Document:

SETTLEMENT
      AGREEMENT

    

    

    THIS
      SETTLEMENT AGREEMENT (this “Agreement”)
      is
      entered into as of February 15, 2006 by and among Eagle Broadband, Inc., f/k/a
      Eagle Wireless International Inc., a Texas corporation (“Eagle”),
      Link
      Two Communications, Inc., a Texas corporation acquired by Eagle as a
      wholly-owned subsidiary (“Link”),
      and
      The Tail Wind Fund Ltd. (“Tail
      Wind”).
      Eagle, Link and Tail Wind are individually referred to herein as a “Party”
and
      collectively as the “Parties.”

    

    RECITALS

    

    WHEREAS,
      on or
      about May 2, 2001, Link issued to Tail Wind (1) a 2% Convertible Note Due August
      15, 2002 in the aggregate original principal amount of $5,000,000 (“Link
      Note”)
      and
      (2) a Warrant to purchase 2,182,262 shares of Link common stock (“Warrant”),
      pursuant to a Note Purchase Agreement executed on or about such date
      (“Purchase
      Agreement”);

    

    WHEREAS,
      in
      connection with such Purchase Agreement and in order to induce Tail Wind to
      purchase the Link Note and Warrant, Eagle and Tail Wind entered into a
      Registration Rights and Conversion Terms Agreement (“Exchange
      Agreement”)
      as of
      May 2, 2001 and Eagle executed a Guaranty dated as of such date in favor of
      Tail
      Wind guarantying Link’s obligations under the Link Note and Purchase Agreement
      (“Guaranty”);

    

    WHEREAS,
      each of
      the Link Note, Warrant, Purchase Agreement, Exchange Agreement and Guaranty
      were
      amended by, and entered into as of May 2, 2001 pursuant to, the Supplement
      entered into among Link, Eagle and Tail Wind on May 2, 2001 (together with
      the
      Link Note, Warrant, Purchase Agreement, Exchange Agreement and Guaranty, the
      “Transaction
      Documents”);

    

    WHEREAS,
      certain
      disputes have arisen among the Parties with respect to the Transaction Documents
      and the respective obligations of the Parties thereunder, and Tail Wind has
      initiated a litigation proceeding in the United States District Court for the
      Southern District of New York (“Court”)
      (case
      index number 04 CV 5776 (KMW)) to resolve those disputes (the “Litigation
      Proceeding”);
      

     

    WHEREAS,
      without
      either Party admitting or denying any liability, Eagle, Link and Tail Wind
      have
      agreed to a settlement of their respective claims, to dismissal of the
      Litigation Proceeding and to release each other from any and all obligations
      and
      claims, all as more fully set forth in this Agreement and on the terms and
      conditions set forth in this Agreement; and

     

    WHEREAS,
      Eagle,
      Link and Tail Wind intend to have the terms and conditions of this Agreement,
      including without limitation the issuance to Tail Wind of shares of Eagle’s
      common stock, par value $.001 per share (“Common
      Stock”),
      pursuant to this Agreement and upon conversion or repayment of the Convertible
      Notes (as defined herein and to be issued hereunder), approved by the Court
      (“Court
      Approval”)
      after
      a hearing upon the fairness of such terms and conditions (“Hearing”)
      as
      contemplated by Section 3(a)(10) of the Securities Act of 1933, as amended
      (“Securities
      Act”);

     

    

    NOW,
      THEREFORE,
      in
      consideration of the respective covenants and agreements contained in this
      Agreement and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the Parties agree as
      follows:

    

    AGREEMENT

    

    1.  Court
      Approval. Promptly
      following execution hereof, the Parties shall each use their best efforts to
      seek a Hearing and obtain the Court Approval. 

     

    2.  Payments
      and Issuances to Tail Wind. Eagle
      shall pay Tail Wind $5 million in cash and stock as follows:

     

    (a)  Cash
      upon Effective Time.
      Prior
      to the Effective Time, Eagle
      shall pay Tail Wind $100,000 by wire transfer of such funds to the escrow
      account at Peter J. Weisman, P.C. indicated on Schedule 1 hereto to be held
      in
      escrow pending the Effective Time (as defined below). Such funds shall be
      released to Tail Wind upon occurrence of the Effective Time or returned to
      Eagle
      if the Effective Time does not occur for any reason.

     

    (b)  Promissory
      Note.
      Eagle
      shall pay Tail Wind $400,000, payable in 24 equal monthly installments
      commencing April 1, 2006 and evidenced by a promissory note in the form attached
      hereto as Exhibit
      A
      (“Promissory
      Note”).
      The
      Promissory Note shall be issued and delivered to Tail Wind’s counsel upon
      execution of this Agreement to be held in escrow pending the Effective
      Time.

     

    (c)  Convertible
      A Note.
      Eagle
      shall pay Tail Wind $1,000,000 (plus such additional amounts as may be added
      pursuant to Sections 2(e)(ii), 2(e)(vi) and 2(e)(vii) below) on March 1, 2008,
      which amounts due shall be evidenced by, and convertible into shares
      (“Conversion
      A Shares”)
      of
      Common Stock pursuant to the terms of, a convertible note in the form attached
      hereto as Exhibit
      B
      (“Convertible
      A Note”).
      The
      Convertible A Note shall be issued and delivered to Tail Wind’s counsel upon
      execution of this Agreement to be held in escrow pending the Effective
      Time.

     

    (d)  Convertible
      B Note.
      Eagle
      shall pay Tail Wind $1,750,000 (plus any Price Reduction Amount (as defined
      below) added pursuant to Section 2(e)(viii) below) on March 1, 2008, which
      amounts due shall be evidenced by, and convertible into shares (“Conversion
      B Shares”,
      and
      together with the Conversion A Shares, the “Conversion
      Shares”)
      of
      Common Stock pursuant to the terms of, a convertible note in the form attached
      hereto as Exhibit
      C
      (“Convertible
      B Note”,
      and
      together with the Convertible A Note, the “Convertible
      Notes”).
      The
      Convertible B Note shall be issued and delivered to Tail Wind’s counsel upon
      execution of this Agreement to be held in escrow pending the Effective
      Time.

     

    (e)  Shares.
      Eagle
      shall issue and deliver shares of Common Stock and/or pay cash to Tail Wind
      in
      the aggregate amount of $1,750,000 (as such amount may be decreased pursuant
      to
      subsections (iii) through (vi) inclusive below, the “Share
      Amount”),
      as
      follows:

     

    (i)  Within
      fourteen (14) days following the latest of the date of Shareholder Approval
      and
      Listing Approval (as such terms are defined below), Eagle shall, subject to
      the
      terms and conditions of this Section 2(e), issue and deliver to Tail Wind a
      number of shares of Common Stock (“Shares”,
      and
      together with the Conversion Shares, the “Settlement
      Shares”)
      determined by dividing the Share Amount by the closing price (“FMV”)
      of the
      Common Stock on the Principal Market (as defined in the Convertible Notes)
      on
      the Trading Day (as defined in the Convertible Notes) immediately preceding
      the
      date of issuance of such Shares (“Issuance
      Date”).
      Such
      Shares shall be duly authorized, validly issued, fully paid, non-assessable
      and
      free and clear of all encumbrances and restrictions (except for restrictions
      on
      resale under applicable securities laws). 

     

    (ii)  Notwithstanding
      anything to the contrary contained herein, the number of shares of Common Stock
      that shall be issued to Tail Wind under this Section 2(e) shall not exceed
      a
      number that, when added to the total number of shares of Common Stock deemed
      beneficially owned by Tail Wind (other than by virtue of the ownership of
      securities or rights to acquire securities (including under the Convertible
      Notes) that have limitations on Tail Wind’s right to convert, exercise or
      purchase similar to the limitation set forth herein), together with all shares
      of Common Stock deemed beneficially owned at such time (other than by virtue
      of
      the ownership of securities or rights to acquire securities that have
      limitations on the right to convert, exercise or purchase similar to the
      limitation set forth herein) by Tail Wind’s “affiliates” at such time (as
      defined in Rule 144 of the Securities Act) that would be aggregated for purposes
      of determining whether a group under Section 13(d) of the Securities Exchange
      Act of 1934 as amended (“Exchange
      Act”),
      exists, would exceed 9.9% of the total issued and outstanding shares of the
      Common Stock on the Issuance Date (the “Restricted
      Ownership Percentage”).
      To
      the extent any portion of the Share Amount cannot be paid in Shares as a result
      of application of the Restricted Ownership Percentage, such unpaid portion
      of
      the Share Amount shall be automatically added to the original principal amount
      of the Convertible A Note as of the Issuance Date.

     

    (iii)  In
      the
      event that Tail Wind has not received all the Shares in its brokerage account
      (whether due to the failure to obtain Shareholder Approval, Listing Approval
      or
      otherwise) by June 20, 2006, Eagle shall on such date make a cash payment to
      Tail Wind of $250,000 by wire transfer of immediately available funds to the
      account designated by Tail Wind, and the Share Amount shall contemporaneously
      be
      reduced by such amount paid.

     

    (iv)  In
      the
      event that Tail Wind has not received all the Shares in its brokerage account
      (whether due to the failure to obtain Shareholder Approval, Listing Approval
      or
      otherwise) by August 20, 2006, Eagle shall on such date make an additional
      cash
      payment to Tail Wind of $250,000 by wire transfer of immediately available
      funds
      to the account designated by Tail Wind, and the Share Amount shall
      contemporaneously be reduced by such additional amount paid.

     

    (v)  In
      the
      event that Tail Wind has not received all the Shares in its brokerage account
      (whether due to the failure to obtain Shareholder Approval, Listing Approval
      or
      otherwise) by October 20, 2006, Eagle shall on such date make an additional
      cash
      payment to Tail Wind of $250,000 by wire transfer of immediately available
      funds
      to the account designated by Tail Wind, and the Share Amount shall
      contemporaneously be reduced by such additional amount paid.

     

    (vi)  In
      the
      event that Tail Wind has not received all the Shares in its brokerage account
      (whether due to the failure to obtain Shareholder Approval, Listing Approval
      or
      otherwise) by December 20, 2006, then (A) Eagle shall on such date make an
      additional cash payment to Tail Wind of $250,000 by wire transfer of immediately
      available funds to the account designated by Tail Wind, and the Share Amount
      shall contemporaneously be reduced by such additional amount paid, and (B)
      the
      Share Amount shall be automatically added to the original principal amount
      under
      the Convertible A Note as of such date.

     

    (vii)  If
      any
      Bankruptcy Event (as defined in the Convertible Note) occurs prior to the
      issuance of the Shares, the Share Amount shall automatically, immediately prior
      to such occurrence, be converted to a debt obligation payable in cash and added
      to the original principal amount of the Convertible A Note.

     

    (viii)  If
      the
      closing price of the Common Stock on the Principal Market on the Registration
      Effectiveness Date (as defined below) is less than the FMV as of the Issuance
      Date, then the Price Reduction Amount (as defined below) shall be automatically
      added to the original principal amount under the Convertible B Note as of such
      Registration Effectiveness Date. The “Price
      Reduction Amount”
shall
      mean the product of (A) the number of Shares issued multiplied by (B) the
      difference between the closing price of the Common Stock on the Principal Market
      on the Registration Effectiveness Date and the FMV as of the Issuance
      Date.

     

    (ix)  Eagle
      shall deliver to Tail Wind one or more stock certificates evidencing the Shares
      within three (3) Trading Days following the Issuance Date, and Eagle shall
      deliver to Tail Wind each $250,000 payment required under clauses (iii), (iv),
      (v) and (vi) above within three (3) Trading Days following June 20, 2006, August
      20, 2006, October 20, 2006 and December 20, 2006, respectively. If Eagle fails
      to deliver such stock certificates or any such payment within five days
      following such third Trading Day, Tail Wind may declare upon written notice
      (as
      set forth in Section 14(f) below) the entire then outstanding Share Amount
      to be
      due and payable immediately. At
      any
      time following such notice of acceleration, Tail Wind shall be entitled (i)
      to
      complete (by filling in the appropriate accelerated amount) the relevant
      affidavit for judgment by confession delivered by Eagle pursuant to Section
      6(c)(vii) of this Agreement and (ii) to file such completed affidavit, with
      any
      other appropriate material, in New York County, New York, in the manner
      necessary to effect the entry of judgment in such accelerated amount against
      Eagle and in favor of Tail Wind.

     

    3.  No
      Shorting. Tail
      Wind
      agrees that it will not enter into any Short Sales (as hereinafter defined)
      during the period commencing on the date hereof and ending on the date on which
      Tail Wind no longer holds any Shares or the Convertible Notes. “Short
      Sale”
means
      a
      sale of Common Stock by Tail Wind that is marked as a short sale and that is
      made at a time when there is no equivalent offsetting long position in Common
      Stock held by Tail Wind. For purposes of determining whether there is an
      equivalent offsetting long position in Common Stock held by Tail Wind,
      Conversion Shares issuable upon conversion of the Convertible Notes (ignoring
      any conversion restrictions or limitations included therein) shall be deemed
      to
      be held long by Tail Wind in addition to all Shares, Conversion Shares and
      other
      shares of Common Stock held in a long position by Tail Wind.

     

    4.  Surrender
      of Securities/Check.
      Upon
      execution hereof (a) Tail Wind shall surrender the Link Note and Warrant to
      Eagle’s counsel (or in lieu thereof deliver an affidavit of lost security(ies)
      in form and substance reasonably acceptable to Eagle’s counsel), and (b) Eagle
      shall return to Tail Wind check number 1030 drawn on the Peter J. Weisman
      Attorney Trust Account to the order of Eagle on or about February 13, 2004
      in
      the amount of $139,669.80 (the “Check”)
      (or in
      lieu thereof deliver an affidavit of lost check in form and substance reasonably
      acceptable to Tail Wind’s counsel). The Link Note and Warrant shall be held in
      escrow pending the Effective Time.

     

    5.  Shareholder
      and Exchange Approvals.

     

    (a)  Shareholder
      Approval.
      Eagle
      shall promptly seek the approval (“Shareholder
      Approval”)
      of its
      stockholders and take such other action as necessary or desirable to amend
      its
      Articles of Incorporation to authorize such number of additional shares of
      Common Stock as is equal to at least 200% of the aggregate number of Settlement
      Shares issuable upon full conversion of the Convertible Note (assuming an FMV
      and Conversion Price equal to the closing bid price on the Trading Day
      immediately preceding such approval and ignoring all limitations and
      restrictions on conversion, ownership or issuance set forth therein.
      The
      Board of
      Directors of Eagle shall call one or more annual or special meetings of the
      stockholders of Eagle
      in the
      manner set forth in the By-laws of Eagle
      (and in
      accordance with the Exchange Act) in order to solicit such Shareholder Approval,
      and such Board
      of
      Directors shall recommend an affirmative vote for such Shareholder
      Approval. Eagle shall continue to seek such Shareholder Approval as reasonably
      practical until December 20, 2006.

     

    (b)  Reservation
      of Common Stock.
      Contemporaneously with obtaining Shareholder Approval and at all times
      thereafter Eagle shall reserve and keep available out of its authorized but
      unissued shares of Common Stock, solely for the purpose of providing for the
      issuance of the Settlement Shares, such number of shares of Common Stock as
      set
      forth in the Convertible Notes.

     

    (c)  AMEX
      Listing.
      On or
      prior to the Issuance Date, but no later than January 1, 2007 (and no later
      than
      June 1, 2006 with respect to the Conversion B Shares in particular), Eagle
      shall
      apply for, and engage in good faith efforts to obtain the approval of, the
      listing of all Settlement Shares on the American Stock Exchange (or other
      Principal Exchange, as defined in the Convertible Notes) (“Listing
      Approval”),
      and
      Eagle shall engage in good faith efforts to maintain such listing and approval,
      should such listing application be approved.

     

    6.  Effective
      Time and Conditions to Settlement

     

    (a)  Effective
      Time.
      This
      Agreement shall become effective only upon the satisfaction or waiver of the
      conditions set forth in paragraphs (b) and (c) of this Section 6 (“Effective
      Time”).
      The
      delivery of the documents contemplated by this Section 6 shall take place at
      the
      offices of Peter J. Weisman, P.C., 335 Madison Avenue, Suite 1702, New York,
      NY
      10017 on March 1, 2006, or at such other location and/or on such other date
      as
      the parties shall mutually agree. If the conditions set forth in paragraphs
      (b)
      and (c) have not been satisfied or waived on or before March 3, 2006, or such
      later date as the parties may agree in writing (the “Deadline”),
      this
      Agreement shall terminate and be null and void and of no further force or effect
      without liability of either Party, except for liability for any breach of this
      Agreement. 

     

    (b)  Conditions
      to Eagle's Obligations.
      The
      obligations of Eagle to consummate the transactions contemplated by this
      Agreement shall be subject to the surrender to Eagle by Tail Wind of the Link
      Note and Warrant.

     

    (c)  Conditions
      to Tail Wind's Obligations.
      The
      obligations of Tail Wind to consummate the transactions contemplated by this
      Agreement shall be subject to the following:

     

    (i)  wire
      transfer by Eagle of $100,000 as contemplated by Section 2(a) of this Agreement
      to the account designated therein;

     

    (ii)  the
      execution, issuance and delivery of the Promissory Note to Tail Wind as
      contemplated by Section 2(b) of this Agreement;

     

    (iii)  the
      execution, issuance and delivery of the Convertible A Note to Tail Wind as
      contemplated by Section 2(c) of this Agreement;

     

    (iv)  the
      execution, issuance and delivery of the Convertible B Note to Tail Wind as
      contemplated by Section 2(d) of this Agreement;

     

    (v)  the
      surrender to Tail Wind of the Check;

     

    (vi)  the
      issuance and delivery to Tail Wind of a legal opinion from Arent Fox PLLC
      covering the exemption from the Securities Act of the issuance of the Settlement
      Shares to Tail Wind, in form and substance reasonably acceptable to Tail Wind;
      and

     

    (vii)  the
      execution and delivery to Tail Wind of original signed and notarized copies
      of
      affidavits for judgment by confession, for the accelerated amounts to be due
      hereunder and under the Promissory Note and Convertible Notes, in form and
      substance reasonably acceptable to Tail Wind.

     

    (d)  Obligations
      to Satisfy Conditions.
      Each of
      the Parties covenant and agree to use its best efforts to cause the conditions
      to the obligations of the other to be satisfied in full on or before the
      Deadline.

     

    (e)  Escrow.
      The
      Link Note and Warrant shall be delivered to White Field, Inc. to hold in escrow
      pending release to Eagle at the Effective Time pursuant to the authorization
      (which may be by email) to release furnished by Peter J. Weisman, P.C. on behalf
      of Tail Wind. The items set forth in clauses (i) through (vii) of Section 6(c)
      (with the exception of item (vi), which will be issued and delivered to Tail
      Wind by Arent Fox PLLC on or before the Effective Time) shall be delivered
      to
      Peter J. Weisman, P.C. to hold in escrow pending release to Tail Wind at the
      Effective Time pursuant to the authorization (which may be by email) to release
      furnished by White Field, Inc. on behalf of Eagle. If the Effective Time does
      not occur by the Deadline, all such items and documents shall be promptly
      returned to Eagle and Tail Wind, as the case may be.

     

    7.  Mutual
      Release. In
      consideration of the covenants, agreements and undertakings set forth in this
      Agreement, the Parties agree to the mutual general release set forth in this
      Section 7 (the “Mutual
      Release”),
      such
      Mutual Release to be effective on the date which is ninety-one (91) days
      following the Issuance Date (“Release
      Date”)
      so
      long as no Bankruptcy Event (as defined in the Convertible Notes) has occurred
      prior to such date, except that, under no circumstances will the Mutual Release
      be deemed to cover any claims that may arise under the terms of this Agreement,
      the Promissory Note, the Convertible Notes, or any other document delivered
      in
      connection herewith or therewith. The Mutual Release shall become null and
      void
      if a Bankruptcy Event occurs before the Release Date.

     

    (a)  Release
      of Claims by Eagle/Link.
      Eagle
      and Link each forever generally and completely releases and discharges Tail
      Wind, each of its affiliates and each of its and their directors, officers,
      employees, attorneys and agents, in their corporate, company and individual
      capacities (the “Tail
      Wind Parties”),
      of
      and from any and all claims and demands of every kind and nature, in law, equity
      or otherwise, known and unknown, suspected and unsuspected, disclosed and
      undisclosed, and in particular (but without limitation) of and from all claims
      and demands of every kind and nature, known and unknown, suspected and
      unsuspected, disclosed and undisclosed, for damages, actual, consequential
      and
      exemplary, past, present and future, arising out of or in any way related to
      Eagle's and Link’s dealings with any Tail Wind Party in connection with the
      Transaction Documents or the transactions contemplated thereby, and any and
      all
      claims raised in the Litigation Proceeding.

     

    (b)  Release
      of Claims by Tail Wind.
      Tail
      Wind forever generally and completely releases and discharges Eagle and Link,
      each of their affiliates and each of their directors, officers, employees,
      attorneys and agents, in both their corporate and individual capacities (the
      “Eagle/Link
      Parties”),
      of
      and from any and all claims and demands of every kind and nature, in law, equity
      or otherwise, known and unknown, suspected and unsuspected, disclosed and
      undisclosed, and in particular (but without limitation) of and from all claims
      and demands of every kind and nature, known and unknown, suspected and
      unsuspected, disclosed and undisclosed, for damages, actual, consequential
      and
      exemplary, past, present and future, arising out of or in any way related to
      Tail Wind's dealings with any Eagle/Link Party in connection with the
      Transaction Documents or the transactions contemplated thereby, and any and
      all
      claims raised in the Litigation Proceeding.

     

    (c)  Stay
      and Dismissal of Litigation Proceeding.
      On or
      promptly following the Effective Time, the parties shall cause further
      prosecution of the Litigation Proceeding to be stayed without prejudice until
      the earlier of the Release Date or any Bankruptcy Event. On or promptly
      following the Release Date, the parties shall cause the Litigation Proceeding
      to
      be dismissed with prejudice. Each party shall bear its own attorneys’ fees,
      expenses and costs incurred in connection with the Litigation Proceeding and
      with the settlement contemplated hereby.

     

    8.  Representations
      and Warranties of Eagle and Link. Each
      of
      Eagle and Link represents and warrants to Tail Wind that:

     

    (a)  Authorization/Enforceability.
      Each of
      Eagle and Link has full corporate power and authority and has taken all
      requisite corporate action on the part of each of Eagle and Link, its officers,
      directors and stockholders necessary for (i) the authorization, execution
      and delivery of this Agreement, the Promissory Note and Convertible Notes and
      (ii) the performance of all obligations of Eagle and Link under this Agreement,
      the Promissory Note and the Convertible Notes. This Agreement constitutes a
      legal, valid and binding obligation of Eagle and Link, enforceable against
      Eagle
      and Link in accordance with its terms. Each of the Promissory Note, Convertible
      A Note and Convertible B Note constitutes a legal, valid and binding obligation
      of Eagle, enforceable against Eagle in accordance with its terms.

     

    (b)  Consents.
      The
      execution, delivery and performance by Eagle and Link of this Agreement, the
      Promissory Note and Convertible Notes requires no consent of, action by or
      in
      respect of, or filing with, any Person, except as otherwise contemplated by
      this
      Agreement.

     

    (c)  No
      Breach, Violation or Default.
      The
      execution, delivery and performance by Eagle and Link of this Agreement, the
      Promissory Note and the Convertible Notes will not result in a breach or
      violation of any of the terms and provisions of, or constitute a default under
      (i) any statute, rule, regulation or order of any governmental agency or body
      or
      any court, domestic or foreign, having jurisdiction over Eagle, Link or any
      of
      their subsidiaries or properties, or (ii) any agreement or instrument to which
      Eagle, Link or any of their subsidiaries is a party or by which Eagle, Link
      or
      any subsidiary is bound, or (iii) the Articles of Incorporation or By-Laws
      of
      Eagle or Link.

     

    (d)  Valid
      Issuance of the Shares.
      The
      Settlement Shares, when issued to Tail Wind in accordance with the terms of
      this
      Agreement and the Convertible Notes, will be duly authorized, validly issued,
      fully paid, non-assessable, and free and clear of all liens, claims,
      encumbrances and restrictions (except for restrictions on resale under
      applicable securities laws). 

     

    (e)  Compliance
      with Amex Continued Listing Requirements.
      To
      Eagle’s knowledge, there are no proceedings pending or threatened against Eagle
      relating to the continued listing of the Common Stock on the American Stock
      Exchange (“Amex”)
      and
      Eagle has not received any written notice of the delisting or the possible
      delisting of the Common Stock from Amex within the past six months.

     

    (f)  Solvency.

     

    (i)  The
      execution, delivery and performance by Eagle and Link of this Agreement, the
      Promissory Note and the Convertible Notes and the consummation of the
      transactions contemplated hereby and thereby do not and will not constitute
      (A)
      a fraudulent transfer or conveyance under New York, Texas or other applicable
      state laws relating to fraudulent transfer or conveyance nor (B) a preferential
      transfer under federal or any applicable state bankruptcy or insolvency
      law.

     

    (ii)  Neither
      Eagle nor any of its subsidiaries is subject to any bankruptcy, insolvency
      or
      similar proceeding.

     

    9.  Representations
      and Warranties of Tail Wind.
      Tail
      Wind represents and warrants to Eagle and Link that:

     

    (a)  Authorization/Enforceability.
      Tail
      Wind has full corporate or other power and authority and has taken all requisite
      corporate or other action on the part of Tail Wind, its officers, directors
      and
      stockholders necessary for (i) the authorization, execution and delivery of
      this Agreement and (ii) the performance of all obligations of Tail Wind under
      this Agreement. This Agreement constitutes a valid and legally binding
      obligation of Tail Wind, enforceable against Tail Wind in accordance with its
      terms.

     

    (b)  Consents.
      The
      execution, delivery and performance by Tail Wind of this Agreement requires
      no
      consent of, action by or in respect of, or filing with, any Person, except
      as
      otherwise contemplated by this Agreement.

     

    (c)  No
      Breach, Violation or Default.
      The
      execution, delivery and performance by Tail Wind of this Agreement will not
      result in a breach or violation of any of the terms and provisions of, or
      constitute a default under (i) any statute, rule, regulation or order of any
      governmental agency or body or any court, domestic or foreign, having
      jurisdiction over Tail Wind or any of its properties, or (ii) any agreement
      or
      instrument to which Tail Wind is a party or is bound, or (iii) the
      organizational documents of Tail Wind.

     

    10.  Registration
      and Free Trading of Settlement Shares.

     

    (a)  Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the following
      meanings:

     

    (i)  “Prospectus”
shall
      mean the prospectus included in any Registration Statement, as amended or
      supplemented by any prospectus supplement, with respect to the terms of the
      offering of any portion of the Registrable Securities covered by such
      Registration Statement and by all other amendments and supplements to the
      prospectus, including post-effective amendments and all material incorporated
      by
      reference in such prospectus.

     

    (ii)  “Register,”
      “registered”
and
      “registration”
refer
      to a registration made by preparing and filing a registration statement or
      similar document in compliance with the Securities Act (as defined below),
      and
      the declaration or ordering of effectiveness of such registration statement
      or
      document.

     

    (iii)  “Registrable
      Securities”
shall
      mean (a) the Settlement Shares (without regard to any limitations on beneficial
      ownership contained in this Agreement or the Convertible Notes) or other
      securities issued or issuable to Tail Wind (i) upon conversion of the
      Convertible Notes, or (ii) upon any distribution with respect to, any exchange
      for or any replacement of such Settlement Shares or Convertible Notes or (iii)
      upon any conversion, exercise or exchange of any securities issued in connection
      with any such distribution, exchange or replacement; (b) securities issued
      or
      issuable upon any stock split, stock dividend, recapitalization or similar
      event
      with respect to the foregoing; and (c) any other security issued as a
      distribution with respect to, in exchange for or in replacement of the
      securities referred to in the preceding clauses.

     

    (iv)  “Registration
      Effectiveness Date”
shall
      mean date on which the initial Registration Statement filed pursuant to this
      Agreement is declared effective by the SEC.

     

    (v)  “Registration
      Period”
shall
      mean the period commencing on the Registration Effectiveness Date and
      terminating upon the earlier of (i) the date on which all Registrable Securities
      have been sold or (ii) the date on which all Registrable Securities may be
      sold
      pursuant to Rule 144(k) promulgated under the Securities Act (or any successor
      provision).

     

    (vi)  “Registration
      Statement”
shall
      mean any registration statement of Eagle filed under the Securities Act that
      covers the resale of any of the Registrable Securities pursuant to the
      provisions of this Agreement, amendments and supplements to such Registration
      Statement, including post-effective amendments, all exhibits and all material
      incorporated by reference in such Registration Statement.

     

    (vii)  “SEC”
shall
      mean the United States Securities and Exchange Commission.

     

    (b)  Registration.

     

    (i)  Registration
      Statements.
      Promptly following the Issuance Date, (but no later than the earlier of (A)
      twenty (20) days after the Issuance Date and (B) January 1, 2007 in the event
      the Issuance Date does not occur by then), Eagle shall prepare and file with
      the
      SEC one Registration Statement on Form S-3 (or, if Form S-3 is not then
      available to Eagle, on such form of registration statement as is then available
      to effect a registration for resale of the Registrable Securities) covering
      the
      resale of the Registrable Securities in an amount equal to 100% of the number
      of
      Shares issued on the Issuance Date plus 120% of the number of Conversion Shares
      issued and issuable upon full conversion of the Convertible Notes at the
      conversion price in effect as of the filing date (without regard to any
      limitations or restrictions on beneficial ownership). In the event any
      Registrable Securities are not covered by the Registration Statement, Eagle
      shall promptly amend such Registration Statement or prepare and file with the
      SEC a new Registration Statement in accordance with the terms hereof in order
      to
      cause such Registrable Securities to be covered by a Registration Statement.
      Without limiting the foregoing, if at any time less than 110% of the number
      of
      Conversion Shares issued and issuable upon full conversion of the Convertible
      Notes (at the then applicable conversion price in effect without regard to
      any
      limitations or restrictions on beneficial ownership) are covered for resale
      by
      an effective Registration Statement, then Eagle shall promptly amend such
      Registration Statement or prepare and file with the SEC a new Registration
      Statement in accordance with the terms hereof in order to cause 175% of the
      number of Conversion Shares issued and issuable upon full conversion of the
      then
      outstanding principal due under the Convertible Notes at the conversion price
      in
      effect as of the filing date (without regard to any limitations or restrictions
      on beneficial ownership) to be covered for resale by one or more Registration
      Statement(s). 

     

    (ii)  Expenses.
      Eagle
      will pay all expenses associated with each registration, but excluding
      discounts, commissions and fees of underwriters, selling brokers, dealer
      managers or similar securities industry professionals.

     

    (iii)  Effectiveness.
      Eagle
      shall use its best efforts to have each Registration Statement declared
      effective as soon as practicable, but in no event later than the earlier of
      (A)
      ninety (90) days after the Issuance Date for the initial Registration Statement
      and sixty (60) days after filing thereof for any subsequent Registration
      Statement, and (B) March 1, 2007 in the event the Issuance Date does not occur
      by January 1, 2007) . In connection therewith, Eagle shall respond to all SEC
      comments on the Registration Statement and file any amendments to the
      Registration Statement as soon as reasonably practicable following any date
      on
      which the SEC furnishes comments to, asks questions of, or requests further
      information from, Eagle or its counsel with respect to the Registration
      Statement or any part thereof or any document incorporated by reference therein.
      After any Registration Statement is declared effective by the SEC, Eagle shall
      use its best efforts to cause such Registration Statement to remain continuously
      effective in accordance with the terms hereof throughout the Registration
      Period; provided,
      however,
      that
      for not more than ten (10) consecutive days and for a total of not more than
      thirty (30) days in any twelve (12) consecutive month period, Eagle may delay
      the disclosure of material non-public information concerning Eagle the
      disclosure of which at the time is not, in the good faith opinion of Eagle,
      in
      the best interests of Eagle (“Permitted
      Blackout”),
      provided, that Eagle shall promptly (a) notify Tail Wind in writing of the
      existence of (but in no event, without Tail Wind’s prior written consent, shall
      Eagle disclose to Tail Wind any of the facts or circumstances regarding)
      material non-public information giving rise to a Permitted Blackout, and (b)
      advise Tail Wind in writing to cease all sales under the Registration Statement
      until the end of the Permitted Blackout.

     

    (c)  Eagle
      Obligations.
      In
      addition to the foregoing, Eagle shall, as expeditiously as
      possible:

     

    (i)  prepare
      and file with the SEC such amendments and post-effective amendments to the
      Registration Statement and the Prospectus as may be necessary to keep the
      Registration Statement effective for the entire Registration Period (subject
      Permitted Blackouts) and to comply with the provisions of the Securities Act
      and
      the Exchange Act with respect to the resale or distribution of all Registrable
      Securities;

     

    (ii)  furnish
      to Tail Wind such number of copies of a Prospectus, including a preliminary
      prospectus, and all amendments and supplements thereto and such other documents
      as Tail Wind may reasonably request in order to facilitate Tail Wind’s
      disposition of the Registrable Securities;

     

    (iii)  
      make
      best efforts to prevent the issuance of any stop order or other suspension
      of
      effectiveness and, if such order is issued, obtain the withdrawal of any such
      order at the earliest possible moment;

     

    (iv)  prior
      to
      any public offering of Registrable Securities, use its best efforts to register
      or qualify or cooperate with Tail Wind and its counsel in connection with the
      registration or qualification of such Registrable Securities for offer and
      sale
      under the securities or blue sky laws of such jurisdictions as Tail Wind
      reasonably requests in writing and do any and all other reasonable acts or
      things necessary or advisable to enable the resale or distribution in such
      jurisdictions of the Registrable Securities covered by the Registration
      Statement, provided that Eagle shall not be required in connection therewith
      or
      as a condition thereto to qualify to do business or to file a general consent
      to
      service of process in any such states or jurisdictions, or to become subject
      to
      any material tax in any such state or jurisdiction where it is not otherwise
      subject;

     

    (v)  make
      best
      efforts to cause all Registrable Securities covered by a Registration Statement
      to be listed on each securities exchange, interdealer quotation system or other
      market on which similar securities issued by Eagle are then quoted or listed;
      and

     

    (vi)  immediately
      notify Tail Wind, at any time when a Prospectus relating to the Registrable
      Securities is required to be delivered under the Securities Act, upon discovery
      that, or upon the happening of any event as a result of which, the Prospectus
      included in such Registration Statement, as then in effect, includes an untrue
      statement of a material fact or omits to state any material fact required to
      be
      stated therein or necessary to make the statements therein not misleading in
      the
      light of the circumstances then existing, and at the request of Tail Wind,
      promptly prepare and furnish to Tail Wind a reasonable number of copies of
      a
      supplement to or an amendment of such Prospectus as may be necessary so that,
      as
      thereafter delivered to the purchasers of such Registrable Securities, such
      Prospectus shall not include an 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 not misleading in the light of the circumstances then
      existing.

     

    (d)  Indemnification.

     

    (i)  Indemnification
      by Eagle.
      Eagle
      agrees to indemnify and hold harmless, to the fullest extent permitted by law,
      Tail Wind, its officers, directors, stockholders and employees and each person
      who controls Tail Wind (within the meaning of the Securities Act) against all
      losses, claims, damages, liabilities, costs (including, without limitation,
      reasonable attorney’s fees) and expenses imposed on such person caused by (i)
      any untrue or alleged untrue statement of a material fact contained in any
      Registration Statement, Prospectus or any preliminary prospectus or any
      amendment or supplement thereto or any omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, except insofar as the same are based upon
      any
      information furnished in writing to Eagle by Tail Wind, expressly for use
      therein, or (ii) any violation by Tail Wind of any federal, state or common
      law,
      rule or regulation applicable to Tail Wind in connection with any Registration
      Statement, Prospectus or any preliminary prospectus, or any amendment or
      supplement thereto, and shall reimburse in accordance with subparagraph (iii)
      below, each of the foregoing persons for any legal and any other expenses
      reasonably incurred in connection with investigating or defending any such
      claims. The foregoing is subject to the condition that, insofar as the foregoing
      indemnities relate to any untrue statement, alleged untrue statement, omission
      or alleged omission made in any preliminary prospectus or Prospectus that is
      eliminated or remedied in any Prospectus or amendment or supplement thereto,
      the
      above indemnity obligations of Eagle shall not inure to the benefit of any
      indemnified party if a copy of such corrected Prospectus or amendment or
      supplement thereto had been made available to such indemnified party and was
      not
      sent or given by such indemnified party at or prior to the time such action
      was
      required of such indemnified party by the Securities Act and if delivery of
      such
      Prospectus or amendment or supplement thereto would have eliminated (or been
      a
      sufficient defense to) any liability of such indemnified party with respect
      to
      such statement or omission. Indemnity under this Section 10(d) shall remain
      in
      full force and effect regardless of any investigation made by or on behalf
      of
      any indemnified party and shall survive the permitted transfer of the
      Registrable Securities.

     

    (ii)  Indemnification
      by Tail Wind.
      In
      connection with any registration pursuant to the terms of this Agreement, Tail
      Wind will furnish to Eagle in writing such information as Eagle reasonably
      requests concerning the Tail Wind or the proposed manner of resale or
      distribution for use in connection with any Registration Statement or Prospectus
      and agrees to indemnify and hold harmless, to the fullest extent permitted
      by
      law, Eagle, its directors, officers, employees, stockholders and each person
      who
      controls Eagle (within the meaning of the Securities Act) against any losses,
      claims, damages, liabilities and expense (including reasonable attorney’s fees)
      resulting from any untrue statement of a material fact or any omission of a
      material fact required to be stated in the Registration Statement or Prospectus
      or preliminary prospectus or amendment or supplement thereto or necessary to
      make the statements therein not misleading, to the extent, but only to the
      extent that such untrue statement or omission is contained in any information
      furnished in writing by Tail Wind to Eagle specifically for inclusion in such
      Registration Statement or Prospectus or amendment or supplement thereto and
      that
      such information was substantially relied upon by Eagle in preparation of the
      Registration Statement or Prospectus or any amendment or supplement thereto.
      In
      no event shall the liability of Tail Wind be greater in amount than the dollar
      amount of the proceeds (net of all expenses paid by any holder of Registrable
      Securities and the amount of any damages such holder has otherwise been required
      to pay by reason of such untrue statement or omission) received by such holder
      of Registrable Securities upon the sale of the Registrable Securities included
      in the Registration Statement giving rise to such indemnification
      obligation.

     

    (iii)  Conduct
      of Indemnification Proceedings.
      Any
      person entitled to indemnification hereunder shall (i) give prompt notice to
      the
      indemnifying party of any claim with respect to which it seeks indemnification
      and (ii) permit such indemnifying party to assume the defense of such claim
      with
      counsel reasonably satisfactory to the indemnified party; provided that any
      person entitled to indemnification hereunder shall have the right to employ
      separate counsel and to participate in the defense of such claim, but the fees
      and expenses of such counsel shall be at the expense of such person unless
      (a)
      the indemnifying party has agreed to pay such fees or expenses, or (b) the
      indemnifying party shall have failed to assume the defense of such claim and
      employ counsel reasonably satisfactory to such person or (c) in the reasonable
      judgment of any such person, based upon written advice of its counsel, a
      conflict of interest exists between such person and the indemnifying party
      with
      respect to such claims (in which case, if the person notifies the indemnifying
      party in writing that such person elects to employ separate counsel at the
      expense of the indemnifying party, the indemnifying party shall not have the
      right to assume the defense of such claim on behalf of such person); and
      provided, further, that the failure of any indemnified party to give notice
      as
      provided herein shall not relieve the indemnifying party of its obligations
      hereunder, except to the extent that such failure to give notice shall
      materially adversely affect the indemnifying party in the defense of any such
      claim or litigation. It is understood that the indemnifying party shall not,
      in
      connection with any proceeding in the same jurisdiction, be liable for fees
      or
      expenses of more than one separate firm of attorneys at any time for all such
      indemnified parties. No indemnifying party will, except with the consent of
      the
      indemnified party, consent to entry of any judgment or enter into any settlement
      that does not include as an unconditional term thereof the giving by the
      claimant or plaintiff to such indemnified party of a release from all liability
      in respect of such claim or litigation.

     

    (iv)  Contribution.
      If for
      any reason the indemnification provided for in the preceding paragraphs (i)
      and
      (ii) is unavailable to an indemnified party or insufficient to hold it harmless,
      other than as expressly specified therein, then the indemnifying party shall
      contribute to the amount paid or payable by the indemnified party as a result
      of
      such loss, claim, damage or liability in such proportion as is appropriate
      to
      reflect the relative fault of the indemnified party and the indemnifying party,
      as well as any other relevant equitable considerations. No person guilty of
      fraudulent misrepresentation within the meaning of Section 11(f) of the
      Securities Act shall be entitled to contribution from any person not guilty
      of
      such fraudulent misrepresentation. In no event shall the contribution obligation
      of a holder of Registrable Securities be greater in amount than the dollar
      amount of the proceeds (net of all expenses paid by such holder and the amount
      of any damages such holder has otherwise been required to pay by reason of
      such
      untrue or alleged untrue statement or omission or alleged omission) received
      by
      it upon the sale of all the Registrable Securities sold by such indemnified
      party which were covered by the relevant Registration Statement or Prospectus
      contained therein.

     

    (e)  Effectiveness
      Default.
      If (i)
      the Registration Statement covering Registrable Securities is not declared
      effective by the SEC within ninety (90) days following the Issuance Date (or
      sixty (60) days following the filing of any subsequent Registration Statement,
      or the fifth day following the date on which Eagle is notified by the SEC that
      any Registration Statement will not be reviewed or is no longer subject to
      further review and comments, or March 1, 2007 in the event the Issuance Date
      does not occur prior to January 1, 2007), (ii) after the Registration
      Effectiveness Date, sales cannot be made pursuant to such Registration Statement
      for any reason (including without limitation by reason of a stop order, or
      Eagle’s failure to update the Registration Statement), other than pursuant to a
      Permitted Blackout, or (iii) the Registrable Securities specifically are not
      listed or included for quotation on the American Stock Exchange, the New York
      Stock Exchange, the Nasdaq National Market, the Nasdaq Capital Market or the
      OTC
      Bulletin Board, or trading of the Common Stock is suspended or halted thereon
      for more than three (3) hours (any such default under (i), (ii) or (iii)
      constituting an “Effectiveness
      Default”),
      then
      Eagle will pay Tail Wind as liquidated damages and not as a penalty, an amount
      equal to 2% of the product of the number of Registrable Securities (whether
      issued or not) as of the date of such Effectiveness Default times the closing
      price of the Common Stock on the Principal Market on the date of such
      Effectiveness Default, for each month (or portion thereof) following the
      Effectiveness Default during which any of the events described in (i), (ii)
      or
      (iii) above occurs and is continuing, which amount shall be payable at the
      end
      of each such month and upon termination of the Effectiveness Default. Such
      payments shall be in partial compensation to Tail Wind, and shall not constitute
      Tail Wind’s exclusive remedy for such events.

     

    (f)  Rule
      144.
      Without
      limiting anything contained in this Agreement, in the event that any of the
      Settlement Shares constitute “restricted securities” under and as defined in
      Rule 144 of the Securities Act, Eagle agrees that (i) for purposes of
      determining the holding period under Rule 144 of the Securities Act, for
      Conversion Shares issued upon conversion of the Convertible Notes, based on
      all
      facts presently known to Eagle, Eagle shall take the position that the holding
      period of Tail Wind for such Conversion Shares shall be tacked to the holding
      period of Tail Wind for the Convertible Notes, and (ii) it shall make publicly
      available on a timely basis the information necessary to enable Rule 144 under
      the Securities Act to be available for resale of the Settlement
      Shares.

     

    (g)  No
      Action Letter. Eagle
      understands that Tail Wind may request (“Request”)
      from
      the Division of Corporation Finance of the SEC a “no action letter”
(“No
      Action Letter”)
      to the
      effect that (i) such Division will not recommend enforcement if Eagle issues
      the
      Settlement Shares to Tail Wind without registration under the Securities Act
      and
      (ii) Tail Wind may resell the Settlement Shares received by it without
      registration under the Securities Act and without regard to Securities Act
      Rules
      144 or 145(c) and (d). Eagle agrees to cooperate with Tail Wind in connection
      with any such Request, including without limitation taking any and all actions
      and executing any and all documents reasonably requested by Tail Wind in
      connection with any such Request. Eagle shall take not any position inconsistent
      with the position contained in any such Request. Based on all facts presently
      known to Eagle, Eagle agrees (i) that Tail Wind has never been, is not
      currently, and immediately following execution hereof will not be, an affiliate
      of or affiliated with Eagle in any manner or way whatsoever, and (ii) Tail
      Wind
      shall not in the future constitute an affiliate of or be affiliated with Eagle
      in any manner or way whatsoever so long as its sole relationship with Eagle
      continues to be as a holder of the Settlement Shares, Promissory Note and
      Convertible Notes and a Party to this Agreement. Eagle shall not take or assert
      any position inconsistent with the foregoing clauses (i) and (ii).
      Notwithstanding the provisions of this Section 10(g), in the event that the
      staff of the SEC disagrees with Eagle’s interpretation that Tail Wind is not an
      affiliate of Eagle, Eagle will comply with the SEC’s interpretation and take any
      necessary steps to remain in compliance with any applicable securities
      laws.

     

    (h)  Legends.
      Promptly
      following the earliest of (a) the Registration Effectiveness Date, (b) the
      date
      on which Rule 144(k) under the Securities Act becomes available with respect
      to
      the Registrable Securities, or (c) the date on which Eagle and/or Tail Wind
      receives a No Action Letter, Eagle shall promptly cause certificates evidencing
      the Settlement Shares previously issued to be replaced with certificates which
      do not bear such restrictive legends, and Conversion Shares subsequently issued
      shall not bear such restrictive legends. In the event that Eagle does not issue
      new, unlegended certificates in replacement of the legended certificates as
      required under this Section 10(h) within 10 business days of a written request
      to do so, or if any subsequently issued Conversion Shares are issued with
      restrictive legends when unlegended certificates are required under this Section
      10(h), Eagle shall be liable to Tail Wind (or subsequent holder thereof) for
      damages in an amount of $1,000 cash for each such day beyond the replacement
      date (or issuance date, in the case of newly converted Convertible Notes) that
      such unlegended certificates are not issued and delivered to Tail Wind (or
      subsequent holder).

     

    11.  Arbitration.
      Any
      and
      all disputes arising from or in connection with this Agreement (excluding
      matters pertaining to the Promissory Note or Conversion Notes subject to the
      confession of judgment described in Section 12 below), whether based on
      contract, tort, common law, equity, statute, regulation, order or otherwise
      (“Disputes”),
      including Disputes arising in connection with claims by third persons, shall
      be
      exclusively governed by and settled in accordance with the provisions of this
      Section 11; provided, that the foregoing shall not preclude equitable or other
      judicial relief to enforce the provisions of this Section 11 or to preserve
      the
      status quo pending resolution of Disputes hereunder.

     

    (a)  Binding
      Arbitration.
      The
      Parties hereby agree to submit all Disputes to arbitration for final and binding
      resolution. Either Party may initiate such arbitration by delivery of a demand
      therefor (the “Arbitration
      Demand”)
      to the
      other Party. The arbitration shall be conducted in New York, New York by a
      sole
      arbitrator selected by agreement of the parties not later than 10 days after
      delivery of the Arbitration Demand, or, failing such agreement, appointed
      pursuant to the Commercial Arbitration Rules of the American Arbitration
      Association, as amended from time to time (the “AAA
      Rules”).
      If
      the arbitrator becomes unable to serve, his successor(s) shall be similarly
      selected or appointed.

     

    (b)  Procedures.
      The
      arbitration shall be conducted pursuant to the Federal Arbitration Act and
      such
      procedures as the parties may agree or, in the absence of or failing such
      agreement, pursuant to the AAA Rules. Notwithstanding the foregoing (i) each
      party shall provide to the other, reasonably in advance of any hearing, copies
      of all documents that a party intends to present in such hearing; (ii) all
      hearings shall be conducted on an expedited schedule; and (iii) all proceedings
      shall be confidential, except that either party may at its expense make a
      stenographic record thereof.

     

    (c)  Timing.
      The
      arbitrator shall complete all hearings not later than 90 days after his or
      her
      selection or appointment, and shall make a final award not later than 30 days
      thereafter. The arbitrator shall apportion all costs and expenses of the
      arbitration, including the arbitrator's fees and expenses and fees and expenses
      of experts (“Arbitration
      Costs”),
      between the prevailing and non-prevailing party as the arbitrator shall deem
      fair and reasonable. In circumstances where a Dispute has been asserted or
      defended against on grounds that the arbitrator deems manifestly unreasonable,
      the arbitrator may assess all Arbitration Costs against the non-prevailing
      party
      and may include in the award the prevailing party's attorney's fees and expenses
      in connection with any and all proceedings under this Section 11.

     

    12.  Payment
      Set Aside.
      To the
      extent that Eagle makes a payment or payments to Tail Wind pursuant to this
      Agreement, the Promissory Note or the Convertible Notes (whether is cash, Common
      Stock or otherwise) or Tail Wind enforces or exercises its rights hereunder
      or
      thereunder, and such payment or payments or the proceeds of such enforcement
      or
      exercise or any part thereof are subsequently invalidated, declared to be
      fraudulent or preferential, set aside, recovered from, disgorged by or are
      required to be refunded, repaid or otherwise restored to Eagle, a trustee,
      receiver or any other person under any law (including, without limitation,
      any
      bankruptcy or insolvency law, state or federal law, common law or equitable
      cause of action), then to the extent of any such restoration the obligation
      or
      part thereof originally intended to be satisfied shall be revived and continued
      in full force and effect as if such payment had not been made or such
      enforcement or setoff had not occurred.

     

    13.  Confidentiality.
      The
      Parties agree to
      maintain as confidential and not disclose the existence of, or the terms or
      conditions of, this Agreement (other than to its agents or representatives
      which
      shall keep same confidential), except to the extent required to be disclosed
      pursuant to law or legal process and except to the extent required to be
      disclosed in an SEC filing, provided
      however,
      that
      (a) Eagle agrees to timely file any and all such documents and exhibits as
      may
      be required under the Securities Act or the Exchange Act in connection with
      the
      execution of this Agreement and the transactions contemplated hereby, and (b)
      Eagle shall in any event, prior to the issuance of any Settlement Shares,
      publicly disclose sufficient information concerning the terms and conditions
      of
      this Agreement such that Tail Wind is not in possession of any material
      non-public information concerning Eagle. Eagle represents, warrants agrees
      that
      (i) it has not provided to Tail Wind any material non-public information
      concerning Eagle (other than the existence of this Agreement), and (ii) it
      will
      not furnish to Tail Wind any material non-public information concerning Eagle
      without Tail Wind’s prior written consent.

     

    14.  Miscellaneous.

     

    (a)  Listing.
      Eagle
      shall use its reasonable efforts to continue the uninterrupted listing of its
      Common Stock on Amex and to comply in all material respects with Eagle’s
      reporting, filing and other obligations under the rules of Amex while any
      Shares, Conversion Shares or either of the Convertible Notes are
      outstanding.

     

    (b)  No
      Conflicting Agreements.
      Eagle
      will not, and will not permit its subsidiaries to, take any action, enter into
      any agreement or make any commitment that would conflict or interfere in any
      material respect with the obligations to Tail Wind hereunder or under the
      Promissory Note or Convertible Notes.

     

    (c)  Successors
      and Assigns.
      Neither
      this Agreement nor the respective obligations of the Parties hereunder may
      be
      assigned by either Party without the prior written consent of the other Parties
      (provided that the registration provisions contained in Section 10 may be
      assigned to any transferee of the Convertible Notes or the Registrable
      Securities (excluding transferees receiving Settlement Shares sold pursuant
      to a
      Registration Statement) without such prior consent. The terms and conditions
      of
      this Agreement shall inure to the benefit of and be binding upon the respective
      successors and permitted assigns of the Parties.

     

    (d)  Counterparts.
      This
      Agreement may be executed by facsimile and in two or more counterparts, each
      of
      which shall be deemed an original, but all of which together shall constitute
      one and the same instrument.

     

    (e)  Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    (f)  Notices.
      Unless
      otherwise provided, any notice required or permitted under this Agreement shall
      be given in writing and shall be deemed effectively given only upon delivery
      to
      each Party to be notified by (i) personal delivery, (ii) facsimile transmission,
      or (iii) internationally recognized overnight air courier, addressed to the
      Party to be notified at the address as follows, or at such other address as
      such
      Party may designate by ten days' advance written notice given hereunder to
      the
      other Party:

     

    If
      to
      Eagle or Link:

    

    Eagle
      Broadband, Inc.

    101
      Courageous Drive

    League
      City, TX 77573 

    Attn:
      Jeff Adams, Corporate Counsel

    Telephone: (281)
      538-6000

    Facsimile: (281)
      538-4730

    

    with
      a
      copy to:

    

    Bryan
      J.
      Sinclair, Esq.

    White
      Field, Inc.

    3723
      Haven Ave., #102

    Menlo
      Park, CA 94025

    Telephone: (650)
      261-1701 

    Facsimile: (650)
      249-1943 

    

    If
      to
      Tail Wind:

    

    The
      Tail
      Wind Fund Ltd.

    c/o
      Tail
      Wind Advisory and Management Ltd.

    One
      Regent Street, 1st Floor

    London
      SW1Y 4NS England

    Attn: David
      Crook

    Telephone: 44-207-468-7660

    Facsimile: 44-207-468-7657

    

    with
      a
      copy to:

    

    Peter
      J.
      Weisman, P.C.

    335
      Madison Avenue, Suite 1702

    New
      York,
      New York 10017

    Telephone: (212)
      418-4792

    Facsimile: (212)
      318-8855

    

    (g)  Amendments
      and Waivers.
      Any
      term of this Agreement may be amended and the observance of any term of this
      Agreement may be waived (either generally or in a particular instance and either
      retroactively or prospectively), only with the written consent of Eagle and
      Tail
      Wind.

     

    (h)  Entire
      Agreement.
      This
      Agreement, the Promissory Note and the Convertible Notes constitute the entire
      agreement between Eagle, Link and Tail Wind with respect to the subject matter
      hereof and thereof, and supersede all prior agreements and understandings,
      both
      oral and written, between the parties with respect to the subject matter hereof
      and thereof.

     

    (i)  Further
      Assurances.
      The
      Parties shall execute and deliver all such further instruments and documents
      and
      take all such other actions as may reasonably be required to carry out the
      transactions contemplated hereby and to evidence the fulfillment of the
      agreements herein contained.

     

    (j)  Applicable
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of New York without regard to principles of conflicts of
      laws.

     

    

    [signature
      page follows]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Parties have caused this Agreement to be executed and delivered as of the date
      hereof.

    

    

    EAGLE
      BROADBAND, INC.

    

    

    

    By: /s/
      David Micek    

    David
      Micek

    President

    

    

    LINK
      TWO COMMUNICATIONS, INC.

    By:
      Eagle
      Broadband, Inc., sole shareholder

    

    

    By:
       /s/
      David Micek   

    Name: David
      Micek

    Title: President
      of Eagle Broadband, Inc.,  sole
      shareholder

    

    

    THE
      TAIL WIND FUND LTD.

    By: TAIL
      WIND
      ADVISORY AND

    MANAGEMENT
      LTD., as investment

    manager

    

     

    By:
       /s/
      David Crook   

    David
      Crook

    CEOExhibit 10.18

Exhibit 10.18

    INVESTMENT
      AGREEMENT

     

    INVESTMENT
      AGREEMENT (this "AGREEMENT"), dated as of March 20, 2006 by and between Eagle
      Broadband, Inc., a Texas corporation (the "Company"), and Dutchess Private
      Equities Fund, LP, a Delaware limited partnership (the "Investor").

     

    Whereas,
      the parties desire that, upon the terms and subject to the conditions contained
      herein, the Investor shall invest up to Five Million dollars ($5,000,000) to
      purchase the Company's Common Stock, $0.001 par value per share (the "Common
      Stock"); 

     

    Whereas,
      such investments will be made in reliance upon the provisions of Section 4(2)
      under the Securities Act of 1933, as amended (the "1933 Act"), Rule 506 of
      Regulation D, and the rules and regulations promulgated thereunder, and/or
      upon
      such other exemption from the registration requirements of the 1933 Act as
      may
      be available with respect to any or all of the investments in Common Stock
      to be
      made hereunder; and 

     

    Whereas,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering a Registration Rights Agreement
      substantially in the form attached hereto as Exhibit A (as amended from time
      to
      time, the "Registration Rights Agreement") pursuant to which the Company has
      agreed to provide certain registration rights under the 1933 Act, and the rules
      and regulations promulgated thereunder, and applicable state securities laws.
      

     

    NOW
      THEREFORE, in consideration of the foregoing recitals, which shall be considered
      an integral part of this Agreement, the covenants and agreements set forth
      hereafter, and other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, the Company and the Investor hereby
      agree as follows: 

     

    SECTION
      1. DEFINITIONS. 

     

    As
      used
      in this Agreement, the following terms shall have the following meanings
      specified or indicated below, and such meanings shall be equally applicable
      to
      the singular and plural forms of such defined terms.

    

    “1933
      Act”
shall
      have the meaning set forth in the preamble of this agreement.

    

    “1934
      Act”
shall
      mean the Securities Exchange Act of 1934, as it may be amended.

    

    “Affiliate”
shall
      have the meaning specified in Section 5(h), below.

    

    “Agreement”
shall
      mean this Investment Agreement.

    

    “Best
      Bid”
      shall
      mean the highest posted bid price of the Common Stock.

    

    “Buy
      In”
shall
      have the meaning specified in Section 6, below.

    

    “Buy
      In
      Adjustment Amount”
shall
      have the meaning specified in Section 6.

    

    “By-laws”
shall
      have the meaning specified in Section 4(c).

    

    “Certificate
      of Incorporation”
shall
      have the meaning specified in Section 4(c).

    

    “Closing”
shall
      have the meaning specified in Section 2(h).

    

    “Closing
      Date”
shall
      mean no more than seven (7) Trading Days following the Put Notice
      Date.

    

    “Common
      Stock”
shall
      have the meaning set forth in the preamble of this Agreement.

    

    “Control”
or
      “Controls”
shall
      have the meaning specified in Section 5(h).

    

    “Covering
      Shares”
shall
      have the meaning specified in Section 6.

    

    “Effective
      Date”
shall
      mean the date the SEC declares effective under the 1933 Act the Registration
      Statement covering the Securities.

    

    “Environmental
      Laws”
shall
      have the meaning specified in Section 4(m).

    

    “Execution
      Date”
shall
      mean the date indicated in the preamble to this Agreement.

    

    “Indemnities”
shall
      have the meaning specified in Section 11.

    

    “Indemnified
      Liabilities”
shall
      have the meaning specified in Section 11.

     

    “Ineffective
      Period”
shall
      mean any period of time that the Registration Statement or any Supplemental
      Registration Statement (as defined in the Registration Rights Agreement) becomes
      ineffective or unavailable for use for the sale or resale, as applicable, of
      any
      or all of the Registrable Securities (as defined in the Registration Rights
      Agreement) for any reason (or in the event the prospectus under either of the
      above is not current and deliverable) during any time period required under
      the
      Registration Rights Agreement.

    

    “Investor”
shall
      have the meaning indicated in the preamble of this Agreement.

    

    “Material
      Adverse Effect”
shall
      have the meaning specified in Section 4(a).

    

    “Maximum
      Common Stock Issuance”
shall
      have the meaning specified in Section 2(I).

    

    “Minimum
      Acceptable Price”
with
      respect to any Put Notice Date shall mean seventy-five percent (75%) of the
      lowest closing bid prices for the ten (10) Trading Day period immediately
      preceding such Put Notice Date.

    

    “Open
      Period”
shall
      mean the period beginning on and including the Trading Day immediately following
      the Effective Date and ending on the earlier to occur of (i)
      the date
      which is thirty-six (36) months from the Effective Date; or (ii)
      termination of the Agreement in accordance with Section 9, below.

    

    “Pricing
      Period”
shall
      mean the period beginning on the Put Notice Date and ending on and including
      the
      date that is five (5) Trading Days after such Put Notice Date.

    

    “Principal
      Market”
shall
      mean the American Stock Exchange, Inc., the National Association of Securities
      Dealers, Inc. Over-the-Counter Bulletin Board, the NASDAQ National Market System
      or the NASDAQ SmallCap Market, whichever is the principal market on which the
      Common Stock is listed.

    

    “Prospectus”
shall
      mean the prospectus, preliminary prospectus and supplemental prospectus used
      in
      connection with the Registration Statement.

    

    “Purchase
      Amount”
shall
      mean the total amount being paid by the Investor on a particular Closing Date
      to
      purchase the Securities.

    

    “Purchase
      Price”
shall
      mean ninety-three percent (93%) of the lowest closing Best Bid price of the
      Common Stock during the Pricing Period. 

    

    “Put”
shall
      have the meaning set forth in Section 2(b)(1) hereof. 

    

    “Put
      Amount”
shall
      have the meaning set forth in Section 2(b) hereof. 

    

    “Put
      Notice”
shall
      mean a written notice sent to the Investor by the Company stating the Put Amount
      in U.S. dollars, the Company intends to sell to the Investor pursuant to the
      terms of the Agreement and stating the current number of Shares issued and
      outstanding on such date.

     

    “Put
      Notice Date”
shall
      mean the Trading Day immediately following the day on which the Investor
      receives a Put Notice, however a Put Notice shall be deemed delivered
      on
      (a)
      the
      Trading Day it is received by facsimile or otherwise by the Investor if such
      notice is received prior to 9:00 am Eastern Time, or (b)
      the
      immediately succeeding Trading Day if it is received by facsimile or otherwise
      after 9:00 am Eastern Time on a Trading Day. No Put Notice may be deemed
      delivered on a day that is not a Trading Day. 

    

    “Put
      Restriction”
shall
      mean the days between the beginning of the Pricing Period and Closing Date.
      During this time, the Company shall not be entitled to deliver another Put
      Notice.

    

    “Registration
      Period”
shall
      have the meaning specified in Section 5(c), below.

    

    “Registration
      Rights Agreement”
shall
      have the meaning set forth in the recitals, above.

    

    “Registration
      Statement”
means
      the registration statement of the Company filed under the 1933 Act covering
      the
      Common Stock issuable hereunder.

    

    “Related
      Party”
shall
      have the meaning specified in Section 5(h).

    

    “Resolution”
shall
      have the meaning specified in Section 8(e).

    

    “SEC”
shall
      mean the U.S. Securities & Exchange Commission.

    

    “SEC
      Documents”
shall
      have the meaning specified in Section 4(f).

    

    “Securities”
shall
      mean the shares of Common Stock issued pursuant to the terms of the
      Agreement.

    

    “Shares”
shall
      mean the shares of the Company’s Common Stock.

    

    “Sold
      Shares”
shall
      have the meaning specified in Section 6.

    

    “Subsidiaries”
shall
      have the meaning specified in Section 4(a).

    

    “Trading
      Day”
shall
      mean any day on which the Principal Market for the Common Stock is open for
      trading, from the hours of 9:30 am until 4:00 pm.

    

    “Transaction
      Documents”
shall
      mean this Agreement, the Registration Rights Agreement, and each of the other
      agreements entered into by the parties hereto in connection with this
      Agreement.

     

    SECTION
      2. PURCHASE AND SALE OF COMMON STOCK. 

     

    (A)
      PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set
      forth
      herein, the Company shall issue and sell to the Investor, and the Investor
      shall
      purchase from the Company, up to that number of Shares having an aggregate
      Purchase Price of Five Million dollars ($5,000,000).

     

    (B)
      DELIVERY OF PUT NOTICES. 

     

    (I)
      Subject to the terms and conditions of the Transaction Documents, and from
      time
      to time during the Open Period, the Company may, in its sole discretion, deliver
      a Put Notice to the Investor which states the dollar amount (designated in
      U.S.
      Dollars) (the "Put Amount"), which the Company intends to sell to the Investor
      on a Closing Date (the "Put"). The Put Notice shall be in the form attached
      hereto as Exhibit C and incorporated herein by reference. The amount that the
      Company shall be entitled to Put to the Investor (the "Put Amount") shall be
      equal to, at the Company's election, either: (A) Two Hundred percent (200%)
      of
      the average daily volume (U.S. market only) of the Common Stock for the Ten
      (10)
      Trading Days prior to the applicable Put Notice Date, multiplied by the average
      of the three (3) daily closing bid prices immediately preceding the Put Date,
      or
      (B) five hundred thousand dollars ($500,000). During the Open Period, the
      Company shall not be entitled to submit a Put Notice until after the
previous
      Closing has been completed. The Purchase Price for the Common Stock identified
      in the Put Notice shall be equal to ninety-three percent (93%) of the
lowest
      closing Best Bid price of
      the
      Common Stock during the Pricing Period. 

     

    (C)
      RESERVED

     

    (D)
      Reserved

     

    (E)
      CONDITIONS TO INVESTOR'S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything
      to the contrary in this Agreement, the Company shall not be entitled to deliver
      a Put Notice and the Investor shall not be obligated to purchase any Shares
      at a
      Closing (as defined in Section 2(h)) unless each of the following conditions
      are
      satisfied: 

     

    (I)
      a
      Registration Statement shall have been declared effective and shall remain
      effective and available for the resale of all the Registrable Securities (as
      defined in the Registration Rights Agreement) at all times until the Closing
      with respect to the subject Put Notice; 

     

    (II)
      at
      all times during the period beginning on the related Put Notice Date and ending
      on and including the related Closing Date, the Common Stock shall have been
      listed on the Principal Market and shall not have been suspended from trading
      thereon for a period of two (2) consecutive Trading Days during the Open Period
      and the Company shall not have been notified of any pending or threatened
      proceeding or other action to suspend the trading of the Common Stock;

     

    (III)
      the
      Company has complied with its obligations and is otherwise not in breach of
      a
      material provision of, or in default under, this Agreement, the Registration
      Rights Agreement or any other agreement executed in connection herewith which
      has not been corrected prior to delivery of the Put Notice Date; 

     

    (IV)
      no
      injunction shall have been issued and remain in force, or action commenced
      by a
      governmental authority which has not been stayed or abandoned, prohibiting
      the
      purchase or the issuance of the Securities; and 

     

    (V)
      the
      issuance of the Securities will not violate any shareholder approval
      requirements of the Principal Market. 

     

    If
      any of
      the events described in clauses (i) through (v) above occurs during a Pricing
      Period, then the Investor shall have no obligation to purchase the Put Amount
      of
      Common Stock set forth in the applicable Put Notice. 

     

    (F)
      RESERVED

     

    (G)
      MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of
      the
      conditions set forth in Sections 2(e), 7 and 8, the closing of the purchase
      by
      the Investor of Shares (a "Closing") shall occur on the date which is no later
      than seven (7) Trading Days following the applicable Put Notice Date (each
      a
      "Closing Date"). Prior to each Closing Date, (I) the Company shall deliver
      to
      the Investor pursuant to this Agreement, certificates representing the Shares
      to
      be issued to the Investor on such date and registered in the name of the
      Investor; and (II) the Investor shall deliver to the Company the Purchase Price
      to be paid for such Shares, determined as set forth in Sections 2(b) and 2(d).
      In lieu of delivering physical certificates representing the Securities and
      provided that the Company's transfer agent then is participating in The
      Depository Trust Company ("DTC") Fast Automated Securities Transfer ("FAST")
      program, upon request of the Investor, the Company shall use its commercially
      reasonable efforts to cause its transfer agent to electronically transmit the
      Securities by crediting the account of the Investor's prime broker (which shall
      be specified by the Investor a reasonably sufficient time in advance) with
      DTC
      through its Deposit Withdrawal Agent Commission ("DWAC") system. 

     

    The
      Company understands that a delay in the issuance of Securities beyond the
      Closing Date could result in economic loss to the Investor. After the Effective
      Date, as compensation to the Investor for such loss, the Company agrees to
      pay
      late payments to the Investor for late issuance of Securities (delivery of
      Securities after the applicable Closing Date) in accordance with the following
      schedule (where "No. of Days Late" is defined as the number of trading days
      beyond the Closing Date. The Amounts are cumulative.): 

     

    
      	
              LATE
                PAYMENT FOR EACH

                      
                NO. OF DAYS
                LATE             $10,000
                OF COMMON STOCK

               

                                
                1                                                       
                $100

                                
                2                                                       
                $200

                                
                3                                                       
                $300 

                                
                4                                                       
                $400

                                
                5                                                       
                $500

                                
                6                                                       
                $600

                                
                7                                                       
                $700

                                
                8                                                      
                 $800

                                
                9                                                        $900

                              
                10                                                      
                 $1,000

                     
                Over
                10                                                     
                  $1,000 + $200 for each

                                                                                           
                Business Day late beyond 10 days

            

    

     

    The
      Company shall pay any payments incurred under this Section in immediately
      available funds upon demand by the Investor. Nothing herein shall limit the
      Investor's right to pursue actual damages for the Company's failure to issue
      and
      deliver the Securities to the Investor, except to the extent that such late
      payments shall constitute payment for and offset any such actual damages alleged
      by the Investor, and any Buy In Adjustment Amount. 

     

    (H)
      OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained
      herein to the contrary, if during the Open Period the Company becomes listed
      on
      an exchange that limits the number of shares of Common Stock that may be issued
      without shareholder approval, then the number of Shares issuable by the Company
      and purchasable by the Investor, including the shares of Common Stock issuable
      to the Investors, shall not exceed that number of the shares of Common Stock
      that may be issuable without shareholder approval, subject to appropriate
      adjustment for stock splits, stock dividends, combinations or other similar
      recapitalization affecting the Common Stock (the "Maximum Common Stock
      Issuance"), in excess of the Maximum Common Stock Issuance shall first be
      approved by the Company's shareholders in accordance with applicable law and
      the
      By-laws and Amended and Restated Certificate of Incorporation of the Company,
      if
      such issuance of shares of Common Stock could cause a delisting on the Principal
      Market. The parties understand and agree that the Company's failure to seek
      or
      obtain such shareholder approval shall in no way adversely affect the validity
      and due authorization of the issuance and sale of Securities or the Investor's
      obligation in accordance with the terms and conditions hereof to purchase a
      number of Shares in the aggregate up to the Maximum Common Stock Issuance
      limitation, and that such approval pertains only to the applicability of the
      Maximum Common Stock Issuance limitation provided in this Section 2(h).

     

    SECTION
      3. INVESTOR'S REPRESENTATIONS, WARRANTIES AND COVENANTS. 

     

    The
      Investor represents and warrants to the Company, and covenants, that:

     

    (A)
      SOPHISTICATED INVESTOR. The Investor has, by reason of its business and
      financial experience, such knowledge, sophistication and experience in financial
      and business matters and in making investment decisions of this type that it
      is
      capable of (I) evaluating the merits and risks of an investment in the
      Securities and making an informed investment decision; (II) protecting its
      own
      interest; and (III) bearing the economic risk of such investment for an
      indefinite period of time. 

     

    (B)
      AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized,
      executed and delivered on behalf of the Investor and is a valid and binding
      agreement of the Investor enforceable against the Investor in accordance with
      its terms, subject as to enforceability to general principles of equity and
      to
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      and
      other similar laws relating to, or affecting generally, the enforcement of
      applicable creditors' rights and remedies. 

     

    (C)
      SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor
      will
      comply with the provisions of Section 9 of the 1934 Act, and the rules
      promulgated thereunder, with respect to transactions involving the Common Stock.
      The Investor agrees not to short, either directly or indirectly through its
      affiliates, principals or advisors, the Company's common stock during the term
      of this Agreement. 

     

    (D)
      ACCREDITED INVESTOR. Investor is an "Accredited Investor" as that term is
      defined in Rule 501(a)(3) of Regulation D of the 1933 Act. 

     

    (E)
      NO
      CONFLICTS. The execution, delivery and performance of the Transaction Documents
      by the Investor and the consummation by the Investor of the transactions
      contemplated hereby and thereby will not result in a violation of Partnership
      Agreement or other organizational documents of the Investor. 

     

    (F)
      OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to
      the
      Company's business, finance and operations which it has requested. The Investor
      has had an opportunity to discuss the business, management and financial affairs
      of the Company with the Company's management. 

     

    (G)
      INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own
      account for investment purposes and not with a view towards distribution and
      agrees to resell or otherwise dispose of the Securities solely in accordance
      with the registration provisions of the 1933 Act (or pursuant to an exemption
      from such registration provisions). 

     

    (H)
      NO
      REGISTRATION AS A DEALER. The Investor is not and will not be required to be
      registered as a "dealer" under the 1934 Act, either as a result of its execution
      and performance of its obligations under this Agreement or otherwise.

     

    (I)
      GOOD
      STANDING. The
      Investor is a Limited Partnership, duly organized, validly existing and in
      good
      standing in the State of Delaware.

     

    (J)
      TAX
      LIABILITIES. The Investor understands that it is liable for its own tax
      liabilities.

     

    (K)
      REGULATION M. The Investor will comply with Regulation M under the 1934 Act,
      if
      applicable.

     

    SECTION
      4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     

    Except
      as
      set forth in the Schedules attached hereto, or as disclosed on the Company's
      SEC
      Documents, the Company represents and warrants to the Investor that:

     

    (A)
      ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized
      and
      validly existing in good standing under the laws of the State of Texas,
      and has
      the requisite corporate power and authorization to own its properties and to
      carry on its business as now being conducted. Both the Company and the companies
      it owns or controls, its “Subsidiaries,” are duly qualified to do business and
      are in good standing in every jurisdiction in which its ownership of property
      or
      the nature of the business conducted by it makes such qualification necessary,
      except to the extent that the failure to be so qualified or be in good standing
      would not have a Material Adverse Effect. As used in this Agreement, "Material
      Adverse Effect" means any material adverse effect on the business, properties,
      assets, operations, results of operations, financial condition or prospects
      of
      the Company and its Subsidiaries, if any, taken as a whole, or on the
      transactions contemplated hereby or by the agreements and instruments to be
      entered into in connection herewith, or on the authority or ability of the
      Company to perform its obligations under the Transaction Documents (as defined
      in Section 1 and 4(b), below).

     

    (B)
      AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.

     

    (I)
      The
      Company has the requisite corporate power and authority to enter into and
      perform this Agreement, the Registration Rights Agreement, and each of the
      other
      agreements entered into by the parties hereto in connection with the
      transactions contemplated by this Agreement (collectively, the "Transaction
      Documents"), and to issue the Securities in accordance with the terms hereof
      and
      thereof. 

     

    (II)
      The
      execution and delivery of the Transaction Documents by the Company and the
      consummation by it, of the transactions contemplated hereby and thereby,
      including without limitation the reservation for issuance and the issuance
      of
      the Securities pursuant to this Agreement, have been duly and validly authorized
      by the Company's Board of Directors and no further consent or authorization
      is
      required by the Company, its Board of Directors, or its shareholders.

     

    (III)
      The
      Transaction Documents have been duly and validly executed and delivered by
      the
      Company. 

     

    (IV)
      The
      Transaction Documents constitute the valid and binding obligations of the
      Company enforceable against the Company in accordance with their terms, except
      as such enforceability may be limited by general principles of equity or
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      or
      similar laws relating to, or affecting generally, the enforcement of creditors'
      rights and remedies. 

     

    (C)
      CAPITALIZATION. As of the date hereof, the authorized capital stock of the
      Company consists of 350,000,000 shares of Common Stock, $0.001 par value per
      share, of which 303,086,275 and 288,211,275 shares are issued and outstanding
      as
      of November 30, 2005 and August 30, 2005, respectively; 5,000,000 shares of
      Preferred Stock authorized and none outstanding as of November 30, 2005, and
      14,964,345 shares reserved for issuance pursuant to options, warrants and other
      convertible securities as of November 30, 2005. All of such outstanding shares
      have been, or upon issuance will be, validly issued and are fully paid and
      nonassessable. 

     

    Except
      as
      disclosed in the SEC Documents and in Schedule 4(c),

     

    (I)
      no
      shares of the Company's capital stock are subject to preemptive rights or any
      other similar rights or any liens or encumbrances suffered or permitted by
      the
      Company; (II) there are no outstanding debt securities; (III) there are no
      outstanding shares of capital stock, options, warrants, scrip, rights to
      subscribe to, calls or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      Company or any of its Subsidiaries, or contracts, commitments, understandings
      or
      arrangements by which the Company or any of its Subsidiaries is or may become
      bound to issue additional shares of capital stock of the Company or any of
      its
      Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities or rights
      convertible into, any shares of capital stock of the Company or any of its
      Subsidiaries; (IV) there are no agreements or arrangements under which the
      Company or any of its Subsidiaries is obligated to register the sale of any
      of
      their securities under the 1933 Act (except the Registration Rights Agreement),
      (V) there are no outstanding securities of the Company or any of its
      Subsidiaries which contain any redemption or similar provisions, and there
      are
      no contracts, commitments, understandings or arrangements by which the Company
      or any of its Subsidiaries is or may become bound to redeem a security of the
      Company or any of its Subsidiaries; (VI) there are no securities or instruments
      containing anti-dilution or similar provisions that will be triggered by the
      issuance of the Securities as described in this Agreement; (VII) the Company
      does not have any stock appreciation rights or "phantom stock" plans or
      agreements or any similar plan or agreement; and (VIII) there is no dispute
      as
      to the classification of any shares of the Company's capital stock. The Company
      has furnished to the Investor, or the Investor has had access through EDGAR
      to,
      true and correct copies of the Company's Amended and Restated Certificate of
      Incorporation, as in effect on the date hereof (the "Certificate of
      Incorporation"), and the Company's By-laws, as in effect on the date hereof
      (the
      "By-laws"), and the terms of all securities convertible into or exercisable
      for
      Common Stock and the material rights of the holders thereof in respect thereto.
      

     

    (D)
      ISSUANCE OF SHARES. The Company has reserved 12,300,000 Shares for issuance
      pursuant to this Agreement and such Shares have been duly authorized and
      reserved for issuance (subject to adjustment pursuant to the Company's covenant
      set forth in Section 5(f) below) pursuant to this Agreement. Upon issuance
      in
      accordance with this Agreement, the Securities will be validly issued, fully
      paid and non-assessable and free from all taxes, liens and charges with respect
      to the issue thereof. In the event the Company cannot register a sufficient
      number of Shares for issuance pursuant to this Agreement, the Company will
      use
      its best efforts to authorize and reserve for issuance the number of Shares
      required for the Company to perform its obligations hereunder as soon as
      reasonably practicable. 

     

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

     

    (F)
      SEC
      DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company has filed
      all reports, schedules, forms, statements and other documents required to be
      filed by it with the SEC pursuant to the reporting requirements of the 1934
      Act
      (all of the foregoing filed prior to the date hereof and all exhibits included
      therein and financial statements and schedules thereto and documents
      incorporated by reference therein being hereinafter referred to as the "SEC
      Documents"). The Company has delivered to the Investor or its representatives,
      or they have had access through EDGAR to, true and complete copies of the SEC
      Documents. As of their respective dates, the SEC Documents complied in all
      material respects with the requirements of the 1934 Act and the rules and
      regulations of the SEC promulgated thereunder applicable to the SEC Documents,
      and none of the SEC Documents, at the time they were filed with the SEC,
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading. As
      of
      their respective dates, the financial statements of the Company included in
      the
      SEC Documents complied as to form in all material respects with applicable
      accounting requirements and the published rules and regulations of the SEC
      with
      respect thereto. Such financial statements have been prepared in accordance
      with
      generally accepted accounting principles, by a firm that is a member of the
      Public Companies Accounting Oversight Board ("PCAOB") consistently applied,
      during the periods involved (except (I) as may be otherwise indicated in such
      financial statements or the notes thereto, or (II) in the case of unaudited
      interim statements, to the extent they may exclude footnotes or may be condensed
      or summary statements) and fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments). No other written
      information provided by or on behalf of the Company to the Investor which is
      not
      included in the SEC Documents, including, without limitation, information
      referred to in Section 4(d) of this Agreement, contains any untrue statement
      of
      a material fact or omits to state any material fact necessary to make the
      statements therein, in the light of the circumstance under which they are or
      were made, not misleading. Neither the Company nor any of its Subsidiaries
      or
      any of their officers, directors, employees or agents have provided the Investor
      with any material, nonpublic information which was not publicly disclosed prior
      to the date hereof and any material, nonpublic information provided to the
      Investor by the Company or its Subsidiaries or any of their officers, directors,
      employees or agents prior to any Closing Date shall be publicly disclosed by
      the
      Company prior to such Closing Date. 

     

    (G)
      ABSENCE OF CERTAIN CHANGES. Except
      for the Company’s intention to sell its security monitoring business and as set
      forth in the SEC Documents,
      the
      Company does not intend to change the business operations of the Company in
      any
      material way. The Company has not taken any steps, and does not currently expect
      to take any steps, to seek protection pursuant to any bankruptcy law nor does
      the Company or its Subsidiaries have any knowledge or reason to believe that
      its
      creditors intend to initiate involuntary bankruptcy proceedings. 

     

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

     

    (I)
      ACKNOWLEDGMENT REGARDING INVESTOR'S PURCHASE OF SHARES. The Company acknowledges
      and agrees that the Investor is acting solely in the capacity of arm's length
      purchaser with respect to the Transaction Documents and the transactions
      contemplated hereby and thereby. The Company further acknowledges that the
      Investor is not acting as a financial advisor or fiduciary of the Company (or
      in
      any similar capacity) with respect to the Transaction Documents and the
      transactions contemplated hereby and thereby and any advice given by the
      Investor or any of its respective representatives or agents in connection with
      the Transaction Documents and the transactions contemplated hereby and thereby
      is merely incidental to the Investor's purchase of the Securities. The Company
      further represents to the Investor that the Company's decision to enter into
      the
      Transaction Documents has been based solely on the independent evaluation by
      the
      Company and its representatives. 

     

    (J)
      NO
      UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set
      forth in the SEC Documents, as of the date hereof, no event, liability,
      development or circumstance has occurred or exists, or to the Company's
      knowledge is contemplated to occur, with respect to the Company or its
      Subsidiaries or their respective business, properties, assets, prospects,
      operations or financial condition, that would be required to be disclosed by
      the
      Company under applicable securities laws on a registration statement filed
      with
      the SEC relating to an issuance and sale by the Company of its Common Stock
      and
      which has not been publicly announced. 

     

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

     

    (L)
      INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess
      adequate rights or licenses to use all trademarks, trade names, service marks,
      service mark registrations, service names, patents, patent rights, copyrights,
      inventions, licenses, approvals, governmental authorizations, trade secrets
      and
      rights necessary to conduct their respective businesses as now conducted. Except
      as set forth in the SEC Documents, none of the Company's trademarks, trade
      names, service marks, service mark registrations, service names, patents, patent
      rights, copyrights, inventions, licenses, approvals, government authorizations,
      trade secrets or other intellectual property rights necessary to conduct its
      business as now or as proposed to be conducted have expired or terminated,
      or
      are expected to expire or terminate within two (2) years from the date of this
      Agreement. The Company and its Subsidiaries do not have any knowledge of any
      infringement by the Company or its Subsidiaries of trademark, trade name rights,
      patents, patent rights, copyrights, inventions, licenses, service names, service
      marks, service mark registrations, trade secret or other similar rights of
      others, or of any such development of similar or identical trade secrets or
      technical information by others and, except as set forth in the SEC Documents,
      there is no claim, action or proceeding being made or brought against, or to
      the
      Company's knowledge, being threatened against, the Company or its Subsidiaries
      regarding trademark, trade name, patents, patent rights, invention, copyright,
      license, service names, service marks, service mark registrations, trade secret
      or other infringement; and the Company and its Subsidiaries are unaware of
      any
      facts or circumstances which might give rise to any of the foregoing. The
      Company and its Subsidiaries have taken commercially reasonable security
      measures to protect the secrecy, confidentiality and value of all of their
      intellectual properties. 

     

    (M)
      ENVIRONMENTAL LAWS. The Company and its Subsidiaries (I) are, to the knowledge
      of management of the Company, in compliance with any and all applicable foreign,
      federal, state and local laws and regulations relating to the protection of
      human health and safety, the environment or hazardous or toxic substances or
      wastes, pollutants or contaminants ("Environmental Laws"); (II) have, to the
      knowledge of management of the Company, received all permits, licenses or other
      approvals required of them under applicable Environmental Laws to conduct their
      respective businesses; and (III) are in compliance, to the knowledge of the
      Company, with all terms and conditions of any such permit, license or approval
      where, in each of the three (3) foregoing cases, the failure to so comply would
      have, individually or in the aggregate, a Material Adverse Effect. 

     

    (N)
      TITLE. The Company and its Subsidiaries have good and marketable title to all
      personal property owned by them which is material to the business of the Company
      and its Subsidiaries, in each case free and clear of all liens, encumbrances
      and
      defects except such as are described in the SEC Documents or Schedule 4(n)
      or
      such as do not materially affect the value of such property and do not interfere
      with the use made and proposed to be made of such property by the Company or
      any
      of its Subsidiaries. Any real property and facilities held under lease by the
      Company or any of its Subsidiaries are held by them under valid, subsisting
      and
      enforceable leases with such exceptions as are not material and do not interfere
      with the use made and proposed to be made of such property and buildings by
      the
      Company and its Subsidiaries. 

     

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

     

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

     

    (Q)
      INTERNAL ACCOUNTING CONTROLS. The Company and each of its Subsidiaries maintain
      a system of internal accounting controls sufficient to provide reasonable
      assurance that (I) transactions are executed in accordance with management's
      general or specific authorizations; (II) transactions are recorded as necessary
      to permit preparation of financial statements in conformity with generally
      accepted accounting principles by a firm with membership to the PCAOB and to
      maintain asset accountability; (III) access to assets is permitted only in
      accordance with management's general or specific authorization; and (IV) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals and appropriate action is taken with respect to any
      differences. 

     

    (R)
      NO
      MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its
      Subsidiaries is subject to any charter, corporate or other legal restriction,
      or
      any judgment, decree, order, rule or regulation which in the judgment of the
      Company's officers has or is expected in the future to have a Material Adverse
      Effect. Neither the Company nor any of its Subsidiaries is a party to any
      contract or agreement which in the judgment of the Company's officers has or
      is
      expected to have a Material Adverse Effect. 

     

    (S)
      TAX
      STATUS. The Company and each of its Subsidiaries has made or filed all United
      States federal and state income and all other tax returns, reports and
      declarations required by any jurisdiction to which it is subject (unless and
      only to the extent that the Company and each of its Subsidiaries has set aside
      on its books provisions reasonably adequate for the payment of all unpaid and
      unreported taxes) and has paid all taxes and other governmental assessments
      and
      charges that are material in amount, shown or determined to be due on such
      returns, reports and declarations, except those being contested in good faith
      and has set aside on its books provision reasonably adequate for the payment
      of
      all taxes for periods subsequent to the periods to which such returns, reports
      or declarations apply. Except as disclosed in the SEC Documents, there are
      no
      unpaid taxes in any material amount claimed to be due by the taxing authority
      of
      any jurisdiction, and the officers of the Company know of no basis for any
      such
      claim.

     

    (T)
      CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least
      ten (10) days prior to the date hereof and except for arm's length transactions
      pursuant to which the Company makes payments in the ordinary course of business
      upon terms no less favorable than the Company could obtain from third parties
      and other than the grant of stock options disclosed in the SEC Documents, none
      of the officers, directors, or employees of the Company is presently a party
      to
      any transaction with the Company or any of its Subsidiaries (other than for
      services as employees, officers and directors), including any contract,
      agreement or other arrangement providing for the furnishing of services to
      or
      by, providing for rental of real or personal property to or from, or otherwise
      requiring payments to or from any officer, director or such employee or, to
      the
      knowledge of the Company, any corporation, partnership, trust or other entity
      in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner. 

     

    (U)
      DILUTIVE EFFECT. The Company understands and acknowledges that the number of
      shares of Common Stock issuable upon purchases pursuant to this Agreement will
      increase 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 Open 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, subject to such
      limitations as are expressly set forth in the Transaction Documents, its
      obligation to issue shares of Common Stock upon purchases pursuant to this
      Agreement is absolute and unconditional regardless of the dilutive effect that
      such issuance may have on the ownership interests of other shareholders of
      the
      Company. 

     

    (V)
      LOCK-UP. The Company shall cause its officers, insiders, directors, and
      affiliates or other related parties under control of the Company, to refrain
      from selling Common Stock during each Pricing Period. 

     

    (W)
      NO
      GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any
      person acting on its behalf, has engaged in any form of general solicitation
      or
      general advertising (within the meaning of Regulation D) in connection with
      the
      offer or sale of the Common Stock offered hereby. 

     

    (X)
      NO
      BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders
      or financial advisory fees or commissions will be payable by the Company with
      respect to the transactions contemplated by this Agreement, other than disclosed
      in this Agreement. 

     

    SECTION
      5. COVENANTS OF THE COMPANY 

     

    (A)
      BEST
      EFFORTS. The Company shall use commercially reasonable efforts timely to satisfy
      each of the conditions to be satisfied by it as provided in Section 7 of this
      Agreement. 

     

    (B)
      BLUE
      SKY. The Company shall, at its sole cost and expense, on or before each of
      the
      Closing Dates, take such action as the Company shall reasonably determine is
      necessary to qualify the Securities for, or obtain exemption for the Securities
      for, sale to the Investor at each of the Closings pursuant to this Agreement
      under applicable securities or "Blue Sky" laws of such states of the United
      States, as reasonably specified by Investor, and shall provide evidence of
      any
      such action so taken to the Investor on or prior to the Closing Date.

     

    (C)
      REPORTING STATUS. Until the earlier to occur of (I) the first date which is
      after the date this Agreement is terminated pursuant to Section 9 and on which
      the Holders (as that term is defined in the Registration Rights Agreement)
      may
      sell all of the Securities without restriction pursuant to Rule 144(k)
      promulgated under the 1933 Act (or successor thereto); and (II) the date on
      which (A) the Holders shall have sold all the Securities; and (B) this Agreement
      has been terminated pursuant to Section 9 (the "Registration Period"), the
      Company shall file all reports required to be filed with the SEC pursuant to
      the
      1934 Act, and the Company shall not terminate its status as a reporting company
      under the 1934 Act. 

     

    (D)
      USE
      OF PROCEEDS. The Company will use the proceeds from the sale of the Shares
      (excluding amounts paid by the Company for fees as set forth in the Transaction
      Documents) for general corporate and working capital purposes and acquisitions
      or assets, businesses or operations or for other purposes that the Board of
      Directors deem to be in the best interest of the Company. 

     

    (E)
      FINANCIAL INFORMATION. The Company agrees to make available to the Investor
      via
      EDGAR or other electronic means the following to the Investor during the
      Registration Period: (I) within five (5) Trading Days after the filing thereof
      with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports
      on Form 10-Q, any Current Reports on Form 8-K and any Registration Statements
      or
      amendments filed pursuant to the 1933 Act; (II) on the same day as the release
      thereof, facsimile copies of all press releases issued by the Company or any
      of
      its Subsidiaries; (III) copies of any notices and other information made
      available or given to the shareholders of the Company generally,
      contemporaneously with the making available or giving thereof to the
      shareholders; and (IV) within two (2) calendar days of filing or delivery
      thereof, copies of all documents filed with, and all correspondence sent to,
      the
      Principal Market, any securities exchange or market, or the National Association
      of Securities Dealers, Inc., unless such information is material nonpublic
      information. 

     

    (F)
      RESERVATION OF SHARES. Subject to the following sentence, the Company shall
      take
      all action necessary to at all times have authorized, and reserved for the
      purpose of issuance, a sufficient number of shares of Common Stock to provide
      for the issuance of the Securities hereunder. In the event that the Company
      determines that it does not have a sufficient number of authorized shares of
      Common Stock to reserve and keep available for issuance as described in this
      Section 5(f), the Company shall use its commercially reasonable efforts to
      increase the number of authorized shares of Common Stock by seeking shareholder
      approval for the authorization of such additional shares. 

     

    (G)
      LISTING. The Company shall promptly secure and maintain the listing of all
      of
      the Registrable Securities (as defined in the Registration Rights Agreement)
      upon the Principal Market and each other national securities exchange and
      automated quotation system, if any, upon which shares of Common Stock are then
      listed (subject to official notice of issuance) and shall maintain, such listing
      of all Registrable Securities from time to time issuable under the terms of
      the
      Transaction Documents. Neither the Company nor any of its Subsidiaries shall
      take any action which would be reasonably expected to result in the delisting
      or
      suspension of the Common Stock on the Principal Market (excluding suspensions
      of
      not more than one (1) trading day resulting from business announcements by
      the
      Company). The Company shall promptly provide to the Investor copies of any
      notices it receives from the Principal Market regarding the continued
      eligibility of the Common Stock for listing on such automated quotation system
      or securities exchange. The Company shall pay all fees and expenses in
      connection with satisfying its obligations under this Section 5(g).

     

    (H)
      TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause each of
      its
      Subsidiaries not to, enter into, amend, modify or supplement, or permit any
      Subsidiary to enter into, amend, modify or supplement, any agreement,
      transaction, commitment or arrangement with any of its or any Subsidiary's
      officers, directors, persons who were officers or directors at any time during
      the previous two (2) years, shareholders who beneficially own 5% or more of
      the
      Common Stock, or Affiliates or with any individual related by blood, marriage
      or
      adoption to any such individual or with any entity in which any such entity
      or
      individual owns a 5% or more beneficial interest (each a "Related Party"),
      except for (I) customary employment arrangements and benefit programs on
      reasonable terms, (II) any agreement, transaction, commitment or arrangement
      on
      an arms-length basis on terms no less favorable than terms which would have
      been
      obtainable from a person other than such Related Party, or (III) any agreement,
      transaction, commitment or arrangement which is approved by a majority of the
      disinterested directors of the Company. For purposes hereof, any director who
      is
      also an officer of the Company or any Subsidiary of the Company shall not be
      a
      disinterested director with respect to any such agreement, transaction,
      commitment or arrangement. "Affiliate" for purposes hereof means, with respect
      to any person or entity, another person or entity that, directly or indirectly,
      (I) has a 5% or more equity interest in that person or entity, (II) has 5%
      or
      more common ownership with that person or entity, (III) controls that person
      or
      entity, or (IV) is under common control with that person or entity. "Control"
      or
      "Controls" for purposes hereof means that a person or entity has the power,
      direct or indirect, to conduct or govern the policies of another person or
      entity. 

     

    (I)
      FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after
      the Execution Date, the Company shall file a Current Report on Form 8-K with
      the
      SEC describing the terms of the transaction contemplated by the Transaction
      Documents in the form required by the 1934 Act, if such filing is required.
      

     

    (J)
      CORPORATE EXISTENCE. The Company shall use its commercially reasonable efforts
      to preserve and continue the corporate existence of the Company. 

     

    (K)
      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 the Securities: (I) receipt of any
      request for additional information by the SEC or any other federal or state
      governmental authority during the period of effectiveness of the Registration
      Statement for amendments or supplements to the Registration Statement or related
      prospectus; (II) the issuance by the SEC or any other federal or state
      governmental authority of any stop order suspending the effectiveness of any
      Registration Statement or the initiation of any proceedings for that purpose;
      (III) receipt of any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Securities for
      sale
      in any jurisdiction or the initiation or notice of any proceeding for such
      purpose; (IV) the happening of any event that makes any statement made in such
      Registration Statement or related prospectus or any document incorporated or
      deemed to be incorporated therein by reference untrue in any material respect
      or
      that requires the making of any changes in the Registration Statement, related
      prospectus or documents so that, in the case of a Registration Statement, it
      will not contain any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and that in the case of the related prospectus, it
      will
      not contain any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading; and (V) the Company's reasonable determination that a post-effective
      amendment to the Registration Statement would be appropriate, and the Company
      shall promptly make available to 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. 

     

    (L)
      REIMBURSEMENT. If (I) Investor becomes involved in any capacity in any action,
      proceeding or investigation brought by any shareholder of the Company, in
      connection with or as a result of the consummation of the transactions
      contemplated by the Transaction Documents, or if Investor is impleaded in any
      such action, proceeding or investigation by any person (other than as a result
      of a breach of the Investor’s representations and warranties set forth in this
      Agreement); or (II) Investor becomes involved in any capacity in any action,
      proceeding or investigation brought by the SEC against or involving the Company
      or in connection with or as a result of the consummation of the transactions
      contemplated by the Transaction Documents (other than as a result of a breach
      of
      the Investor’s representations and warranties set forth in this Agreement), or
      if Investor is impleaded in any such action, proceeding or investigation by
      any
      person, then in any such case, the Company will reimburse Investor for its
      reasonable legal and other expenses (including the cost of any investigation
      and
      preparation) incurred in connection therewith, as such expenses are incurred.
      In
      addition, other than with respect to any matter in which Investor is a named
      party, the Company will pay to Investor the charges, as mutually agreed by
      Investor and the Company, for the time of any officers or employees of Investor
      devoted to appearing and preparing to appear as witnesses, assisting in
      preparation for hearings, trials or pretrial matters, or otherwise with respect
      to inquiries, hearing, trials, and other proceedings relating to the subject
      matter of this Agreement. The reimbursement obligations of the Company under
      this section shall be in addition to any liability which the Company may
      otherwise have, shall extend upon the same terms and conditions to any
      affiliates of Investor that are actually named in such action, proceeding or
      investigation, and partners, directors, agents, employees, attorneys,
      accountants, auditors and controlling persons (if any), as the case may be,
      of
      Investor and any such affiliate, and shall be binding upon and inure to the
      benefit of any successors of the Company, Investor and any such affiliate and
      any such person.

    

    (M)
      TRANSFER AGENT. 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 Shares to the Investor that are
      covered for resale by the Registration Statement free of restrictive
      legends.

     

    SECTION
      6. RESERVED.

     

    SECTION
      7. CONDITIONS OF THE COMPANY'S OBLIGATION TO SELL. 

     

    The
      obligation hereunder of the Company to issue and sell the Securities to the
      Investor is further subject to the satisfaction, at or before each Closing
      Date,
      of each of the following conditions set forth below. These conditions are for
      the Company's sole benefit and may be waived by the Company at any time in
      its
      sole discretion. 

     

    (A)
      The
      Investor shall have executed each of this Agreement and the Registration Rights
      Agreement and delivered the same to the Company. 

     

    (B)
      The
      Investor shall have delivered to the Company the Purchase Price for the
      Securities being purchased by the Investor between the end of the Pricing Period
      and the Closing Date via a Put Settlement Sheet (hereto attached as Exhibit
      D)
      After receipt of confirmation of delivery of such Securities to the Investor,
      the Investor, by wire transfer of immediately available funds pursuant to the
      wire instructions provided by the Company will disburse the funds constituting
      the Purchase Amount. 

     

    (C)
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Agreement. 

     

    SECTION
      8. FURTHER CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE. 

     

    The
      obligation of the Investor hereunder to purchase Shares is subject to the
      satisfaction, on or before each Closing Date, of each of the following
      conditions set forth below. 

     

    (A)
      The
      Company shall have executed each of the Transaction Documents and delivered
      the
      same to the Investor.

     

    (B)
      The
      Common Stock shall be authorized for quotation on the Principal Market and
      trading in the Common Stock shall not have been suspended by the Principal
      Market or the SEC, at any time beginning on the date hereof and through and
      including the respective Closing Date (excluding suspensions of not more than
      one (1) Trading Day resulting from business announcements by the Company,
      provided that such suspensions occur prior to the Company's delivery of the
      Put
      Notice related to such Closing). 

     

    (C)
      The
      representations and warranties of the Company shall be true and correct as
      of
      the date when made and as of the applicable Closing Date as though made at
      that
      time (except for (I) representations and warranties that speak as of a specific
      date and (II) with respect to the representations made in Sections 4(g), (h)
      and
      (j) and the third sentence of Section 4(k) hereof, events which occur on or
      after the date of this Agreement and are disclosed in SEC filings made by the
      Company at least ten (10) Trading Days prior to the applicable Put Notice Date)
      and the Company shall have performed, satisfied and complied with the covenants,
      agreements and conditions required by the Transaction Documents to be performed,
      satisfied or complied with by the Company on or before such Closing Date. The
      Investor may request an update as of such Closing Date regarding the
      representation contained in Section 4(c) above. 

     

    (D)
      The
      Company shall have executed and delivered to the Investor the certificates
      representing, or have executed electronic book-entry transfer of, the Securities
      (in such denominations as such Investor shall request) being purchased by the
      Investor at such Closing. 

     

    (E)
      The
      Board of Directors of the Company shall have adopted resolutions consistent
      with
      Section 4(b)(ii) above (the "Resolutions") and such Resolutions shall not have
      been amended or rescinded prior to such Closing Date. 

     

    (F)
      Reserved 

     

    (G)
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Agreement. 

     

    (H)
      The
      Registration Statement shall be effective on each Closing Date and no stop
      order
      suspending the effectiveness of the Registration statement shall be in effect
      or
      to the Company's knowledge shall be pending or threatened. Furthermore, on
      each
      Closing Date (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. 

     

    (I)
      At
      the time of each Closing, the Registration Statement (including information
      or
      documents incorporated by reference therein) and any amendments or supplements
      thereto shall 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 or which would require public disclosure
      or an
      update supplement to the prospectus. 

    

    (J)
      If
      applicable, the shareholders of the Company shall have approved the issuance
      of
      any Shares in excess of the Maximum Common Stock Issuance in accordance with
      Section 2(h) or the Company shall have obtained appropriate approval pursuant
      to
      the requirements of Texas law and the Company’s Articles of Incorporation and
      By-laws.

    

    (K)
      The
      conditions to such Closing set forth in Section 2(e) shall have been satisfied
      on or before such Closing Date.

    

    (L)
      The
      Company shall have certified to the Investor the number of Shares of Common
      Stock outstanding when a Put Notice is given to the Investor.

     

    SECTION
      9. TERMINATION. This Agreement shall terminate upon any of the following events:
      

     

    (I)
      when
      the Investor has purchased an aggregate of Five Million dollars ($5,000,000)
      in
      the Common Stock of the Company pursuant to this Agreement; or,

     

    (II)
      on
      the date which is thirty-six (36) months after the Effective Date; 

     

    SECTION
      10. SUSPENSION

    

    This
      Agreement shall be suspended upon any of the following events, and shall remain
      suspended until such event is rectified:

    

    (I)
      the
      trading of the Common Stock is suspended by the SEC, the Principal Market or
      the
      NASD for a period of two (2) consecutive Trading Days during the Open Period;
      or,

    

    (II)
      The
      Common Stock ceases to be registered under the 1934 Act or listed or traded
      on
      the Principal Market. Upon the occurrence of one of the above-described events,
      the Company shall send written notice of such event to the
      Investor.

     

    SECTION
      11. INDEMNIFICATION. 

     

    In
      consideration of the parties mutual obligations set forth In the Transaction
      Documents, each of the parties (in such capacity, an "Indemnitor") shall defend,
      protect, indemnify and hold harmless the other and all of the other party's
      shareholders, officers, directors, employees, counsel, and direct or indirect
      investors and any of the foregoing person's agents or other representatives
      (including, without limitation, those retained in connection with the
      transactions contemplated by this Agreement) (collectively, the "Indemnitees")
      from and against any and all actions, causes of action, suits, claims, losses,
      costs, penalties, fees, liabilities and damages, and reasonable expenses in
      connection therewith (irrespective of whether any such Indemnitee is a party
      to
      the action for which indemnification hereunder is sought), and including
      reasonable attorneys' fees and disbursements (the "Indemnified Liabilities"),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (I)
      any misrepresentation or breach of any representation or warranty made by the
      Indemnitor or any other certificate, instrument or document contemplated hereby
      or thereby; (II) any breach of any covenant, agreement or obligation of the
      Indemnitor contained in the Transaction Documents or any other certificate,
      instrument or document contemplated hereby or thereby; or (III) any cause of
      action, suit or claim brought or made against such Indemnitee by a third party
      and arising out of or resulting from the execution, delivery, performance or
      enforcement of the Transaction Documents or any other certificate, instrument
      or
      document contemplated hereby or thereby, except insofar as any such
      misrepresentation, breach or any untrue statement, alleged untrue statement,
      omission or alleged omission is made in reliance upon and in conformity with
      information furnished to Indemnitor which is specifically intended for use
      in
      the preparation of any such Registration Statement, preliminary prospectus,
      prospectus or amendments to the prospectus. To the extent that the foregoing
      undertaking by the Indemnitor may be unenforceable for any reason, the
      Indemnitor shall make the maximum contribution to the payment and satisfaction
      of each of the Indemnified Liabilities which is permissible under applicable
      law. The indemnity provisions contained herein shall be in addition to any
      cause
      of action or similar rights Indemnitor may have, and any liabilities the
      Indemnitor or the Indemnitees may be subject to. 

     

    SECTION
      12. GOVERNING LAW; MISCELLANEOUS. 

     

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

     

    
      	 	
              (i)
                

            	
              Disputes
                subject to arbitration governed by Massachusetts
                law

            

    

     

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

     

    (B)
      LEGAL
      FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Transaction
      Documents, each party shall pay the fees and expenses of its advisers, counsel,
      the accountants and other experts, if any, and all other expenses incurred
      by
      such party incident to the negotiation, preparation, execution, delivery and
      performance of this Agreement. Any attorneys' 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 another party or any default by
      another 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 stamp and other taxes and duties
      levied in connection with the issuance of any Securities. 

     

    (C)
      COUNTERPARTS. This Agreement may be executed in two or more identical
      counterparts, all of which shall be considered one and the same agreement and
      shall become effective when counterparts have been signed by each party and
      delivered to the other party; provided that a facsimile signature shall be
      considered due execution and shall be binding upon the signatory thereto with
      the same force and effect as if the signature were an original, not a facsimile
      signature. 

     

    (D)
      HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience
      of
      reference and shall not form part of, or affect the interpretation of, this
      Agreement. Whenever required by the context of this Agreement, the singular
      shall include the plural and masculine shall include the feminine. 

     

    (E)
      SEVERABILITY. If any provision of this Agreement shall be invalid or
      unenforceable in any jurisdiction, such invalidity or unenforceability shall
      not
      affect the validity or enforceability of the remainder of this Agreement in
      that
      jurisdiction or the validity or enforceability of any provision of this
      Agreement in any other jurisdiction. 

     

    (F)
      ENTIRE AGREEMENT; AMENDMENTS. This Agreement supersedes all other prior oral
      or
      written agreements between the Investor including the Investment Agreement
      and
      Registration Rights Agreement dated February 10, 2006, the Company, their
      affiliates and persons acting on their behalf with respect to the matters
      discussed herein, and this Agreement and the instruments referenced herein
      (including the other Transaction Documents) contain the entire understanding
      of
      the parties with respect to the matters covered herein and therein and, except
      as specifically set forth herein or therein, neither the Company nor the
      Investor makes any representation, warranty, covenant or undertaking with
      respect to such matters. No provision of this Agreement may be amended other
      than by an instrument in writing signed by the Company and the Investor, and
      no
      provision hereof may be waived other than by an instrument in writing signed
      by
      the party against whom enforcement is sought. 

     

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

     

    If
      to the Company:

    

    Eagle
      Broadband, Inc.

    101
      Courageous Drive

    League
      City, TX 77573

    Telephone:
      (281) 538-6000

    Facsimile:
      (281) 538-4730

    

    If
      to the Investor:

    

    Dutchess
      Private Equities Fund, LP, 

    50
      Commonwealth Avenue, Suite 2

    Boston,
      MA 02116 

    Telephone:
      617-301-4700

    Facsimile:
      617-249-0947

     

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

     

    (H)
      NO
      ASSIGNMENT. This Agreement may not be assigned. 

     

    (I)
      NO
      THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the
      parties hereto and is not for the benefit of, nor may any provision hereof
      be
      enforced by, any other person. 

     

    (J)
      SURVIVAL. The representations and warranties of the Company and the Investor
      contained in Sections 2 and 3, the agreements and covenants set forth in
      Sections 4 and 5, and the indemnification provisions set forth in Section 10,
      shall survive each of the Closings and the termination of this Agreement.

     

    (K)
      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 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. Notwithstanding the foregoing,
      the
      Company shall not publicly disclose the name of Investor without the prior
      consent of such Investor, except to the extent required by law. 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-B, and that the Company may therefore be required
      to
      file such documents as exhibits to reports or registration statements filed
      under the 1933 Act or the 1934 Act. Investor further agrees that the status
      of
      such documents and materials as material contracts shall be determined solely
      by
      the Company, in consultation with its counsel. 

     

    (L)
      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. 

     

    (M)
      PLACEMENT AGENT. The Company agrees to pay _____________, a registered broker
      dealer ____ percent (__%) of the Put Amount on each draw toward the fee. The
      Investor shall have no obligation with respect to any fees or with respect
      to
      any claims made by or on behalf of other persons or entities for fees of a
      type
      contemplated in this Section that may be due in connection with the transactions
      contemplated by the Transaction Documents. The Company shall indemnify and
      hold
      harmless the Investor, their employees, officers, directors, agents, and
      partners, and their respective affiliates, from and against all claims, losses,
      damages, costs (including the costs of preparation and attorney's fees) and
      expenses incurred in respect of any such claimed or existing fees, as such
      fees
      and expenses are incurred. 

     

    (N)
      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. 

     

    (O)
      REMEDIES. The Investor and each holder of the Shares shall have all rights
      and
      remedies set forth in this Agreement and the Registration Rights Agreement
      and
      all rights and remedies which such holders have been granted at any time under
      any other agreement or contract and all of the rights which such holders have
      under any law. Any person having any rights under any provision of this
      Agreement shall be entitled to enforce such rights specifically (without posting
      a bond or other security), to recover damages by reason of any default or breach
      of any provision of this Agreement, including the recovery of reasonable
      attorneys fees and costs, and to exercise all other rights granted by law.
      

     

    (P)
      PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments
      to
      the Investor hereunder or under the Registration Rights Agreement or the
      Investor enforces or exercises its rights hereunder or thereunder, and such
      payment or payments or the proceeds of such enforcement or exercise or any
      part
      thereof are subsequently invalidated, declared to be fraudulent or preferential,
      set aside, recovered from, disgorged by or are required to be refunded, repaid
      or otherwise restored to the Company, a trustee, receiver or any other person
      under any law (including, without limitation, any bankruptcy law, state or
      federal law, common law or equitable cause of action), then to the extent of
      any
      such restoration the obligation or part thereof originally intended to be
      satisfied shall be revived and continued in full force and effect as if such
      payment had not been made or such enforcement or setoff had not occurred.

     

    (Q)
      PRICING OF COMMON STOCK. For purposes of this Agreement, the bid price of the
      Common Stock in this Agreement shall be as reported on Bloomberg. 

     

    SECTION
      13. Non-Disclosure of Non-Public Information.

     

    (a)
      The
      Company shall not disclose non-public information to the Investor, its advisors,
      or its representatives, unless prior to disclosure of such information the
      Company identifies such information, in writing, as being non-public information
      and provides the Investor, such advisors and representatives with the
      opportunity to accept or refuse to accept such non-public information for
      review. The Company may, as a condition to disclosing any non-public information
      hereunder, require the Investor's advisors and representatives to enter into
      a
      confidentiality agreement in form reasonably satisfactory to the Company and
      the
      Investor. 

     

    (b)
      Nothing herein shall require the Company to disclose non-public information
      to
      the 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 will, as hereinabove provided, immediately notify the
      advisors and representatives of the Investor and, if 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 the 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 13 shall be construed to mean that such
      persons or entities other than the Investor (without the written consent of
      the
      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 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, that the Registration Statement contains
      an untrue statement of material fact or omits a material fact required to be
      stated in the Registration Statement or necessary to make the statements
      contained therein, in light of the circumstances in which they were made, not
      misleading. 

     

    *
      *
      *

     

    
      
        
        

      

      
        
          

        

      

       

    

    SIGNATURE
      PAGE OF INVESTMENT AGREEMENT

     

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

     

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

     

    DUTCHESS
      PRIVATE EQUITIES FUND, L.P. 

    BY
      ITS GENERAL PARTNER, 

    DUTCHESS
      CAPITAL MANAGEMENT, LLC 

     

    By:
      /s/Douglas H. Leighton 

    Douglas
      H. Leighton, Managing Member 

     

    EAGLE
      BROADBAND, INC.

     

    By:
      /s/David Micek 

    David
      Micek, President and CEO 

     

    By:
      /s/Richard Sanger, Jr.

    Richard
      Sanger, Jr., Vice President of Administration 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LIST
      OF EXHIBITS 

    

    
      	
              EXHIBIT
                A Registration Rights Agreement

              EXHIBIT
                B Opinion of Company's Counsel

              EXHIBIT
                C Put Notice

              EXHIBIT
                D Put Settlement Sheet

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LIST
      OF SCHEDULES

     

    Schedule
      4(c) Capitalization

     

     

    Schedule
      4(n) Liens

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B 

     

    FORM
      OF
      NOTICE OF EFFECTIVENESS 

    OF
      REGISTRATION STATEMENT

    Date:
      __________

    [TRANSFER
      AGENT]

    

    Re: Eagle
      Broadband, Inc.

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to Eagle
      Broadband, Inc.,
      a Texas
      corporation (the "Company"), and have represented the Company in connection
      with
      that certain Subscription Agreement (the "Subscription Agreement") entered
      into
      by and among the Company and _________________________ (the "Holder") pursuant
      to which the Company has agreed to issue to the Holder shares of the Company's
      common stock, $0.001 par value per share (the "Common Stock") on the terms
      and
      conditions set forth in the Subscription Agreement. Pursuant to the Subscription
      Agreement, the Company also has entered into a Registration Rights Agreement
      with the Holder (the "Registration Rights Agreement") pursuant to which the
      Company agreed, among other things, to register the Registrable Securities
      (as
      defined in the Registration Rights Agreement), including the shares of Common
      Stock issued or issuable under the Subscription Agreement under the Securities
      Act of 1933, as amended (the "1933 Act"). In connection with the Company's
      obligations under the Registration Rights Agreement, on ____________ ___, 2006,
      the Company filed a Registration Statement on Form S- ___ (File No.
      333-________) (the "Registration Statement") with the Securities and Exchange
      Commission (the "SEC") relating to the Registrable Securities which names the
      Holder as a selling shareholder thereunder.

    

    In
      connection with the foregoing, we advise you that [a
      member
      of the SEC's staff has advised us by telephone that the SEC has entered an
      order
      declaring the Registration Statement effective]
      [the
      Registration Statement has become effective]
      under
      the 1933 Act at [enter
      the time of effectiveness]
      on
      [enter
      the date of effectiveness]
      and to
      the best of our knowledge, after telephonic inquiry of a member of the SEC’s
      staff, no stop order suspending its effectiveness has been issued and no
      proceedings for that purpose are pending before, or threatened by, the SEC
      and
      the Registrable Securities are available for resale under the 1933 Act pursuant
      to the Registration Statement.

    

    Very
      truly yours,

    

    [Company
      Counsel]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    Date:
      

     

     

    RE:
      Put
      Notice Number __ 

     

     

    Dear
      Mr.
      Leighton, 

     

     

    This
      is
      to inform you that as of today, Eagle Broadband, Inc., a Texas corporation
      (the
      "Company"), hereby elects to exercise its right pursuant to the Investment
      Agreement to require Dutchess Private Equities Fund, LP to purchase shares
      of
      its common stock. The Company hereby certifies that: 

     

     

    The
      amount of this put is $__________. 

     

     

    The
      Pricing Period runs from ________ until _______. 

     

     

    The
      current number of shares issued and outstanding as of the Company are:

     

     

    Regards,
      

     

    

    David
      Micek

    President
      and CEO

    Eagle
      Broadband, Inc. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    PUT
      SETTLEMENT SHEET 

     

    Date:
      

     

     

    Mr.
      Micek, 

     

     

    Pursuant
      to the Put given by Eagle Broadband, Inc. to Dutchess Private Equities Fund,
      L.P. on _________________ 200_, we are now submitting the amount of common
      shares for you to issue to Dutchess. 

     

     

    Please
      have a certificate bearing no restrictive legend totaling __________ shares
      issued to Dutchess Private Equities Fund, LP immediately and send via DWAC
      to
      the following account: 

     

     

    XXXXXX
      

     

     

    If
      not
      DWAC eligible, please send FedEx Priority Overnight to: 

     

     

    XXXXXX
      

     

     

    Once
      these shares are received by us, we will have the funds wired to the Company.
      

     

     

    Regards,
      

     

     

    Douglas
      H. Leighton 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
               

               

               

               

              DATE.
                . . . . . . . . . . . . . . . . . . . . PRICE

               

              Date
                of Day 1 . . . . . . . . . . . . . . . . Closing Bid of Day 1

              Date
                of Day 2 . . . . . . . . . . . . . . . . Closing Bid of Day 2

              Date
                of Day 3 . . . . . . . . . . . . . . . . Closing Bid of Day 3

              Date
                of Day 4 . . . . . . . . . . . . . . . . Closing Bid of Day 4

              Date
                of Day 5 . . . . . . . . . . . . . . . . Closing Bid of Day 5

               

               

               

               

               

               

              LOWEST
                1 (ONE) CLOSING BID IN PRICING PERIOD

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

               

              PUT
                AMOUNT

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

               

              AMOUNT
                WIRED TO COMPANY

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

               

              PURCHASE
                PRICE (93)% (ninety-three PERCENT)

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

               

              AMOUNT
                OF SHARES DUE

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

               

               

            

    

     

    The
      undersigned has completed this Put as of this ___th day of _________, 20xx.
      

     

     

    Eagle
      Broadband, Inc.

     

    ______________________________

    

    David
      Micek, President and CEO 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4(c) CAPITALIZATION

    

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

    

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

            

    

    

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

            

    

    

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

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4(n) LIENS

    

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

    

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]