Document:

EXHIBIT 10.12

                                     FORM OF

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION  RIGHTS AGREEMENT (this  "Agreement") is entered into
as of the ____ day of ______, 2005, 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;

         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.

         "Indemnifying Party" is defined in Section 4.3.
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         "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  Securities"  mean all of the shares of Common Stock owned
or held by Investors.  Registrable  Securities  include any warrants,  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. 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 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  _____________,  2005 by and among the parties hereto and
Continental Stock Transfer & Trust Company.

         "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.

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         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  Release  Date,  the  holders  of at least a
majority-in-interest  of the Registrable Securities 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 their  Registrable  Securities (a "Demand
Registration"). Any demand for a Demand Registration shall specify the number of
shares of Registrable  Securities proposed to be sold and the intended method(s)
of  distribution  thereof.  The Company  will notify all holders of  Registrable
Securities of the demand,  and each holder of Registrable  Securities who wishes
to  include  all or a portion of such  holder's  Registrable  Securities  in the
Demand Registration (each such holder including shares of Registrable Securities
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  Securities  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 an  aggregate of two (2) Demand  Registrations
under this Section 2.1.1 in respect of Registrable Securities.

                           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;  provided,  further, that the Company shall not be obligated to file a
second Registration Statement until a Registration Statement that has been filed
is counted as a Demand Registration or is terminated.

                           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 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

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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 registrable  pursuant
to the terms of the Unit  Purchase  Option  issued to Jesup & Lamont  Securities
Corp.  in  connection  with the  Company's  initial  public  offering (the "Unit
Purchase  Option"  and such  registrable  shares of Common  Stock,  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  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 on Form S-4 or 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

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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  to be  included  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 of
Common Stock, 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 Option Securities for the account of the demanding persons,
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

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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  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 as the
result  of  a  withdrawal  by  persons  making  a  demand  pursuant  to  written
contractual  obligations) may also elect to 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  of any other
holder or

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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 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

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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 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 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

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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.   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 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)

                                       9
<PAGE>

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,  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

                                       10
<PAGE>

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 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

                                       11
<PAGE>

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 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.

                                       12
<PAGE>

                  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.

         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 Jesup & Lamont Securities  Corporation or its designee in
connection with the Company's  initial public offering,  the Company  represents
and warrants that no person, other than a holder of the Registrable

                                       13
<PAGE>

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

                  with a copy to:
                  Greenberg Traurig, LLP
                  MetLife Building
                  200 Park Avenue
                  New York, New York 10166
                  Attn:    Alan I. Annex, Esq.
                           Robert H. Cohen, Esq.

                  and

                  Thelen Reid & Priest LLP
                  875 Third Avenue
                  New York, New York 10022
                  Attn:    Robert S. Matlin, Esq.

                                       14
<PAGE>

                  To an Investor, to:

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

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

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

                  with a copy to:

                  Thelen Reid & Priest LLP
                  875 Third Avenue
                  New York, New York 10022
                  Attn:    Robert S. Matlin, 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.

                  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.

                  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.

                                       15
<PAGE>

                  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.

         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

                                       16EXHIBIT 10.13

                      MEDIA & ENTERTAINMENT HOLDINGS, INC.

                             STOCK OPTION AGREEMENT

       AGREEMENT  (this  "Agreement")  dated as of the 25th day of August,  2005
(the "Date of Grant"),  by and between MEDIA & ENTERTAINMENT  HOLDINGS,  INC., a
Delaware  corporation  having offices at 4429 Edmondson  Avenue,  Dallas,  Texas
75205 (the "Company"),  and RICHARD WEDEN, an individual residing at 5600 NE 6th
Avenue, Miami, FL 33137 (the "Optionee");

                              W I T N E S S E T H:

       WHEREAS,  simultaneous with the execution and delivery of this Agreement,
the  Optionee has agreed to serve on the Board of Directors of the Company as an
"independent" director; and

       WHEREAS,  in order to  incentivize  the  Optionee  by  providing  him the
opportunity to participate in any future growth of the Company,  the Company has
determined to grant to the Optionee an option to purchase shares of common stock
of the Company,  par value $.0001 per share ("Common Stock"),  subject to and in
accordance with the terms and conditions of this Agreement;

       NOW,  THEREFORE,  in  consideration  of the premises and mutual covenants
herein contained, the parties hereby agree as follows:

       1.     GRANT OF STOCK OPTION.

              Subject to the terms and conditions of this Agreement, the Company
hereby grants to the Optionee the right and option (the "Option") to purchase up
to one hundred  thousand  (100,000) shares of Common Stock (the "Option Shares")
at a price of $6.00 per share (the "Exercise Price").

       2.     VESTING OF OPTION.

              (a)    The  Option  may not be  exercised  unless it has vested in
accordance with the provisions of this Section 2.

              (b)    The Option shall vest (i) as to the first  one-third of the
Option Shares,  on August 25, 2006,  provided and on condition that the Optionee
has  remained  as a director  of the  Company  throughout  the twelve (12) month
period ending August 25, 2006, (ii) as to an additional  one-third of the Option
Shares,  on August 25, 2007,  provided  and on  condition  that the Optionee has
remained as a director  of the Company  throughout  the  twenty-four  (24) month
period ending August 25, 2007, and (iii) as to the final one-third of the Option
Shares,  on August

<PAGE>

25, 2008, provided and on condition that the Optionee has remained as a director
of the Company  throughout  the  thirty-six  (36) month period ending August 25,
2008.

       3.     DURATION OF OPTION.

              The Option shall expire and all rights to purchase shares pursuant
hereto (to the extent not  previously  exercised)  shall cease and  terminate on
that date  which is the day before the fifth  (5th)  anniversary  of the Date of
Grant set forth above (the "Expiration Date").

       4.     EXERCISE OF OPTION.

              A person  entitled to exercise  the Option may exercise the Option
(if and to the extent then vested in  accordance  with Section 2 above) in whole
at any time,  or in part from time to time,  by delivering to the Company at its
office first set forth above (or any other office  hereafter  designated  by the
Company for the  purpose),  directed  to the  attention  of the Chief  Financial
Officer of the Company (or any other officer hereafter designated by the Company
for the purpose), written notice specifying the number of shares of Common Stock
with respect to which the Option (if and to the extent then vested in accordance
with Section 2 above) is being  exercised,  together with payment in full of the
Exercise  Price  for  such  shares.  Such  payment  shall  be made in cash or by
certified  check or bank draft to the order of the Company;  PROVIDED,  HOWEVER,
that the Company may, in its sole discretion, authorize and permit such payment,
in whole or in part, in any other form,  including  payment by personal check or
by the exchange of shares of Common Stock of the Company then owned of record by
the person entitled to exercise the Option and having a fair market value on the
date of exercise  equal to the price for which the shares of Common Stock may be
purchased pursuant to the Option.

       5.     ADJUSTMENTS.

              (a)    The number of shares of Common Stock covered by the Option,
and the Exercise Price,  shall be  proportionately  adjusted for any increase or
decrease  in the  number of issued  and/or  outstanding  shares of Common  Stock
resulting from a stock split,  combination of shares,  recapitalization or other
subdivision  or  consolidation  of shares or other  capital  adjustment,  or the
payment of a stock dividend in respect of the Common Stock;  provided,  however,
that  any  fractional  shares  resulting  from  any  such  adjustment  shall  be
eliminated.

              (b)    From  time to  time  as and  when  any  adjustments  may be
required  pursuant to this Section 5, the Company shall endeavor to give written
notice to the  Optionee of the event  requiring  such  adjustment,  which notice
shall further set forth the Company's  calculation of the required adjustment to
the number of shares of Common  Stock  covered by the Option,  and the  Exercise
Price therefor.

                                       2
<PAGE>

       6.     MERGER, CONSOLIDATION, ETC.

              In the event that the  Company  shall,  pursuant  to action by its
Board of Directors, at any time propose to merge into, consolidate with, or sell
or otherwise transfer all of its assets to, another corporation and provision is
not made pursuant to the terms of such transaction for (a) the assumption by the
surviving,   resulting  or  acquiring   corporation  of  the  Option,   (b)  the
substitution  of a new  option  therefor,  or (c) the  payment  of cash or other
consideration in respect thereof,  then the Company shall give written notice of
the proposed transaction to the Optionee not less than thirty (30) days prior to
the anticipated effective date of the proposed transaction.  On a date which the
Company shall specify in such notice, which date shall not be less than ten (10)
days prior to the anticipated  effective date of the proposed  transaction,  the
Option shall (to the extent then in effect)  become fully (100%)  vested and the
Optionee  shall have the right to  exercise  the Option to  purchase  any or all
shares  then  subject  to  the  Option;  and  if  the  proposed  transaction  is
consummated,  the Option,  to the extent not previously  exercised  prior to the
effective date of the  transaction,  shall  terminate on such effective date. If
the proposed transaction is abandoned or otherwise not consummated,  then to the
extent that the portion of the Option not  exercised  prior to such  abandonment
shall have vested  solely by operation of this Section 6, such vesting  shall be
annulled and be of no further force or effect and the vesting  periods set forth
in Section 2 above  shall be  reinstituted  as of the date of such  abandonment;
provided,   however,   that  nothing  herein   contained   shall  be  deemed  to
retroactively  affect or impair any exercise of any such vested  Option prior to
the date of such abandonment.

       7.     NON-TRANSFERABILITY.

              (a)    The Option shall not be transferable  other than (i) to any
transferee who is a member of the immediate family (i.e., spouse, child, natural
parent,  brother or sister) of the original Optionee hereunder,  or (ii) by will
or the laws of descent and distribution.

              (b)    In no event and under no  circumstances  shall the Optionee
or any other person  entitled to exercise  the Option  pledge,  hypothecate,  or
grant a lien upon or security  interest in any interest in this Agreement or the
Option.

       8.     NO RIGHTS AS STOCKHOLDER.

              The  Optionee  shall not have any rights as a  stockholder  of the
Company  with  respect to any shares  covered by the Option prior to the date of
issuance to the Optionee of the certificate or certificates for such shares.

                                       3
<PAGE>

       9.     ISSUANCE OF SHARES; RESTRICTIONS.

              (a)    Subject   to  the   conditions,   restrictions   and  other
qualifications provided in this Section 9, the Company shall, within thirty (30)
business  days  after the Option  has been duly  exercised  in whole or in part,
deliver  to the  person  who  exercised  the  Option  one or more  certificates,
registered in the name of such person,  for the number of shares of Common Stock
with respect to which the Option has been exercised.  The Company may legend any
stock certificate  issued hereunder to reflect any restrictions  provided for in
this Section 9, including but not limited to a "stop  transfer"  legend pursuant
to Section 9(b) below.

              (b)    Unless  the  shares   subject  to  the  Option   have  been
registered under the Securities Act of 1933, as amended (the "Act") (and, if the
person exercising the Option may be deemed an "affiliate" of the Company as such
term is  defined in Rule 405 under the Act,  such  shares  have been  registered
under the Act for resale by such person),  or the Company has determined that an
exemption from registration under the Act is available,  (i) any exercise of the
Option shall be deemed a confirmation by the person effecting such exercise that
he or she is acquiring the subject  Option Shares for his or her own account for
investment, and not with a view to the resale or distribution of all or any part
thereof,  and (ii) the Company may  require,  prior to and as a condition of the
issuance  of any shares of Common  Stock  pursuant  to such  exercise,  that the
person  exercising  the  Option  furnish  the  Company  with a  further  written
representation  in a form  prescribed by the Company to the effect that (A) such
person is  acquiring  such  shares  solely  with a view to  investment  for such
person's own account and not with a view to the resale or distribution of all or
any part  thereof,  and (B) such  person  will not dispose of any of such shares
otherwise  than in  accordance  with the  provisions  of Rule 144  under the Act
unless and until either the sale or  distribution  of such shares is  registered
under  the  Act  or the  Company  is  satisfied  that  an  exemption  from  such
registration is available.

              (c)    Anything herein contained to the contrary  notwithstanding,
the  Company  shall not be obliged  to sell or issue any shares of Common  Stock
pursuant to the exercise of the Option unless and until the Company is satisfied
that such sale or issuance  complies with all  applicable  provisions of the Act
and all other laws and/or  regulations by which the Company is bound or to which
the Company or such shares are  subject;  and the Company  reserves the right to
delay the  delivery of Option  Shares for such period of time as may be required
in order to effect compliance with the applicable  provisions of the Act and all
other applicable laws and/or regulations as aforesaid.

       10.    RESERVATION OF COMMON STOCK.

              The  Company  shall at all times  reserve and keep  available  for
issuance  upon the  exercise of the Option such number of shares of Common Stock
(whether unissued or treasury or both) as shall be sufficient to permit the full
exercise of the Option.

                                       4
<PAGE>

       11.    EXPENSES.

              The Company  shall pay any and all  expenses,  transfer  taxes and
other charges, including all costs associated with the preparation, issuance and
delivery of stock certificates,  that may be incurred in respect of the issuance
or delivery of Option Shares upon any exercise of the Option.

       12.    MISCELLANEOUS.

              (a)    No provision hereof,  in the absence of affirmative  action
by the Optionee  (or other person  entitled to exercise the Option at such time)
to effect  any  exercise  hereunder,  shall  give rise to any  liability  of the
Optionee (or any such other  person) for the Exercise  Price or as a stockholder
of the Company,  regardless of whether such liability is asserted by the Company
or by any creditor or creditors of the Company.

              (b)    Neither this  Agreement  nor any of the terms or conditions
hereof may be waived,  amended or modified,  except with the written  consent of
the Company and the Optionee.

              (c)    This  Agreement  shall  be  governed  by and  construed  in
accordance with the laws of the State of Delaware.

              (d)    The captions and Section  headings  used in this  Agreement
are for convenience of reference only, and shall not affect or be referred to in
connection with any interpretation or construction hereof.

       IN WITNESS  WHEREOF,  the parties have executed this  Agreement as of the
Date of Grant first set forth above.

                                        MEDIA & ENTERTAINMENT HOLDINGS, INC.

                                        By: /s/ Herbert A. Granath
                                            Herbert A. Granath
                                            Chairman and Chief Executive Officer

                                        /s/ Richard Weden
                                        ----------------------------------------
                                        RICHARD WEDEN

                                        Optionee Social Security No.:
                                                                     -----------

                                       5

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