Document:

SATISFACTION
      AND PURCHASE AGREEMENT

     

    THIS
      SATISFACTION AND PURCHASE AGREEMENT (this “Agreement”)
      is
      made as of the 28th day of April, 2006 and effective as of January 1, 2006
      (the
“Effective
      Date”)
      by and
      between Dyadic
      International, Inc.,
      a
      Delaware, USA corporation (“Dyadic
      Parent”),
      its
      wholly-owned subsidiary, Geneva Investment Holdings Limited, a British Virgin
      Islands corporation (“Geneva”)
      and
      its majority owned subsidiary, Puridet (Asia) Limited, a Hong Kong corporation
      (the “A-Subsidiary”
and
      together with Dyadic Parent and Geneva, the “Dyadic
      Parties”),
      Robert Albert Smeaton (“Smeaton”)
      and
      Raymond Tsang (“Tsang”).
      The
      Dyadic Parties, Smeaton and Tsang are sometimes hereinafter collectively
      referred to as the “Parties”
and
      individually as a “Party.”
      Certain capitalized terms not expressly defined elsewhere herein are defined
      in
      the glossary appearing in Article V hereof.

     

    RECITALS:

     

    A. Geneva,
      the Subsidiary and Smeaton are parties to that certain Agreement dated October
      21, 1998 with Raymond Chih Chung Kwong (“Kwong”)
      pertaining to Geneva’s purchase of a majority of the A-Subsidiary’s issued and
      outstanding shares of capital stock from Smeaton and Kwong (the “First
      Stock Purchase Agreement”). 

     

    B. As
      of the
      date of this Agreement, the 200 issued and outstanding shares of the
      A-Subsidiary are owned 82.5% by Geneva, 12.5% by Smeaton and 5.0% by Tsang
      (the
      share of the A-Subsidiary owned by Smeaton and Tsang beings sometimes
      hereinafter collectively referred to as the “Subsidiary
      Minority Shares”).

     

    C. Under
      the
      terms of the First Stock Purchase Agreement, Smeaton is owed $405,000 as the
      unpaid balance of the purchase price due him from Geneva for the shares of
      the
      A-Subsidiary stock Geneva purchased from him upon the occurrence of certain
      events which have not yet obtained (the “Unpaid
      Purchase Price Obligation”),
      and
      the Parties wish to satisfy in full the Unpaid Purchase Price Obligation to
      Smeaton by providing for the payment to him of the sum of $405,000 (the
“Settlement
      Amount”).

     

    D. Smeaton
      and Tsang have each made loans to the A-Subsidiary, the current unpaid principal
      and interest owed by the A-Subsidiary hereunder being, as of the Effective
      Date,
      $122,846 of principal and $ 49,901 of interest in the case of Smeaton (the
      “Smeaton
      Loan Balance”)
      and
      $49,139 of principal and $19,968 of interest in the case of Tsang (the
“Tsang
      Loan Balance”
and
      together with the Smeaton Loan Balance, collectively, the “Loan
      Balances”).

     

    E. Geneva
      wishes to purchase from Smeaton and Tsang, all of the A-Subsidiary Minority
      Shares in consideration for $109,390 in the case of Smeaton (the “Smeaton
      Minority Share Purchase Price Amount”)
      and
      $43,756, in the case of Tsang (the “Tsang
      Minority Share Purchase Price Amount”
and
      together with the Smeaton Redemption Amount, the “Minority
      Share Purchase Price Amounts”).

     

    F. The
      Dyadic Parties wish to pay the aggregates sum of the Settlement Amount, the
      Loan
      Balances and the Minority Share Purchase Price Amounts (such aggregate sum
      being
      sometimes hereinafter collectively referred to as the “Total
      Payment Amount”)
      partially in the form of cash and partially in the form of shares of Common
      Stock of Dyadic Parent (the “Parent
      Shares”),
      all
      upon and subject to the terms and conditions of this Agreement.

     

    G. Smeaton
      wishes to settle the Unpaid Purchase Price Obligation with the Dyadic Parties,
      each of Smeaton and Tsang wish to receive payment in full of their respective
      Loan Balances and each of 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Smeaton
      and Tsang wish to sell all of their A-Subsidiary Minority Shares to Geneva,
      for
      an aggregate consideration in the amount of the Total Payment Amount, by
      accepting payment thereof partially in immediately available funds and partially
      in Parent Shares, all upon and subject to the terms and conditions of this
      Agreement, provided
      that:
      (i) the
      payments of the Settlement Amount and the Minority Share Purchase Price Amounts,
      whether in the form of cash or in the form of Parent Shares, shall be for the
      account of Geneva only (and Geneva and Dyadic Parent have agreed that the that
      to the extent that Dyadic Parent pays the Settlement Amount and the Minority
      Share Purchase Price Amounts, an inter-company loan from Dyadic Parent to Geneva
      shall be deemed to be created on such terms as Geneva and Dyadic Parent may
      agree upon; and (ii) payment of the Loan Balances shall be made by Dyadic Parent
      and shall be deemed to give rise to a loan bearing the lowest rate of interest
      permitted by applicable US and Hong Kong laws by Dyadic Parent to the
      A-Subsidiary, payable upon demand.

     

    H. References
      to $ means United States dollars.

     

    AGREEMENT:

     

    NOW
      THEREFORE, in consideration of the foregoing Recitals (which are incorporated
      into this Agreement and made a part hereof), the covenants and agreements of
      the
      Parties herein below set forth and other good and valuable consideration, the
      receipt and sufficiency of which the Parties hereby each mutually acknowledge,
      the Parties, for themselves and their respective successors and assigns, agree
      as follows:

     

    ARTICLE
      I

     

    SETTLEMENT
      OF UNPAID PURCHASE PRICE, PAYMENT OF LOAN BALANCES AND PURCHASE OF SUBSIDIARY
      MINORITY SHARES

     

    1.1 Settlement
      of Unpaid Purchase Price and Termination of First Stock Purchase
      Agreement

     

    For
      and
      in full satisfaction of all of the obligations of the Dyadic Parties to Smeaton
      arising under and created by the First Stock Purchase Agreement, including
      by
      way of illustration, and not in limitation, the Unpaid Purchase Price
      Obligation, within five (5) days following the execution and delivery of this
      Agreement by the Parties, Geneva shall pay or cause to be paid to Smeaton the
      Settlement Amount ($405,000), which Settlement Amount is a part of and included
      in the Total Payment Amount, to be paid as provided in Section 1.4 hereof.
      Following Smeaton’s receipt of the Total Purchase Price, each of the Dyadic
      Parties, on the one hand, and Smeaton, on the other hand, expressly acknowledges
      and agree that as of the Effective Date, all of the rights and all of the
      obligations of the Dyadic Parties and Smeaton owing to the other created by
      or
      arising under the First Stock Purchase Agreement are satisfied in
      full.

     

    1.2 Payment
      of Loan Balances

     

    For
      and
      in full satisfaction of the entirety of the Smeaton Loan Balance owed Smeaton
      as
      of the Effective Date ($172,747), and for and in full satisfaction of the
      entirety of the Tsang Loan Balance owed Tsang as of the Effective Date
      ($69,107), within five (5) days following the execution and delivery of this
      Agreement by the Parties, Dyadic Parent shall lend the A-Subsidiary an amount
      sufficient to enable the Subsidiary to pay, and immediately thereupon, the
      A-Subsidiary shall remit, to Smeaton the Smeaton Loan Balance, and to Tsang,
      the
      Tsang Loan Balance, which sums are a part of and included in the Total Payment
      Amount, to be paid as provided in Section 1.4 hereof.

     

    1.3 Purchase
      and Sale of Subsidiary Minority Shares

     

    Each
      of
      Smeaton and Tsang, as legal and beneficial owners, hereby sell to Geneva, and
      Geneva hereby purchases from Smeaton and Tsang, all of the Subsidiary Minority
      Shares owned by them, free and clear of all encumbrances or third party rights
      or claims of any nature whatsoever, in consideration for, in the case of
      Smeaton, the Smeaton 

     

    Minority
      Redemption Amount ($109,390), and in the case of Tsang, the Tsang Minority
      Redemption Amount ($43,756), which Aggregate Subsidiary Minority Share Purchase
      Price are a part of and included in the Total Payment Amount, to be paid as
      provided in Section 1.4 hereof. Concurrently with the execution and delivery
      of
      this Agreement, each of Smeaton and Tsang shall deliver to Geneva at the offices
      of its legal counsel, Gavin Nesbitt, Esq., Deacons, 5th
      Floor
      Alexandria House, 18 Charter Road, Central, Hong Kong DX-009010 Central 1:
      (i)
      instruments of transfer of the Subsidiary Minority Shares to Geneva; (ii) share
      certificates evidencing all of the Subsidiary Minority Shares; and (iii) sold
      notes in respect of the sale of the Subsidiary Minority Shares. The Dyadic
      Parties shall pay the entire ad valorem stamp duty on the purchase and sale
      of
      all of the Subsidiary Minority Shares. The Dyadic Parties expressly agree that
      the Chief Financial Officer of Dyadic-Parent, Mr. Wayne Moor, shall sign the
      instruments of transfer and bought notes on behalf of Geneva, as
      required.

    
      
         

      

      
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    1.4 Dyadic
      Parties Payment of Total Payment Amount

     

    The
      Total
      Payment Amount shall be paid by Dyadic Parent and\or Geneva as follows: (a)
      by
      the wire transfers of Dyadic Parent and\or Geneva immediately available funds
      to
      each of Smeaton and Tsang in the aggregate amount of $375,000 (the “Total
      Cash Amount”),
      $325,000 to Smeaton and $50,000 to Tsang, within one (1) business day following
      the execution and delivery of this Agreement by the Parties; and (b) by Dyadic
      Parent’s delivery of an irrevocable letter of direction to its stock transfer
      agent to issue 212,501 Parent Shares (the “Total
      Share Amount”),
      181,069 Parent Shares to Smeaton, and 31,432 Parent Shares to Tsang.

     

    1.5 Mutual
      General Releases of Smeaton and Dyadic Parties

     

    (a) Smeaton,
      for himself and his estate, personal representatives, assigns and
      successors-in-interest (each a “Smeaton
      Releasor”),
      hereby releases and discharges each of the Dyadic Parties and their respective
      shareholders, directors, officers, employees, agents, successors and assigns
      (each a “Dyadic
      Released Party”)
      of and
      from any and all claims or liabilities of any kind whatsoever, whether or not
      by
      contract and whether or not in law or in equity, which any Smeaton Releasor
      ever
      had, may now have or could ever have, or may have, known or unknown, accrued
      or
      unaccrued, fixed or contingent, in existence on the Effective Date, against
      any
      Dyadic Released Party, for or upon any matter, cause or thing relating to or
      connected in any manner with anything in existence on the Effective Date,
except:
      (i) any
      obligations and liabilities of the A-Subsidiary to Smeaton arising by reason
      of
      his employment by the A-Subsidiary or under the that certain real estate lease
      dated November 3, 2005 by and between Smeaton and the A-Subsidiary (The
“Smeaton
      Lease”);
      (ii)
      all obligations and liabilities of Dyadic Parent to Smeaton in respect of Parent
      Shares acquired by him pursuant to all other subscription agreements between
      Dyadic Parent and Smeaton pertaining to his prior purchase of Parent Shares;
      and
      (iii) any obligations and liabilities of the Dyadic Parties to Smeaton created
      by the provisions of this Agreement.

     

    (b) Each
      of
      the Dyadic Parties, for themselves and their respective shareholders, directors,
      officers, employees, agents, successors and assigns (each a “Dyadic
      Releasor”),
      hereby releases and discharges each of Smeaton and his estate, personal
      representatives, assigns and successors-in-interest (each a “Smeaton
      Released Party),
      of and
      from any and all, claims or liabilities of any kind whatsoever, whether or
      not
      by contract and whether or not in law or in equity, which any Dyadic Releasor
      ever had, may now have or could ever have, or may have, known or unknown,
      accrued or unaccrued, fixed or contingent, in existence on the Effective Date,
      against any Smeaton Released Party, for or upon any matter, cause or thing
      relating to or connected in any manner with anything in existence on the
      Effective Date, except:
      (i) any
      obligations and liabilities of Smeaton to the A-Subsidiary by reason of his
      employment by the A-Subsidiary or the terms of the Smeaton Lease; (ii) all
      obligations and liabilities of Smeaton to Dyadic Parent in respect of Parent
      Shares acquired by him pursuant to all other subscription 

     

    (c) agreements
      between Dyadic Parent and Smeaton pertaining to his prior purchase of Parent
      Shares; and (iii) any obligations and liabilities of Smeaton to the Dyadic
      Parties created by the provisions of this Agreement.

     

    1.6 Mutual
      General Releases of Tsang and Dyadic Parties

     

    (a) Tsang,
      for himself and his estate, personal representatives, assigns and
      successors-in-interest (each a “Tsang
      Releasor”),
      hereby releases and discharges each Dyadic Released Party of and from any and
      all, claims or liabilities of any kind whatsoever, whether or not by contract
      and whether or not in law or in equity, which any Tsang Releasor ever had,
      may
      now have or could ever have, or may have, known or unknown, accrued or
      unaccrued, fixed or contingent, in existence on the Effective Date, against
      any
      Dyadic Released Party, for or upon any matter, cause or thing relating to or
      connected in any manner with anything in existence on the Effective Date,
except:
      (i) any
      obligations and liabilities of the A-Subsidiary to Tsang arising by reason
      of
      his employment by the A-Subsidiary; and (ii) any obligations and liabilities
      of
      the Dyadic Parties to Tsang created by the provisions of this
      Agreement.

     

    (b) Each
      Dyadic Releasor hereby releases and discharges each of Tsang and his estate,
      personal representatives, assigns and successors-in-interest (each a
“Tsang
      Released Party),
      of and
      from any and all, claims or liabilities of any kind whatsoever, whether or
      not
      by contract and whether or not in law or in equity, which any Dyadic Releasor
      ever had, may now have or could ever have, or may have, known or unknown,
      accrued or unaccrued, fixed or contingent, in existence on the Effective Date,
      against any Tsang Released Party, for or upon any matter, cause or thing
      relating to or connected in any manner with anything in existence on the
      Effective Date, except:
      (i) any
      obligations and liabilities of Tsang to the A-Subsidiary by reason of his
      employment by the A-Subsidiary; and (ii) any obligations and liabilities of
      Tsang to the Dyadic Parties created by the provisions of this
      Agreement.

     

    
      
         

      

      
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    ARTICLE
      II

     

    ISSUANCE
      OF PARENT SHARES TO SMEATON AND TSANG

     

    2.1 Purchase
      and Sale of Parent Shares

     

    Pursuant
      to the provisions of Section 1.4 hereof, but subject to the provisions of this
      Article II and the restrictions imposed by applicable US securities laws, as
      set
      forth in Section 3.3 hereof: (a) Smeaton hereby purchases from Dyadic Parent,
      and Dyadic Parent hereby sells to Smeaton 181,069 Parent Shares; and (b) Tsang
      hereby purchases from Dyadic Parent, and Dyadic Parent hereby sells to Tsang
      31,432 Parent Shares.

     

    2.2 Smeaton
      and Tsang Securities Representations and Warranties

     

    In
      connection with Smeaton’s and Tsang’s purchase of the Parent Shares, they each
      hereby severally, and not jointly and severally, make
      the
      following representations and warranties to the Dyadic Parties:

     

    (a) each
      has
      such knowledge and experience in financial and business matters in general
      and
      with respect to businesses of a nature similar to Dyadic Parent so as to be
      capable of evaluating the merits and risks of, and making an informed business
      decision with respect to, the acquisition of the Parent Shares;

     

    (b) each
      is
      acquiring the Parent Shares solely for its own account and not with a view
      to or
      for resale in connection with any distribution or public offering thereof,
      within the meaning of any applicable securities laws and regulations, unless
      such distribution or offering is registered under the Securities Act of 1933,
      as
      amended (the “Securities Act”), or an exemption from such registration is
      available;

     

    (c) each
      (i) has received all the information it has deemed necessary to make an
      informed investment decision with respect to an acquisition of the Parent
      Shares; (ii) understands that Dyadic Parent is subject to the reporting
      requirements of the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”), and has had the opportunity to review all publicly available filings made
      by Dyadic Parent with the Securities and Exchange Commission (the “SEC”)
      pursuant to either the Securities Act or the Exchange Act; (iii) has had
      the unrestricted opportunity to make such investigation as it has desired
      pertaining to Dyadic Parent and the acquisition of the Parent Shares and to
      verify the information that is, and has been, available to Smeaton and Tsang;
      and (iv) has had the opportunity to ask questions of Dyadic Parent
      concerning Dyadic Parent;

     

    (d) each
      is
      an
“accredited investor” within the meaning of the Securities Act, is able to bear
      the economic risk of its investment in the Parent Shares for an indefinite
      period of time;

     

    (e) each
      has
      received no public solicitation or advertisement with respect to the Parent
      Shares; and

     

    (f) each
      understands that the Parent Shares are "restricted securities" as that term
      is
      defined in Rule 144 promulgated by the SEC under the Securities Act, the resale
      of these Parent Shares is restricted by federal and state securities laws and,
      accordingly, the Parent Shares must be held indefinitely unless their resale
      is
      subsequently registered under the Securities Act, effectuated pursuant to Rule
      144, or Dyadic Parent receives an opinion of counsel acceptable to Dyadic Parent
      or another exemption from such registration is available for their
      resale.

     

    2.3 Restrictions
      on Transfer of Parent Shares

     

    Each
      of
      Smeaton and Tsang acknowledges and consents that certificates now or hereafter
      issued for the Parent Shares shall bear a legend with respect to the transfer
      restrictions under the Securities Act. Each of Smeaton and Tsang further agrees
      that if the Parent Shares or any portion thereof are subsequently transferred,
      he will execute, deliver and file all such papers, documents and instruments
      as
      may be required by the SEC and any applicable state securities commission to
      qualify the transfer for an exemption from registration under the Securities
      Act, or any applicable state securities laws, respectively, to the extent that
      such papers, documents and instruments may be necessary for such transfer.
      Each
      of Smeaton and Tsang also agrees to furnish Dyadic Parent with a copy of all
      such papers, documents and instruments, and, in addition, will furnish Dyadic
      Parent with any other information that 

    
      
         

      

      
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    Dyadic
      Parent may reasonably require to ensure that no subsequent transfer or
      disposition of the Parent Shares by Smeaton or Tsang, as the case may be, is
      in
      violation of the Securities Act or any applicable US state or Hong Kong
      securities laws. Each of Smeaton and Tsang further acknowledges that it is
      aware
      that stop-transfer instructions may be given to the transfer agent of the Parent
      Shares to prevent any illegal transfer of the Parent Shares. For purposes
      hereof, the term resale includes any transfer for value including the mortgage,
      pledge or hypothecation of such Parent Shares.

     

    2.4 Piggyback
      Registration Rights of Smeaton and Tsang. Smeaton and Tsang are
      hereby granted Dyadic Parent’s standard form piggyback registration rights,
      which are set forth in Exhibit A attached hereto and by this reference made
      a
      part hereof. 

     

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES OF THE PARTIES

           
      3.1 Dyadic
      Parties

     

    Each
      Dyadic Party, as regards itself, represents and warrants to Smeaton and Tsang
      that:

     

                                   
      (a)  it is a duly organized corporation validly existing under the laws of
      the state or country of its incorporation and has the requisite power and
      authority to enter into and carry out the terms of this Agreement; 

     

    (b) all
      corporate actions required to be taken by it to consummate this Agreement have
      been taken and no further approval of any board, court, or other body is
      necessary in order to permit it to consummate this Agreement; and

     

    (c) neither
      the execution and delivery of this Agreement, nor the performance or the
      compliance with this Agreement, has resulted (or will result) in any violation
      of, or be in conflict with, or invalidate, cancel, or make inoperative, or
      interfere with, or constitute a default under, any charter, bylaw, agreement,
      permit, judgment, decree or order, to which it is a party and there is no
      default and no event or omission has occurred which, but for the passing of
      time
      or the giving of notice, or both, would constitute a default on the part of
      any
      Party under this Agreement.

     

    Dyadic
      Parent represents and warrants to Smeaton and Tsang that the Parent Shares
      issued to each of Smeaton and Tsang have been duly authorized for issuance
      and
      sale, have been validly issued and are fully-paid and
      non-assessable.

     

    3.2 Smeaton
      and Tsang

     

    Each
      of
      Smeaton and Tsang, severally, and not jointly and severally, hereby represents
      and warrants to each of the Dyadic Parties that:

     

    (a) he
      has
      the full power, authority and legal capacity to enter into this Agreement,
      and
      to perform his obligations hereunder;

     

    (b) neither
      his execution and delivery of this Agreement, nor his performance of or
      compliance with the terms and provisions of this Agreement, has resulted (or
      will result) in any violation of, or be in conflict with, or invalidate, cancel,
      or make inoperative, or interfere with, or constitute a default under any
      agreement to which he is a party; 

     

    (c) upon
      his
      execution, delivery and performance of this Agreement, this Agreement shall
      be
      the valid and binding obligation of his, enforceable in accordance with its
      terms;

     

    (d) he
      is the
      record owner of, and has good and marketable title to, the Subsidiary Minority
      Shares he is selling to Geneva, free and clear of all encumbrances or third
      party rights or claims of any nature whatsoever;

     

    (e) since
      December 31, 2005, there has occurred no fact, event or circumstance which
      has
      had or would reasonably be expected to have a Material Adverse Effect on the
      business or operations of the A-Subsidiary and its Subsidiary;

     

    (f) the
      balance sheet of the A-Subsidiary and its Subsidiary as of December 31, 2005
      reflect all of the liabilities as of that date, and neither the A-Subsidiary
      nor
      its Subsidiary have any undisclosed liabilities of any kind
      whatsoever;

    
      
         

      

      
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    (g) the
      A-Subsidiary and its Subsidiary have paid all Taxes properly owed when due
      and
      timely filed all Tax Returns required to be filed;

     

    (h) neither
      A-Subsidiary nor its Subsidiary has made any illegal payments of any kind to
      any
      other Person for purposes of doing business with such Person, and to the
      knowledge of
      either
      of Smeaton or Tsang, employees of neither the A-Subsidiary nor its Subsidiary
      have received any illegal payment from any Person for purposes of doing business
      with the A-Subsidiary or its Subsidiary; 

     

    (i) each
      of
      the A-Subsidiary and its Subsidiary holds and is in compliance with all material
      permits, licenses, bonds, approvals, certificates, registrations, accreditations
      and other authorizations of all foreign, federal, state and local governmental
      agencies required for their conduct of their businesses and the ownership of
      their properties (including as the same relate to Environmental and Safety
      Requirements);

     

    (j) neither
      Smeaton nor Tsang is aware that any executive or key employee of the
      A-Subsidiary or its Subsidiary or any group of employees of the A-Subsidiary
      or
      its Subsidiary have any plans to terminate employment with the A-Subsidiary
      or
      its Subsidiary, as the case may be, and each of the A-Subsidiary and its
      Subsidiary have complied with all applicable laws, rules, and regulations
      relating to the employment of labor; and

     

    (k) except
      for the Smeaton Lease and the loans made by Smeaton and Tsang to the
      A-Subsidiary, there have been no contracts or transactions between the
      A-Subsidiary or its Subsidiary with Smeaton, Tsang or any of their
      Affiliates.

     

    ARTICLE
      IV

     

    INDEMNIFICATION

     

    4.1 Indemnification
      by Smeaton and Tsang.
      Smeaton
      and Tsang, severally, and not jointly and severally, for themselves and their
      respective personal representatives, successors and assigns hereby agrees to
      protect, indemnify and hold each of the Dyadic Parties harmless of and from
      all
      loss, damage and expense, including reasonable attorneys’ and accountants fees
      and costs of investigation (collectively, “Damages”)
      arising out of the breach by either or Smeaton or Tsang of any of their
      respective representations, warranties and covenants set forth in this
      Agreement, provided that: (a) any claim for Damages made by any Dyadic Party
      in
      respect thereof must be made within two (2) years following the Effective Date;
      and (b) the maximum liability of each of Smeaton and Tsang to the Dyadic Parties
      pursuant to the provisions of this Section 4.1 shall not exceed: (i) in the
      case
      of Smeaton, the Smeaton Minority Share Purchase Price Amount; and (ii) in the
      case of Tsang, the Tsang Minority Share Purchase Price Amount. 

     

    4.2 Indemnification
      by Geneva and Dyadic Parent.
      Geneva
      and Dyadic Parent, jointly and severally, hereby agree to protect, indemnify
      and
      hold each of Smeaton and Tsang harmless of and from all loss, damage and
      expense, including reasonable attorneys’ and accountants fees and costs of
      investigation (collectively, “Damages”)
      arising out of the breach by any Dyadic Party of its representations, warranties
      and covenants set forth in this Agreement, provided that : (a) any claim for
      Damages made by any Dyadic Party in respect thereof must be made within two
      (2)
      years following the Effective Date; and (b) the maximum liability of Geneva
      and
      Dyadic Parent pursuant to the provisions of this Section 4.2 is $425,002.

     

    ARTICLE
      V

     

    DEFINITIONS

     

    Capitalized
      terms not otherwise defined in this Agreement shall have the following
      meanings:

     

    
      (a) “Affiliate”
        means a
        Person or entity, which directly or indirectly, through one or more
        intermediaries, controls, is controlled by, or is under common control with
        the
        Party specified.

       

      (b) “Material
        Adverse Effect”
        means,
        with respect to any of the Dyadic Parties, as applicable, a material and
        adverse
        effect or development upon the business, assets, liabilities, financial
        condition, operating results, customer or supplier relations, employee
        relations, business prospects, cash flow or net worth of such Person and
        its
        Subsidiaries taken as a whole.

    

    
      
         

      

      
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    (c) “Person”
means
      an individual, a partnership, a joint venture, a corporation, a trust, an
      estate, an unincorporated organization or a government or any department or
      agency thereof. 

     

    (d) “Strategic
      Issuance”
means
      any issuance of Parent Shares (i) in connection with issuance of Parent Shares
      which are already the subject of an effective registration statement on file
      with the Securities and Exchange Commission on the date of this Agreement;
      (ii)
      a “corporate partnering” transaction or “strategic alliance,” as determined by
      the Board of Directors of Dyadic Parent, in good faith; (iii) in connection
      with
      any financing transaction in respect of which Dyadic Parent or any Affiliate
      is
      a borrower, or (iv) to a vendor, lender or customer of Dyadic Parent or any
      Affiliate, or a research, manufacturing or other commercial collaborator of
      Dyadic Parent or any Affiliate, in a transaction approved by the Board of
      Directors of Dyadic Parent in good faith.

     

    (e) “Subsidiary”
means,
      with respect to any Person, any corporation, partnership, limited liability
      company, association or other business entity of which (i) if a corporation,
      a
      majority of the total voting power of shares of stock entitled (irrespective
      of
      whether, at the time, stock of any other class or classes of such corporation
      shall have or might have voting power by reason of the happening of any
      contingency) to vote in the election of directors, managers or trustees thereof
      is at the time owned or controlled, directly or indirectly, by that Person
      or
      one or more of the other Subsidiaries of that Person or a combination thereof,
      or (ii) if a partnership, limited liability company, association or other
      business entity, either (A) a majority of the partnership or other similar
      ownership interest thereof is at the time owned or controlled, directly or
      indirectly, by that Person or one or more Subsidiaries of that Person or a
      combination thereof, or (B) such Person is a general partner, managing member
      or
      managing director of such partnership, limited liability company, association
      or
      other entity.

     

    (f) “Securities
      Act”
means
      the Securities Act of 1933, and regulations promulgated thereunder, as amended,
      or any similar federal law then in force.

     

    (g) “Tax”
      or
“Taxes”
      means
      any federal, state, local or foreign income, gross receipts, franchise,
      estimated, alternative minimum, add-on minimum, sales, use, transfer,
      registration, value added, excise, natural resources, severance, stamp,
      occupation, premium, windfall profit, environmental, customs, duties, real
      property, personal property, capital stock, social security, unemployment,
      disability, payroll, license, employee, withholding or other tax of any kind
      whatsoever, including any interest, penalties or additions to tax or additional
      amounts in respect of the foregoing, and “Tax
      Return”
means
      any report or filing required to be made to any governmental authority in
      respect of any obligation to pay Taxes or report with respect to the computation
      thereof.

    
       

      GENERAL

       

      5.2 Announcements

       

      Subject
        to any applicable statutory or regulatory rules, or otherwise as may be
        required, none of the Parties hereto shall make any public announcement in
        relation to the transactions the terms of which are set out in this Agreement or
        the transactions or arrangements hereby contemplated or herein referred to
        or
        any matter ancillary hereto or thereto without the prior consent of the other
        parties (which consent shall not be unreasonably withheld or
        delayed).

       

      5.3 Costs

       

      Each
        Party shall pay its own costs in relation to the negotiations leading up
        to the
        transactions which are the subject of this Agreement and the preparation,
        execution and carrying into effect of this Agreement. Notwithstanding anything
        herein provided, Smeaton and Tsang shall pay all ad valorem stamp duty on
        the
        sale of the Subsidiary Minority Shares, and the Dyadic Parties shall pay
        all ad
        valorem stamp duty on the purchase of the Parent Shares, as
        applicable.

       

      5.4 Further
        Assurances

       

      Each
        of
        the Parties undertakes to the other Parties that he or it will do all such
        acts
        and things and execute all such deeds and documents as may be necessary or
        desirable to carry into effect or to give legal effect to the provisions
        of this
        Agreement and the transactions hereby contemplated.

       

      
        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      

    

     

    
      5.5 Assignment

       

      Neither
        Smeaton nor Tsang shall assign or transfer, or purport to assign or transfer,
        any of their rights or obligations arising under this Agreement without the
        prior written consent of Dyadic Parent, in its absolute discretion,

    

    but
      any
      of the Dyadic Parties may assign or transfer all or any part of its rights
      and
      obligations arising under this Agreement to any Affiliate, except for the
      obligation of Dyadic Parent to issue the Parent Shares and observe its
      obligations to Smeaton and Tsang set forth in Article III hereof.

    5.6 Notices.
      

     

    (a) Any
      notices (which term shall include any other communication) required to be given
      under this Agreement or in connection with the matters contemplated by it shall,
      except where otherwise specifically provided, be in writing in the English
      language.

     

    (b) Any
      such
      notice shall be addressed as provided in Section 6.5(c) and may be:

     

    (i) personally
      delivered, in which case it shall be deemed to have been given upon delivery
      at
      the relevant address; or 

     

    (ii) sent
      by
      pre-paid post, in which case it shall be deemed to have been given 7 days after
      the date of posting; or 

     

    (iii) sent
      by
      facsimile, in which case it shall be deemed to have been given when dispatched,
      subject to confirmation of uninterrupted transmission by a transmission
      report.

     

    (c) The
      addresses and other details of the parties referred to in clause
      13.1(b):

     

    
      	
              Name:

              Address:

               

              Fax
                No.:

            	
              Robert
                Albert Smeaton

              Blocks
                C-D, 2nd
                Floor, G. Lee Industrial Building, 77-81

              Chai
                Wan Kok Street, New Territories, Hong Kong

              (852)
                2411-1669 

            
	
              Name:

              Address:

               

              Fax
                No.:

            	
              Raymond
                Tsang

              Blocks
                C-D, 2nd
                Floor, G. Lee Industrial Building, 77-81

              Chai
                Wan Kok Street, New Territories, Hong Kong

              (852)
                2411-1669

            
	
              Name:

              Address:

               

               

              Fax
                No.:

            	
              Geneva
                Investment Holdings Limited

              c/o
                Deacons

              5/F.,
                Alexandra House,

              18
                Chater Road, Central, Hong Kong

              (852)
                2810-0431

            
	
              Name:

              Address:

               

              Fax
                No.:

            	
              Dyadic
                International, Inc.

              140
                Intracoastal Pointe Drive, Suite 404

              Jupiter,
                Florida 33477-5094

              Attn:
                Mark A. Emalfarb, Chief Executive Officer

              (561)
                743-7667

            
	
              Name:

              Address:

               

              Fax
                No.:

            	
              A-Subsidiary

              Blocks
                C-D, 2nd
                Floor, G. Lee Industrial Building, 77-81

              Chai
                Wan Kok Street, New Territories, Hong Kong

              (852)
                2411-1669

            

    

    or
      to
      such other address as shall, from time to time, be supplied in writing by any
      party to the other. Notices shall be deemed given on the date actually received
      by the addressee.

     

    5.7 Time
      of the Essence

     

    Time
      shall be of the essence of this Agreement.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
       

      5.8 Governing
        Law

       

      This
        Agreement shall be governed by, and construed in accordance with, the laws of
        the Hong Kong Special Administrative Region.

    

     

    6.8 Dispute
      Resolution and Arbitration

     

    Except
      with respect to the enforcement of the covenants of Smeaton and Tsang set forth
      in Article IX hereof, as to which any Dyadic Party shall have the alternative
      right to elect to resort to any court of proper jurisdiction for the enforcement
      thereof and for relief in the form of any proper remedy that may be available
      thereunder, any dispute, controversy or claim arising out of or relating to
      this
      Agreement, or the breach termination or invalidity thereof, shall be settled
      by
      arbitration in accordance with the UNCITRAL Arbitration Rules as at present
      in
      force and as may be amended by the rest of this clause upon application by
      any
      party hereto to the Hong Kong International Arbitration Centre (“HKIAC”).
      The
      arbitration shall be conducted in the English language and the place of
      arbitration shall be in Hong Kong at the Hong Kong International Arbitration
      Centre. Any such arbitration shall be administered by HKIAC in accordance with
      HKIAC Procedures for Arbitration Rules as are therein contained. The decision
      of
      the arbitrators (by rule of majority) shall be final and binding on the parties
      (including any decision on their fees).

     

    6.9 Miscellaneous
      Provisions

     

    Whenever
      possible, each provision of this Agreement will be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of this
      Agreement is held to be invalid, illegal or unenforceable in any respect under
      any applicable law or rule in any jurisdiction, such invalidity, illegality
      or
      unenforceability will not affect any other provision or any other jurisdiction,
      but this Agreement will be reformed, construed and enforced in such jurisdiction
      as if such invalid, illegal or unenforceable provision had never been contained
      herein. This Agreement shall bind and inure to the benefit of the parties hereto
      and their respective successors and assigns.

     

    This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which, when taken together, shall constitute one and the
      same instrument. 

     

    This
      Agreement constitutes the whole agreement between the parties relating to the
      transactions hereby contemplated (no Party having relied on any representation
      or warranty made by any other Party which is not a term of this Agreement)
      and
      no future variation and/or waiver shall be effective unless made in writing
      and
      signed by each of the Parties. This Agreement shall supersede all and any
      previous agreements or arrangements between the Parties hereto or any of them
      relating to the A-Subsidiary or any other matter referred to in this Agreement
      and all or any such previous agreements or arrangements (if any ) shall cease
      and determine with effect from the date hereof, except for the Service Agreement
      between the A-Subsidiary and Smeaton dated October 21, 1998. 

     

    No
      change, modification or amendment of any provision of this Agreement shall
      be
      valid unless made in writing and signed by the Parties hereto; provided,
      however, that changes, modifications, or amendments to those provisions of
      this
      Agreement that apply only to a single Party need only be signed by that
      Party.

     

    The
      waiver by a Party of a breach of any provision of this Agreement by another
      Party shall not operate or be construed as a waiver of any subsequent breach
      by
      that other Party.

     

    The
      headings of this Agreement are inserted for convenience of reference only,
      and
      are not to be considered in the construction of the provisions hereof.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Parties hereto have executed this Agreement as of the date and year first above
      written.

     

    

      
        	
                DYADIC
                  INTERNATIONAL, INC.

              	
                GENEVA
                  INVESTMENT HOLDINGS LIMITED

              	
                PURIDET
                  (ASIA) LIMITED

              
	
                 

                 

                By:_____________________________

              	
                 

                 

                By:__________________________

              	
                 

                 

                By:_____________________________

              
	
                Name:
                  Mark A. Emalfarb

              	
                Name:
                  Mark A. Emalfarb

              	
                Name:
                  Mark A. Emalfarb

              
	
                Title:
                  Chief Executive Officer

              	
                Title:
                  President

              	
                Title:
                  Chief Executive Officer

              
	 	 	 
	 	 	 
	 	 	 
	
                ROBERT
                  A. SMEATON

              	
                RAYMOND
                  TSANG 

              	 
	
                 

                 

                _________________________

              	
                 

                 

                _______________________

              	 
	 	 	 

      

       

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    SMEATON
      AND TSANG PIGGYBACK REGISTRATION RIGHTS

     

    1. Notice
      of Registration of Dyadic Parent Securities

     

    Dyadic
      Parent hereby covenants and agrees that in the event it shall take action to
      register any of its securities under the Securities Act at any time during
      the
      two (2) year period following the Effective Date other than in the case of
      a
      registration being undertaken for the purpose of registering “Excluded
      Securities” (as hereinafter defined), Dyadic Parent shall give each of Smeaton
      and Tsang and any other Person that, as of that date, had been granted piggyback
      registration rights by Dyadic Parent comparable to the piggyback registration
      rights granted to Smeaton and Tsang in this Exhibit
      A
      (for
      purposes hereof, Smeaton and Tsang and all other such holders being hereinafter
      referred to as “Rightsholders”)
      written notice of Dyadic Parent’s intention to take that action (the
“Registration
      Notice”).

     

    2. Smeaton/Tsang
      Piggyback Rights

     

    Smeaton
      and Tsang (together with all other Rightsholders) shall have the right,
      exercisable by written notice to Dyadic Parent within forty-five (45) days
      following receipt of the Registration Notice from Dyadic Parent, to request
      the
      inclusion of all or such portion of the Parent Shares issued to them pursuant
      to
      this Agreement (and any additional Parent Shares which may be issued to them
      in
      respect thereof by way of stock split, stock dividend or otherwise) as either
      or
      both of Smeaton and Tsang may elect in such registration, at the expense of
      the
      Dyadic Parent (other than the commission costs of selling all such Parent
      Shares). 

     

    3. Registration
      Process

     

    .Dyadic
      Parent shall, subject to the provisions of this Exhibit
      A,
      thereupon use its commercially reasonable efforts to (i) effect the registration
      of Smeaton’s and\or Tsang’s Parent Shares to the end that such registration
      under the Securities Act shall become and remain effective, (ii) cause any
      underwriting agreement relating to Dyadic Parent's securities to provide that
      Smeaton and\or Tsang shall have the right to sell his or their Parent Shares
      to
      the underwriters and that the underwriters shall purchase the Parent Shares
      at
      the price paid by the underwriters for the securities sold by Dyadic Parent,
      and
      (iii) keep each of Smeaton and Tsang advised in writing as to the initiation
      of
      each registration and as to the completion thereof, (iv) furnish such number
      of
      the registration statement and the prospectus included therein, including
      preliminary prospectuses and other documents incident thereto as Smeaton and
      Tsang from time to time may reasonably request, and (v) cause all Parent Shares
      covered by such registrations to be listed on each securities exchange on which
      similar securities issued Dyadic Parent are listed, provided that: 

     

    (a) each
      of
      Smeaton and Tsang shall have timely executed and delivered the usual and
      customary agreement between Dyadic Parent, Smeaton, and\or Tsang (as the case
      may be) and the underwriters relating to the registration; 

     

    (b) in
      no
      event shall Dyadic Parent be required to keep up to date or to supplement any
      prospectus more than nine (9) months after the effective date of the
      registration statement of which such prospectus is a part; and

    (c) if
      the
      registration contemplated by the Registration Notice consists of an underwritten
      offer and sale by Dyadic Parent for its own account of Dyadic Parent securities
      to be registered under the Securities Act, and the managing underwriters advise
      Dyadic Parent in writing that in their opinion the offering contemplated by
      the
      Registration Notice cannot be successfully completed if Dyadic Parent were
      to
      also register all of the “Registrable Shares” (as defined below) requested to be
      included in such registration by the Rightsholders, then Dyadic Parent will
      include in that registration: (i) first, any securities Dyadic Parent proposes
      to sell as contemplated by the Registration Notice, and (ii) second, that
      portion of the aggregate number of Parent Shares held by Smeaton and Tsang
      pursuant to Section 2 hereof and all other Rightsholders (collectively, the
      “Registrable
      Shares”),
      which
      in the opinion of such managing underwriters can successfully be sold, such
      number of Registrable Shares to be taken pro rata from the then Rightsholders
      on
      the basis of the total number of Registrable Shares then held by each of them,
      with further like pro rata allocations among the Rightsholders of Registrable
      Shares in the event that any Rightsholder has requested registration of less
      than all of the Registrable Shares then held by such Rightsholder.

     

    4. Excluded
      Securities

     

    As
      used
      herein, the term “Excluded
      Securities”
shall
      mean securities of Dyadic Parent issued: (i) pursuant to a stock option or
      other
      compensatory equity compensation plan being maintained by Dyadic Parent for
      employees, directors or other consultants to Dyadic Parent and its Affiliates;
      (ii) for the purpose of effecting an acquisition by Dyadic Parent of (or the
      procurement by Dyadic Parent of the right to acquire) another Person, by merger,
      purchase of all or substantially all of the assets of such other Person or
      by
      other reorganization whereby Dyadic Parent ends up owning or will have the
      right
      to acquire, directly or indirectly, more than 50% of the voting power of such
      other Person; or (iii) pursuant to any Strategic Issuance. 

    
      
         

      

      
        11Exhibit 10.16

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

     

    This
      Amended and Restated Employment Agreement (“Agreement”) is entered into by Eagle
      Broadband, Inc. (“Company”) and Richard H. Sanger, Jr. (“Employee”), to be
      effective as of April 27, 2006 (the “Effective Date”).

     

    WITNESSETH:

     

    WHEREAS,
      Employee has been employed by Company since July 21, 2004; and

     

    WHEREAS,
      the
      Company desires to continue to employ Employee from and after the Effective
      Date
      pursuant to the terms and conditions and for the consideration set forth in
      this
      Agreement, and Employee desires to continue to be employed by Company pursuant
      to such terms and conditions and for such consideration.

     

    NOW,
      THEREFORE,
      for and
      in consideration of the mutual promises, covenants, and obligations contained
      herein, the Company and Employee agree as follows:

     

    ARTICLE
      1:  

     

    EMPLOYMENT
      AND DUTIES

     

    1.1  The
      Company agrees to employ Employee, and Employee agrees to be employed by the
      Company, beginning as of the Effective Date and continuing until the date of
      termination of Employee’s employment (“Termination Date”) or the expiration of
      this Agreement by its terms at the end of the Term and any renewals thereof
      (“Expiration Date”), subject to the terms and conditions of this Agreement. The
“Employment Period,” as used herein, shall mean the period commencing on the
      Effective Date, and ending on the earlier of the Termination Date or the
      Expiration Date. The “Term,” as used herein, shall mean the period commencing on
      the Effective Date, and expiring on July 21, 2010.

     

    (a)  At
      least
      thirty (30) days prior to the expiration of the Term (and each mutually agreed
      to extension thereof), the Board of Directors of the Company (the “Board”) shall
      notify the Employee, in writing pursuant to Section 5.1, of the Board’s desire
      to continue Employee’s employment beyond the end of the Term (or any mutually
      agreed to extension thereof). If the Board desires to retain the Employee,
      then
      the parties shall amend this agreement to extend the Employment Period for
      an
      additional two (2) year period (“Extension Period”), and the Term (or any
      mutually agreed to extension thereof) shall be extended for an additional two
      (2) years, or a new employment agreement (on substantially the same terms as
      this Agreement) shall be negotiated, prepared, and put into effect prior to
      the
      end of the Term (or any mutually agreed to extension thereof); however if the
      parties cannot agree to the terms of a new agreement by the expiration of the
      Term (or any mutually agreed to extension thereof), then Employee’s employment
      shall terminate at the end of the Term (or any mutually agreed to extension
      thereof), and shall be subject to Section 3.2(b).

     

    (b)  For
      the
      avoidance of doubt it is the parties’ understanding that if this Agreement is
      extended for an Extension Period or any subsequent Extension Period, at the
      end
      of any such Extension Period, the provisions of Section 1.1(a) shall apply,
      and
      any reference in this Agreement to the Term shall include any mutually agreed
      extension thereof, whether or not expressly noted.

     

    1.2  Beginning
      as of the Effective Date and throughout the Term (and mutually agreed to
      extension thereof), Employee shall be employed as Vice President of
      Administration and Corporate Secretary of the Company. Employee shall report
      to
      the President
      and Chief Executive Officer.
      Employee agrees to serve in such position, and to perform diligently and to
      the
      best of Employee’s abilities the duties and services pertaining to such
      positions as reasonably determined and assigned by the President and Chief
      Executive Officer, as well as such additional or different duties and services
      appropriate to such positions which the Employee from time to time may be
      directed to perform by the President and Chief Executive Officer.

     

    1.3  Employee
      shall at all times comply with and be subject to such policies and procedures
      as
      the Company may establish from time to time, including, without limitation,
      the
      Company’s Employee Handbook and Code of Business Ethics. Without limiting the
      foregoing, Employee acknowledges that Employee has read the Company’s
“Pre-clearance and Blackout Policy,” “Insider Trading Policy” and “Section 16
      Compliance Program”, and Employee accepts the status of an “Insider” under such
      policies, and Employee agrees to comply with such policies.

     

    1.4  Employee
      shall, during the Employment Period, devote Employee’s full business time,
      energy, and best efforts to the business and affairs of the Company. Employee
      may not engage, directly or indirectly, in any other business, investment,
      or
      activity that interferes with Employee’s performance of Employee’s duties
      hereunder, is contrary to the interest of the Company or any of its affiliated
      subsidiaries and divisions (collectively, “Eagle Broadband, Inc.”), or requires
      any significant portion of Employee’s business time. The foregoing
      notwithstanding, the parties recognize and agree that Employee may engage in
      passive personal investments and other business activities that do not conflict
      with the business and affairs of the Company or interfere with Employee’s
      performance of his duties hereunder.

     

    1.5  Employee
      acknowledges and agrees that Employee owes a fiduciary duty of loyalty,
      fidelity, and allegiance to act at all times in the best interests of the
      Company and to do no act which would, directly or indirectly, injure any such
      entity’s business, interests, or reputation. It is agreed that any direct or
      indirect interest in, connection with, or benefit from any outside activities,
      particularly commercial activities, which interest might in any way adversely
      affect the Company or involves a possible conflict of interest. In keeping
      with
      Employee’s fiduciary duties to the Company, Employee agrees that, during the
      Employment Period, Employee shall not knowingly become involved in a conflict
      of
      interest with the Company, or upon discovery thereof, allow such a conflict
      to
      continue. Moreover, during the Employment Period Employee shall not engage
      in
      any activity that might involve a possible conflict of interest without first
      obtaining approval in accordance with this Agreement and the Company’s policies
      and procedures.

     

    1.6 After
      the
      Employment Period, Employee shall, at the request of the Company, render all
      reasonable assistance and perform all lawful acts that the Company reasonably
      considers necessary or advisable in connection with any litigation involving
      the
      Company or any director, officer, employee, shareholder, agent, representative,
      consultant, client or vendor of the Company; provided, however, Employee shall
      be compensated for his reasonable expenses, and reasonable efforts will be
      made
      to accommodate Employee’s schedule.

     

    ARTICLE
      2:  

     

    COMPENSATION
      AND BENEFITS

     

    2.1  During
      the Employment Period, the Employee shall receive a base salary (“Base Salary”)
      of One Hundred and Seventy-Five Thousand Dollars ($175,000) per annum, less
      all
      required deductions, including but not limited to federal withholding, social
      security and other taxes, and payable bi-weekly on the Company’s regular payroll
      schedule. In the future, after each anniversary date during the Employment
      Period hereof, Employee’s salary shall be reviewed by the Board or the
      Compensation Committee thereof and may be increased as determined from time
      to
      time by the Board. Any increase in the Base Salary shall not serve to limit
      or
      reduce any other obligation to the Employee under this Agreement. During the
      Term (and each mutual extension thereof), the Base Salary (as increased from
      time to time) shall not be reduced.

     

    2.2  During
      the Employment Period, the Employee shall receive grants of shares of common
      stock of the Company based on the attainment of the following
      objectives:

     

    25,000
      shares when Eagle Broadband, Inc. stock reaches $3.00 per share (adjusted for
      stock splits, stock dividends or other recapitalizations).

     

    25,000
      shares when Eagle Broadband, Inc. records a profitable quarter.

     

    2.3  During
      the Employment Period, the Employee shall be entitled to participate in
      incentive, savings, and retirement plans, and other standard benefit plans
      afforded to executive-level employees of the Company, including, without
      limitation, all medical, dental, disability, group life, accidental death,
      D&O indemnity, and travel accident insurance plans and other programs of the
      Company, to the extent Employee is otherwise eligible under the terms and
      conditions of the applicable plan or policy, and as such plans or policies
      may
      be from time to time be amended, modified or terminated by the Company without
      prior notice. Dependents of Employee may participate in such plans to the extent
      allowed for other dependents of executive level employees of the Company as
      allowed by the applicable plan. This Agreement shall not be construed to limit
      in any respect the Company’s right to establish, amend, modify, or terminate any
      benefit plan or policy. Furthermore, the Company shall not by reason of this
      Article 2 be obligated to institute, maintain, or refrain from changing,
      amending, or discontinuing, any incentive compensation, employee benefit, or
      stock or stock option program or plan, so long as such actions are similarly
      applicable to covered employees generally.

     

    2.4  During
      the Employment Period, the Company shall pay or reimburse Employee for all
      actual, reasonable, and customary expenses incurred by Employee in the course
      of
      his employment, including business-related travel expenses, subject to the
      terms
      of and Employee’s compliance with the Company’s Expense Policy, as amended from
      time to time, and any other applicable Company policies related to business
      expenses.

     

    2.5  During
      the Employment Period, the Employee shall be entitled to four weeks of vacation,
      fully paid, per calendar year. Any unused vacation can be carried over each
      year
      and will be paid as compensation upon termination of employment.

     

    2.6  The
      Company may withhold from any compensation, benefits, or amounts payable under
      this Agreement all federal, state, city, or other taxes as may be required
      pursuant to any law or governmental regulation or ruling.

     

    ARTICLE
      3:  TERMINATION
      OF EMPLOYMENT

     

    AND
      EFFECTS OF SUCH TERMINATION:

     

    3.1  (a)Employee’s
      employment shall be terminated during the Employment Period by reason of the
      following circumstances:

     

    (i)  Death
      of
      Employee.

     

    (ii)  Permanent
      Disability. “Permanent Disability” shall mean Employee’s physical or mental
      incapacity to perform his usual duties, with such condition likely to remain
      continuously and permanently as determined by the Board or Board of Directors.
      The decisions as to whether and as of what date Employee has become permanently
      disabled are delegated to the Board of Directors for determination, and any
      dispute of Employee with any such decision shall be limited to whether the
      Board
      of Directors reached such decision in good faith.

     

    (iii)  Voluntary
      Termination. “Voluntary Termination” shall mean a termination of employment at
      the election of Employee. Employee will provide the Company with thirty (30)
      days advance notice of his intent to terminate his employment voluntarily.
      Employee shall continue to remain an employee of the Company through the thirty
      (30) day notice period and will perform such duties, if any, assigned to him
      by
      the Company during the notice period. Notwithstanding the foregoing, the Company
      may, at its option, waive the Employee’s obligation to remain an employee during
      all or any portion of the thirty (30) day notice period, in which case
      Employee’s employment shall cease immediately.

     

    (iv)  Termination
      by Company for Cause. “Termination for Cause” shall mean a termination of
      employment immediately upon written notice to the Employee from the Company
      that
      an event constituting “Cause” has occurred. For purposes of this Agreement, the
      term “Cause” shall be defined as: (a) a material act of dishonesty or fraud; (b)
      a knowing and material violation of any written policy of the Company or
      applicable to the Company’s operations; (c) a knowing and material violation of
      an applicable law, rule, or regulation that exposes the Company to damages
      or
      liability; (d) a material breach of fiduciary duty; (e) conviction of a felony
      or (f) a failure to follow the reasonable directions of the Chief Executive
      Officer or the Board of Directors. In the event that Employee is terminated
      for
      Cause, Employee shall be provided with notice of such termination in accordance
      with Section 5.1 below.

     

    (b)  In
      the
      event Employee’s employment terminates as a result of any of the circumstances
      described in Section 3.1(a)(i) through (iv) above, all future compensation
      to
      which Employee would otherwise be entitled and all future benefits for which
      Employee is eligible shall cease and terminate as of the Termination Date,
      except as specifically provided in this Section 3.1, for prorated portions
      of
      any bonuses earned or due Employee, and the terms of any of the Company’s health
      or welfare plans. Employee shall also receive payment, if any, for accrued
      and
      unused vacation as set forth in Section 2.5

     

    (c)  Notwithstanding
      anything contained in Section 3.1(b), in the event that Employee’s employment
      terminates as a result of death or permanent disability resulting from any
      accident or incident beyond Employee’s control that occurs while Employee is
      traveling on Company business or is in the course and scope of employment
      (excluding any accident or incident occurring when Employee is traveling within
      Houston and to or from his normal place of business or his residence), the
      preceding paragraph shall not apply, and instead Employee (or his Estate, as
      the
      case may be) shall be entitled to receive payment subject to and calculated
      in
      accordance with the provisions of Sections 3.2(a) and 3.2(a)(i) through (iii)
      below.

     

    3.2  The
      Company reserves the right to terminate Employee’s employment for any reason
      other than the circumstances described in Sections 3.1(a)(i) through 3.1(a)(iv)
      above, or to end Employee’s employment upon the expiration of the
      Term.

     

    (a)  If
      the
      Termination Date occurs during the Term (or any mutual extension thereof) other
      than because of the circumstances described in Sections 3.1(a)(i) through
      3.1(a)(iv) above, after Company’s receipt of a full release of all claims
      against the Company (excluding only payments called for under this Agreement
      or
      benefits and payments to be payable after Termination Date under any of the
      Company’s health or welfare plans) Company shall pay Employee (subject to
      required taxes and withholdings) as follows:

     

    (i)  pro
      rata
      Base Salary through the Termination Date and prorated bonuses earned through
      the
      Termination Date, paid in a lump sum;

     

    (ii)  payment,
      if any, for accrued and unused vacation days, paid in a lump sum;
      and

     

    (iii)  the
      Employee’s Base Salary for a one-year period, paid on the Company’s normal
      payroll schedule.

     

    (b)  Termination
      of the employment relationship as a result of expiration of the Term of this
      Agreement shall not require any notice of termination, and Employee shall only
      be entitled to the payments stipulated in (i) and (ii) above, but not any other
      payments.

     

    3.3  Any
      Termination Payment paid to Employee pursuant to Section 3.2 shall be in
      consideration of Employee’s continuing obligations under Article 4. Nothing
      contained in this Article 3 shall be construed to be a waiver by Employee of
      any
      benefits accrued for or due Employee under any employee benefit plan (as such
      term is defined in the Employee Retirement Income Security Act of 1974, as
      amended), maintained by the Company except that Employee shall not be entitled
      to any severance benefits pursuant to any severance plan or program of the
      Company.

     

    3.4  Termination
      of the employment relationship does not terminate those obligations imposed
      by
      this Agreement that are continuing obligations, including Employee’s obligations
      under Article 4.

     

    ARTICLE
      4:  OWNERSHIP
      AND PROTECTION OF INTELLECTUAL PROPERTY

     

    AND
      CONFIDENTIAL
      INFORMATION; NON COMPETITION AGREEMENT:

     

    4.1  All
      information, ideas, concepts, improvements, discoveries, and inventions, whether
      patentable or not, which are conceived, made, developed or acquired by Employee,
      individually or in conjunction with others, during Employee’s employment by the
      Company (whether during business hours or otherwise and whether on the Company’s
      premises or otherwise) which relate to the business, products or services of
      the
      Company (including, without limitation, all such information relating to
      corporate opportunities, confidential financial information, research and
      development activities, sales data, pricing and trading terms, evaluations,
      opinions, interpretations, acquisition prospects, the identity of customers
      or
      potential customers and their requirements, the identity of key contacts within
      the customers’ organizations or within the organizations of acquisition
      prospects, marketing and merchandising techniques, prospective names, and
      marks), and all writings or material of any type embodying any of such items,
      shall be the sole and exclusive property of the Company.

     

    4.2  Employee
      acknowledges that the businesses of the Company are highly competitive and
      that
      their strategies, methods, books, records, and documents, their technical
      information concerning their products, equipment, services, and processes,
      procurement procedures and pricing techniques, the names of and other
      information (such as credit and financial data) concerning their customers
      and
      business affiliates (including but not limited to the products and/or services
      marketed, advertised, and/or sold to customers and prospective customers, and
      the prices charged or quoted to them for such products and/or services, and
      the
      business activities, needs, and requirements for products and/or services of
      such customers or prospective customers) all comprise confidential business
      information and trade secrets which are valuable, special, and unique assets
      which the Company uses in its business to obtain a competitive advantage over
      its competitors. Employee further acknowledges that protection of such
      confidential business information and trade secrets against unauthorized
      disclosure and use is of critical importance to the Company in maintaining
      its
      competitive position. Employee hereby agrees that Employee will not, at any
      time
      during or after the Employment Period, make any unauthorized disclosure of
      any
      confidential business information or trade secrets of the Company, or make
      any
      use thereof, except in the carrying out of Employee’s employment
      responsibilities hereunder. Confidential business information shall not include
      information that is now in, or hereafter becomes part of, the public domain,
      whether by publication, patenting or otherwise than as a result of the
      Employee’s breach of this Agreement; information that the Employee can show,
      through documentary evidence, already was in Employee’s possession prior to its
      receipt from the Company hereunder; information which, subsequent to its receipt
      hereunder, is disclosed, without obligation or confidence, to the Employee
      hereunder by a third party not known to be under an obligation of confidence
      to
      Company hereunder; or information that the Company authorizes for public
      release. The above notwithstanding, a disclosure shall not be unauthorized
      if
      (i) it is required by law or by a court of competent jurisdiction or (ii) it
      is
      in connection with any judicial arbitration, dispute resolution or other legal
      proceeding in which Employee’s legal rights and obligations as an Employee or
      under this Agreement are at issue; provided, however, that Employee shall,
      to
      the extent practicable and lawful in any such events, give prior notice to
      the
      Company of Employee’s intent to disclose any such confidential business
      information in such context so as to allow the Company an opportunity (which
      Employee will cooperate with and will not oppose) to obtain such protective
      orders or similar relief with respect thereto as may be deemed
      appropriate.

     

    4.3  All
      written materials, records, and other documents made by, or coming into the
      possession of, Employee during the Employment Period which contain or disclose
      confidential business information or trade secrets of the Company shall be
      and
      remain the property of the Company, as the case may be. Upon termination of
      Employee’s employment with the Company, for any reason, Employee promptly shall
      deliver the same and all copies thereof to the Company.

     

    4.4  To
      enable
      Employee to perform the duties contemplated by this Agreement, the Company
      promises that it will disclose confidential information, including confidential
      business information and trade secrets of the nature described or referenced
      in
      Sections 4.1 through 4.3 above, during the Employment Period and before
      termination of the employment relationship established by this Agreement. In
      return for and ancillary to the promise made by the Company to make such
      disclosure, (and ancillary to the other covenants of the Company under this
      Agreement)” Employee hereby makes a reciprocal promise designed to enforce the
      Company’s interest in protecting its confidential information and its goodwill.
      Accordingly, Employee promises to comply with the obligations set forth in
      Sections 4.1 through 4.3 above, and furthermore, Employee agrees that, during
      Employee’s employment with the Company and for eighteen (18) months following
      the termination of Employee’s employment, the Employee will not, directly or
      through any other person, firm, or corporation:

     

    (a)  in
      any
      state of the United States of America in which the Company presently does
      business or does business during Employee’s employment perform services as an
      employee, officer, director or independent contractor for any Competing
      Enterprise (as defined below);

     

    (b)  be
      an
      owner, shareholder (except for the ownership by Employee of less than Five
      Percent (5%) of the equity securities of any publicly-traded company), agent,
      or
      partner of, or serve in an executive position with, any Competing
      Enterprise;

     

    (c)  call
      on
      or otherwise communicate with any customer or prior customer of the Company
      or
      any business referral sources or vendors to the Company including any respective
      successors and assigns, for the purpose of soliciting business for a Competing
      Enterprise or for someone other than the Company; or

     

    (d)  do
      anything to interfere with the normal operation of the businesses of the Company
      including, without limitation, make any effort personally or through others
      to
      recruit, hire, or solicit any employee or independent contractor of the Company
      to leave the Company, or to interfere in any way with the Company’s
      relationships with its customers or suppliers.

     

    For
      purposes of this Section, the term “Competing Enterprise” shall mean: any person
      or any business organization of whatever form, excluding the Company, engaged
      directly or indirectly in any business or enterprise whose business activities
      involve the lines of business described in the Company’s most recent Form 10-K
      filed with the Securities & Exchange Commission at the time of termination
      of this Agreement, along with any lines of business added by the Company from
      the date of filing such 10-K to the date of termination of the Employee’s
      employment.

     

    ARTICLE
      5:  MISCELLANEOUS:

     

    5.1  For
      purposes of this Agreement, notices and all other communications provided for
      herein shall be in writing and shall be deemed to have been duly given when
      received by or tendered to Employee or the Company, as applicable, by pre paid
      courier or by United States registered or certified mail, return receipt
      requested, postage prepaid, addressed as follows:

     

    If
      to the
      Company, to

     

    Eagle
      Broadband, Inc.

     

    101
      Courageous Drive 

     

    League
      City, Texas 77573

     

    If
      to
      Employee, to his last known personal residence.

     

    or
      to
      such other address as either party shall have furnished to the other in writing
      in accordance herewith. Notice and communications shall be effective when
      actually received by the addressee.

     

    Notwithstanding
      the foregoing, any Notice of Termination pursuant to Article 3 may be delivered
      to the Employee in accordance with the above sentences in this Section 5.1,
      or
      by e-mail to the Employee’s Company e-mail address, and in the event of such
      delivery by e-mail, the Delivery Date shall be conclusively determined to be
      the
      date when such e-mail was received on the Company’s server regardless of the
      date when such e-mail was opened by the Employee.

     

    5.2  This
      Agreement shall be governed by and construed and enforced, in all respects
      in
      accordance with the law of the State of Texas, without regard to principles
      of
      conflicts of law, unless preempted by federal law, in which case federal law
      shall govern; provided, however, that the dispute resolution process in Section
      5.5 shall govern in all respects with regard to the resolution of disputes
      hereunder.

     

    5.3  No
      failure by either party hereto at any time to give notice of any breach by
      the
      other party of, or to require compliance with, any condition or provision of
      this Agreement shall be deemed a waiver of similar or dissimilar provisions
      or
      conditions at the same or at any prior or subsequent time.

     

    5.4  It
      is a
      desire and intent of the parties that the terms, provisions, covenants, and
      remedies contained in this Agreement shall be enforceable to the fullest extent
      permitted by law. If any such term, provision, covenant, or remedy of this
      Agreement or the application thereof to any person, association, or entity
      or
      circumstances shall, to any extent, be construed to be invalid or unenforceable
      in whole or in part, then such term, provision, covenant, or remedy shall be
      construed in a manner so as to permit its enforceability under the applicable
      law to the fullest extent permitted by law. In any case, the remaining
      provisions of this Agreement or the application thereof to any person,
      association, or entity or circumstances other than those to which they have
      been
      held invalid or unenforceable, shall remain in full force and
      effect.

     

    5.5  It
      is the
      mutual intention of the parties to have any dispute concerning this Agreement
      resolved out of court. Accordingly, the parties agree that any claim or
      controversy of whatever nature arising from or relating in any way to this
      Agreement or the employment of the Employee by the Company, and any continuing
      obligations under this Agreement, including disputes arising under the common
      law or federal or state statutes, laws or regulations and disputes with respect
      to the arbitrability of any claim or controversy, shall be resolved exclusively
      by final and binding arbitration before a single experienced employment
      arbitrator selected by the parties and conducted in accordance with the
      agreement of the parties or as determined by the arbitrator. If the parties
      are
      unable to agree to an arbitrator, an arbitrator will be selected in accordance
      with the Employment Dispute Resolution (“EDR”) Rules of the American Arbitration
      Association (“AAA”). The arbitration will be conducted in League City, Texas,
      pursuant to the EDR Rules of the AAA, and the arbitrator shall have full
      authority to award or grant all remedies provided by law. Judgment upon the
      award may be enforced by any court having jurisdiction thereof. Each party
      shall
      pay the fees of their respective attorneys, the expenses of their witnesses,
      and
      any other expenses incurred by such party in connection with the arbitration.
      The prevailing party, as determined by the Arbitrator, may seek to recover
      its
      reasonable attorney fees and costs in accordance with applicable laws.
      Notwithstanding the foregoing provisions, either party shall be entitled to
      seek
      a restraining order or injunction in any court of competent jurisdiction to
      prevent any breach or the continuation of any breach of the provisions of
      herein.

     

    5.6  This
      Agreement shall be binding upon and inure to the benefit of the Company, and
      any
      other person, association, or entity which may hereafter acquire or succeed
      to
      all or substantially all of the business or assets of the Company by any means
      whether direct or indirect, by purchase, merger, consolidation, or otherwise.
      Employee’s rights and obligations under this Agreement are personal and such
      rights, benefits, and obligations of Employee shall not be voluntarily or
      involuntarily assigned, alienated, or transferred, whether by operation of
      law
      or otherwise, without the prior written consent of the Company.

     

    5.7  This
      Agreement replaces and extinguishes any previous agreements and discussions
      pertaining to the subject matter covered herein, including the prior agreement
      of the parties dated July 21, 2004. This Agreement constitutes the entire
      agreement of the parties with regard to the terms of Employee’s employment,
      termination of employment and severance benefits, and contains all of the
      covenants, promises, representations, warranties, and agreements between the
      parties with respect to such matters. Each party to this Agreement acknowledges
      that no representation, inducement, promise, or agreement, oral or written,
      has
      been made by either party with respect to the foregoing matters which is not
      embodied herein, and that no agreement, statement, or promise relating to the
      employment of Employee by the Company that is not contained in this Agreement
      shall be valid or binding, except as set forth in any applicable Employee
      benefit plan. It is understood that, by signing below, Employee acknowledges
      that this Agreement supersedes any agreements or understandings regarding the
      subject matter covered herein made prior to the Employee signing this document.
      Any modification of this Agreement will be effective only if it is in writing
      and signed by each party whose rights hereunder are affected thereby, provided
      that any such modification must be authorized or approved by the Board of
      Directors or its delegate, as appropriate.

     

    IN
      WITNESS WHEREOF, the Company and Employee have duly executed this Amended and
      Restated Employment Agreement in multiple originals to be effective on the
      Effective Date.

     

    EAGLE
      BROADBAND, INC.    EMPLOYEE

     

    By: /s/
      David Micek     /s/
      Richard H. Sanger, Jr.   

    Name: David
      Micek     Richard
      H. Sanger, Jr.

    Title: President
      and CEO

    

    Date: 4/27/06      Date: 4/27/06

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