Document:

Exhibit 10.10

                                     FORM OF

                             STOCK ESCROW AGREEMENT

                STOCK ESCROW AGREEMENT, dated as of ___________ ___, 2006
("Agreement") by and among Media & Entertainment Holdings, Inc., a Delaware
corporation ("Company"), the undersigned parties listed as Initial Stockholders
on the signature page hereto (collectively, the "Initial Stockholders") and
Continental Stock Transfer & Trust Company, a New York corporation ("Escrow
Agent").

                WHEREAS, the Company has entered into an Underwriting Agreement,
dated _______ __, 2006 ("Underwriting Agreement") with Ladenburg Thalmann & Co.
Inc. ("Ladenburg") acting as representative of the several underwriters
(collectively with Ladenburg, the "Underwriters"), pursuant to which, among
other matters, the Underwriters have agreed to purchase 10,000,000 units
("Units") of the Company. Each Unit consists of one share of the Company's
Common Stock, par value $.0001 per share, and two Warrants, each Warrant to
purchase one share of Common Stock, all as more fully described in the Company's
definitive Prospectus, dated ________ __, 2006 ("Prospectus") comprising part of
the Company's Registration Statement on Form S-1 (File No. 333-128218) under the
Securities Act of 1933, as amended ("Registration Statement"), declared
effective on ________ __, 2006 ("Effective Date").

                WHEREAS, the Initial Stockholders have agreed as a condition of
the sale of the Units to deposit their shares of Common Stock of the Company, as
set forth opposite their respective names in Exhibit A attached hereto
(collectively "Escrow Shares"), in escrow as hereinafter provided.

                WHEREAS, the Company and the Initial Stockholders desire that
the Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed
as hereinafter provided.

                IT IS AGREED:

        1.      APPOINTMENT OF ESCROW AGENT. The Company and the Initial
Stockholders hereby appoint the Escrow Agent to act in accordance with and
subject to the terms of this Agreement and the Escrow Agent hereby accepts such
appointment and agrees to act in accordance with and subject to such terms.

        2.      DEPOSIT OF ESCROW SHARES. On or before the Effective Date, each
of the Initial Stockholders shall deliver to the Escrow Agent certificates
representing his or her respective Escrow Shares, to be held and disbursed
subject to the terms and conditions of this Agreement. Each Initial Stockholder
acknowledges that the certificate representing his or her Escrow Shares is
legended to reflect the deposit of such Escrow Shares under this Agreement.

        3.      DISBURSEMENT OF THE ESCROW SHARES. The Escrow Agent shall hold
the Escrow Shares until the first anniversary of the completion by the Company
of a business combination ("Escrow Period"), on which date it shall, upon
written instructions from each Initial

<PAGE>

Stockholder, disburse each of the Initial Stockholder's Escrow Shares to such
Initial Stockholder; provided, however, that if the Escrow Agent is notified by
the Company pursuant to Section 6.7 hereof that the Company is being liquidated
at any time during the Escrow Period, then the Escrow Agent shall promptly
destroy the certificates representing the Escrow Shares; provided further, that
if, after the Company consummates a Business Combination (as such term is
defined in the Registration Statement), it (or the surviving entity)
subsequently consummates a liquidation, merger, stock exchange or other similar
transaction which results in all of its stockholders of such entity having the
right to exchange their shares of Common Stock for cash, securities or other
property, then the Escrow Agent will, upon receipt of a certificate, executed by
either the Chairman of the Board or President of the Company, in form reasonably
acceptable to the Escrow Agent, that such transaction is then being consummated,
release the Escrow Shares to the Initial Stockholders so that they can similarly
participate. The Escrow Agent shall have no further duties hereunder after the
disbursement or destruction of the Escrow Shares in accordance with this Section
3.

        4.      RIGHTS OF INITIAL STOCKHOLDERS IN ESCROW SHARES.

                4.1.    VOTING RIGHTS AS A STOCKHOLDER. Subject to the terms of
the Insider Letter described in Section 4.4 hereof and except as herein
provided, the Initial Stockholders shall retain all of their rights as
stockholders of the Company during the Escrow Period, including, without
limitation, the right to vote such shares.

                4.2.    DIVIDENDS AND OTHER DISTRIBUTIONS IN RESPECT OF THE
ESCROW SHARES. During the Escrow Period, all dividends payable in cash with
respect to the Escrow Shares shall be paid to the Initial Stockholders, but all
dividends payable in stock or other non-cash property ("Non-Cash Dividends")
shall be delivered to the Escrow Agent to hold in accordance with the terms
hereof. As used herein, the term "Escrow Shares" shall be deemed to include the
Non-Cash Dividends distributed thereon, if any.

                4.3.    RESTRICTIONS ON TRANSFER. During the Escrow Period, no
sale, transfer or other disposition may be made of any or all of the Escrow
Shares except (i) by gift to a member of Initial Stockholder's immediate family
or to a trust or other entity, the beneficiary of which is an Initial
Stockholder or a member of an Initial Stockholder's immediate family, (ii) by
virtue of the laws of descent and distribution upon death of any Initial
Stockholder, or (iii) pursuant to a qualified domestic relations order;
provided, however, that such permissive transfers may be implemented only upon
the respective transferee's written agreement to be bound by the terms and
conditions of this Agreement and of the Insider Letter signed by the Initial
Stockholder transferring the Escrow Shares. During the Escrow Period, the
Initial Stockholders shall not pledge or grant a security interest in the Escrow
Shares or grant a security interest in their rights under this Agreement.

                4.4.    INSIDER LETTERS. Each of the Initial Stockholders has
executed a letter agreement with Ladenburg and the Company, dated as indicated
on Exhibit A hereto, and which is filed as an exhibit to the Registration
Statement ("Insider Letter"), respecting the rights and obligations of such
Initial Stockholder in certain events, including but not limited to the
liquidation of the Company.

                                       2
<PAGE>

        5.      CONCERNING THE ESCROW AGENT.

                5.1.    GOOD FAITH RELIANCE. The Escrow Agent shall not be
liable for any action taken or omitted by it in good faith and in the exercise
of its own best judgment, and may rely conclusively and shall be protected in
acting upon any order, notice, demand, certificate, opinion or advice of counsel
(including counsel chosen by the Escrow Agent), statement, instrument, report or
other paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained) which is believed by the Escrow Agent to be
genuine and to be signed or presented by the proper person or persons. The
Escrow Agent shall not be bound by any notice or demand, or any waiver,
modification, termination or rescission of this Agreement unless evidenced by a
writing delivered to the Escrow Agent signed by the proper party or parties and,
if the duties or rights of the Escrow Agent are affected, unless it shall have
given its prior written consent thereto.

                5.2.    INDEMNIFICATION. The Escrow Agent shall be indemnified
and held harmless by the Company from and against any expenses, including
counsel fees and disbursements, or loss suffered by the Escrow Agent in
connection with any action, suit or other proceeding involving any claim which
in any way, directly or indirectly, arises out of or relates to this Agreement,
the services of the Escrow Agent hereunder, or the Escrow Shares held by it
hereunder, other than expenses or losses arising from the gross negligence or
willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow
Agent of notice of any demand or claim or the commencement of any action, suit
or proceeding, the Escrow Agent shall notify the other parties hereto in
writing. In the event of the receipt of such notice, the Escrow Agent, in its
sole discretion, may commence an action in the nature of interpleader in an
appropriate court to determine ownership or disposition of the Escrow Shares or
it may deposit the Escrow Shares with the clerk of any appropriate court or it
may retain the Escrow Shares pending receipt of a final, non appealable order of
a court having jurisdiction over all of the parties hereto directing to whom and
under what circumstances the Escrow Shares are to be disbursed and delivered.
The provisions of this Section 5.2 shall survive in the event the Escrow Agent
resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

                5.3.    COMPENSATION. The Escrow Agent shall be entitled to
reasonable compensation from the Company for all services rendered by it
hereunder. The Escrow Agent shall also be entitled to reimbursement from the
Company for all expenses paid or incurred by it in the administration of its
duties hereunder including, but not limited to, all counsel, advisors' and
agents' fees and disbursements and all taxes or other governmental charges.

                5.4.    FURTHER ASSURANCES. From time to time on and after the
date hereof, the Company and the Initial Stockholders shall deliver or cause to
be delivered to the Escrow Agent such further documents and instruments and
shall do or cause to be done such further acts as the Escrow Agent shall
reasonably request to carry out more effectively the provisions and purposes of
this Agreement, to evidence compliance herewith or to assure itself that it is
protected in acting hereunder.

                5.5.    RESIGNATION. The Escrow Agent may resign at any time and
be discharged from its duties as escrow agent hereunder by its giving the other
parties hereto written notice and such resignation shall become effective as
hereinafter provided. Such resignation shall become

                                       3
<PAGE>

effective at such time that the Escrow Agent shall turn over to a successor
escrow agent appointed by the Company, the Escrow Shares held hereunder. If no
new escrow agent is so appointed within the 60 day period following the giving
of such notice of resignation, the Escrow Agent may deposit the Escrow Shares
with any court it deems appropriate.

                5.6.    DISCHARGE OF ESCROW AGENT. The Escrow Agent shall resign
and be discharged from its duties as escrow agent hereunder if so requested in
writing at any time by the other parties hereto, jointly, provided, however,
that such resignation shall become effective only upon acceptance of appointment
by a successor escrow agent as provided in Section 5.5.

                5.7.    LIABILITY. Notwithstanding anything herein to the
contrary, the Escrow Agent shall not be relieved from liability hereunder for
its own gross negligence or its own willful misconduct.

        6.      MISCELLANEOUS.

                6.1.    GOVERNING LAW. This Agreement shall for all purposes be
deemed to be made under and shall be construed in accordance with the laws of
the State of New York. Each of the parties hereby agrees that any action,
proceeding or claim against it arising out of or relating in any way to this
Agreement shall be brought and enforced in the courts of the State of New York
or the United States District Court for the Southern District of New York, and
irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
Each of the parties hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum.

                6.2.    THIRD PARTY BENEFICIARIES. Each of the Initial
Stockholders hereby acknowledges that the Underwriters are third party
beneficiaries of this Agreement and this Agreement may not be modified or
changed without the prior written consent of Ladenburg.

                6.3.    ENTIRE AGREEMENT. This Agreement contains the entire
agreement of the parties hereto with respect to the subject matter hereof and,
except as expressly provided herein, may not be changed or modified except by an
instrument in writing signed by the party to the charged. It may be executed in
several original or facsimile counterparts, each one of which shall constitute
an original, and together shall constitute but one instrument.

                6.4.    HEADINGS. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation thereof.

                6.5.    BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of the respective parties hereto and their legal
representatives, successors and assigns.

                6.6.    NOTICES. Any notice or other communication required or
which may be given hereunder shall be in writing and either be delivered
personally or be mailed, certified or registered mail, or by private national
courier service, return receipt requested, postage prepaid, and shall be deemed
given when so delivered personally or, if mailed, two days after the date of
mailing, as follows:

                If to the Company, to:

                                       4
<PAGE>

                        Media & Entertainment Holdings, Inc.
                        4429 Edmondson Avenue
                        Dallas, TX 75205
                        Attn:   Herbert A. Granath, Chief Executive Officer

                If to a Stockholder, to his address set forth in Exhibit A.

                and if to the Escrow Agent, to:

                        Continental Stock Transfer & Trust Company
                        17 Battery Place
                        New York, New York  10004
                        Attn:   Chairman

                A copy of any notice sent hereunder shall be sent to:

                        Greenberg Traurig LLP
                        MetLife Building
                        200 Park Avenue
                        New York, New York 10166
                        Attn:   Alan I. Annex, Esq.

                and:

                        Ladenburg Thalmann & Co. Inc.
                        590 Madison Avenue, 34th Floor
                        New York, New York 10022
                        Attn:   Peter H. Blum

                and:
                        Kirkpatrick and Lockhart Nicholson Graham LLP
                        599 Lexington Avenue
                        New York, New York 10022
                        Attn:   Robert S. Matlin, Esq.

                The parties may change the persons and addresses to which the
notices or other communications are to be sent by giving written notice to any
such change in the manner provided herein for giving notice.

                6.7.    LIQUIDATION OF COMPANY. The Company shall give the
Escrow Agent written notification of the liquidation and dissolution of the
Company in the event that the Company fails to consummate a Business Combination
within the time period(s) specified in the Prospectus.

                                       5
<PAGE>

                WITNESS the execution of this Agreement as of the date first
above written.

                           MEDIA & ENTERTAINMENT HOLDINGS, INC.

                           By:     _____________________________________________
                                   Herbert A. Granath, Chief Executive Officer

                           INITIAL STOCKHOLDERS:

                                   _____________________________
                                   Herbert A. Granath

                                   _____________________________
                                   Harvey M. Seslowsky

                                   _____________________________
                                   Robert C. Clauser, Jr.

                                   _____________________________
                                   Bruce Maggin

                                   _____________________________
                                   Richard Weden

                                   _____________________________
                                   Edward T. Reilly

                                   _____________________________
                                   William A. Roskin

                           CONTINENTAL STOCK TRANSFER
                           & TRUST COMPANY

                           By:____________________________________
                                   Name: Steven G. Nelson
                                   Title: Chairman

                                       6
<PAGE>

                                    EXHIBIT A

Name and Address of                 Number          Stock            Date of
Initial Stockholder                of Shares  Certificate Number  Insider Letter
-------------------

Herbert A. Granath                   669,125         [__]         April 25, 2006

Harvey M. Seslowsky                  669,125         [__]         April 25, 2006

Robert C. Clauser, Jr.,              669,125         [__]         April 25, 2006

Bruce Maggin                         669,125         [__]         April 25, 2006

Richard Weden                        5,000           [__]         April 25, 2006

Edward Reilly                        10,000          [__]         April 25, 2006

William A. Roskin                    5,000           [__]         April 25, 2006

Joseph Tirinato                      5,000           [__]         April 25, 2006

Astor Asset Management               106,000         [__]         April 25, 2006

Benjamin M. Maggin                   2,500           [__]         April 25, 2006

Daniel M. Maggin                     2,500           [__]         April 25, 2006

                                       7EXHIBIT 10.12

                                    FORM OF

                         REGISTRATION RIGHTS AGREEMENT

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as
of the ____ day of ______,  2006, by and among Media &  Entertainment  Holdings,
Inc., a Delaware corporation (the "Company"), and the undersigned parties listed
under  Investor  on  the  signature   page  hereto  (each,   an  "Investor"  and
collectively, the "Investors").

        WHEREAS,  the Investors currently hold all of the issued and outstanding
securities of the Company,  except for certain  Warrants (the "Astor  Warrants")
being purchased by Astor Asset  Management,  which are the subject of a separate
registration rights agreement;

        WHEREAS,  the  Investors  and the  Company  desire  to enter  into  this
Agreement  to  provide  the  Investors  with  certain  rights  relating  to  the
registration of shares of Common Stock held by them;

        NOW, THEREFORE,  in consideration of the mutual covenants and agreements
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

        1.      DEFINITIONS.  The following  capitalized  terms used herein have
the following meanings:

        "Agreement" means this Agreement, as amended, restated, supplemented, or
otherwise modified from time to time.

        "Commission" means the Securities and Exchange Commission,  or any other
federal agency then administering the Securities Act or the Exchange Act.

        "Common Stock" means the common stock,  par value $0.0001 per share,  of
the Company.

        "Company" is defined in the preamble to this Agreement.

        "Demand Registration" is defined in Section 2.1.1.

        "Demanding Holder" is defined in Section 2.1.1.

        "Exchange  Act" means the  Securities  Exchange Act of 1934, as amended,
and the rules and regulations of the Commission promulgated  thereunder,  all as
the same shall be in effect at the time.

        "Form S-3" is defined in Section 2.3.

        "Indemnified Party" is defined in Section 4.3.
<PAGE>

        "Indemnifying Party" is defined in Section 4.3.

        "Investor" is defined in the preamble to this Agreement.

        "Investor Indemnified Party" is defined in Section 4.1.

        "Maximum Number of Shares" is defined in Section 2.1.4.

        "Notices" is defined in Section 6.3.

        "Piggy-Back Registration" is defined in Section 2.2.1.

        "Register," "Registered" and "Registration" mean a registration effected
by  preparing  and  filing a  registration  statement  or  similar  document  in
compliance with the requirements of the Securities Act, and the applicable rules
and regulations promulgated thereunder, and such registration statement becoming
effective.

        "Registrable  Shares"  mean all of the shares of Common  Stock  owned or
held by  Investors.  Registrable  Shares  include any shares of capital stock or
other securities of the Company issued as a dividend or other  distribution with
respect to or in exchange for or in replacement of such shares of Common Stock.

        "Registrable  Warrants"  mean all of the warrants to purchase  shares of
Common Stock of the Company,  owned or held by  Investors,  except for the Astor
Warrants, including the underlying shares of Common Stock.

        "Registrable  Securities" mean,  collectively,  the "Registrable Shares"
and "Registrable  Warrants." As to any particular Registrable  Securities,  such
securities  shall cease to be  Registrable  Securities  when: (a) a Registration
Statement  with  respect  to the  sale  of such  securities  shall  have  become
effective  under the  Securities Act and such  securities  shall have been sold,
transferred,  disposed of or  exchanged  in  accordance  with such  Registration
Statement;  (b) such  securities  shall  have been  otherwise  transferred,  new
certificates  for them not bearing a legend  restricting  further transfer shall
have been delivered by the Company and subsequent  public  distribution  of them
shall not require  registration  under the Securities  Act; (c) such  securities
shall  have  ceased  to be  outstanding,  or (d)  the  Securities  and  Exchange
Commission makes a definitive  determination to the Company that the Registrable
Securities are salable under Rule 144(k).

        "Registration  Statement"  means a registration  statement  filed by the
Company with the Commission in compliance  with the Securities Act and the rules
and regulations  promulgated thereunder for a public offering and sale of Common
Stock  (other than a  registration  statement  on Form S-4 or Form S-8, or their
successors,  or any registration  statement covering only securities proposed to
be issued in exchange for securities or assets of another entity).

        "Release Date" means:  (a) with respect to the Registrable  Shares,  the
date on which  shares of Common  Stock are  disbursed  from  escrow  pursuant to
Section 3 of that certain Stock Escrow Agreement dated as of _____________, 2006
by and among the parties hereto and Continental  Stock Transfer & Trust Company;
and (b) with respect to the Registrable Warrants,

<PAGE>

90 days after the  consummation  by the  Company of a business  combination  (as
described in the Registration Statement).

        "Securities  Act" means the Securities Act of 1933, as amended,  and the
rules and regulations of the Commission promulgated thereunder,  all as the same
shall be in effect at the time.

        "Underwriter"  means a securities  dealer who purchases any  Registrable
Securities  as  principal  in an  underwritten  offering and not as part of such
dealer's market-making activities.

        2.      REGISTRATION RIGHTS.

                2.1.    Demand Registration.

                        2.1.1.  REQUEST FOR  REGISTRATION.  At any time and from
time  to time  on or  after  the  applicable  Release  Date,  the  holders  of a
majority-in-interest  of  each  of the  Registrable  Shares  or the  Registrable
Warrants  held by the Investors or the  transferees  of the Investors may make a
written demand for registration  under the Securities Act of all or part of such
Registrable  Shares  or  Registrable  Warrants,  as the case  may be (a  "Demand
Registration"). Any demand for a Demand Registration shall specify the number of
Registrable Shares or Registrable  Warrants,  as the case may be, proposed to be
sold and the intended method(s) of distribution thereof. The Company will notify
all holders of Registrable Shares or Registrable  Warrants,  as the case may be,
of the  demand,  and each such  holder  of  Registrable  Shares  or  Registrable
Warrants  who wishes to include  all or a portion of such  holder's  Registrable
Shares or  Registrable  Warrants  in the Demand  Registration  (each such holder
including  Registrable Shares or Registrable  Warrants in such  registration,  a
"Demanding  Holder")  shall so notify the Company within fifteen (15) days after
the receipt by the holder of the notice from the Company. Upon any such request,
the  Demanding  Holders  shall be entitled to have their  Registrable  Shares or
Registrable  Warrants,  as the case may be, included in the Demand Registration,
subject to  Section  2.1.4 and the  provisos  set forth in  Section  3.1.1.  The
Company  shall not be obligated to effect more than one (1) Demand  Registration
under this Section 2.1.1 in respect of  Registrable  Shares,  and one (1) Demand
Registration in respect of Registrable Warrants.

                        2.1.2.  EFFECTIVE REGISTRATION.  A registration will not
count as a Demand  Registration until the Registration  Statement filed with the
Commission with respect to such Demand  Registration has been declared effective
and the Company has complied with all of its  obligations  under this  Agreement
with  respect  thereto;  provided,  however,  that if,  after such  Registration
Statement has been declared  effective,  the offering of Registrable  Securities
pursuant  to a Demand  Registration  is  interfered  with by any  stop  order or
injunction of the  Commission  or any other  governmental  agency or court,  the
Registration  Statement with respect to such Demand  Registration will be deemed
not to have been declared  effective,  unless and until,  (i) such stop order or
injunction  is  removed,   rescinded  or  otherwise   terminated,   and  (ii)  a
majority-in-interest  of the Demanding Holders  thereafter elect to continue the
offering.

                        2.1.3.  UNDERWRITTEN OFFERING. If a majority-in-interest
of the Demanding Holders so elect and such holders so advise the Company as part
of  their  written  demand  for a  Demand  Registration,  the  offering  of such
Registrable Securities pursuant to such Demand

<PAGE>

Registration  shall be in the form of an underwritten  offering.  In such event,
the  right  of  any  holder  to  include  its  Registrable  Securities  in  such
registration  shall be  conditioned  upon such  holder's  participation  in such
underwriting  and the inclusion of such holder's  Registrable  Securities in the
underwriting to the extent provided herein.  All Demanding  Holders proposing to
distribute  their  securities  through  such  underwriting  shall  enter into an
underwriting  agreement in customary form with the  Underwriter or  Underwriters
selected  for  such  underwriting  by  a  majority-in-interest  of  the  holders
initiating the Demand Registration.

                        2.1.4.  REDUCTION   OF   OFFERING.   If   the   managing
Underwriter  or  Underwriters  for  a  Demand  Registration  that  is  to  be an
underwritten  offering advises the Company and the Demanding  Holders in writing
that the dollar amount or number of shares of Registrable  Securities  which the
Demanding Holders desire to sell, taken together with all other shares of Common
Stock or other  securities  which the Company  desires to sell and the shares of
Common Stock, if any, as to which  registration  has been requested  pursuant to
written contractual piggy-back registration rights held by other stockholders of
the Company who desire to sell,  exceeds  the maximum  dollar  amount or maximum
number of shares that can be sold in such offering without  adversely  affecting
the  proposed  offering  price,  the timing,  the  distribution  method,  or the
probability  of success of such offering  (such maximum dollar amount or maximum
number of shares,  as  applicable,  the "Maximum  Number of  Shares"),  then the
Company  shall  include  in  such  registration:   (i)  first,  the  Registrable
Securities as to which Demand  Registration  has been requested by the Demanding
Holders (pro rata in accordance  with the number of shares that each such Person
has  requested  be included in such  registration,  regardless  of the number of
shares held by each such Person (such  proportion  is referred to herein as "Pro
Rata")) that can be sold without  exceeding the Maximum  Number of Shares;  (ii)
second,  to the extent  that the Maximum  Number of Shares has not been  reached
under the foregoing  clause (i), the shares of Common Stock or other  securities
that the Company desires to sell that can be sold without  exceeding the Maximum
Number of Shares;  (iii) third,  to the extent that the Maximum Number of Shares
has not been reached  under the  foregoing  clauses (i) and (ii),  the shares of
Common Stock or other securities  registrable  pursuant to the terms of the Unit
Purchase  Option  issued to  Ladenburg  Thalmann & Co. Inc. or its  designees in
connection  with the  Company's  initial  public  offering  (the "Unit  Purchase
Option" and such registrable  securities,  the "Option  Securities") as to which
"piggy-back"  registration has been requested by the holders thereof,  Pro Rata,
that can be sold  without  exceeding  the  Maximum  Number of  Shares;  and (iv)
fourth,  to the extent that the Maximum  Number of Shares have not been  reached
under the foregoing  clauses (i), (ii), and (iii), the shares of Common Stock or
other  securities for the account of other persons that the Company is obligated
to register pursuant to written  contractual  arrangements with such persons and
that can be sold without exceeding the Maximum Number of Shares.

                        2.1.5.  WITHDRAWAL.  If a  majority-in-interest  of  the
Demanding  Holders  disapprove  of the  terms  of any  underwriting  or are  not
entitled to include all of their  Registrable  Securities in any offering,  such
majority-in-interest  of the  Demanding  Holders may elect to withdraw from such
offering  by  giving  written  notice  to the  Company  and the  Underwriter  or
Underwriters  of their  request to withdraw  prior to the  effectiveness  of the
Registration  Statement  filed with the  Commission  with respect to such Demand
Registration.  If the  majority-in-interest  of the Demanding  Holders withdraws
from a proposed offering relating to a Demand
<PAGE>

Registration,  then such registration  shall not count as a Demand  Registration
provided for in Section 2.1.1.

                2.2.    Piggy-Back Registration.

                        2.2.1.  PIGGY-BACK  RIGHTS.  If at any  time on or after
the Release Date the Company proposes to file a Registration Statement under the
Securities Act with respect to an offering of equity  securities,  or securities
or other  obligations  exercisable or  exchangeable  for, or  convertible  into,
equity securities, by the Company for its own account or for stockholders of the
Company for their account (or by the Company and by  stockholders of the Company
including,   without  limitation,   pursuant  to  Section  2.1),  other  than  a
Registration Statement (i) filed in connection with any employee stock option or
other benefit plan, (ii) for an exchange offer or offering of securities  solely
to the Company's  existing  stockholders,  (iii) for an offering of debt that is
convertible  into  equity  securities  of the  Company  or (iv)  for a  dividend
reinvestment  plan,  then the  Company  shall  (x) give  written  notice of such
proposed filing to the holders of Registrable  Securities as soon as practicable
but in no event less than ten (10) days  before  the  anticipated  filing  date,
which notice shall  describe the amount and type of securities to be included in
such  offering,  the  intended  method(s) of  distribution,  and the name of the
proposed managing Underwriter or Underwriters,  if any, of the offering, and (y)
offer to the holders of Registrable Securities in such notice the opportunity to
register  the sale of such number of shares of  Registrable  Securities  as such
holders may request in writing  within five (5) days  following  receipt of such
notice (a "Piggy-Back  Registration").  The Company shall cause such Registrable
Securities to be included in such registration and shall use its best efforts to
cause the  managing  Underwriter  or  Underwriters  of a  proposed  underwritten
offering  to permit the  Registrable  Securities  requested  to be included in a
Piggy-Back  Registration  on the  same  terms  and  conditions  as  any  similar
securities  of the Company and to permit the sale or other  disposition  of such
Registrable Securities in accordance with the intended method(s) of distribution
thereof.  All holders of Registrable  Securities  proposing to distribute  their
securities  through a Piggy-Back  Registration  that involves an  Underwriter or
Underwriters  shall enter into an underwriting  agreement in customary form with
the Underwriter or Underwriters selected for such Piggy-Back Registration.

                        2.2.2.  REDUCTION   OF   OFFERING.   If   the   managing
Underwriter  or  Underwriters  for a  Piggy-Back  Registration  that is to be an
underwritten  offering  advises  the  Company  and the  holders  of  Registrable
Securities in writing that the dollar amount or number of shares of Common Stock
which the Company  desires to sell,  taken together with shares of Common Stock,
if  any,  as to  which  registration  has  been  demanded  pursuant  to  written
contractual  arrangements  with  persons  other than the holders of  Registrable
Securities  hereunder,  the Registrable  Securities as to which registration has
been requested  under this Section 2.2, and the shares of Common Stock,  if any,
as to which registration has been requested pursuant to the written  contractual
piggy-back registration rights of other stockholders of the Company, exceeds the
Maximum  Number  of  Shares,   then  the  Company  shall  include  in  any  such
registration:

                                (i)     If the  registration  is undertaken  for
the Company's account: (A) first, the shares of Common Stock or other securities
that the Company desires to sell that can be sold without  exceeding the Maximum
Number of Shares;  (B) second,  to the extent that the Maximum  Number of Shares
has not been reached under the foregoing  clause (A), the shares

<PAGE>

of Common Stock or other securities, if any, comprised of Registrable Securities
and Option  Securities,  as to which registration has been requested pursuant to
the  applicable  written  contractual  piggy-back  registration  rights  of such
security  holders,  Pro Rata,  that can be sold  without  exceeding  the Maximum
Number of Shares; and (C) third, to the extent that the Maximum Number of shares
has not been  reached  under the  foregoing  clauses (A) and (B),  the shares of
Common  Stock or other  securities  for the  account of other  persons  that the
Company is  obligated  to register  pursuant to written  contractual  piggy-back
registration rights with such persons and that can be sold without exceeding the
Maximum Number of Shares;

                                (ii)    If  the   registration   is  a  "demand"
registration  undertaken  at the  demand of holders  of Option  Securities,  (A)
first,  the shares of Common  Stock or other  securities  for the account of the
holders of any Option  Securities  (including any Persons entitled to piggy-back
registration rights under the agreement  governing the Option  Securities),  Pro
Rata,  that can be sold  without  exceeding  the Maximum  Number of Shares;  (B)
second,  to the extent  that the Maximum  Number of Shares has not been  reached
under the foregoing  clause (A), the shares of Common Stock or other  securities
that the Company desires to sell that can be sold without  exceeding the Maximum
Number of Shares; (C) third, to the extent that the Maximum Number of Shares has
not been  reached  under  the  foregoing  clauses  (A) and (B),  the  shares  of
Registrable  Securities,  Pro Rata, as to which  registration has been requested
pursuant to the terms  hereof,  that can be sold without  exceeding  the Maximum
Number of Shares;  and (D)  fourth,  to the extent  that the  Maximum  Number of
Shares has not been reached  under the  foregoing  clauses (A), (B) and (C), the
shares of Common Stock or other securities for the account of other persons that
the  Company  is   obligated  to  register   pursuant  to  written   contractual
arrangements  with such persons,  that can be sold without exceeding the Maximum
Number of Shares; and

                                (iii)   If  the   registration   is  a  "demand"
registration  undertaken  at the demand of persons other than either the holders
of  Registrable  Securities or of Option  Securities,  (A) first,  the shares of
Common Stock or other  securities for the account of the demanding  persons that
can be sold without  exceeding the Maximum Number of Shares;  (B) second, to the
extent  that the  Maximum  Number  of  Shares  has not been  reached  under  the
foregoing  clause (A), the shares of Common Stock or other  securities  that the
Company desires to sell that can be sold without exceeding the Maximum Number of
Shares;  (C) third, to the extent that the Maximum Number of Shares has not been
reached  under the  foregoing  clauses (A) and (B),  collectively  the shares of
Common Stock or other securities comprised of Registrable  Securities and Option
Securities,  Pro Rata, as to which  registration has been requested  pursuant to
the terms hereof and of the Unit Purchase  Option,  as  applicable,  that can be
sold without  exceeding  the Maximum  Number of Shares;  and (D) fourth,  to the
extent  that the  Maximum  Number  of  Shares  has not been  reached  under  the
foregoing  clauses  (A),  (B) and  (C),  the  shares  of  Common  Stock or other
securities  for the account of other  persons  that the Company is  obligated to
register pursuant to written  contractual  arrangements with such persons,  that
can be sold without exceeding the Maximum Number of Shares.

                        2.2.3.  WITHDRAWAL. Any holder of Registrable Securities
may elect to  withdraw  such  holder's  request  for  inclusion  of  Registrable
Securities  in any  Piggy-Back  Registration  by  giving  written  notice to the
Company  of  such  request  to  withdraw  prior  to  the  effectiveness  of  the
Registration Statement.  The Company (whether on its own determination or

<PAGE>

as the result of a  withdrawal  by persons  making a demand  pursuant to written
contractual obligations) may withdraw a registration statement at any time prior
to the  effectiveness of the Registration  Statement.  Notwithstanding  any such
withdrawal,  the  Company  shall pay all  expenses  incurred  by the  holders of
Registrable  Securities  in  connection  with such  Piggy-Back  Registration  as
provided in Section 3.3.

                2.3.    REGISTRATIONS  ON FORM S-3.  The holders of  Registrable
Securities  may at any time and from time to time,  request in writing  that the
Company register the resale of any or all of such Registrable Securities on Form
S-3 or any similar  short-form  registration which may be available at such time
("Form  S-3");  provided,  however,  that the Company  shall not be obligated to
effect such  request  through an  underwritten  offering.  Upon  receipt of such
written  request,  the Company will promptly give written notice of the proposed
registration  to all other holders of  Registrable  Securities,  and, as soon as
practicable  thereafter,  effect the registration of all or such portion of such
holder's or holders'  Registrable  Securities  as are specified in such request,
together  with  all or such  portion  of the  Registrable  Securities  or  other
securities  of the Company,  if any, of any other  holder or holders  joining in
such request as are  specified in a written  request  given within  fifteen (15)
days after receipt of such written notice from the Company;  provided,  however,
that the Company shall not be obligated to effect any such registration pursuant
to this Section 2.3: (i) if Form S-3 is not available for such offering; or (ii)
if the holders of the Registrable  Securities,  together with the holders of any
other  securities  of the Company  entitled to inclusion  in such  registration,
propose to sell Registrable Securities and such other securities (if any) at any
aggregate  price to the  public of less than  $500,000.  Registrations  effected
pursuant  to this  Section  2.3 shall  not be  counted  as Demand  Registrations
effected pursuant to Section 2.1.

        3.      REGISTRATION PROCEDURES.

                3.1.    FILINGS;  INFORMATION.  Whenever the Company is required
to effect the registration of any Registrable  Securities pursuant to Section 2,
the Company  shall use its best efforts to effect the  registration  and sale of
such  Registrable  Securities  in  accordance  with the  intended  method(s)  of
distribution thereof as expeditiously as practicable, and in connection with any
such request:

                        3.1.1.  FILING  REGISTRATION   STATEMENT.   The  Company
shall,  as  expeditiously  as possible  and in any event  within sixty (60) days
after  receipt of a request for a Demand  Registration  pursuant to Section 2.1,
prepare and file with the  Commission a  Registration  Statement on any form for
which the Company  then  qualifies or which  counsel for the Company  shall deem
appropriate  and which form shall be available  for the sale of all  Registrable
Securities to be registered thereunder in accordance with the intended method(s)
of  distribution  thereof,  and  shall  use  its  best  efforts  to  cause  such
Registration Statement to become and remain effective for the period required by
Section 3.1.3; provided, however, that the Company shall have the right to defer
any  Demand  Registration  for  up to  thirty  (30)  days,  and  any  Piggy-Back
Registration  for such period as may be  applicable  to  deferment of any demand
registration to which such Piggy-Back  Registration relates, in each case if the
Company shall furnish to the holders a certificate signed by the Chief Executive
Officer of the Company  stating that, in the good faith judgment of the Board of
Directors of the Company, it would be materially  detrimental to the Company and
its  stockholders for such  Registration  Statement to be effected at

<PAGE>

such time; provided further,  however, that the Company shall not have the right
to exercise the right set forth in the immediately  preceding  proviso more than
once in any 365-day period in respect of a Demand Registration hereunder.

                        3.1.2.  COPIES.  The  Company  shall,  prior to filing a
Registration  Statement or prospectus,  or any amendment or supplement  thereto,
furnish without charge to the holders of Registrable Securities included in such
registration,  and such  holders'  legal  counsel,  copies of such  Registration
Statement  as  proposed  to be filed,  each  amendment  and  supplement  to such
Registration  Statement  (in  each  case  including  all  exhibits  thereto  and
documents  incorporated by reference  therein),  the prospectus included in such
Registration Statement (including each preliminary  prospectus),  and such other
documents as the holders of Registrable Securities included in such registration
or legal  counsel for any such  holders may request in order to  facilitate  the
disposition of the Registrable Securities owned by such holders.

                        3.1.3.  AMENDMENTS  AND  SUPPLEMENTS.  The Company shall
prepare and file with the Commission such amendments,  including  post-effective
amendments,  and supplements to such  Registration  Statement and the prospectus
used in  connection  therewith  as may be  necessary  to keep such  Registration
Statement  effective and in compliance with the provisions of the Securities Act
until  all  Registrable   Securities  and  other  securities   covered  by  such
Registration  Statement  have been disposed of in  accordance  with the intended
method(s) of distribution set forth in such Registration Statement (which period
shall not exceed the sum of one hundred eighty (180) days plus any period during
which any such disposition is interfered with by any stop order or injunction of
the Commission or any governmental agency or court) or such securities have been
withdrawn.

                        3.1.4.  NOTIFICATION. After the filing of a Registration
Statement,  the  Company  shall  promptly,  and in no  event  more  than two (2)
business days after such filing,  notify the holders of  Registrable  Securities
included in such Registration Statement of such filing, and shall further notify
such holders  promptly  and confirm such advice in writing in all events  within
two (2) business days of the occurrence of any of the  following:  (i) when such
Registration Statement becomes effective; (ii) when any post-effective amendment
to  such  Registration  Statement  becomes  effective;  (iii)  the  issuance  or
threatened  issuance by the  Commission of any stop order (and the Company shall
take all  actions  required to prevent the entry of such stop order or to remove
it if  entered);  and (iv) any request by the  Commission  for any  amendment or
supplement to such Registration  Statement or any prospectus relating thereto or
for  additional  information  or of the  occurrence  of an event  requiring  the
preparation  of a  supplement  or  amendment  to such  prospectus  so  that,  as
thereafter  delivered  to the  purchasers  of the  securities  covered  by  such
Registration Statement,  such prospectus will not contain an 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 promptly make
available to the holders of Registrable Securities included in such Registration
Statement any such  supplement or amendment;  except that before filing with the
Commission a Registration Statement or prospectus or any amendment or supplement
thereto,  including  documents  incorporated  by  reference,  the Company  shall
furnish to the holders of Registrable  Securities  included in such Registration
Statement  and to the legal  counsel  for any such  holders,  copies of all such
documents proposed to be filed sufficiently in advance of filing to provide such
holders and legal counsel with a reasonable opportunity to review such documents
and comment thereon,  and the

<PAGE>

Company shall not file any Registration  Statement or prospectus or amendment or
supplement thereto, including documents incorporated by reference, to which such
holders or their legal counsel shall reasonably object.

                        3.1.5.  STATE  SECURITIES LAWS  COMPLIANCE.  The Company
shall use its best efforts to (i) register or qualify the Registrable Securities
covered by the  Registration  Statement under such securities or "blue sky" laws
of such  jurisdictions  in the  United  States  as the  holders  of  Registrable
Securities  included in such Registration  Statement (in light of their intended
plan of  distribution)  may request and (ii) take such action necessary to cause
such  Registrable  Securities  covered  by  the  Registration  Statement  to  be
registered  with or approved by such other  Governmental  Authorities  as may be
necessary by virtue of the business and operations of the Company and do any and
all other acts and  things  that may be  necessary  or  advisable  to enable the
holders of Registrable  Securities  included in such  Registration  Statement to
consummate the disposition of such Registrable Securities in such jurisdictions;
provided,  however,  that the Company shall not be required to qualify generally
to do business in any  jurisdiction  where it would not otherwise be required to
qualify  but for this  paragraph  or  subject  itself  to  taxation  in any such
jurisdiction.

                        3.1.6.  AGREEMENTS  FOR  DISPOSITION.  The Company shall
enter into  customary  agreements  (including,  if applicable,  an  underwriting
agreement  in  customary  form) and take such other  actions  as are  reasonably
required in order to expedite or facilitate the disposition of such  Registrable
Securities. The representations,  warranties and covenants of the Company in any
underwriting agreement which are made to or for the benefit of any Underwriters,
to the  extent  applicable,  shall  also be made to and for the  benefit  of the
holders of Registrable  Securities included in such registration  statement.  No
holder of Registrable  Securities included in such registration  statement shall
be  required  to make any  representations  or  warranties  in the  underwriting
agreement  except,  if applicable,  with respect to such holder's  organization,
good standing,  authority, title to Registrable Securities,  lack of conflict of
such sale with such holder's material  agreements and organizational  documents,
and with respect to written information relating to such holder that such holder
has furnished in writing expressly for inclusion in such Registration Statement.

                        3.1.7.  COOPERATION.  The principal executive officer of
the Company,  the  principal  financial  officer of the Company,  the  principal
accounting  officer of the  Company  and all other  officers  and members of the
management of the Company shall  cooperate  fully in any offering of Registrable
Securities hereunder,  which cooperation shall include, without limitation,  the
preparation of the Registration  Statement with respect to such offering and all
other offering  materials and related  documents,  and participation in meetings
with Underwriters, attorneys, accountants and potential investors.

                        3.1.8.  RECORDS.  The Company  shall make  available for
inspection  by  the  holders  of   Registrable   Securities   included  in  such
Registration  Statement,  any  Underwriter   participating  in  any  disposition
pursuant to such  registration  statement and any attorney,  accountant or other
professional  retained by any holder of Registrable  Securities included in such
Registration  Statement or any  Underwriter,  all financial  and other  records,
pertinent  corporate  documents  and  properties  of the  Company,  as  shall be
necessary to enable them to exercise  their

<PAGE>

due diligence  responsibility,  and cause the Company's officers,  directors and
employees to supply all information  requested by any of them in connection with
such Registration Statement.

                        3.1.9.  OPINIONS AND COMFORT LETTERS.  The Company shall
furnish to each holder of Registrable  Securities  included in any  Registration
Statement a signed counterpart,  addressed to such holder, of (i) any opinion of
counsel to the Company  delivered to any Underwriter and (ii) any comfort letter
from the Company's  independent public accountants delivered to any Underwriter.
In the event no legal opinion is delivered to any Underwriter, the Company shall
furnish to each holder of Registrable  Securities  included in such Registration
Statement,  at any time that such holder elects to use a prospectus,  an opinion
of  counsel  to the  Company  to the  effect  that  the  Registration  Statement
containing such prospectus has been declared effective and that no stop order is
in effect.

                        3.1.10. EARNINGS  STATEMENT.  The Company  shall  comply
with all applicable  rules and  regulations of the Commission and the Securities
Act, and make available to its stockholders, as soon as practicable, an earnings
statement  covering a period of twelve (12) months,  beginning  within three (3)
months after the effective date of the  registration  statement,  which earnings
statement  shall satisfy the  provisions of Section 11(a) of the  Securities Act
and Rule 158 thereunder.

                        3.1.11. LISTING.  The Company shall use its best efforts
to cause all Registrable Securities included in any registration to be listed on
such exchanges or otherwise designated for trading in the same manner as similar
securities  issued by the Company are then listed or  designated  or, if no such
similar  securities are then listed or designated,  in a manner  satisfactory to
the  holders  of a  majority  of the  Registrable  Securities  included  in such
registration.

                3.2.    OBLIGATION TO SUSPEND DISTRIBUTION.  Upon receipt of any
notice from the Company of the  happening of any event of the kind  described in
Section 3.1.4(iv), or, in the case of a resale registration on Form S-3 pursuant
to Section 2.3 hereof, upon any suspension by the Company, pursuant to a written
insider trading  compliance program adopted by the Company's Board of Directors,
of the  ability of all  "insiders"  covered by such  program to  transact in the
Company's   securities   because  of  the   existence  of  material   non-public
information,  each holder of Registrable Securities included in any registration
shall  immediately   discontinue  disposition  of  such  Registrable  Securities
pursuant to the  Registration  Statement  covering such  Registrable  Securities
until such holder receives the supplemented or amended  prospectus  contemplated
by Section 3.1.4(iv) or the restriction on the ability of "insiders" to transact
in the Company's  securities is removed,  as applicable,  and, if so directed by
the Company, each such holder will deliver to the Company all copies, other than
permanent  file  copies  then in such  holder's  possession,  of the most recent
prospectus  covering such Registrable  Securities at the time of receipt of such
notice.

                3.3.    REGISTRATION  EXPENSES. The Company shall bear all costs
and expenses  incurred in connection  with any Demand  Registration  pursuant to
Section  2.1,  any  Piggy-Back  Registration  pursuant to Section  2.2,  and any
registration  on Form S-3  effected  pursuant to Section  2.3,  and all expenses
incurred  in  performing  or  complying  with its other  obligations  under this
Agreement,   whether  or  not  the  Registration  Statement  becomes  effective,
including,

<PAGE>

without limitation: (i) all registration and filing fees; (ii) fees and expenses
of  compliance   with   securities  or  "blue  sky"  laws  (including  fees  and
disbursements  of  counsel in  connection  with blue sky  qualifications  of the
Registrable  Securities);  (iii) printing expenses;  (iv) the Company's internal
expenses  (including,  without  limitation,  all  salaries  and  expenses of its
officers and employees);  (v) the fees and expenses  incurred in connection with
the listing of the Registrable  Securities as required by Section  3.1.11;  (vi)
National   Association  of  Securities  Dealers,   Inc.  fees;  (vii)  fees  and
disbursements  of counsel for the Company and fees and expenses for  independent
certified public accountants  retained by the Company (including the expenses or
costs associated with the delivery of any opinions or comfort letters  requested
pursuant to Section 3.1.9);  (viii) the fees and expenses of any special experts
retained by the Company in connection with such  registration  and (ix) the fees
and   expenses   of  one  legal   counsel   selected   by  the   holders   of  a
majority-in-interest   of  the   Registrable   Securities   included   in   such
registration.  The  Company  shall have no  obligation  to pay any  underwriting
discounts or selling  commissions  attributable  to the  Registrable  Securities
being sold by the  holders  thereof,  which  underwriting  discounts  or selling
commissions  shall be borne by such holders.  Additionally,  in an  underwritten
offering,  all selling  stockholders  and the Company shall bear the expenses of
the underwriter  pro rata in proportion to the respective  amount of shares each
is selling in such offering.

                3.4.    INFORMATION. The holders of Registrable Securities shall
provide such  information as may reasonably be requested by the Company,  or the
managing  Underwriter,  if  any,  in  connection  with  the  preparation  of any
Registration  Statement,  including amendments and supplements thereto, in order
to effect the  registration of any Registrable  Securities  under the Securities
Act pursuant to Section 2 and in  connection  with the  Company's  obligation to
comply with federal and applicable state securities laws.

        4.      INDEMNIFICATION AND CONTRIBUTION.

                4.1.    INDEMNIFICATION  BY THE COMPANY.  The Company  agrees to
indemnify and hold  harmless each Investor and each other holder of  Registrable
Securities,  and  each of  their  respective  officers,  employees,  affiliates,
directors, partners, members, attorneys and agents, and each person, if any, who
controls an Investor and each other holder of Registrable Securities (within the
meaning of Section 15 of the  Securities  Act or Section 20 of the Exchange Act)
(each, an "Investor Indemnified Party"), from and against any expenses,  losses,
judgments, claims, damages or liabilities, whether joint or several, arising out
of or based upon any untrue  statement  (or  allegedly  untrue  statement)  of a
material fact contained in any  Registration  Statement  under which the sale of
such  Registrable  Securities  was  registered  under the  Securities  Act,  any
preliminary prospectus,  final prospectus or summary prospectus contained in the
Registration  Statement,  or any amendment or  supplement  to such  Registration
Statement, or arising out of or based upon any omission (or alleged omission) to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein  not  misleading,  or any  violation  by the  Company of the
Securities Act or any rule or regulation  promulgated  thereunder  applicable to
the  Company  and  relating  to action or  inaction  required  of the Company in
connection with any such registration;  and the Company shall promptly reimburse
the Investor  Indemnified Party for any legal and any other expenses  reasonably
incurred by such Investor Indemnified Party in connection with investigating and
defending any such expense, loss, judgment,  claim, damage, liability or action;
provided,  however,  that the Company will not be

<PAGE>

liable in any such case to the extent that any such expense, loss, claim, damage
or  liability  arises out of or is based upon any untrue  statement or allegedly
untrue  statement  or omission  or alleged  omission  made in such  Registration
Statement,  preliminary prospectus,  final prospectus, or summary prospectus, or
any such  amendment  or  supplement,  in reliance  upon and in  conformity  with
information  furnished  to the  Company,  in  writing,  by such  selling  holder
expressly for use therein.  The Company also shall  indemnify any Underwriter of
the Registrable Securities,  their officers,  affiliates,  directors,  partners,
members  and  agents  and  each  person  who  controls   such   Underwriter   on
substantially  the same basis as that of the  indemnification  provided above in
this Section 4.1.

                4.2.    INDEMNIFICATION  BY HOLDERS OF  REGISTRABLE  SECURITIES.
Each  selling  holder of  Registrable  Securities  will,  in the event  that any
registration  is being  effected  under  the  Securities  Act  pursuant  to this
Agreement of any Registrable  Securities held by such selling holder,  indemnify
and hold  harmless  the  Company,  each of its  directors  and officers and each
underwriter  (if any), and each other selling  holder and each other person,  if
any, who controls another selling holder or such underwriter  within the meaning
of the  Securities  Act,  against  any  losses,  claims,  judgments,  damages or
liabilities,   whether  joint  or  several,  insofar  as  such  losses,  claims,
judgments,  damages or liabilities (or actions in respect  thereof) arise out of
or are based  upon any untrue  statement  or  allegedly  untrue  statement  of a
material fact contained in any  Registration  Statement  under which the sale of
such  Registrable  Securities  was  registered  under the  Securities  Act,  any
preliminary prospectus,  final prospectus or summary prospectus contained in the
Registration  Statement,  or any  amendment or  supplement  to the  Registration
Statement,  or arise  out of or are  based  upon  any  omission  or the  alleged
omission to state a material fact required to be stated  therein or necessary to
make the statement therein not misleading, if the statement or omission was made
in reliance upon and in conformity with information  furnished in writing to the
Company by such selling holder  expressly for use therein,  and shall  reimburse
the Company,  its  directors  and  officers,  and each other  selling  holder or
controlling person for any legal or other expenses reasonably incurred by any of
them in connection with investigation or defending any such loss, claim, damage,
liability or action. Each selling holder's indemnification obligations hereunder
shall be  several  and not joint and shall be  limited  to the amount of any net
proceeds actually received by such selling holder.

                4.3.    CONDUCT OF INDEMNIFICATION  PROCEEDINGS.  Promptly after
receipt by any person of any notice of any loss,  claim,  damage or liability or
any action in respect of which  indemnity may be sought  pursuant to Section 4.1
or 4.2,  such  person (the  "Indemnified  Party")  shall,  if a claim in respect
thereof is to be made  against any other person for  indemnification  hereunder,
notify  such other  person  (the  "Indemnifying  Party") in writing of the loss,
claim,  judgment,  damage,  liability  or action;  provided,  however,  that the
failure by the  Indemnified  Party to notify the  Indemnifying  Party  shall not
relieve the Indemnifying  Party from any liability which the Indemnifying  Party
may have to such Indemnified  Party  hereunder,  except and solely to the extent
the  Indemnifying  Party  is  actually   prejudiced  by  such  failure.  If  the
Indemnified Party is seeking indemnification with respect to any claim or action
brought  against the Indemnified  Party,  then the  Indemnifying  Party shall be
entitled  to  participate  in such claim or action,  and,  to the extent that it
wishes,  jointly with all other Indemnifying  Parties,  to assume control of the
defense thereof with counsel satisfactory to the Indemnified Party. After notice
from the Indemnifying  Party to the Indemnified  Party of its election to assume
control of the defense of such claim or action, the Indemnifying Party shall not
be liable to the Indemnified

<PAGE>

Party for any legal or other expenses  subsequently  incurred by the Indemnified
Party in  connection  with the defense  thereof other than  reasonable  costs of
investigation;  provided,  however,  that  in  any  action  in  which  both  the
Indemnified  Party  and the  Indemnifying  Party are  named as  defendants,  the
Indemnified  Party shall have the right to employ separate  counsel (but no more
than one such  separate  counsel) to  represent  the  Indemnified  Party and its
controlling  persons who may be subject to liability arising out of any claim in
respect of which  indemnity may be sought by the  Indemnified  Party against the
Indemnifying  Party,  with the fees and  expenses of such  counsel to be paid by
such  Indemnifying  Party if, based upon the written  opinion of counsel of such
Indemnified  Party,  representation of both parties by the same counsel would be
inappropriate  due to actual or potential  differing  interests between them. No
Indemnifying  Party shall,  without the prior written consent of the Indemnified
Party,  consent to entry of  judgment or effect any  settlement  of any claim or
pending or threatened proceeding in respect of which the Indemnified Party is or
could have been a party and indemnity  could have been sought  hereunder by such
Indemnified Party,  unless such judgment or settlement includes an unconditional
release of such Indemnified  Party from all liability  arising out of such claim
or proceeding.

                4.4.    CONTRIBUTION.

                        4.4.1.  If  the  indemnification  provided  for  in  the
foregoing  Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified  Party in
respect of any loss, claim, damage, liability or action referred to herein, then
each such Indemnifying  Party, in lieu of indemnifying  such Indemnified  Party,
shall  contribute to the amount paid or payable by such  Indemnified  Party as a
result of such loss, claim, damage, liability or action in such proportion as is
appropriate  to reflect the relative  fault of the  Indemnified  Parties and the
Indemnifying  Parties in connection with the actions or omissions which resulted
in such loss, claim, damage,  liability or action, as well as any other relevant
equitable  considerations.  The relative fault of any Indemnified  Party and any
Indemnifying  Party shall be  determined  by reference  to, among other  things,
whether  the  untrue or  alleged  untrue  statement  of a  material  fact or the
omission or alleged  omission to state a material  fact  relates to  information
supplied by such Indemnified Party or such  Indemnifying  Party and the parties'
relative intent, knowledge,  access to information and opportunity to correct or
prevent such statement or omission.

                        4.4.2.  The  parties  hereto  agree that it would not be
just and equitable if contribution  pursuant to this Section 4.4 were determined
by pro rata allocation or by any other method of allocation  which does not take
account of the equitable considerations referred to in the immediately preceding
Section 4.4.1. The amount paid or payable by an Indemnified Party as a result of
any loss,  claim,  damage,  liability or action  referred to in the  immediately
preceding  paragraph shall be deemed to include,  subject to the limitations set
forth above, any legal or other expenses  incurred by such Indemnified  Party in
connection   with   investigating   or  defending  any  such  action  or  claim.
Notwithstanding  the  provisions  of this Section 4.4, no holder of  Registrable
Securities  shall be required to  contribute  any amount in excess of the dollar
amount of the net proceeds (after payment of any underwriting  fees,  discounts,
commissions  or  taxes)  actually  received  by such  holder  from  the  sale of
Registrable  Securities  which  gave rise to such  contribution  obligation.  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
who was not guilty of such fraudulent misrepresentation.
<PAGE>

        5.      UNDERWRITING AND DISTRIBUTION.

                5.1.    RULE 144. The Company  covenants  that it shall file any
reports required to be filed by it under the Securities Act and the Exchange Act
and shall take such further action as the holders of Registrable  Securities may
reasonably request,  all to the extent required from time to time to enable such
holders to sell Registrable Securities without registration under the Securities
Act within  the  limitation  of the  exemptions  provided  by Rule 144 under the
Securities  Act, as such Rules may be amended from time to time,  or any similar
Rule or regulation hereafter adopted by the Commission.

        6.      MISCELLANEOUS.

                6.1.    OTHER REGISTRATION RIGHTS.  Except with respect to those
securities issued or issuable upon exercise of that certain Unit Purchase Option
to be issued to Ladenburg  Thalmann & Co. Inc. or its  designees  in  connection
with the Company's  initial public offering in 2006, the Company  represents and
warrants that no person, other than a holder of the Registrable Securities,  has
any right to require the Company to register any shares of the Company's capital
stock  for sale or to  include  shares  of the  Company's  capital  stock in any
registration  filed by the Company  for the sale of shares of capital  stock for
its own account or for the account of any other person.

                6.2.    ASSIGNMENT; NO THIRD PARTY BENEFICIARIES. This Agreement
and the  rights,  duties and  obligations  of the Company  hereunder  may not be
assigned or delegated by the Company in whole or in part. This Agreement and the
rights,  duties  and  obligations  of  the  holders  of  Registrable  Securities
hereunder  may be freely  assigned or  delegated  by such holder of  Registrable
Securities in conjunction  with and to the extent of any transfer of Registrable
Securities by any such holder. This Agreement and the provisions hereof shall be
binding upon and shall inure to the benefit of each of the parties, to Ladenburg
Thalmann & Co. Inc. and its successors and the permitted assigns of the Investor
or holder of Registrable Securities or of any assignee of the Investor or holder
of Registrable  Securities.  This Agreement is not intended to confer any rights
or benefits on any persons that are not party hereto other than as expressly set
forth in Article 4 and this Section 6.2.

                6.3.    NOTICES.  All  notices,  demands,  requests,   consents,
approvals  or  other  communications   (collectively,   "Notices")  required  or
permitted  to be given  hereunder  or  which  are  given  with  respect  to this
Agreement  shall be in writing  and shall be  personally  served,  delivered  by
reputable  air courier  service with charges  prepaid,  or  transmitted  by hand
delivery, telegram, telex or facsimile, addressed as set forth below, or to such
other  address  as such party  shall have  specified  most  recently  by written
notice.  Notice shall be deemed given on the date of service or  transmission if
personally served or transmitted by telegram, telex or facsimile; provided, that
if such  service or  transmission  is not on a business  day or is after  normal
business hours, then such notice shall be deemed given on the next business day.
Notice  otherwise  sent as  provided  herein  shall be deemed  given on the next
business day following timely delivery of such notice to a reputable air courier
service with an order for next-day delivery.

                TO THE COMPANY:

<PAGE>

                Media & Entertainment Holdings, Inc.
                4429 Edmondson Avenue
                Dallas, TX 75205
                Attn:  Herbert A. Granath, Chief Executive Officer

                with a copy to:

                Kirkpatrick and Lockhart Nicholson Graham LLP
                599 Lexington Avenue
                New York, New York 10022
                Attn:  Robert S. Matlin, Esq.

                and

                Greenberg Traurig LLP
                MetLife Building
                200 Park Avenue
                New York, New York 10166
                Attn:  Alan I. Annex, Esq.

                TO AN INVESTOR, TO:

                [To follow]

                with a copy to:

                Greenberg Traurig LLP
                MetLife Building
                200 Park Avenue
                New York, New York 10166
                Attn:  Alan I. Annex, Esq.

                6.4.    SEVERABILITY.  This Agreement shall be deemed severable,
and the invalidity or unenforceability of any term or provision hereof shall not
affect the validity or  enforceability of this Agreement or of any other term or
provision hereof. Furthermore, in lieu of any such invalid or unenforceable term
or provision,  the parties  hereto intend that there shall be added as a part of
this Agreement a provision as similar in terms to such invalid or  unenforceable
provision as may be possible that is valid and enforceable.

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

                6.6.    ENTIRE   AGREEMENT.   This   Agreement   (including  all
agreements  entered into pursuant  hereto and all  certificates  and instruments
delivered  pursuant hereto and thereto)  constitute the entire  agreement of the
parties with respect to the subject  matter  hereof and  supersede all prior and
contemporaneous agreements,  representations,  understandings,  negotiations and
discussions between the parties, whether oral or written.
<PAGE>

                6.7.    MODIFICATIONS AND AMENDMENTS. No amendment, modification
or termination of this Agreement shall be binding upon any party unless executed
in writing by such party.  Notwithstanding  the  foregoing,  any and all parties
must obtain the  written  consent of  Ladenburg  Thalmann & Co. Inc. to amend or
modify this Agreement.

                6.8.    TITLES AND HEADINGS.  Titles and headings of sections of
this Agreement are for convenience only and shall not affect the construction of
any provision of this Agreement.

                6.9.    WAIVERS AND EXTENSIONS.  Any party to this Agreement may
waive any  right,  breach or  default  which  such party has the right to waive,
provided that such waiver will not be effective against the waiving party unless
it is in  writing,  is signed by such  party,  and  specifically  refers to this
Agreement.  Waivers may be made in advance or after the right  waived has arisen
or the breach or default waived has occurred. Any waiver may be conditional.  No
waiver of any breach of any  agreement or provision  herein  contained  shall be
deemed a waiver of any preceding or succeeding  breach  thereof nor of any other
agreement  or  provision  herein  contained.  No waiver or extension of time for
performance of any  obligations or acts shall be deemed a waiver or extension of
the time for performance of any other obligations or acts.

                6.10.   REMEDIES CUMULATIVE. In the event that the Company fails
to observe or perform any  covenant  or  agreement  to be observed or  performed
under this Agreement, the Investor or any other holder of Registrable Securities
may  proceed to protect  and  enforce  its rights by suit in equity or action at
law, whether for specific performance of any term contained in this Agreement or
for an injunction  against the breach of any such term or in aid of the exercise
of any  power  granted  in this  Agreement  or to  enforce  any  other  legal or
equitable  right,  or to take  any one or more of such  actions,  without  being
required to post a bond. None of the rights,  powers or remedies conferred under
this Agreement shall be mutually exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy, whether
conferred by this Agreement or now or hereafter  available at law, in equity, by
statute or otherwise.

                6.11.   GOVERNING  LAW.  This  Agreement  shall be governed  by,
interpreted  under,  and construed in  accordance  with the internal laws of the
State of New York applicable to agreements  made and to be performed  within the
State of New York, without giving effect to any choice-of-law provisions thereof
that  would  compel  the  application  of the  substantive  laws  of  any  other
jurisdiction.

                6.12.   WAIVER OF TRIAL BY JURY.  Each party hereby  irrevocably
and  unconditionally  waives the right to a trial by jury in any  action,  suit,
counterclaim or other proceeding (whether based on contract,  tort or otherwise)
arising out of,  connected with or relating to this Agreement,  the transactions
contemplated  hereby,  or the  actions  of  the  Investor  in  the  negotiation,
administration, performance or enforcement hereof.
<PAGE>

        IN WITNESS  WHEREOF,  the parties have caused this  Registration  Rights
Agreement to be executed and delivered by their duly authorized  representatives
as of the date first written above.

                                 MEDIA & ENTERTAINMENT HOLDINGS, INC.

                                 By:
                                     -------------------------------------------
                                     Herbert A. Granath, Chief Executive Officer

                                 INVESTORS:

                                 -----------------------------------------------
                                 Herbert A. Granath

                                 -----------------------------------------------
                                 Harvey M. Seslowsky

                                 -----------------------------------------------
                                 Robert C. Clauser, Jr.

                                 -----------------------------------------------
                                 Bruce Maggin

                                 -----------------------------------------------
                                 Edward T. Reilly

                                 -----------------------------------------------
                                 Richard Weden

                                 -----------------------------------------------
                                 William A. Roskin

                                 -----------------------------------------------
                                 Joseph Tirinato

                                 -----------------------------------------------
                                 Benjamin H. Maggin

                                 -----------------------------------------------
                                 Daniel M. Maggin

                                 ASTOR ASSET MANAGEMENT

                                 By:
                                     -------------------------------------------
                                     Name:
                                     Title:

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