company shall use its commercially reasonable efforts to cause the Transfer
        Agent to electronically transmit, prior to the applicable Closing Date the
        applicable Put Shares by crediting the Investor’s account of the Investor’s
        prime broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”)
        system, and provide proof satisfactory to the Investor of such delivery.
        In
        addition, on or prior to such Closing Date, each of the Company and Investor
        shall deliver to the each other all documents, instruments and writings required
        to be delivered or reasonably requested by either of them pursuant to this
        Agreement in order to implement and effect the transactions contemplated
        herein.

      

      Section
        2.4 [INTENTIONALLY OMITTED]

      

      Section
        2.5 TERMINATION OF INVESTMENT OBLIGATION. The obligation of Investor pursuant
        to
        this Agreement to purchase shares of Common Stock shall, at Investor’s option,
        terminate (including with respect to a Closing Date that has not yet occurred)
        in the event that (a) there shall occur any stop order or suspension of the
        effectiveness of any Registration Statement for an aggregate of thirty
        (30)Trading Days during the Commitment Period, for any reason other than
        deferrals or suspension during a Blackout Period in accordance with the
        Registration Rights Agreement, as a result of corporate developments subsequent
        to the Subscription Date that would require such Registration Statement to
        be
        amended to reflect such event in order to maintain its compliance with the
        disclosure requirements of the Securities Act, or (b) the Company shall at
        any
        time fail to comply with the requirements of Section 6.3, 6.4, or 6.6 and
        such
        failure shall continue for more than thirty (30) days. 

      

      Section
        2.6 BLACKOUT SHARES. In the event that, (a) within fifteen (15) Trading Days
        following any Closing Date, the Company gives a Blackout Notice to Investor
        of a
        Blackout Period in accordance with the Registration Rights Agreement, and
        (b)
        the Closing Bid Price on the Trading Day immediately preceding such Blackout
        Period (“OLD BID PRICE”) is greater than the Closing Bid Price on the first
        Trading Day following such Blackout Period that Investor may sell its
        Registrable Securities pursuant to an effective Registration Statement (“NEW BID
        PRICE”), then the Company shall issue to Investor the number of additional
        shares of Registrable Securities (the “BLACKOUT SHARES”) equal to the difference
        between (i) the product of the number of Put Shares held by Investor immediately
        prior to the Blackout Period that were issued on the most recent Closing
        Date(the “REMAINING PUT SHARES”) multiplied by the Old Bid Price, divided by the
        New Bid Price, and (ii) the Remaining Put Shares. 

      

      Section
        2.7 [INTENTIONALLY LEFT BLANK]

      

      Section
        2.8 LIQUIDATED DAMAGES. Each of the Company and Investor acknowledge and
        agree
        that the requirement to issue Blackout Shares under Section 2.6 shall give
        rise
        to liquidated damages and not penalties. Each of the Company and Investor
        further acknowledge that (a) the amount of loss or damages likely to be incurred
        is incapable or is difficult to precisely estimate, (b) the amounts specified
        in
        such Sections bear a reasonable proportion and are not plainly or grossly
        disproportionate to the probable loss likely to be incurred by Investor in
        connection with a Blackout Period under the Registration Rights Agreement,
        and
        (c) each of the Company and Investor are sophisticated business parties and
        have
        been represented by sophisticated and able legal and financial counsel and
        negotiated this Agreement at arm’s length.

      

      ARTICLE
        III

      

      REPRESENTATIONS
        AND WARRANTIES OF INVESTOR

      

      Investor
        represents and warrants to the Company that:

      

      Section
        3.1 INTENT. Investor is entering into this Agreement for its own account
        and
        Investor has no present arrangement (whether or not legally binding) at any
        time
        to sell the Common Stock to or through any person or entity; provided, however,
        Investor reserves the right to dispose of the Common Stock at any time in
        accordance with federal and state securities laws applicable to such
        disposition.

      

      Section
        3.2 SOPHISTICATED INVESTOR. Investor is a sophisticated investor (as described
        in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor (as defined
        in
        Rule 501 of Regulation D), and Investor has such experience in business and
        financial matters that it is capable of evaluating the merits and risks of
        an
        investment in the Common Stock. Investor acknowledges that an investment
        in the
        Common Stock is speculative and involves a high degree of risk. 

      

      Section
        3.3 AUTHORITY. (a) Investor has the requisite power and authority to enter
        into
        and perform its obligations under this Agreement and the transactions
        contemplated hereby in accordance with its terms; (b) the execution and delivery
        of this Agreement and the Registration Rights Agreement, and the consummation
        by
        it of the transactions contemplated hereby and thereby have been duly authorized
        by all necessary action and no further consent or authorization of Investor
        or
        its partners is required; and (c) this Agreement has been duly authorized
        and
        validly executed and delivered by Investor and is a valid and binding agreement
        of Investor enforceable against it in accordance with its terms, subject
        to
        applicable bankruptcy, insolvency, or similar laws relating to, or affecting
        generally the enforcement of, creditors’ rights and remedies or by other
        equitable principles of general application. 

      

      Section
        3.4 NOT AN AFFILIATE. Investor is not an officer, director or “affiliate” (as
        that term is defined in Rule 405 of the Securities Act) of the Company or
        of
        Dutchess Capital Management LLC and its affiliates.

      

      Section
        3.5 ORGANIZATION AND STANDING. Investor is a corporation duly organized,
        validly
        existing and in good standing under the laws of the Bahamas, and has all
        requisite power and authority to own, lease and operate its properties and
        to
        carry on its business as now being conducted. Investor is duly qualified
        as a
        foreign corporation to do business and is in good standing in every jurisdiction
        in which the nature of the business conducted or property owned by it makes
        such
        qualification necessary, other than those in which the failure so to qualify
        would not have a material adverse effect on Investor.

      

      Section
        3.6 ABSENCE OF CONFLICTS. The execution and delivery of this Agreement and
        any
        other document or instrument contemplated hereby, and the consummation of
        the
        transactions contemplated hereby and thereby, and compliance with the
        requirements hereof and thereof, will not (a) violate any law, rule, regulation,
        order, writ, judgment, injunction, decree or award binding on Investor, (b)
        violate any provision of any indenture, instrument or agreement to which
        Investor is a party or is subject, or by which Investor or any of its assets
        is
        bound, or conflict with or constitute a material default thereunder, (c)
        result
        in the creation or imposition of any lien pursuant to the terms of any such
        indenture, instrument or agreement, or constitute a breach of any fiduciary
        duty
        owed by Investor to any third party, or (d) require the approval of any
        third-party (that has not been obtained) pursuant to any material contract,
        instrument, agreement, relationship or legal obligation to which Investor
        is
        subject or to which any of its assets, operations or management may be
        subject.

      

      Section
        3.7 DISCLOSURE; ACCESS TO INFORMATION. Investor has received all documents,
        records, books and other information pertaining to Investor’s investment in the
        Company that has been requested by Investor. Investor has reviewed or received
        copies of the SEC Documents.

      

      Section
        3.8 MANNER OF SALE. At no time was Investor presented with or solicited by
        or
        through any leaflet, public promotional meeting, television advertisement
        or any
        other form of general solicitation or advertising.

      

      Section
        3.9 FINANCIAL CAPABILITY. Investor presently has the financial capacity and
        the
        necessary capital to perform its obligations hereunder.

      

      ARTICLE
        IV

      

      REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY

      

      The
        Company represents and warrants to Investor that, except as disclosed in
        the SEC
        Documents:

      

      Section
        4.1 ORGANIZATION OF THE COMPANY. The Company is a corporation duly organized
        and
        validly existing and in good standing under the laws of the State of Texas,
        and
        has all requisite power and authority to own, lease and operate its properties
        and to carry on its business as now being conducted. The Company is duly
        qualified as a foreign corporation to do business and is in good standing
        in
        every jurisdiction in which the nature of the business conducted or property
        owned by it makes such qualification necessary, other than those in which
        the
        failure so to qualify would not have a Material Adverse Effect.

      

      Section
        4.2 AUTHORITY. (a) The Company has the requisite corporate power and authority
        to enter into and perform its obligations under this Agreement and the
        Registration Rights Agreement and to issue the Put Shares and the Blackout
        Shares, if any; (b) the execution and delivery of this Agreement and the
        Registration Rights Agreement by the Company and the consummation by it of
        the
        transactions contemplated hereby and thereby have been duly authorized by
        all
        necessary corporate action and no further consent or authorization of the
        Company or its Board of Directors or stockholders is required; and (c) each
        of
        this Agreement and the Registration Rights Agreement has been duly executed
        and
        delivered by the Company and constitute valid and binding obligations of
        the
        Company enforceable against the Company in accordance with their respective
        terms, except as such enforceability may be limited by applicable bankruptcy,
        insolvency, or similar laws relating to, or affecting generally the enforcement
        of, creditors’ rights and remedies or by other equitable principles of general
        application.

      

      Section
        4.3 CAPITALIZATION. As of January 10, 2007, the authorized capital stock
        of the
        Company consisted of 350,000,000 shares of Common Stock, of which 21,526,862
        shares were issued and outstanding, and 5,000,000 shares of Preferred Stock,
        none of which are issued and outstanding. Except as set forth in Schedule
        4.3,
        as of January 10, 2007, there were no options, warrants, or rights to subscribe
        to, securities, rights or obligations convertible into or exchangeable for
        or
        giving any right to subscribe for any shares of capital stock of the Company.
        All of the outstanding shares of Common Stock of the Company have been duly
        and
        validly authorized and issued and are fully paid and nonassessable.

      

      Section
        4.4 COMMON STOCK. The Company has registered the Common Stock pursuant to
        Section 12(b) or 12(g) of the Exchange Act and is in full compliance with
        all
        reporting requirements of the Exchange Act, and the Company has maintained
        all
        requirements for the continued listing or quotation of the Common Stock,
        and
        such Common Stock is currently listed or quoted on the Principal Market.
        As of
        the date of this Agreement, the Principal Market is the American Stock
        Exchange.

      

      Section
        4.5 SEC DOCUMENTS. The Company has delivered or made available to Investor
        true
        and complete copies of the SEC Documents (including, without limitation,
        proxy
        information and solicitation materials). To the best of Company’s knowledge, the
        Company has not provided to Investor any information that, according to
        applicable law, rule or regulation, should have been disclosed publicly prior
        to
        the date hereof by the Company, but which has not been so disclosed. As of
        their
        respective dates, the SEC Documents complied in all material respects with
        the
        requirements of the Securities Act or the Exchange Act, and none of the SEC
        Documents contained any untrue statement of a material fact or omitted to
        state
        a material fact required to be stated therein or necessary in order to make
        the
        statements therein, in light of the circumstances under which they were made,
        not misleading. In the opinion of management, the financial statements of
        the
        Company included in the SEC Documents comply as to form and substance in
        all
        material respects with applicable accounting requirements and the published
        rules and regulations of the SEC or other applicable rules and regulations
        with
        respect thereto. Such financial statements have been prepared in accordance
        with
        generally accepted accounting principles applied on a consistent basis during
        the periods involved (except (a) as may be otherwise indicated in such financial
        statements or the notes thereto or (b) in the case of unaudited interim
        statements, to the extent they may not include 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 operations
        and cash flows for the periods then ended (subject, in the case of unaudited
        statements, to normal year-end audit adjustments).

      

      Section
        4.6 EXEMPTION FROM REGISTRATION; VALID ISSUANCES. To the best of Company’s
        knowledge, the sale and issuance of the Put Shares and the Blackout Shares,
        if
        any, in accordance with the terms and on the bases of the representations
        and
        warranties set forth in this Agreement, may and shall be properly issued
        by the
        Company to Investor pursuant to Section 4(2), Regulation D and/or any applicable
        state law. When issued and paid for as herein provided, the Put Shares, and
        the
        Blackout Shares, if any, shall be duly and validly issued, fully paid, and
        nonassessable. Neither the sales of the Put Shares or the Blackout Shares,
        if
        any, pursuant to, nor the Company’s performance of its obligations under, this
        Agreement or the Registration Rights Agreement shall (a) result in the creation
        or imposition of any liens, charges, claims or other encumbrances upon the
        Put
        Shares or the Blackout Shares, if any, or any of the assets of the Company,
        or
        (b) entitle the holders of Outstanding Common Stock to preemptive or other
        rights to subscribe to or acquire the Common Stock or other securities of
        the
        Company. The Put Shares and the Blackout Shares, if any, shall not subject
        Investor to personal liability for obligations of the Company by reason of
        the
        ownership thereof.

      

      Section
        4.7 NO GENERAL SOLICITATION OR ADVERTISING IN REGARD TO THIS TRANSACTION.
        Neither the Company nor any of its affiliates nor any person acting on its
        or
        their behalf (a) has conducted or will conduct any general solicitation (as
        that
        term is used in Rule 502(c) of Regulation D) or general advertising with
        respect
        to any of the Put Shares or the Blackout Shares, if any, or (b) made any
        offers
        or sales of any security or solicited any offers to buy any security under
        any
        circumstances that would require registration of the Common Stock under the
        Securities Act.

      

      Section
        4.8 CORPORATE DOCUMENTS. The Company has furnished or made available to Investor
        true and correct copies of the Company’s Certificate of Incorporation, as
        amended and in effect on the date hereof (the “CERTIFICATE”), and the Company’s
        Bylaws, as amended and in effect on the date hereof (the “BYLAWS”).

      

      Section
        4.9 NO CONFLICTS. The execution, delivery and performance of this Agreement
        by
        the Company and the consummation by the Company of the transactions contemplated
        hereby, including without limitation the issuance of the Put Shares and the
        Blackout Shares, if any, do not and will not (a) result in a violation of
        the
        Certificate or Bylaws or (b) conflict with, or constitute a material default
        (or
        an event that 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, indenture, instrument
        or any “lock-up” or similar provision of any underwriting or similar agreement
        to which the Company is a party, or (c) result in a violation of any federal,
        state, or local law, rule, regulation, order, judgment or decree (including
        federal and state securities laws and regulations) applicable to the Company
        or
        by which any property or asset of the Company is bound or affected (except
        for
        such conflicts, defaults, terminations, amendments, accelerations, cancellations
        and violations as would not, individually or in the aggregate, have a Material
        Adverse Effect) nor is the Company otherwise in violation of, conflict with
        or
        in default under any of the foregoing. The business of the Company is not
        being
        conducted in violation of any law, ordinance or regulation of any governmental
        entity, except for possible violations that either singly or in the aggregate
        do
        not and will not have a Material Adverse Effect. The Company is not required
        under federal, state or local law, rule or regulation to obtain any consent,
        authorization or order of, or make any filing or registration with, any court
        or
        governmental agency in order for it to execute, deliver or perform any of
        its
        obligations under this Agreement or issue and sell the Common Stock in
        accordance with the terms hereof (other than any SEC, NASD or state securities
        filings that may be required to be made by the Company subsequent to any
        Closing, any registration statement that may be filed pursuant hereto, and
        any
        shareholder approval required by the rules applicable to companies whose
        common
        stock trades on the American Stock Exchange); provided that, for purposes
        of the
        representation made in this sentence, the Company is assuming and relying
        upon
        the accuracy of the relevant representations and agreements of Investor
        herein.

      

      Section
        4.10 NO MATERIAL ADVERSE CHANGE. Since August 31, 2006, no event has occurred
        that would have a Material Adverse Effect on the Company, except as disclosed
        in
        the SEC Documents.

      

      Section
        4.11 NO UNDISCLOSED LIABILITIES. The Company has no liabilities or obligations
        that are material, individually or in the aggregate, and that are not disclosed
        in the SEC Documents or otherwise publicly announced, other than those incurred
        in the ordinary course of the Company’s businesses since August 31, 2006 and
        which, individually or in the aggregate, do not or would not have a Material
        Adverse Effect on the Company.

      

      Section
        4.12 NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. Since August 31, 2006, no event
        or
        circumstance has occurred or exists with respect to the Company or its
        businesses, properties, prospects, operations or financial condition, that,
        under applicable law, rule or regulation, requires public disclosure or
        announcement prior to the date hereof by the Company but which has not been
        so
        publicly announced or disclosed in the SEC Documents.

      

      Section
        4.13 NO INTEGRATED OFFERING. Neither the Company, nor any of its affiliates,
        nor
        any person acting on its or their behalf has, directly or indirectly, made
        any
        offers or sales of any security or solicited any offers to buy any security,
        other than pursuant to this Agreement, under circumstances that would require
        registration of the Common Stock under the Securities Act.

      

      Section
        4.14 LITIGATION AND OTHER PROCEEDINGS. Except as may beset forth in the SEC
        Documents, there are no lawsuits or proceedings pending or to the best knowledge
        of the Company threatened, against the Company, nor has the Company received
        any
        written or oral notice of any such action, suit, proceeding or investigation,
        which would have a Material Adverse Effect. Except as set forth in the SEC
        Documents, no judgment, order, writ, injunction or decree or award has been
        issued by or, so far as is known by the Company, requested of any court,
        arbitrator or governmental agency which would have a Material Adverse
        Effect.

      

      Section
        4.15 NO MISLEADING OR UNTRUE COMMUNICATION. The Company, and any Person
        representing the Company, in connection with the transactions contemplated
        by
        this Agreement, have not made, at any time, any oral communication in connection
        with the offer or sale of the same which contained any untrue statement of
        a
        material fact or omitted to state any material fact necessary in order to
        make
        the statements, in the light of the circumstances under which they were made,
        not misleading.

      

      Section
        4.16 MATERIAL NON-PUBLIC INFORMATION. The Company is not in possession of,
        nor
        has the Company or its agents disclosed to Investor, any material non-public
        information that (a) if disclosed, would reasonably be expected to have a
        materially adverse effect on the price of the Common Stock or(b) according
        to
        applicable law, rule or regulation, should have been disclosed publicly by
        the
        Company prior to the date hereof but which has not been so
        disclosed.

      

      ARTICLE
        V

      

      COVENANTS
        OF INVESTOR

      

      Section
        5.1 COMPLIANCE WITH LAW. Investor’s trading activities with respect to shares of
        the Common Stock will be in compliance with all applicable state and federal
        securities laws, rules and regulations and the rules and regulations of the
        NASD
        and the Principal Market on which the Common Stock is listed.

      

      Section
        5.2 TRADING
        IN SECURITIES. The Company specifically acknowledges that, except to the
        extent
        specifically provided herein or in any of the other Transaction Agreements
        (but
        limited in each instance to the extent so specified), the Investor retains
        the
        right (but is not otherwise obligated) to buy, sell, engage in hedging
        transactions or otherwise trade in the Registrable Securities at any time.
        

      

      Section
        5.3. SHORT
        SALES. During the term of this Agreement, the Investor agrees not to engage
        in
        any short sales of the Common Stock. For purposes of this Agreement, sales
        of
        the Company’s Common Stock executed during or after a Valuation Period in
        respect of Common Stock that the Investor expects to purchase pursuant to
        a Put
        Notice are not deemed “short sales”.

      

      ARTICLE
        VI

      

      COVENANTS
        OF THE COMPANY

      

      Section
        6.1 REGISTRATION RIGHTS. The Company shall use its best efforts to cause
        the
        Registration Rights Agreement to remain in full force and effect and the
        Company
        shall comply in all respects with the terms thereof.

      

      Section
        6.2 RESERVATION OF COMMON STOCK. As of the date hereof, the Company has
        available and the Company shall reserve and keep available at all times,
        free of
        preemptive rights, shares of Common Stock for the purpose of enabling the
        Company to satisfy any obligation to issue the Put Shares and the Blackout
        Shares, if any; such amount of shares of Common Stock to be reserved shall
        be
        4,200,000 for the Put Shares under the terms and conditions of this Agreement
        and a good faith estimate by the Company in consultation with Investor of
        the
        number of Blackout Shares, if any, that will need to be issued. The number
        of
        shares so reserved from time to time, as theretofore increased or reduced
        as
        hereinafter provided, may be reduced by the number of shares actually delivered
        hereunder.

      

      Section
        6.3 LISTING OF COMMON STOCK. The Company shall use its best efforts to maintain
        the listing of the Common Stock on a Principal Market, and will cause the
        Put
        Shares and the Blackout Shares, if any, to be listed on the Principal Market.
        The Company further shall, if the Company applies to have the Common Stock
        traded on any other Principal Market, include in such application the Put
        Shares
        and the Blackout Shares, if any, and shall take such other action as is
        necessary or desirable in the reasonable opinion of Investor to use its best
        efforts to cause the Common Stock to be listed on such other Principal Market
        as
        promptly as possible. The Company shall use its commercially reasonable efforts
        to continue the listing and trading of the Common Stock on the Principal
        Market
        (including, without limitation, maintaining sufficient net tangible assets)
        and
        will comply in all respects with the Company’s reporting, filing and other
        obligations under the bylaws or rules of the NASD and the Principal
        Market.

      

      Section
        6.4 EXCHANGE ACT REGISTRATION. The Company shall take all commercially
        reasonable steps to cause the Common Stock to continue to be registered under
        Section 12(g) or 12(b) of the Exchange Act, will use its commercially reasonable
        efforts to comply in all material respects with its reporting and filing
        obligations under said Act, and will not take any action or file any document
        (whether or not permitted by said Act or the rules thereunder) to terminate
        or
        suspend such registration or to terminate or suspend its reporting and filing
        obligations under said Act.

      

      Section
        6.5 LEGENDS. Upon effectiveness of the Registration Statement, and for so
        long
        as the Registration Statement is effective, the Company shall deliver
        instructions to its transfer agent to issue the Shares to the Investor,
        substantially in the form of Exhibit E hereto, that are covered for resale
        by
        the Registration Statement free of restrictive legends.

      

      Section
        6.6 CORPORATE EXISTENCE. The Company shall take all commercially reasonable
        steps necessary to preserve and continue the corporate existence of the
        Company.

      

      Section
        6.7 ADDITIONAL SEC DOCUMENTS. The Company shall deliver to Investor, promptly
        after the originals thereof are submitted to the SEC for filing, copies of
        all
        SEC Documents so furnished or submitted to the SEC, unless an SEC document
        is
        filed using the EDGAR system in which case the Company shall not be required
        to
        deliver such SEC Document to the Investor.

      

      Section
        6.8 NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT
        TO MAKE
        A PUT. The Company shall promptly notify Investor upon the occurrence of
        any of
        the following events in respect of a registration statement or related
        prospectus in respect of an offering of Registrable Securities: (a) 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; (b) 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;
        (c) receipt of any notification with respect to the suspension of the
        qualification or exemption from qualification of any of the Registrable
        Securities for sale in any jurisdiction or the initiation or threatening
        of any
        proceeding for such purpose; (d) 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 (e) 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 Investor
        any such supplement or amendment to the related prospectus. The Company shall
        not deliver to Investor any Put Notice during the continuation of any of
        the
        foregoing events.

      

      Section
        6.9 EXPECTATIONS REGARDING PUT NOTICES. Within ten (10) days after the
        commencement of each calendar quarter occurring subsequent to the commencement
        of the Commitment Period, the Company undertakes to notify Investor as to
        its
        reasonable expectations as to the dollar amount it intends to raise during
        such
        calendar quarter, if any, through the issuance of Put Notices. Such notification
        shall constitute only the Company’s good faith estimate with respect to such
        calendar quarter and shall in no way obligate the Company to raise such amount
        during such calendar quarter or otherwise limit its ability to deliver Put
        Notices during such calendar quarter. The failure by the Company to comply
        with
        this provision can be cured by the Company’s notifying Investor at any time as
        to its reasonable expectations with respect to the current calendar
        quarter.

      

      Section
        6.10 CONSOLIDATION; MERGER. The Company shall not, at any time after the
        date
        hereof, effect any merger or consolidation of the Company with or into, or
        a
        transfer of all or substantially all of the assets of the Company to, another
        entity unless the resulting successor or acquiring entity (if not the Company)
        assumes by written instrument the obligation to deliver to Investor such
        shares
        of Common Stock and/or securities as Investor is entitled to receive pursuant
        to
        this Agreement.

      

      Section
        6.11 ISSUANCE OF PUT SHARES AND BLACKOUT SHARES. The sale of the Put Shares
        and
        the issuance of the Blackout Shares, if any, shall be made in accordance
        with
        the provisions and requirements of Regulation D and any applicable state
        law.

      

      Section
        6.12 [INTENTIONALLY LEFT BLANK]

      

      Section
        6.13 DILUTION. The number of shares of Common Stock issuable as Put Shares
        may
        increase substantially in certain circumstances, including, but not necessarily
        limited to, the circumstance wherein the trading price of the Common Stock
        declines during the period between the Effective Date and the end of the
        Commitment Period. The Company’s executive officers and directors have studied
        and fully understand the nature of the transactions contemplated by this
        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 its obligation to issue the Put Shares is
        binding
        upon the Company and enforceable regardless of the dilution such issuance
        may
        have on the ownership interests of other shareholders of the
        Company.

      

      Section
        6.14 USE OF PROCEEDS. The Company will use the proceeds received hereunder
        for
        internal working capital purposes, and, unless specifically consented to
        in
        advance in each instance by the Investor, the Company shall not, directly
        or
        indirectly, use such proceeds for any loan to or investment in any other
        affiliated corporation, partnership enterprise or other affiliated
        person.

      

      Section
        6.15 CERTAIN AGREEMENTS. (i) The Company covenants and agrees that it will
        not,
        without the prior written consent of the Investor, enter into any subsequent
        or
        further private equity credit agreement similar in nature to this Agreement
        for
        the offer or sale of Common Stock or Common Stock Equivalents (collectively,
        “New Common Stock”) with any third party from the date of this Agreement until
        the Effective Date.

      

      (ii) The
        provisions of subparagraph 6.15(i) will not apply to (x) an underwritten
        public
        offering of shares of Common Stock or Preferred Stock; (y) an offering of
        convertible Preferred Stock at market or above; or (z) the issuance of
        securities (other than for cash) in connection with an acquisition, merger,
        consolidation, sale of assets, disposition or the exchange of the capital
        stock
        for assets, stock, strategic arrangements, or other joint venture interests.
        

      

      Section
        6.16. LOCK-UP. The Company agrees that it shall cause any and all of its
        officers, insiders, Affiliates or other related parties to refrain from selling
        any Common Stock during any Valuation Period, excluding Common Stock sold
        pursuant to a Rule 10b5-1 trading plan, which was executed prior to the
        commencement of the Valuation Period.

      

      ARTICLE
        VII

      

      CONDITIONS
        TO DELIVERY OF

      PUT
        NOTICES AND CONDITIONS TO CLOSING

      

      Section
        7.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL
        COMMON STOCK. The obligation hereunder of the Company to issue and sell the
        Put
        Shares to Investor incident to each Closing is subject to the satisfaction,
        at
        or before each such Closing, of each of the conditions set forth
        below.

      

      (a)
        ACCURACY OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and
        warranties of Investor shall be true and correct in all material respects
        as of
        the date of this Agreement and as of the date of each such Closing as though
        made at each such time, except for changes which have not had a Material
        Adverse
        Effect.

      

      (b)
        PERFORMANCE BY INVESTOR. Investor shall have performed, satisfied and complied
        in all respects with all covenants, agreements and conditions required by
        this
        Agreement to be performed, satisfied or complied with by Investor at or prior
        to
        such Closing.

      

      Section
        7.2 CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE
        AND
        THE OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The right of the Company
        to
        deliver a Put Notice and the obligation of Investor hereunder to acquire
        and pay
        for the Put Shares incident to a Closing is subject to the satisfaction,
        on (a)
        the date of delivery of such Put Notice and (b) the applicable Closing Date
        (each a “CONDITION SATISFACTION DATE”), of each of the following conditions:

      

      (a) REGISTRATION
        OF REGISTRABLE SECURITIES WITH THE SEC. As set forth in the Registration
        Rights
        Agreement, the Company shall have filed with the SEC the Registration Statement
        with respect to the resale of the Registrable Securities by Investor and
        such
        Registration Statement shall have been declared effective by the SEC prior
        to
        the first Put Date. For the purposes of any Put Notice with respect to the
        Registrable Securities other than the Registrable Securities, the Company
        shall
        have filed with the SEC a Registration Statement with respect to the resale
        of
        such Registrable Securities by Investor which shall have been declared effective
        by the SEC prior to the Put Date therefore.

      

      (b) EFFECTIVE
        REGISTRATION STATEMENT. As set forth in the Registration Rights Agreement,
        a
        Registration Statement shall have previously become effective for the resale
        by
        Investor of the Registrable Securities subject to such Put Notice and such
        Registration Statement shall remain effective on each Condition Satisfaction
        Date and (i) neither the Company nor Investor shall have received notice
        that
        the SEC has issued or intends to issue a stop order with respect to such
        Registration Statement or that the SEC otherwise has suspended or withdrawn
        the
        effectiveness of such Registration Statement, either temporarily or permanently,
        or intends or has threatened to do so (unless the SEC’s concerns have been
        addressed and Investor is reasonably satisfied that the SEC no longer is
        considering or intends to take such action),and (ii) no other suspension
        of the
        use or withdrawal of the effectiveness of such Registration Statement or
        related
        prospectus shall exist.

      

      (c) ACCURACY
        OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and
        warranties of the Company shall be true and correct in all material respects
        as
        of each Condition Satisfaction Date as though made at each such time (except
        for
        representations and warranties specifically made as of a particular date)
        with
        respect to all periods, and as to all events and circumstances occurring
        or
        existing to and including each Condition Satisfaction Date, except for any
        conditions which have temporarily caused any representations or warranties
        herein to be incorrect and which have been corrected with no continuing
        impairment to the Company or Investor.

      

      (d) PERFORMANCE
        BY THE COMPANY. The Company shall have performed, satisfied and complied
        in all
        material respects with all covenants, agreements and conditions required
        by this
        Agreement and the Registration Rights Agreement to be performed, satisfied
        or
        complied with by the Company at or prior to each Condition Satisfaction
        Date.

      

      (e) NO
        INJUNCTION. No statute, rule, regulation, executive order, decree, ruling
        or
        injunction shall have been enacted, entered, promulgated or adopted by any
        court
        or governmental authority of competent jurisdiction that prohibits or directly
        and materially adversely affects any of the transactions contemplated by
        this
        Agreement, and no proceeding shall have been commenced that may have the
        effect
        of prohibiting or materially adversely affecting any of the transactions
        contemplated by this Agreement.

      

      (f) ADVERSE
        CHANGES. Since the date of filing of the Company’s most recent SEC Document, no
        event that had or is reasonably likely to have a Material Adverse Effect
        has
        occurred.

      

      (g) NO
        SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the
        Common
        Stock shall not have been suspended by the SEC, the Principal Market or the
        NASD, the Common Stock shall have been approved for listing or quotation
        on the
        Principal Market, and shall not have been delisted or any notice in respect
        thereof shall have been received from the Principal Market.

      

      (h) LEGAL
        OPINION. The Company shall have caused to be delivered to Investor and to
        the
        Company’s transfer agent, the first Put Notice, and an opinion of the Company’s
        legal counsel in the form of Exhibit C hereto, addressed to
        Investor.

      

      (i) [INTENTIONALLY
        OMITTED]

      

      (j) FIVE
        PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to
        be
        purchased by Investor shall not exceed the number of such shares that, when
        aggregated with all other shares of Registrable Securities then owned by
        Investor beneficially or deemed beneficially owned by Investor, would result
        in
        Investor owning more than 4.99% of all of such Common Stock as would be
        outstanding on such Closing Date, as determined in accordance with Section
        16 of
        the Exchange Act and the regulations promulgated thereunder. For purposes
        of
        this Section 7.2(j), in the event that the amount of Common Stock outstanding
        as
        determined in accordance with Section 16 of the Exchange Act and the regulations
        promulgated thereunder is greater on a Closing Date than on the date upon
        which
        the Put Notice associated with such Closing Date is given, the amount of
        Common
        Stock outstanding on such Closing Date shall govern for purposes of determining
        whether Investor, when aggregating all purchases of Common Stock made pursuant
        to this Agreement and Blackout Shares, if any, would own more than 4.99%
        of the
        Common Stock following such Closing Date.

      

      (k) TWENTY
        PERCENT LIMITATION. Notwithstanding any other provision of this Agreement,
        the
        maximum aggregate number of Put Shares and Blackout Shares issuable to Investor
        under this Agreement shall not exceed the number of such shares that, when
        aggregated with all other shares of Registrable Securities then owned by
        Investor beneficially or deemed beneficially owned by Investor, would result
        in
        Investor owning more than 19.99% of all of such Common Stock as would be
        outstanding immediately prior to the execution and delivery of this Agreement
        by
        both parties, unless the Company has obtained all necessary approvals in
        accordance with the rules and requirements of the Principal Market, which
        the
        Company may or may not seek in its discretion. Failure to seek or obtain
        such
        approval(s) will not change any other term or condition of this
        Agreement.

      

      (l) NO
        KNOWLEDGE. The Company shall have no knowledge of any event more likely than
        not
        to have the effect of causing such Registration Statement to be suspended
        or
        otherwise ineffective (which event is more likely than not to occur within
        the
        fifteen Trading Days following the Trading Day on which such Notice is deemed
        delivered).

      

      (m) [INTENTIONALLY
        OMITTED]

      

      (n) SHAREHOLDER
        VOTE. The issuance of shares of Common Stock with respect to the applicable
        Closing, if any, shall not violate the shareholder approval requirements
        of the
        Principal Market.

      

      (o) NO
        VALUATION EVENT. No Valuation Event shall have occurred since the Put
        Date.

      

      (p) 
        OTHER.
        On each Condition Satisfaction Date, Investor shall have received and been
        reasonably satisfied with such other certificates and documents as shall
        have
        been reasonably requested by Investor in order for Investor to confirm the
        Company’s satisfaction of the conditions set forth in this Section 7.2,
        including, without limitation, a certificate in substantially the form and
        substance of Exhibit D hereto, executed by an executive officer of the Company
        and to the effect that all the conditions to such Closing shall have been
        satisfied as at the date of each such certificate. 

      

      Section
        7.3 DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

      

      (a) The
        Company shall make available for inspection and review by Investor, advisors
        to
        and representatives of Investor (who may or may not be affiliated with Investor
        and who are reasonably acceptable to the Company), any Underwriter, any
        Registration Statement or amendment or supplement thereto or any blue sky,
        NASD
        or other filing, all financial and other records, all SEC Documents and other
        filings with the SEC, and all other corporate documents and properties of
        the
        Company as may be reasonably necessary for the purpose of such review, and
        cause
        the Company’s officers, directors and employees to supply all such information
        reasonably requested by Investor or any such representative, advisor or
        Underwriter in connection with such Registration Statement (including, without
        limitation, in response to all questions and other inquiries reasonably made
        or
        submitted by any of them), prior to and from time to time after the filing
        and
        effectiveness of such Registration. 

      

      (b) Each
        of
        the Company, its officers, directors, employees and agents shall in no event
        disclose non-public information to Investor, advisors to or representatives
        of
        Investor.

      

      (c) Nothing
        herein shall require the Company to disclose non-public information to Investor
        or its advisors or representatives, and the Company represents that it does
        not
        disseminate non-public information to any investors who purchase stock in
        the
        Company in a public offering, to money managers or to securities analysts;
        provided, however, that notwithstanding anything herein to the contrary,
        the
        Company shall, as hereinabove provided, immediately notify the advisors and
        representatives of Investor and any Underwriters of any event or the existence
        of any circumstance(without any obligation to disclose the specific event
        or
        circumstance) of which it becomes aware, constituting non-public information
        (whether or not requested of the Company specifically or generally during
        the
        course of due diligence by such persons or entities), which, if not disclosed
        in
        the prospectus included in a Registration Statement would cause such prospectus
        to include a material misstatement or to omit a material fact required to
        be
        stated therein in order to make the statements therein, in light of the
        circumstances in which they were made, not misleading. Nothing contained
        in this
        Section 7.3 shall be construed to mean that such persons or entities other
        than
        Investor (without the written consent of Investor prior to disclosure of
        such
        information) may not obtain non-public information in the course of conducting
        due diligence in accordance with the terms and conditions of this Agreement
        and
        nothing herein shall prevent any such persons or entities from notifying
        the
        Company of their opinion that based on such due diligence by such persons
        or
        entities, any Registration Statement contains an untrue statement of a material
        fact or omits a material fact required to be stated in such Registration
        Statement or necessary to make the statements contained therein, in light
        of the
        circumstances in which they were made, not misleading.

      

      ARTICLE
        VIII

      

      [INTENTIONALLY
        OMITTED]

      

      ARTICLE
        IX

      

      NOTICES

      

      Section
        9.1 NOTICES. All notices, demands, requests, consents, approvals, and other
        communications required or permitted hereunder shall be in writing and, unless
        otherwise specified herein, shall be (a) personally served, (b) deposited
        in the
        mail, registered or certified, return receipt requested, postage prepaid,
        (c)
        delivered by reputable air courier service with charges prepaid, or (d)
        transmitted by hand delivery, telegram, or facsimile, addressed as set forth
        below or to such other address as such party shall have specified most recently
        by written notice given in accordance herewith. Any notice or other
        communication required or permitted to be given hereunder shall be deemed
        effective (i) upon hand delivery or delivery by facsimile, with accurate
        confirmation generated by the transmitting facsimile machine, at the address
        or
        number designated below (if delivered on a business day during normal business
        hours where such notice is to be received), or the first business day following
        such delivery (if delivered other than on a business day during normal business
        hours where such notice is to be received) or (ii) on the second business
        day
        following the date of mailing by express courier service or on the fifth
        business day after deposited in the mail, in each case, fully prepaid, addressed
        to such address, or upon actual receipt of such mailing, whichever shall
        first
        occur. The addresses for such communications shall be:

      

      If
        to the
        Company: Eagle
        Broadband, Inc.

      101
        Courageous Drive

      League
        City, Texas 77573

      Attn:
        David Micek

      Tel:
        (281) 538-6000

      

      with
        a
        copy (which shall not constitute notice) to:

      

      Eagle
        Broadband, Inc.

      101
        Courageous Drive

      League
        City, Texas 77573

      Attn:
        Jeff Adams

      Tel:
        (281) 538-6000

      

      If
        to
        Investor:                       
Brittany
        Capital Management Limited

      c/o
        Cumberland House

      27
        Cumberland Street

      PO
        Box
        N-10818

      Nassau,
        New Providence

      Bahamas

      

      with
        a
        copy (which shall not constitute notice) to: 

      

      Krieger
        & Prager, LLP

      39
        Broadway, Suite 920

      New
        York,
        New York 10006

      Tel:
        (212) 363-2900

      Fax:
        (212) 363-2999

      

      Mr.
        Henry
        Sargent

      Southridge
        Capital Management LLC

      90
        Grove
        Street

      Ridgefield,
        CT 06877

      Tel:
        (203) 431-8300

      Fax:
        (203) 431-8301

      

      Either
        party hereto may from time to time change its address or facsimile number
        for
        notices under this Section 9.1 by giving at least ten (10) days’ prior written
        notice of such changed address or facsimile number to the other party
        hereto.

      

       

      Section
        9.2  INDEMNIFICATION.
        The Company agrees to indemnify and hold harmless Investor and its officers,
        directors, employees, and agents, and each Person or entity, if any, who
        controls Investor within the meaning of Section 15 of the Securities Act
        or
        Section 20 of the Exchange Act, together with the Controlling Persons (as
        defined in the Registration Rights Agreement) from and against any Damages,
        joint or several, and any action in respect thereof to which Investor, its
        partners, affiliates, officers, directors, employees, and duly authorized
        agents, and any such Controlling Person becomes subject to, resulting from,
        arising out of or relating to any misrepresentation, breach of warranty or
        nonfulfillment of or failure to perform any covenant or agreement on the
        part of
        Company contained in this Agreement, as such Damages are incurred, except
        to the
        extent such Damages result primarily from Investor’s failure to perform any
        covenant or agreement contained in this Agreement or Investor’s or its
        officer’s, director’s, employee’s, agent’s or Controlling Person’s negligence,
        recklessness or bad faith in performing its obligations under this Agreement.
        

       

       

      Section
        9.3  METHOD
        OF
        ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any
        Indemnified Party (as defined below) under Section 9.2 shall be asserted
        and
        resolved as follows: 

       

       

      (a)
        In
        the event any claim or demand in respect of which any person claiming
        indemnification under any provision of Section 9.2 (an “INDEMNIFIED PARTY”)
        might seek indemnity under Section 9.2 is asserted against or sought to be
        collected from such Indemnified Party by a person other than a party hereto
        or
        an affiliate thereof (a “THIRD PARTY CLAIM”), the Indemnified Party shall
        deliver a written notification, enclosing a copy of all papers served, if
        any,
        and specifying the nature of and basis for such Third Party Claim and for
        the
        Indemnified Party’s claim for indemnification that is being asserted under any
        provision of Section 9.2 against any person (the “INDEMNIFYING PARTY”), together
        with the amount or, if not then reasonably ascertainable, the estimated amount,
        determined in good faith, of such Third Party Claim (a “CLAIM NOTICE”) with
        reasonable promptness to the Indemnifying Party. If the Indemnified Party
        fails
        to provide the Claim Notice with reasonable promptness after the Indemnified
        Party receives notice of such Third Party Claim, the Indemnifying Party shall
        not be obligated to indemnify the Indemnified Party with respect to such
        Third
        Party Claim to the extent that the Indemnifying Party’s ability to defend has
        been prejudiced by such failure of the Indemnified Party. The Indemnifying
        Party
        shall notify the Indemnified Party as soon as practicable within the period
        ending thirty (30) calendar days following receipt by the Indemnifying Party
        of
        either a Claim Notice or an Indemnity Notice (as defined below) (the “DISPUTE
        PERIOD”) whether the Indemnifying Party disputes its liability or the amount of
        its liability to the Indemnified Party under Section 9.2 and whether the
        Indemnifying Party desires, at its sole cost and expense, to defend the
        Indemnified Party against such Third Party Claim.(i)If the Indemnifying Party
        notifies the Indemnified Party within the Dispute Period that the Indemnifying
        Party desires to defend the Indemnified Party with respect to the Third Party
        Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall
        have
        the right to defend, with counsel reasonably satisfactory to the Indemnified
        Party, at the sole cost and expense of the Indemnifying Party, such Third
        Party
        Claim by all appropriate proceedings, which proceedings shall be vigorously
        and
        diligently prosecuted by the Indemnifying Party to a final conclusion or
        will be
        settled at the discretion of the Indemnifying Party (but only with the consent
        of the Indemnified Party in the case of any settlement that provides for
        any
        relief other than the payment of monetary damages or that provides for the
        payment of monetary damages as to which the Indemnified Party shall not be
        indemnified in full pursuant to Section 9.2). The Indemnifying Party shall
        have
        full control of such defense and proceedings, including any compromise or
        settlement thereof; provided, however, that the Indemnified Party may, at
        the
        sole cost and expense of the Indemnified Party, at any time prior to the
        Indemnifying Party’s delivery of the notice referred to in the first sentence of
        this clause (i), file any motion, answer or other pleadings or take any other
        action that the Indemnified Party reasonably believes to be necessary or
        appropriate to protect its interests; and provided further, that if requested
        by
        the Indemnifying Party, the Indemnified Party will, at the sole cost and
        expense
        of the Indemnifying Party, provide reasonable cooperation to the Indemnifying
        Party in contesting any Third Party Claim that the Indemnifying Party elects
        to
        contest. The Indemnified Party may participate in, but not control, any defense
        or settlement of any Third Party Claim controlled by the Indemnifying Party
        pursuant to this clause (i), and except as provided in the preceding sentence,
        the Indemnified Party shall bear its own costs and expenses with respect
        to such
        participation. Notwithstanding the foregoing, the Indemnified Party may takeover
        the control of the defense or settlement of a Third Party Claim at any time
        if
        it irrevocably waives its right to indemnity under Section 9.2 with respect
        to
        such Third Party Claim. (ii) If the Indemnifying Party fails to notify the
        Indemnified Party within the Dispute Period that the Indemnifying Party desires
        to defend the Third Party Claim pursuant to Section 9.3(a), or if the
        Indemnifying Party gives such notice but fails to prosecute vigorously and
        diligently or settle the Third Party Claim, or if the Indemnifying Party
        fails
        to give any notice whatsoever within the Dispute Period, then the Indemnified
        Party shall have the right to defend, at the sole cost and expense of the
        Indemnifying Party, the Third Party Claim by all appropriate proceedings,
        which
        proceedings shall be prosecuted by the Indemnified Party in a reasonable
        manner
        and in good faith or will be settled at the discretion of the Indemnified
        Party(with the consent of the Indemnifying Party, which consent will not
        be
        unreasonably withheld). The Indemnified Party will have full control of such
        defense and proceedings, including any compromise or settlement thereof;
        provided, however, that if requested by the Indemnified Party, the Indemnifying
        Party will, at the sole cost and expense of the Indemnifying Party, provide
        reasonable cooperation to the Indemnified Party and its counsel in contesting
        any Third Party Claim which the Indemnified Party is contesting. Notwithstanding
        the foregoing provisions of this clause (ii), if the Indemnifying Party has
        notified the Indemnified Party within the Dispute Period that the Indemnifying
        Party disputes its liability or the amount of its liability hereunder to
        the
        Indemnified Party with respect to such Third Party Claim and if such dispute
        is
        resolved in favor of the Indemnifying Party in the manner provided in
        clause(iii) below, the Indemnifying Party will not be required to bear the
        costs
        and expenses of the Indemnified Party’s defense pursuant to this clause (ii) or
        of the Indemnifying Party’s participation therein at the Indemnified Party’s
        request, and the Indemnified Party shall reimburse the Indemnifying Party
        in
        full for all reasonable costs and expenses incurred by the Indemnifying Party
        in
        connection with such litigation. The Indemnifying Party may participate in,
        but
        not control, any defense or settlement controlled by the Indemnified Party
        pursuant to this clause (ii), and the Indemnifying Party shall bear its own
        costs and expenses with respect to such participation. (iii) If the Indemnifying
        Party notifies the Indemnified Party that it does not dispute its liability
        or
        the amount of its liability to the Indemnified Party with respect to the
        Third
        Party Claim under Section 9.2 or fails to notify the Indemnified Party within
        the Dispute Period whether the Indemnifying Party disputes its liability
        or the
        amount of its liability to the Indemnified Party with respect to such Third
        Party Claim, the amount of Damages specified in the Claim Notice shall be
        conclusively deemed a liability of the Indemnifying Party under Section 9.2
        and
        the Indemnifying Party shall pay the amount of such Damages to the Indemnified
        Party on demand. If the Indemnifying Party has timely disputed its liability
        or
        the amount of its liability with respect to such claim, the Indemnifying
        Party
        and the Indemnified Party shall proceed in good faith to negotiate a resolution
        of such dispute; provided, however, that if the dispute is not resolved within
        thirty (30) days after the Claim Notice, the Indemnifying Party shall be
        entitled to institute such legal action as it deems appropriate. 

       

       

      (b)
        In
        the event any Indemnified Party should have a claim under Section 9.2 against
        the Indemnifying Party that does not involve a Third Party Claim, the
        Indemnified Party shall deliver a written notification of a claim for indemnity
        under Section 9.2 specifying the nature of and basis for such claim, together
        with the amount or, if not then reasonably ascertainable, the estimated amount,
        determined in good faith, of such claim (an “INDEMNITY NOTICE”) with reasonable
        promptness to the Indemnifying Party. The failure by any Indemnified Party
        to
        give the Indemnity Notice shall not impair such party’s rights hereunder except
        to the extent that the Indemnifying Party demonstrates that it has been
        irreparably prejudiced thereby. If the Indemnifying Party notifies the
        Indemnified Party that it does not dispute the claim or the amount of the
        claim
        described in such Indemnity Notice or fails to notify the Indemnified Party
        within the Dispute Period whether the Indemnifying Party disputes the claim
        or
        the amount of the claim described in such Indemnity Notice, the amount of
        Damages specified in the Indemnity Notice will be conclusively deemed a
        liability of the Indemnifying Party under Section 9.2 and the Indemnifying
        Party
        shall pay the amount of such Damages to the Indemnified Party on demand.
        If the
        Indemnifying Party has timely disputed its liability or the amount of its
        liability with respect to such claim, the Indemnifying Party and the Indemnified
        Party shall proceed in good faith to negotiate a resolution of such dispute;
        provided, however, that if the dispute is not resolved within thirty (30)
        days
        after the Claim Notice, the Indemnifying Party shall be entitled to institute
        such legal action as it deems appropriate.

       

       

      (c)
        The
        indemnity agreements contained herein shall be in addition to (i) any cause
        of
        action or similar rights of the Indemnified Party against the Indemnifying
        Party
        or others, and (ii)any liabilities the Indemnifying Party may be subject
        to.

       

      

      ARTICLE
        X

      

      MISCELLANEOUS

      

      Section
        10.1 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and
        interpreted in accordance with the laws of the State of New York without
        regard
        to the principles of conflicts of law. Each of the Company and Investor hereby
        submit to the exclusive jurisdiction of the United States Federal and state
        courts located in New York with respect to any dispute arising under this
        Agreement, the agreements entered into in connection herewith or the
        transactions contemplated hereby or thereby.

      

      Section
        10.2 JURY TRIAL WAIVER. The Company and the Investor hereby waive a trial
        by
        jury in any action, proceeding or counterclaim brought by either of the parties
        hereto against the other in respect of any matter arising out of or in
        connection with the Transaction Documents.

      

      Section
        10.3 SPECIFIC ENFORCEMENT. The Company and the Investor acknowledge and agree
        that irreparable damage would occur to the Investor in the event that any
        of the
        provisions of this Agreement were not performed in accordance with their
        specific terms or were otherwise breached. It is accordingly agreed that
        the
        Investor shall be entitled to an injunction or injunctions to prevent or
        cure
        breaches of the provisions of this Agreement and to enforce specifically
        the
        terms and provisions hereof or thereof, this being in addition to any other
        remedy to which any of them may be entitled by law or equity.

      

      Section
        10.4 ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit
        of the Company and Investor and their respective successors. Neither this
        Agreement nor any rights of Investor or the Company hereunder may be assigned
        by
        either party to any other person. Notwithstanding the foregoing, (a) the
        provisions of this Agreement shall inure to the benefit of, and be enforceable
        by, any transferee of any of the Common Stock purchased or acquired by Investor
        hereunder with respect to the Common Stock held by such person, and (b)
        Investor’s interest in this Agreement may be assigned at any time, in whole but
        not in part, to any affiliate of Investor.

      

      Section
        10.5 THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit
        of
        the Company and Investor and their respective successors and permitted assigns,
        and is not for the benefit of, nor may any provision hereof be enforced by,
        any
        other person, other than as contemplated under Section 6.10.

      

      Section
        10.6 TERMINATION. This Agreement shall terminate: (a) at the end of Commitment
        Period, (b) at the option of the Company at any time, or (c) as otherwise
        provided herein (unless extended by the agreement of the Company and Investor);
        provided, however, that the provisions of Article VI, VIII, and Sections
        9.2,
        10.1, 10.2, and 10.3 shall survive the termination of this
        Agreement.

      

      Section
        10.7 ENTIRE AGREEMENT, AMENDMENT; NO WAIVER. This Agreement and the instruments
        referenced herein contain the entire understanding of the Company and Investor
        with respect to the matters covered herein and therein and, except as
        specifically set forth herein or therein, neither the Company nor Investor
        makes
        any representation, warranty, covenant or undertaking with respect to such
        matters. No provision of this Agreement may be waived or amended other than
        by
        an instrument in writing signed by the party to be charged with
        enforcement.

      

      Section
        10.8 FEES AND EXPENSES. Each of the Company and Investor agrees to pay its
        own
        expenses in connection with the preparation of this Agreement and performance
        of
        its obligations hereunder. Any legal fees and expenses incurred by either
        the
        Company or by the Investor in connection with the preparation, negotiation,
        execution and delivery of any amendments to this Agreement or relating to
        the
        enforcement of the rights of any party, after the occurrence of any breach
        of
        the terms of this Agreement by the other party or any default by the other
        party
        in respect of the transactions contemplated hereunder, shall be paid on demand
        by the party which breached the Agreement and/or defaulted, as the case may
        be.
        The Company shall pay all fees of any unaffiliated broker/dealer, and
        Underwriter, if required, pursuant to rules of the SEC. The Company shall
        pay
        all transfer agent fees, stamp or other similar taxes and duties levied in
        connection with issuance of the Shares pursuant hereto.

      

      Section
        10.9 NO BROKERS. Each of the Company and Investor represents that it has
        had no
        dealings in connection with this transaction with any finder or broker who
        will
        demand payment of any fee or commission from the other party. The Company
        agrees
        to indemnify the Investor against and hold the other harmless from any and
        all
        liabilities to any persons claiming brokerage commissions or finder’s fees on
        account of services purported to have been rendered on behalf of the
        indemnifying party in connection with this Agreement or the transactions
        contemplated hereby.

      

      Section
        10.10 COUNTERPARTS. This Agreement may be executed in multiple counterparts,
        each of which may be executed by less than all of the Company and shall be
        deemed to be an original instrument which shall be enforceable against the
        parties actually executing such counterparts and all of which together shall
        constitute one and the same instrument. This Agreement, once executed by
        a
        party, may be delivered to the other parties hereto by facsimile transmission
        of
        a copy of this Agreement bearing the signature of the parties so delivering
        this
        Agreement.

      

      Section
        10.11 SURVIVAL; SEVERABILITY. The representations, warranties, covenants
        and
        agreements of the Company hereto shall survive each Closing hereunder for
        a
        period of one (1) year thereafter. In the event that any provision of this
        Agreement becomes or is declared by a court of competent jurisdiction to
        be
        illegal, unenforceable or void, this Agreement shall continue in full force
        and
        effect without said provision; provided that such severability shall be
        ineffective if it materially changes the economic benefit of this Agreement
        to
        any party.

      

      Section
        10.12 FURTHER ASSURANCES. 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
        10.13 NO STRICT CONSTRUCTION. The language used in this Agreement will be
        deemed
        to be the language chosen by the parties to express their mutual intent,
        and no
        rules of strict construction will be applied against any party.

      

      Section
        10.14 EQUITABLE RELIEF. The Company recognizes that in the event that it
        fails
        to perform, observe, or discharge any or all of its obligations under this
        Agreement, any remedy at law may prove to be inadequate relief to Investor.
        The
        Company therefore agrees that Investor shall be entitled to temporary and
        permanent injunctive relief in any such case without the necessity of proving
        actual damages.

      

      Section
        10.15 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement
        are
        used for the convenience of reference and are not to be considered in construing
        or interpreting this Agreement.

      

      Section
        10.16 REPORTING ENTITY FOR THE COMMON STOCK. The reporting entity relied
        upon
        for the determination of the trading price of the Common Stock on any given
        Trading Day for the purposes of this Agreement shall be Bloomberg L.P. or
        any
        successor thereto. The written mutual consent of Investor and the Company
        shall
        be required to employ any other reporting entity.

      

      Section
        10.17 PUBLICITY. The Company and Investor shall consult with each other in
        issuing any press releases or otherwise making public statements with respect
        to
        the transactions contemplated hereby and no party shall issue any such press
        release or otherwise make any such public statement without the prior written
        consent of the other parties, which consent shall not be unreasonably withheld
        or delayed, except that no prior consent shall be required if such disclosure
        is
        required by law, in which such case the disclosing party shall provide the
        other
        parties with prior notice of such public statement. Investor acknowledges
        that
        this Agreement and all or part of the Transaction Documents may be deemed
        to be
“material contracts” as that term is defined by Item 601(b)(10) of Regulation
        S-K, and that the Company may therefore be required to file such documents
        as
        exhibits to reports or registration statements filed under the Securities
        Act or
        the Exchange Act.

      

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto have caused this Private Equity Credit Agreement to be executed
        by the undersigned, thereunto duly authorized, as of the date first set forth
        above.

      

      

      

      EAGLE
        BROADBAND, INC.

      

      

      By: /s/
        David Micek

      Name:
        David Micek

      Title:
        President and CEO

      

      

      BRITTANY
        CAPITAL MANAGEMENT LIMITED

      

      

      

      By: /s/
        Barry W. Herman

      Name:
        Barry W. Herman

      Title:
        Director

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      EXHIBITS

      

      

      EXHIBIT
        A    Registration
        Rights Agreement

      

      EXHIBIT
        B    Put
        Notice

      

      EXHIBIT
        C    Opinion

      

      EXHIBIT
        D    Closing
        Certificate

      

      EXHIBIT
        E    Transfer
        Agent Instructions

      

      

        

      

      Schedule
        4.3    Options,
        WarrantsExhibit 10.24

    Exhibit
      10.24

     

    

      REGISTRATION
        RIGHTS AGREEMENT

      

      This
        Registration Rights Agreement (“Agreement”), dated as of January 12, 2007, is
        made by and between EAGLE BROADBAND, INC., a Texas corporation (“Company”), and
        BRITTANY CAPITAL MANAGEMENT LIMITED, a corporation organized and existing
        under
        the laws of the Bahamas (the “Subscriber”).

      

      RECITALS

      

      WHEREAS,
        upon the terms and subject to the conditions of the Fourth Private Equity
        Credit
        Agreement (“Purchase Agreement”), between the Subscriber and the Company, the
        Company has agreed to issue and sell to the Subscriber up to Five
        Million dollars ($5,000,000) of
        the
        common stock of the Company (“Subscribed Shares”), $0.001 par value per share
        (the “Common Stock”), and

      

      WHEREAS,
        to induce the Subscriber to execute and deliver the Purchase 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, “Securities Act”), and applicable state
        securities laws with respect to the Subscribed Shares;

      

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants contained
        herein and other good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, the Company and the Subscriber hereby agree
        as
        follows:

      

      1. Definitions.

      

      (a) As
        used
        in this Agreement, the following terms shall have the following
        meaning:

      

      (i) “Potential
        Material Event” means any of the following: (a) the possession by the Company of
        material information not ripe for disclosure in a 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 (b) 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 a 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.

      

      (ii) “Subscription
        Date” means the date of this Agreement.

      

      (iii) “Subscriber”,
        has the meaning set forth in the preamble to this Agreement.

      

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

      

      (v) “Registrable
        Securities” means the Subscribed Shares.

      

      (vi) “Registration
        Statement” means a registration statement of the Company under the Securities
        Act.

      

      (b) Capitalized
        terms used herein and not otherwise defined herein shall have the respective
        meanings set forth in the Purchase Agreement.

      

      2. Registration.

      

      (a) Mandatory
        Registration. The
        Company shall prepare and file with the SEC, no later than ten (10) business
        days after the Subscription Date, a Registration Statement on Form S-1
        (“Registration Statement”), or such other appropriate Registration Statement,
        pursuant to Rule 457(o) of the Securities Act, Shares of Common Stock covering
        no less than 4,200,000 Shares of Common Stock. Such Registration Statement
        shall
        state that, in accordance with the Securities Act, it also covers such
        indeterminate number of additional shares of Common Stock as may become issuable
        to prevent dilution resulting from stock splits, or stock
        dividends.

      

      (b) Termination.
        If the
        Registration Statement covering the Registrable Securities required to be
        filed
        by the Company pursuant to Section 2(a) hereof is not declared effective
        within
        two hundred and seventy (270) days from the Subscription Date, through no
        fault
        of the Subscriber, then the commitment contained in the Purchase Agreement
        and
        in this Agreement (the “Commitment”) shall, at the option of the Subscriber,
        terminate and the Subscriber shall be entitled to the sums set forth in Section
        2.1(b) of the Purchase Equity Agreement. 

      

      3. Obligation
        of the Company.  In
        connection with the registration of the Registrable Securities, the Company
        shall do each of the following:

      

      (a) Prepare
        promptly, and file with the SEC within ten (10) days of the Subscription
        Date, a
        Registration Statement with respect to not less than the number of Registrable
        Securities provided in Section 2(a) above, and, thereafter, use all diligent
        efforts to cause the Registration Statement relating to the Registrable
        Securities to become effective the earlier of (a) five (5) business days
        after
        notice from the Securities and Exchange Commission that the Registration
        Statement may be declared effective, or (b) two hundred seventy (270) days
        after
        the Subscription Date, and keep the Registration Statement effective at all
        times until the earliest of (i) the date that is one year after the completion
        of the last Closing Date under the Purchase Agreement, (ii) the date when
        the
        Subscriber may sell all Registrable Securities under Rule 144 without volume
        limitations, or (iii) the date the Subscriber no longer owns any of the
        Registrable Securities (collectively, the “Registration Period”), which
        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 the light of the circumstances
        under which they were made, not misleading;

      

      (b) 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 the Registration Statement as may be necessary to keep the Registration
        Statement effective at all times during the Registration Period, and, during
        the
        Registration Period, and to comply with the provisions of the Securities
        Act
        with respect to the disposition of all Registrable Securities of the Company
        covered by the Registration Statement until the expiration of the Registration
        Period.

      

      (c) Permit
        a
        single firm of counsel designated by Subscriber to review the Registration
        Statement and all amendments and supplements thereto a reasonable period
        of time
        (but not less than three (3) Business Day) prior to their filing with the
        SEC,
        and not file any document in a form to which such counsel reasonably
        objects.

      

      (d)
         Notify
        Subscriber and Subscriber’s legal counsel identified to the Company (which,
        until further notice, shall be deemed to be Krieger & Prager, LLP, ATTN:
        Samuel Krieger, Esq.; “Subscriber’s
        Counsel”)
        (and,
        in the case of (i)(A) below, not less than one (1) Business Day prior to
        such
        filing) and (if requested by any such person) confirm such notice in writing
        no
        later than one (1) Business Day following the day (i): (A) when a prospectus
        or
        any prospectus supplement or post-effective amendment to the Registration
        Statement is proposed to be filed; (B) whenever the SEC notifies the Company
        whether there will be a “review” of such Registration Statement; (C) whenever
        the Company receives (or a representative of the Company receives on its
        behalf)
        any oral or written comments from the SEC respect of a Registration Statement
        (copies or, in the case of oral comments, written or oral summaries of such
        comments shall be promptly furnished by the Company to Subscriber’s Counsel);
        and (D) with respect to the Registration Statement or any post-effective
        amendment, when the same has become effective; (ii) of any request by the
        SEC or
        any other Federal or state governmental authority for amendments or supplements
        to the Registration Statement or the prospectus or for additional information;
        (iii) of the issuance by the SEC of any stop order suspending the effectiveness
        of the Registration Statement covering any or all of the Registrable Securities
        or the initiation of any proceedings for that purpose; (iv) if at any time
        any
        of the representations or warranties of the Company contained in any agreement
        (including any securities purchase agreement) contemplated hereby ceases
        to be
        true and correct in all material respects; (v) of the receipt by the Company
        of
        any notification with respect to the suspension of the qualification or
        exemption from qualification of any of the Registrable Securities for sale
        in
        any jurisdiction, or the initiation or threatening of any proceeding for
        such
        purpose; and (vi) of the occurrence of any event that to the knowledge of
        the
        Company makes any statement made in the Registration Statement or the prospectus
        or any document incorporated or deemed to be incorporated therein by reference
        untrue in any material respect or that requires any revisions to the
        Registration Statement, the prospectus or other documents so that, in the
        case
        of the Registration Statement or the prospectus, as the case may be, 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.
        In
        addition, the Company shall furnish Subscriber’s Counsel with copies of all
        intended written responses to the comments contemplated in clause (C) of
        this
        Section not later than one (1) Business Day in advance of the filing of such
        responses with the SEC so that Subscriber shall have the opportunity to comment
        thereon.

      

      (e) Furnish
        to Subscriber, (i) promptly after the same is prepared and publicly distributed,
        filed with the SEC, or received by the Company, one (1) copy of the Registration
        Statement, each preliminary prospectus and the prospectus, and each amendment
        or
        supplement thereto, and (ii) such number of copies of a prospectus, including
        a
        preliminary prospectus, and all amendments and supplements thereto and such
        other documents, as the Subscriber may reasonably request in order to facilitate
        the disposition of the Registrable Securities owned by the
        Subscriber;

      

      (f) Use
        all
        diligent efforts to (i) register and/or qualify the Registrable Securities
        covered by the Registration Statement under such other securities or blue
        sky
        laws of not more than ten (10) jurisdictions as the Subscriber may reasonably
        request and in which significant volumes of shares of Common Stock are traded,
        (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
        at all
        times during the Registration Period, (iii) take such other actions as may
        be
        necessary to maintain such registrations and qualification 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 (A) qualify to do business in any jurisdiction where it would
        not
        otherwise be required to qualify but for this Section 3(f), (B) subject itself
        to general taxation in any such jurisdiction, (C) file a general consent
        to
        service of process in any such jurisdiction, (D) provide any undertakings
        that
        cause more than nominal expense or burden to the Company or (E) make any
        change
        in its charter or bylaws or any then existing contracts, which in each case
        the
        Board of Directors of the Company determines to be contrary to the best
        interests of the Company and its stockholders;

      

      (g) As
        promptly as practicable after becoming aware of such event, notify the
        Subscriber of the happening of any event of which the Company has knowledge,
        as
        a result of which the prospectus included in the Registration Statement,
        as then
        in effect, includes any untrue statement of a material fact or omits to state
        a
        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 (“Registration Default”), and uses all diligent efforts to promptly
        prepare a supplement or amendment to the Registration Statement or other
        appropriate filing with the SEC to correct such untrue statement or omission,
        and any other necessary steps to cure the Registration Default, and deliver
        a
        number of copies of such supplement or amendment to the Subscriber as the
        Subscriber may reasonably request. Failure to cure the Registration Default
        within ten (10) business days shall result in the Company including liquidated
        damages of 2% of the cost of all common stock then held by the investor for
        each
        thirty (30) day period or portion thereof, beginning on the date of suspension.
        

      

      (h) As
        promptly as practicable after becoming aware of such event, notify the
        Subscriber (or, in the event of an underwritten offering, the managing
        underwriters) of the issuance by the SEC of any notice of effectiveness or
        any
        stop order or other suspension of the effectiveness of the Registration
        Statement at the earliest possible time;

      

      (i) Notwithstanding
        the foregoing, if at any time or from time to time after the date of
        effectiveness of the Registration Statement, the Company notifies Investor
        in
        writing of the existence of a Potential Material Event (“Blackout Notice”),
        Investor shall not offer or sell any Registrable Securities, or engage in
        any
        other transaction involving or relating to the Registrable Securities, from
        the
        time of the giving of notice with respect to a Potential Material Event until
        Investor receives written notice from the Company that such Potential Material
        Event either has been disclosed to the public or no longer constitutes a
        Potential Material Event; provided,
        however,
        that (a)
        the Company may not so suspend the right to such holders of Registrable
        Securities for more than two ten (10) day periods in the aggregate during
        any
        12-month period (“Blackout Period”) with at least a ten (10) Business Day
        interval between such periods, during the periods the Registration Statement
        is
        required to be in effect, or (b) that if such Blackout Period exceeds the
        permitted ten (10) day periods, the Company shall pay damages of 2% of the
        cost
        of all common stock then held by the Investor for each thirty (30) day period
        or
        portion thereof, beginning on the date of the suspension.

      

      (j) Use
        its
        commercially reasonable efforts, if eligible, either to (i) cause all the
        Registrable Securities covered by the Registration Statement to be listed
        on a
        national securities exchange and on each additional national securities exchange
        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 (ii) secure designation of all the
        Registrable Securities covered by the Registration Statement as a National
        Association of Securities Dealers Automated Quotations System (“Nasdaq) “Small
        Capitalization” within the meaning of Rule 11Aa2-1 of the SEC under the
        Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the
        quotation of the Registrable Securities on the Nasdaq Small Cap Market; or
        if,
        despite the Company’s commercially reasonable efforts to satisfy the preceding
        clause (i) or (ii), the Company is unsuccessful in doing so, to secure NASD
        authorization and quotation for such Registrable Securities on the
        over-the-counter bulletin board and, without limiting the generality of the
        foregoing, to arrange for at least two market makers to register with the
        National Association of Securities Dealers, Inc. (“NASD”) as such with respect
        to such registrable securities; provided, however,
        that
        the Subscriber acknowledges that the Company does not currently meet the
        requirements for listing on a national securities exchange or the Nasdaq
        Small
        Cap Market pursuant to (i) or (ii) and that nothing in this section shall
        be
        construed to require the Company to pursue such qualification until such
        time as
        the Company satisfies such requirements for a period of not less than forty-five
        (45) days:

      

      (k) Provide
        an unaffiliated broker/dealer and a transfer agent for the Registrable
        Securities not later than the Subscription Date of the Registration
        Statement;

      

      (l) Cooperate
        with the Subscriber to facilitate the timely preparation and delivery of
        certificates for the Registrable Securities to be offered pursuant to the
        Registration Statement and enable such certificates for the Registrable
        Securities to be in such denominations or amounts as the case may be, as
        the
        Subscriber may reasonably request and registration in such names as the
        Subscriber may request; and, within five (5) business days after a Registration
        Statement which includes Registrable Securities is ordered effective by the
        SEC,
        the Company shall deliver, and shall cause legal counsel selected by the
        Company
        to deliver, to the transfer agent for the Registrable Securities (with copies
        to
        the Subscriber) an appropriate instruction and opinion of such counsel, if
        so
        required by the Company’s transfer agent; and

      

      (m) Take
        all
        other reasonable actions necessary to expedite and facilitate distribution
        to
        the Subscriber of the Registrable Securities pursuant to the Registration
        Statement.

      

      4. Obligations
        of the Subscriber.
        In
        connection with the registration of the Registrable Securities, the Subscriber
        shall have the following obligations;

      

      (a) 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 Subscriber that the Subscriber shall timely furnish 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 be reasonably required to effect the registration of such
        Registrable Securities and shall timely execute such documents in connection
        with such registration as the Company may reasonably request.

       

      (b) The
        Subscriber by such Subscriber’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 the Registration Statement
        hereunder; and

      

      (c) The
        Subscriber agrees that, upon receipt of any notice from the Company of the
        happening of any event of the kind described in Section 3(g) or 3(h) above,
        the
        Subscriber will immediately discontinue disposition of Registrable Securities
        pursuant to the Registration Statement covering such Registrable Securities
        until the Subscriber receives the copies of the supplemented or amended
        prospectus contemplated by Section 3(g) or 3(h) and, if so directed by the
        Company, the Subscriber shall deliver to the Company (at the expense of the
        Company) or destroy (and deliver to the Company a certificate of destruction)
        all copies in the Subscriber’s possession, of the prospectus covering such
        Registrable Securities current at the time of receipt of such
        notice.

      

      (d) The
        Subscriber shall timely comply with its obligations under the Purchaser
        Agreement.

      

      5. Expenses
        of Registration. (a)
        All
        reasonable expenses incurred in connection with Registrations, filings or
        qualifications pursuant to Section
        3,
        including, without limitation, all Registration, listing, and qualifications
        fees, printers and accounting fees, the fees and disbursements of counsel
        for
        the Company shall be borne by the Company.

      

      (b) Except
        as
        otherwise provided for in Schedule
        5(b)
        attached
        hereto, neither the Company nor any of its subsidiaries has entered into,
        as of
        the date hereof, and the Company shall not on or after the date of this
        Agreement enter into, any agreement with respect to its securities that is
        inconsistent with the rights granted to Investor in this Agreement or otherwise
        conflicts with the provisions hereof. Except as otherwise provided for in
        Schedule
        5(b),
        the
        Company has not previously entered into any agreement granting any registration
        rights with respect to any of its securities to any person. Except as otherwise
        provided for in this Section
        5,
        and
        without limiting the generality of the foregoing, without the written consent
        of
        Investor, the Company shall not grant to any person the right to request
        the
        Company to Register any securities of the Company under the Securities Act
        unless the rights so granted are subject in all respects to the prior rights
        in
        full of Investor set forth herein, and are not otherwise in conflict or
        inconsistent with the provisions of this Agreement and the other Transaction
        Documents.

      

      6. Indemnification. After
        Registrable Securities are included in a Registration Statement under this
        Agreement:

      

      (a) To
        the
        extent permitted by law, the Company will indemnify and hold harmless, the
        Subscriber, the directors, if any, of such Subscriber, the officers, if any,
        of
        such Subscriber, each person, if any, who controls the Subscriber within
        the
        meaning of the Securities Act or the Exchange Act (each, an “Indemnified
        Person”), against any losses, claims, damages, liabilities or expenses (joint or
        several) incurred (collectively, “Claims”) to which any of them may become
        subject under the Securities Act, the Exchange Act or otherwise, 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 contained in the Registration Statement
        or
        any post-effective amendment thereof or the omission or alleged omission
        to
        state therein a material fact required to be stated therein or necessary
        to make
        the statements therein not misleading, (ii) any untrue statement or alleged
        untrue statement of a material fact contained in any preliminary prospectus
        if
        used prior to the Subscription Date of such Registration Statement, or 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 the 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 Securities Act, the Exchange Act, any state securities
        law or
        any rule or regulation under the Securities Act, the Exchange Act or any
        state
        securities law (the matters in the foregoing clauses (i) through (iii) being
        collectively referred to as “Violations”). The Company shall reimburse the
        Subscriber, 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) shall not (i) apply to any Claims arising
        out of
        or based upon a Violation which occurs in reliance upon and in conformity
        with
        information furnished in writing to the Company by or on behalf of any
        Indemnified Person expressly for use in connection with the preparation of
        the
        Registration Statement or any such amendment thereof or supplement thereto,
        if
        such prospectus was timely made available by the Company pursuant to Section
        3(b) hereof; (ii) with respect to any preliminary prospectus, inure to the
        benefit of any such person from whom the person asserting any such Claim
        purchased the Registrable Securities that are the subject thereof (or to
        the
        benefit of any person controlling such person) if the untrue statement or
        omission of material fact contained in the preliminary prospectus was corrected
        in the prospectus, as then amended or supplemented, if such prospectus was
        timely made available by the Company pursuant to Section 3(b) hereof; (iii)
        be
        available to the extent such Claim is based on a failure of the Subscriber
        to
        deliver or cause to be delivered the prospectus made available by the Company;
        or (iv) apply to 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. The Subscriber will indemnify the Company,
        its
        officers, directors and agents (including legal counsel) against any claims
        arising out of or based upon a Violation which occurs in reliance upon and
        in
        conformity with information furnished in writing to the Company, by or on
        behalf
        of such Subscriber, expressly for use in connection with the preparation
        of the
        Registration Statement, subject to such limitations and conditions set forth
        in
        the previous sentence. Such indemnity shall remain in full force and effect
        regardless of any investigation made by or on behalf of the Indemnified Person
        or Indemnified Party.

      

      (b) Promptly
        after receipt by an Indemnified Person under this Section 6 of notice of
        the
        commencement of any action (including any governmental action), such Indemnified
        Person 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, as the case may be; provided,
        however,
        that an
        Indemnified Person shall have the right to retain its own counsel with the
        reasonable fees and expenses to be paid by the indemnifying party, if, in
        the
        reasonable opinion of counsel retained by the indemnifying party, the
        representation by such counsel of the Indemnified Person and the indemnifying
        party would be inappropriate due to actual or potential differing interests
        between such Indemnified Person and any other party represented by such counsel
        in such proceeding. In such event, the Company shall pay for only one separate
        legal counsel for the Subscriber selected by the Subscriber. 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 under this Section 6, except to the extent
        that the indemnifying party is prejudiced in its ability to defend such action.
        The indemnification required by this Section 6 shall be made by periodic
        payments of the amount thereof during the course of the investigation or
        defense, as such expense, loss, damage or liability is incurred and is due
        and
        payable.

      

      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
        (a) 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; (b) no seller of Registrable Securities guilty of fraudulent
        misrepresentation (within the meaning of Section 11(f) of the Securities
        Act)
        shall be entitled to contribution from any seller of Registrable Securities
        who
        was not guilty of such fraudulent misrepresentation; and (c) 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.

      

      8. Reports
        under Exchange Act.
        With a
        view to making available to the Investor the benefits of Rule 144 promulgated
        under the Securities 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”), the Company agrees to use its
        reasonable best efforts 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 Exchange Act;

      

      (c) furnish
        to the Investor so long as the Investor owns Registrable Securities, promptly
        upon request, (i) a written statement by the Company that it has complied
        with
        the reporting requirements of Rule 144, the Securities Act and the Exchange
        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 solely if unavailable
        by EDGAR, and (iii) such other information as may be reasonably requested
        to
        permit the Investors to sell such securities pursuant to Rule 144 without
        registration; and 

      

      (d)
         at
        the
        request of any Investor of Registrable Securities, give its Transfer Agent
        irrevocable instructions (supported by an opinion of Company counsel, if
        required or requested by the Transfer Agent) to the effect that, upon the
        Transfer Agent’s receipt from such Investor of:

      

      (i)
        a
        certificate (a “Rule 144 Certificate”) certifying (A) that such Investor has
        held the shares of Registrable Securities which the Investor proposes to
        sell
        (the “Securities Being Sold”) for a period of not less than (1) year and (B) as
        to such other matters as may be appropriate in accordance with Rule 144 under
        the Securities Act, and 

      

      (ii)
        an
        opinion of counsel acceptable to the Company (for which purposes it is agreed
        that the initial Investor’s Counsel shall be deemed acceptable if such opinion
        is not given by Company Counsel) that, based on the Rule 144 Certificate,
        Securities Being Sold may be sold pursuant to the provisions of Rule 144,
        even
        in the absence of an effective Registration Statement, 

      

      the
        Transfer Agent is to effect the transfer of the Securities Being Sold and
        issue
        to the buyer(s) or transferee(s) thereof one or more stock certificates
        representing the transferred Securities Being Sold without any restrictive
        legend and without recording any restrictions on the transferability of such
        shares on the Transfer Agent’s books and records (except to the extent any such
        legend or restriction results from facts other than the identity of the
        Investor, as the seller or transferor thereof, or the status, including any
        relevant legends or restrictions, of the shares of the Securities Being Sold
        while held by the Investor). If the Transfer Agent requires any additional
        documentation at the time of the transfer, the Company shall deliver or cause
        to
        be delivered all such reasonable additional documentation as may be necessary
        to
        effectuate the issuance of an unlegended certificate.

      

      9. Miscellaneous.

      

      (a) Registered
        Owners.
        A person
        or entity is deemed to be a holder of Registrable Securities whenever such
        person or entity owns of record such Registrable Securities. If the Company
        receives conflicting instructions, notices or elections from two or more
        persons
        or entities with respect to the same Registrable Securities, the Company
        shall
        act upon the basis of instructions, notice or election received from the
        registered owner of such Registrable Securities.

      

      (b) Rights
        Cumulative; Waivers.
        The
        rights of each of the parties under this Agreement are cumulative. The rights
        of
        each of the parties hereunder shall not be capable of being waived or varied
        other than by an express waiver or variation in writing. Any failure to exercise
        or any delay in exercising any of such rights shall not operate as a waiver
        or
        variation of that or any other such right. Any defective or partial exercise
        of
        any of such rights shall not preclude any other or further exercise of that
        or
        any other such right. No act or course of conduct or negotiation on the part
        of
        any party shall in any way preclude such party from exercising any such right
        or
        constitute a suspension or any variation of any such right.

      

      (c) Benefit;
        Successors Bound.
        This
        Agreement and the terms, covenants, conditions, provisions, obligations,
        undertakings, rights, and benefits hereof, shall be binding upon, and shall
        inure to the benefit of, the undersigned parties and their heirs, executors,
        administrators, representatives, successors, and permitted assigns.

      

      (d) Entire
        Agreement.
        This
        Agreement contains the entire agreement between the parties with respect
        to the
        subject matter hereof. There are no promises, agreements, conditions,
        undertakings, understandings, warranties, covenants or representations, oral
        or
        written, express or implied, between them with respect to this Agreement
        or the
        matters described in this Agreement, except as set forth in this Agreement
        and
        in the other documentation relating to the transactions contemplated by this
        Agreement. Any such negotiations, promises, or understandings shall not be
        used
        to interpret or constitute this Agreement.

      

      (e) Amendment.
        Any
        provision of this Agreement may be amended and the observance thereof may
        be
        waived (either generally or in a particular instance and either retroactively
        or
        prospectively), only with the written consent of the Company and Subscriber.
        Any
        amendment or waiver effected in accordance with this Section 9 shall be binding
        upon the Company and any subsequent Transferees.

      

      (f) Severability.
        Each
        part of this Agreement is intended to be severable. In the event that any
        provision of this Agreement is found by any court or other authority of
        competent jurisdiction to be illegal or unenforceable, such provision shall
        be
        severed or modified to the extent necessary to render it enforceable and
        as so
        severed or modified, this Agreement shall continue in full force and
        effect.

      

      (g) Notices.
        Notices
        required or permitted to be given hereunder shall be in writing and shall
        be
        deemed to be sufficiently given when personally delivered (by hand, by courier,
        by telephone line facsimile transmission, receipt confirmed, or other means)
        or
        sent by certified mail, return receipt requested, properly addressed and
        with
        proper postage pre-paid (i) if to the Company, at its executive office and
        (ii)
        if to the Subscriber, at the address set forth under its name in the Purchase
        Agreement, with a copy to its designated attorney, or at such other address
        as
        each such party furnishes by notice given in accordance with this Section
        9(a),
        and shall be effective, when personally delivered, upon receipt and, when
        so
        sent by certified mail, five (5) business days after deposit with the United
        States Postal Service.

      

      (h) Governing
        Law; Jurisdiction.
        This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the State of New York without regard to the principles of conflicts of law.
        Each
        of the Company and Investor hereby submit to the exclusive jurisdiction of
        the
        United States Federal and state courts located in New York with respect to
        any
        dispute arising under this Agreement, the agreements entered into in connection
        herewith or the transactions contemplated hereby or thereby. 

      

      (i) Jury
        Trial Waiver. The
        Company and the Investor hereby waive a trial by jury in any action, proceeding
        or counterclaim brought by either of the parties hereto against the other
        in
        respect of any matter arising out of or in connection with the Transaction
        Documents.

       

      (j) Consents.
        The
        person signing this Agreement on behalf of each party hereby represents and
        warrants that he has the necessary power, consent and authority to execute
        and
        deliver this Agreement on behalf of that party.

      

      (k) Further
        Assurances.
        In
        addition to the instruments and documents to be made, executed and delivered
        pursuant to this Agreement, the parties hereto agree to make, execute and
        deliver or cause to be made, executed and delivered, to the requesting party
        such other instruments and to take such other actions as the requesting party
        may reasonably require to carry out the terms of this Agreement and the
        transactions contemplated hereby.

      

      (l) Section
        Headings.
        The
        Section headings in this Agreement are for reference purposes only and shall
        not
        affect in any way the meaning or interpretation of this Agreement.

      

      (m) Construction.
        Unless
        the context otherwise requires, when used herein, the singular shall be deemed
        to include the plural, the plural shall be deemed to include each of the
        singular, and pronouns of one or no gender shall be deemed to include the
        equivalent pronoun of the other or no gender.

      

      (n) Execution
        in Counterparts.
        This
        Agreement may be executed in two or more 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 telephone line facsimile transmission of a copy of this Agreement
        bearing the signature of the party so delivering this Agreement. A facsimile
        transmission of this signed Agreement shall be legal and binding on all parties
        hereto.

      

      

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF,
        the
        parties have caused this Agreement to be duly executed by their respective
        officers thereunto duly authorized as of the day and year first above
        written.

      

      COMPANY:

      

      EAGLE
        BROADBAND, INC.

       

      

      By:___/s/
        David Micek________________________

      Name:
        David Micek

      Title:
        President and CEO

      

      

      

      SUBSCRIBER:

      

      BRITTANY
        CAPITAL MANAGEMENT LIMITED

      

      

      By:___/s/
        Barry W. Herman____________________

      Name:
        Barry W. Herman

      Title:
        Director

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