EXHIBIT 10.5

Joe M. Allbaugh

Equity Compensation



Term Sheet

April 26, 2007



|        |                                                                                                                                                                                                                                                      
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Purpose | Convert Joe M. Allbaughs Consulting Agreement to ownership of Ecosphere Systems, Inc. (ESI)                                                                                                                                                       
|        |                                                                                                                                                                                                                                                      
|Offer   | Issue Joe M. Allbaugh, or his designee, 10% of Ecosphere Systems, Inc. in exchange for cancellation of the existing Consulting Agreement                                                                                                             
|        |                                                                                                                                                                                                                                                      
|Duties  | Meet with or otherwise communicate with key executives of Pierce Manufacturing, Inc, attend trade shows, or other arranged marketing events, and manage the relationship with Pierce Manufacturing, Inc./OshKosh Truck, Inc.                         
|        |                                                                                                                                                                                                                                                      
|Term    | Balance of the term of the 2005 Ecosphere Technologies, Inc. Joint Marketing & Supply Agreement with Pierce Manufacturing, Inc. dated December 5, 2005.                                                                                              
|        |                                                                                                                                                                                                                                                      
|Vesting | In four increments or  2.5% of ESI on each future anniversary date of the Joint Marketing and Supply :
~   December 5, 2007
~   December 5, 2008
~   December 5, 2009
~   December 5, 2010
Upon a sale of ESI, all remaining shares vest immediately.
|        |                                                                                                                                                                                                                                                      



|                                                                   |                                                               
|------------------------------------------------------------------ | --------------------------------------------------------------
|Joe M. Allbaugh                                                    | Ecosphere Technologies Inc.
Dennis E. McGuire, President & CEO
|/s/ Joe M. Allbaugh                          5-7-07                | /s/ Dennis E. McGuire                  5-8-07                 
|Signature                                                     Date | Signature                                                 Date





Joe M. Allbaugh  ESI 10% Term Sheet April 26, 2007