Eagle Broadband has entered into an agreement to sell a portion of its fiber network located in northwest Harris County, Texas and Fort Bend County, Texas to Optical Entertainment Networks
Under the terms of the letter agreement, OEN and Eagle will execute an asset purchase agreement no later than May 18, 2007, which will provide for a closing on June 15, 2007. OEN will pay Eagle $1.9 million over a period of 13 months and the asset purchase agreement will also provide for an additional payment of $800,000 to Eagle in the event OEN is purchased by a third party or if OEN sells the network to a third party.
Eagle is currently providing Network Operating Center services to OEN on this network and expects to continue doing so going forward.