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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION </strong></font></div>
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      D.C. 20549 </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of the </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      Exchange Act of 1934 </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
      of report (Date of earliest event reported): March 24,
      2006</strong></font></div>
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      <hr align="center" noshade size="1" width="20%"><font size="3">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>CARDINAL
      COMMUNICATIONS, INC.</strong></font></div>
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      name of registrant as specified in Charter)</strong></font></div>
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            </td>
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                or other jurisdiction of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><strong>incorporation
                or organization)</strong></font></div>
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                File No.)</strong></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                Employee Identification
                No.)</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">390
      Interlocken Crescent, Suite 900</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Broomfield,
      Colorado 80021</font></div>
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      of Principal Executive Offices) </strong></font></div>
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      Telephone number) </strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form&#160;8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule&#160;425 under the Securities Act (17 CFR
      230.425)</font></div>
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      material pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      communications pursuant to Rule&#160;14d-2(b) under the Exchange
      Act</font></div>
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      CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule&#160;13e-4(c) under the Exchange
      Act</font></div>
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      CFR
      240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Form
      8-K and other reports filed by Cardinal Communications, Inc. (the "Registrant"
      or the &#8220;Company&#8221;) from time to time with the Securities and Exchange Commission
      (collectively the "Filings") contain forward looking statements and information
      that are based upon beliefs of, and information currently available to, the
      Registrant's management as well as estimates and assumptions made by the
      Registrant's management. When used in the Filings the words "anticipate",
      "believe", "estimate", "expect", "future", "intend", "plan" or the negative
      if
      these terms and similar expressions as they relate to the Registrant or the
      Registrant's management identify forward looking statements. Such statements
      reflect the current view of the Registrant with respect to future events and
      are
      subject to risks, uncertainties, assumptions and other factors relating to
      the
      Registrant's industry, operations and results of operations and any businesses
      that may be acquired by the Registrant. Should one or more of these risks or
      uncertainties materialize, or should the underlying assumptions prove incorrect,
      actual results may differ significantly from those anticipated, believed,
      estimated, expected, intended or planned.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      Into A Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      Friday, March 24, 2006, the Board of Directors for Cardinal Communications,
      Inc.
      (the &#8220;Company&#8221;) approved on its behalf and the behalf of its wholly owned
      subsidiary, Sovereign Companies, LLC (&#8220;Sovereign&#8221;), the execution of a
      Convertible Loan Agreement, Promissory Note (the &#8220;Note&#8221;), and Pledge and
      Security Agreement with Thunderbird Management Limited Partnership
      (&#8220;Thunderbird&#8221;). Each of these agreements is described below. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Convertible
      Loan Agreement</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company is currently indebted to Thunderbird pursuant to existing two promissory
      notes. The first, dated September 12, 2000, is in the original principal amount
      of seven hundred two thousand dollars ($702,000.00), with interest on the
      principal balance from time to time remaining at the rate of twelve percent
      (12%) per annum; the second, dated August 24, 2004, is in the original principal
      amount of eight hundred thousand dollars ($800,000.00) with interest on the
      principal balance from time to time remaining at the rate of ten percent (10%)
      per annum (collectively, the &#8220;Prior Notes&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Convertible Loan Agreement consolidates for certain purposes the Prior Notes
      and
      a third, new note (described in the next section, below) in the original
      principal amount of nine hundred ninety eight thousand and No/100
      Dollars</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">($998,000.00)
      (collectively, the &#8220;Thunderbird Notes&#8221;). The total principal amount owed under
      the Thunderbird Notes is two million five hundred thousand dollars
      ($2,500,000.00) (the &#8220;Principal Amount&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Thunderbird Notes are consolidated for the purposes of setting a single interest
      rate and certain conversion rights for the Principal Amount. Interest on the
      Principal Amount outstanding shall accrue at the rate of twelve percent (12%)
      per annum, which interest shall be paid monthly, with the first installment
      payable on April 17, 2006, and subsequent payments at the seventeenth day of
      the
      month beginning each month thereafter. Overdue principal and interest on the
      Thunderbird Notes shall bear interest, to the extent permitted by applicable
      law, at a rate of twelve percent (12%) per annum. If not sooner redeemed or
      converted, the Thunderbird Notes shall mature on the fifth anniversary of the
      execution of the Convertible Loan Agreement, at which time all the remaining
      unpaid principal, interest and any other charges then due under the agreement
      shall be due and payable in full. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Thunderbird Notes shall be convertible, at either party&#8217;s option, into shares of
      the Company&#8217;s common stock at four separate conversion prices. Up to twenty five
      percent (25%) of the Principal Amount may be converted at two and a half cents
      ($0.025) per share; up to twenty five percent (25%) of the Principal Amount
      may
      be converted at seven and a half cents ($0.075) per share; up to twenty five
      percent (25%) of the Principal Amount may be converted at twelve and a half
      cents ($0.125) per share; and the final twenty five percent (25%) of the
      Principal Amount may be converted at seventeen and a half cents ($0.175) per
      share (collectively, such converted stock is referred to as the &#8220;Registerable
      Securities&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: ">2</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      Convertible Loan Agreement, the Company has agreed to register all or any
      portion of the Registerable Securities any time it receives a written request
      from Thunderbird that the Company file a registration statement under the 1933
      Act covering the registration of at least a majority of the Registerable
      Securities then outstanding. The Company has agreed, subject to the limitations
      in the Convertible Loan Agreement, to use its best lawful efforts to effect
      as
      soon as reasonably possible, and in any event (if legally possible, and as
      allowed by the SEC, and if no factor outside the Company&#8217;s reasonable control
      prevents it) within 150 days of the receipt of the initial written registration
      request, to effect the registration under the 1933 Act of all Registerable
      Securities which the Thunderbird has requested.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notwithstanding
      the foregoing, in lieu of registration, the Company may provide Thunderbird
      with
      a certificate signed by the President of the Company stating that in the good
      faith judgment of the Board of Directors, it would be materially detrimental
      to
      the Company and its shareholders for such registration statement to be filed
      at
      that time, and it is therefore essential to defer the filing of such
      registration statement. Thereafter, the Company shall have the right to defer
      the commencement of such a filing for a period of not more than 180 days after
      receipt of the request; provided, however, that at least 12 months must elapse
      between any two such deferrals. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Promissory
      Note</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to a Promissory Note, dated March 24, 2006 (the &#8220;Note&#8221;), the Company and
      Sovereign (collectively, the &#8220;Borrower&#8221;), borrow and promise to repay to
      Thunderbird (the &#8220;Payee&#8221;), the principal sum of Nine Hundred Ninety Eight
      Thousand and No/100 Dollars</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">($998,000.00),
      with interest at the rate of twelve percent (12%) per annum on the unpaid
      principal balance until paid or until default. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      past
      due installments of principal and, if permitted by applicable law, of interest
      shall bear interest at the highest lawful rate, or, if no such maximum rate
      is
      established by applicable law, then at the rate of eighteen percent (18%) per
      annum. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      full
      amount of principal and interest due under the Note is due on the first business
      day five years after the date of its execution. The interest shall be due and
      payable in monthly payments, to be paid on the 17</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      day of
      every month and applied to the interest that accrued during the preceding month.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      the
      occurrence of any &#8220;Event of Default,&#8221; the Payee may declare the remainder of the
      debt immediately due and payable. An &#8220;Event of Default&#8221; includes, failure to
      make payment on the Note when due, and such failure shall continue for fifteen
      (15) business days from receipt by Borrower of written notice of such failure;
      Borrower files any voluntary petition seeking relief under federal bankruptcy
      law or under any other act or law related to insolvency or debtor relief,
      whether state or federal; the filing against Borrower of any involuntary
      petition seeking relief under federal bankruptcy law or under any other act
      or
      law related to insolvency or debtor relief, whether state or federal, if such
      petition is not dismissed within thirty (30) days of filing; or a custodian,
      trustee, receiver or assignee for the benefit of creditors is appointed or
      takes
      possession of any of Borrower&#8217;s assets. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: ">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Note
      is secured by the pledge of certain assets by Borrower to the Payee pursuant
      to
      the Pledge and Security Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Pledge
      and Security Agreement</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Pledge and Security Agreement (&#8220;PSA&#8221;) secures payment of (i) all amounts now or
      hereafter payable by the Company and Sovereign (jointly &#8220;Pledgors&#8221;) to
      Thunderbird on the Thunderbird Notes, and (ii) all obligations and liabilities
      now or hereafter payable by the Pledgors under, arising out of or in connection
      with the PSA (all such indebtedness, obligations and liabilities being herein
      called the&#160;&#8220;Obligations&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the PSA, the Pledgors pledge and grant to Thunderbird a security interest
      in
      the shares of stock and partnership interests comprising Pledgors&#8217; interests in
      Sovereign Pumpkin Ridge, LLC, and, contingent upon Pledgors&#8217; formation of a
      limited liability company for the purpose of developing the project, Pledgors&#8217;
future interest in &#8220;Sovereign El Rio, LLC&#8221; (collectively, the &#8220;Pledged
      Interests&#8221;). The Pledged Interests also include without limitation all of
      Pledgors&#8217; right, title and interest in and to (i)&#160;all dividends or
      distributions arising from the Pledged Interests, payable thereon or
      distributable in respect thereof, whether in cash, property, stock or otherwise,
      and whether now or hereafter declared, paid or made, and the right to receive
      and receipt therefore; (ii)&#160;all Pledged Interests into which any of the
      Pledged Interests are split or combined; and (iii) all other rights with respect
      to the Pledged Interests; provided, however, that Secured Party hereby agrees
      that, if and so long as Pledgors shall not be in default under this Agreement,
      Pledgors shall have the right to vote, or to give any approval or consent in
      respect of, the Pledged Interests for all purposes not inconsistent with the
      provisions of this Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      the
      full and final payment of the Thunderbird Notes, the security interests in
      the
      Pledged Interests shall terminate and all rights to the Pledged Interests shall
      revert to the Pledgors. In addition, at any time and from time to time prior
      to
      such termination of the security interests, the Secured Party may release any
      of
      the Pledged Interests. Upon any such termination of the security interests
      or
      any release of the Pledged Interests, the Secured Party will, at the Pledgors&#8217;
expense, execute and deliver to the Pledgors such documents as the Pledgors
      shall reasonably request to evidence the termination of the security interests
      or the release of the Pledged Interests. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Interested
      Director</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      member
      of the Company&#8217;s Board of Directors and our Chief Executive Officer, Edouard A.
      Garneau, is related (as son-in-law) to the General Partner of Thunderbird
      Management. Mr. Garneau did not participate in the vote by Cardinal&#8217;s Board of
      Directors approving the Promissory Note, Pledge and Security Agreement, or
      Convertible Loan Agreement (collectively, the &#8220;Agreements&#8221;). The remaining
      members of Cardinal&#8217;s Board of Directors voted unanimously to approve the
      Agreements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: ">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      No.</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Description</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">
            </td>
            <td align="left" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Convertible
                Loan Agreement between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and Thunderbird Management Limited Partnership, dated March
                24,
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">
            </td>
            <td align="left" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Promissory
                Note between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and
                Thunderbird Management Limited Partnership, dated March 24,
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">
            </td>
            <td align="left" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pledge
                And Security Agreement between Cardinal Communications, Inc., Sovereign
                Companies, LLC, and Thunderbird Management Limited Partnership, dated
                March 24, 2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: ">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES
      </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this Report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cardinal
                Communications, Inc.</strong></font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Edouard
              A. Garneau</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Chief
                Executive Officer</strong></font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
      April 3, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: ">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      INDEX</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                No.</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="62%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font></div>
            </td>
            <td align="left" valign="top" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="top" width="62%">&#160;</td>
            <td align="left" valign="top" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Convertible
                Loan Agreement between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and Thunderbird Management Limited Partnership, dated March
                24,
                2006.</font></div>
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                Note between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and
                Thunderbird Management Limited Partnership, dated March 24,
                2006.</font></div>
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                And Security Agreement between Cardinal Communications, Inc., Sovereign
                Companies, LLC, and Thunderbird Management Limited Partnership, dated
                March 24, 2006.</font></div>
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{"company-data": {"conformed-name": "CARDINAL COMMUNICATIONS, INC", "cik": "0001035398", "assigned-sic": "7370", "irs-number": "721346591", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15383", "film-number": "06734773"}, "business-address": {"street1": "390 INTERLOCKEN CRESCENT,", "street2": "SUITE 900", "city": "BROOMFIELD,", "state": "CO", "zip": "80021", "phone": "3032855379"}, "mail-address": {"street1": "390 INTERLOCKEN CRESCENT,", "street2": "SUITE 900", "city": "BROOMFIELD", "state": "CO", "zip": "80021"}, "former-company": [{"former-conformed-name": "USURF AMERICA INC", "date-changed": "19990714"}, {"former-conformed-name": "INTERNET MEDIA CORP", "date-changed": "19980729"}, {"former-conformed-name": "MEDIA ENTERTAINMENT INC", "date-changed": "19980729"}]}
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of report (Date of earliest event reported): March 24,
      2006
CARDINAL
      COMMUNICATIONS, INC.
(Exact
      name of registrant as specified in Charter)
Nevada
1-15383
91-2117796
(State
                or other jurisdiction of
incorporation
                or organization)
(Commission
                File No.)
(IRS
                Employee Identification
                No.)
390
      Interlocken Crescent, Suite 900
Broomfield,
      Colorado 80021
(Address
      of Principal Executive Offices)
303-285-5379
(Issuer
      Telephone number)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange
      Act
(17
      CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange
      Act
(17
      CFR
      240.13e-4(c))
This
      Form
      8-K and other reports filed by Cardinal Communications, Inc. (the "Registrant"
      or the "Company") from time to time with the Securities and Exchange Commission
      (collectively the "Filings") contain forward looking statements and information
      that are based upon beliefs of, and information currently available to, the
      Registrant's management as well as estimates and assumptions made by the
      Registrant's management. When used in the Filings the words "anticipate",
      "believe", "estimate", "expect", "future", "intend", "plan" or the negative
      if
      these terms and similar expressions as they relate to the Registrant or the
      Registrant's management identify forward looking statements. Such statements
      reflect the current view of the Registrant with respect to future events and
      are
      subject to risks, uncertainties, assumptions and other factors relating to
      the
      Registrant's industry, operations and results of operations and any businesses
      that may be acquired by the Registrant. Should one or more of these risks or
      uncertainties materialize, or should the underlying assumptions prove incorrect,
      actual results may differ significantly from those anticipated, believed,
      estimated, expected, intended or planned.
Item
      1.01.
Entry
      Into A Material Definitive Agreement.
On
      Friday, March 24, 2006, the Board of Directors for Cardinal Communications,
      Inc.
      (the "Company") approved on its behalf and the behalf of its wholly owned
      subsidiary, Sovereign Companies, LLC ("Sovereign"), the execution of a
      Convertible Loan Agreement, Promissory Note (the "Note"), and Pledge and
      Security Agreement with Thunderbird Management Limited Partnership
      ("Thunderbird"). Each of these agreements is described below.
Convertible
      Loan Agreement
The
      Company is currently indebted to Thunderbird pursuant to existing two promissory
      notes. The first, dated September 12, 2000, is in the original principal amount
      of seven hundred two thousand dollars ($702,000.00), with interest on the
      principal balance from time to time remaining at the rate of twelve percent
      (12%) per annum; the second, dated August 24, 2004, is in the original principal
      amount of eight hundred thousand dollars ($800,000.00) with interest on the
      principal balance from time to time remaining at the rate of ten percent (10%)
      per annum (collectively, the "Prior Notes").
The
      Convertible Loan Agreement consolidates for certain purposes the Prior Notes
      and
      a third, new note (described in the next section, below) in the original
      principal amount of nine hundred ninety eight thousand and No/100
      Dollars
($998,000.00)
      (collectively, the "Thunderbird Notes"). The total principal amount owed under
      the Thunderbird Notes is two million five hundred thousand dollars
      ($2,500,000.00) (the "Principal Amount").
The
      Thunderbird Notes are consolidated for the purposes of setting a single interest
      rate and certain conversion rights for the Principal Amount. Interest on the
      Principal Amount outstanding shall accrue at the rate of twelve percent (12%)
      per annum, which interest shall be paid monthly, with the first installment
      payable on April 17, 2006, and subsequent payments at the seventeenth day of
      the
      month beginning each month thereafter. Overdue principal and interest on the
      Thunderbird Notes shall bear interest, to the extent permitted by applicable
      law, at a rate of twelve percent (12%) per annum. If not sooner redeemed or
      converted, the Thunderbird Notes shall mature on the fifth anniversary of the
      execution of the Convertible Loan Agreement, at which time all the remaining
      unpaid principal, interest and any other charges then due under the agreement
      shall be due and payable in full.
The
      Thunderbird Notes shall be convertible, at either party's option, into shares of
      the Company's common stock at four separate conversion prices. Up to twenty five
      percent (25%) of the Principal Amount may be converted at two and a half cents
      ($0.025) per share; up to twenty five percent (25%) of the Principal Amount
      may
      be converted at seven and a half cents ($0.075) per share; up to twenty five
      percent (25%) of the Principal Amount may be converted at twelve and a half
      cents ($0.125) per share; and the final twenty five percent (25%) of the
      Principal Amount may be converted at seventeen and a half cents ($0.175) per
      share (collectively, such converted stock is referred to as the "Registerable
      Securities").
2
In
      the
      Convertible Loan Agreement, the Company has agreed to register all or any
      portion of the Registerable Securities any time it receives a written request
      from Thunderbird that the Company file a registration statement under the 1933
      Act covering the registration of at least a majority of the Registerable
      Securities then outstanding. The Company has agreed, subject to the limitations
      in the Convertible Loan Agreement, to use its best lawful efforts to effect
      as
      soon as reasonably possible, and in any event (if legally possible, and as
      allowed by the SEC, and if no factor outside the Company's reasonable control
      prevents it) within 150 days of the receipt of the initial written registration
      request, to effect the registration under the 1933 Act of all Registerable
      Securities which the Thunderbird has requested.
Notwithstanding
      the foregoing, in lieu of registration, the Company may provide Thunderbird
      with
      a certificate signed by the President of the Company stating that in the good
      faith judgment of the Board of Directors, it would be materially detrimental
      to
      the Company and its shareholders for such registration statement to be filed
      at
      that time, and it is therefore essential to defer the filing of such
      registration statement. Thereafter, the Company shall have the right to defer
      the commencement of such a filing for a period of not more than 180 days after
      receipt of the request; provided, however, that at least 12 months must elapse
      between any two such deferrals.
Promissory
      Note
Pursuant
      to a Promissory Note, dated March 24, 2006 (the "Note"), the Company and
      Sovereign (collectively, the "Borrower"), borrow and promise to repay to
      Thunderbird (the "Payee"), the principal sum of Nine Hundred Ninety Eight
      Thousand and No/100 Dollars
($998,000.00),
      with interest at the rate of twelve percent (12%) per annum on the unpaid
      principal balance until paid or until default.
All
      past
      due installments of principal and, if permitted by applicable law, of interest
      shall bear interest at the highest lawful rate, or, if no such maximum rate
      is
      established by applicable law, then at the rate of eighteen percent (18%) per
      annum.
The
      full
      amount of principal and interest due under the Note is due on the first business
      day five years after the date of its execution. The interest shall be due and
      payable in monthly payments, to be paid on the 17
th
day of
      every month and applied to the interest that accrued during the preceding month.
Upon
      the
      occurrence of any "Event of Default," the Payee may declare the remainder of the
      debt immediately due and payable. An "Event of Default" includes, failure to
      make payment on the Note when due, and such failure shall continue for fifteen
      (15) business days from receipt by Borrower of written notice of such failure;
      Borrower files any voluntary petition seeking relief under federal bankruptcy
      law or under any other act or law related to insolvency or debtor relief,
      whether state or federal; the filing against Borrower of any involuntary
      petition seeking relief under federal bankruptcy law or under any other act
      or
      law related to insolvency or debtor relief, whether state or federal, if such
      petition is not dismissed within thirty (30) days of filing; or a custodian,
      trustee, receiver or assignee for the benefit of creditors is appointed or
      takes
      possession of any of Borrower's assets.
3
The
      Note
      is secured by the pledge of certain assets by Borrower to the Payee pursuant
      to
      the Pledge and Security Agreement.
Pledge
      and Security Agreement
The
      Pledge and Security Agreement ("PSA") secures payment of (i) all amounts now or
      hereafter payable by the Company and Sovereign (jointly "Pledgors") to
      Thunderbird on the Thunderbird Notes, and (ii) all obligations and liabilities
      now or hereafter payable by the Pledgors under, arising out of or in connection
      with the PSA (all such indebtedness, obligations and liabilities being herein
      called the "Obligations").
Pursuant
      to the PSA, the Pledgors pledge and grant to Thunderbird a security interest
      in
      the shares of stock and partnership interests comprising Pledgors' interests in
      Sovereign Pumpkin Ridge, LLC, and, contingent upon Pledgors' formation of a
      limited liability company for the purpose of developing the project, Pledgors'
future interest in "Sovereign El Rio, LLC" (collectively, the "Pledged
      Interests"). The Pledged Interests also include without limitation all of
      Pledgors' right, title and interest in and to (i) all dividends or
      distributions arising from the Pledged Interests, payable thereon or
      distributable in respect thereof, whether in cash, property, stock or otherwise,
      and whether now or hereafter declared, paid or made, and the right to receive
      and receipt therefore; (ii) all Pledged Interests into which any of the
      Pledged Interests are split or combined; and (iii) all other rights with respect
      to the Pledged Interests; provided, however, that Secured Party hereby agrees
      that, if and so long as Pledgors shall not be in default under this Agreement,
      Pledgors shall have the right to vote, or to give any approval or consent in
      respect of, the Pledged Interests for all purposes not inconsistent with the
      provisions of this Agreement.
Upon
      the
      full and final payment of the Thunderbird Notes, the security interests in
      the
      Pledged Interests shall terminate and all rights to the Pledged Interests shall
      revert to the Pledgors. In addition, at any time and from time to time prior
      to
      such termination of the security interests, the Secured Party may release any
      of
      the Pledged Interests. Upon any such termination of the security interests
      or
      any release of the Pledged Interests, the Secured Party will, at the Pledgors'
expense, execute and deliver to the Pledgors such documents as the Pledgors
      shall reasonably request to evidence the termination of the security interests
      or the release of the Pledged Interests.
Interested
      Director
A
      member
      of the Company's Board of Directors and our Chief Executive Officer, Edouard A.
      Garneau, is related (as son-in-law) to the General Partner of Thunderbird
      Management. Mr. Garneau did not participate in the vote by Cardinal's Board of
      Directors approving the Promissory Note, Pledge and Security Agreement, or
      Convertible Loan Agreement (collectively, the "Agreements"). The remaining
      members of Cardinal's Board of Directors voted unanimously to approve the
      Agreements.
4
Exhibit
      No.
Description
10.1
Convertible
                Loan Agreement between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and Thunderbird Management Limited Partnership, dated March
                24,
                2006.
10.2
Promissory
                Note between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and
                Thunderbird Management Limited Partnership, dated March 24,
                2006.
10.3
Pledge
                And Security Agreement between Cardinal Communications, Inc., Sovereign
                Companies, LLC, and Thunderbird Management Limited Partnership, dated
                March 24, 2006.
5
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this Report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Cardinal
                Communications, Inc.
By:
/s/ Edouard
              A. Garneau
Chief
                Executive Officer
Date:
      April 3, 2006
6
EXHIBIT
      INDEX
Exhibit
                No.
Description
10.1
10.2
10.3
Convertible
                Loan Agreement between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and Thunderbird Management Limited Partnership, dated March
                24,
                2006.
Promissory
                Note between Cardinal Communications, Inc., Sovereign Companies,
                LLC, and
                Thunderbird Management Limited Partnership, dated March 24,
                2006.
Pledge
                And Security Agreement between Cardinal Communications, Inc., Sovereign
                Companies, LLC, and Thunderbird Management Limited Partnership, dated
                March 24, 2006.
7