Document:

EXHIBIT 10.3

O. Lee Tawes, III
EXECUTIVE VICE PRESIDENT

                                                                  APRIL 11, 2006

Ms. Suzanne Lewsadder
Chief Executive Officer
SheerVision, Inc.
4030 Palos Verdes Drive N., Suite 104
Rolling Hills, CA 90274

Dear SUZANNE:

        This letter agreement (the "Agreement")  confirms our understanding that
Northeast  Securities,  Inc.  ("NESC") has been  engaged as EXCLUSIVE  PLACEMENT
AGENT  FOR  CLEAN  WATER   TECHNOLOGIES,   INC.,  A  DELAWARE   CORPORATION  DBA
SHEERVISION,  INC  (the  "Company"),  including  its  successors  and  permitted
assigns,  in connection with the private  offering and sale (the  "Offering") of
securities of the Company (the "Securities").  If appropriate in connection with
performing its services for the Company hereunder, NESC may utilize the services
of one or more of its affiliates,  in which case references herein to NESC shall
include such affiliates.

        1.      THE OFFERING.  We currently anticipate raising  approximately $3
MILLION TO $4 MILLION through a "PIPE" transaction involving the sale of Company
securities to investors.  The actual terms of the Offering will depend on market
conditions,  and will be subject to negotiation between the Company and NESC and
prospective investors.  Although we cannot guarantee you that we will be able to
raise new capital,  we will conduct the  Offering on a best  efforts  basis.  IN
TURN,  DURING  THE  TERM OF OUR  ENGAGEMENT,  YOU  AGREE  NOT TO USE  ANY  OTHER
INVESTMENT BANKING FIRM TO RAISE CAPITAL (INCLUDING CONVERTIBLE DEBT) FOR YOU.

                The Company  acknowledges  and agrees that nothing  contained in
this engagement  shall  constitute a commitment by NESC to underwrite,  place or
purchase any  securities,  although NESC  reserves the exclusive  right to do so
during the term of this  Agreement.  NESC  acknowledges  and agrees that nothing
contained in this  engagement  shall  constitute a commitment  by the Company to
accept any NESC  Investor's (as defined in section 2(a) below) offer to purchase
any Securities in the Offering.

        2.      COMPENSATION.  NESC's  compensation for services  rendered under
this engagement will be the following:

        (a)     If during the term of this  engagement or within the twelve full
                months  following the  termination  of this  Agreement,  (i) the
                Company  consummates one or more Offerings with or through NESC,
                any affiliate of NESC, any investor contacted by NESC during the
                term of this  Agreement or any  affiliate of any such  investor,
                which  investor was identified by NESC in writing to the Company
                and  acknowledged  by  the  Company  during  the  term  of  this
                engagement and which actually  invests in the Offering (an "NESC
                Investor"), or (ii) (A) the Company accepts a written commitment
                for an investment from such NESC Investor (the

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                acceptance  by the Company of a commitment  letter,  term sheet,
                letter  of  intent  (or  any  similar  document)  or  securities
                purchase  agreement shall be deemed to be receipt and acceptance
                of such written  commitment) and (B) at any time thereafter such
                Offering  by an  NESC  Investor  is  consummated,  the  Company,
                subject to the rules and regulations of the National Association
                of Securities  Dealers and its affiliates and  successors,  will
                pay NESC upon the closing date(s) thereof:

                (i)     in  cash:  eight  percent  (8%)  of the  gross  proceeds
                        received  by  the  Company  from  such   Financing   and
                        introduced  by  NESC,  four  percent  (4%) of the  gross
                        proceeds received by the Company from such Financing and
                        introduced by the Company (up to a limit of $1,000,000);
                        PROVIDED,  HOWEVER,  that following  termination of this
                        Agreement,  investments in the Offering by investors who
                        are not NESC Investors  shall not be  commissionable  to
                        NESC. It is agreed that NESC has the right of allocation
                        for the first $3,000,000 invested in the Offering;

                (ii)    warrants  exercisable  at a price equal to the per share
                        price paid by  investors in the Offering (or in the case
                        of  convertible  securities,  the conversion or exchange
                        price) in an amount  equal to FIVE  PERCENT  (5%) of the
                        aggregate  number  of  shares  of  common  stock  of the
                        Company sold (or into which securities may be converted)
                        to all  investors in the  Offering.  The  warrants  will
                        provide for cashless or "net" exercise at all times.  In
                        the event  warrants  are issued to  investors as part of
                        the Offering,  the terms and  conditions of the warrants
                        issued to NESC ("NESC  Warrants") as compensation  shall
                        be the same as the  warrants  issued to such  investors,
                        except  for the "net"  exercise  referenced  above.  The
                        shares  issuable upon exercise of the NESC Warrants will
                        be  entitled  to the same  registration  rights as those
                        granted  to  the  investors  in   connection   with  the
                        Offering.  To that  end,  you  agree  that  NESC will be
                        afforded the indemnification  protections granted to the
                        investors  as  part  of  the  agreement   governing  the
                        registration  of the  investor  securities  sold  in the
                        Offering,   as  a  third  party   beneficiary   to  such
                        provisions.

        (b)     Intentionally deleted.

        3.      EXPENSES.  The Company shall bear all of its legal,  accounting,
printing and other expenses in connection with the Offering and any offering and
sale of any  Securities.  It is understood that NESC will not be responsible for
any fees, expenses or commissions payable to any other advisors, underwriters or
agents (if any)  utilized  or  retained  by the  Company or any  offerees of the
Securities.  In addition to any fees  payable by the Company to NESC  hereunder,
the  Company  shall,  whether  or not an  Offering  shall  be  consummated,  and
regardless of whether any Securities are offered or sold, reimburse NESC for the
fees and  disbursements  of NESC's legal counsel to a maximum of $25,000 as well
as  its  other  reasonable,   accountable  out-of-pocket  expenses  incurred  in
connection  with, or arising out of, NESC's  activities under or contemplated by
this  engagement;  PROVIDED,  however,  that NESC agrees that all such  expenses
(including such fees and  disbursements  of counsel) shall not exceed $50,000 in
the  aggregate  without  the  prior

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written approval of the Company. Such reimbursements shall be made promptly upon
submission by NESC of statements for such expenses.

        4.      RELIANCE  ON COMPANY  INFORMATION.  The Company  recognizes  and
confirms that, in advising the Company,  in assisting in the  preparation of any
memorandum and in completing its  engagement  hereunder,  NESC will be using and
relying on non-public and publicly available  information and on data,  material
and other  information  furnished  to NESC by the Company  and other  parties on
behalf or at the direction of the Company. The Company agrees that in performing
under  this   engagement  NESC  may  assume  and  rely  upon  the  accuracy  and
completeness  of,  and  is  not  assuming  any  responsibility  for  independent
verification  of, such  non-public and publicly  available  information  and the
other information so furnished.

        5.      OFFERING MATERIAL; AGREEMENTS.

        (a)     You  hereby  authorize  NESC  to  transmit  to  the  prospective
                purchasers  of the  securities  a private  placement  memorandum
                prepared by the Company with such  exhibits and  supplements  as
                may  from  time  to  time  be   required  or   appropriate   or,
                alternatively,  copies of the Company's most recent filings with
                the  Securities and Exchange  Commission,  together with summary
                materials  prepared by the Company,  if we deem them appropriate
                (as the case may be, the  "Memorandum").  The Company represents
                and  warrants  that the  Memorandum  (i) will be prepared by the
                management of the Company and reviewed and approved by its Board
                of Directors;  and (ii) will not contain any untrue statement of
                a material  fact or omit to state a material fact required to be
                stated  therein or necessary to make the  statements  therein or
                previously made, in light of the circumstances  under which they
                were  made,  not  misleading.   The  Company  will  advise  NESC
                immediately  of the  occurrence of any event or any other change
                known to the Company which results in the Memorandum  containing
                an untrue  statement  of a material  fact or omitting to state a
                material fact required to be stated therein or necessary to make
                the  statements  therein  or  previously  made,  in light of the
                circumstances under which they were made, not misleading.

        (b)     You agree that you will enter  into  subscription,  registration
                rights and other customary  agreements,  and will use reasonable
                efforts to have Company  counsel supply an opinion letter on the
                transaction in form and substance reasonably  acceptable to, and
                addressed to, NESC and the investors.

        (c)     You further  agree that we may rely upon,  and are a third party
                beneficiary  of,  the   representations   and  warranties,   and
                applicable covenants, set forth in any agreements with investors
                in the offering.

        (d)     In  conjunction  with  the  filing  of the  resale  registration
                statement  for  investors  pursuant to the  Registration  Rights
                Agreement,  the Company  will file with the NASD,  via the COBRA
                desk filing system,  for approval of  underwriting  compensation
                under Section 2710 of the rules and regulations of the NASD, use
                its  reasonable  efforts  to  obtain  from the  NASD a  standard
                clearance  letter,  and

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                coordinate  with  the  placement  agent  on  filings  it will be
                required to make upon sales under the registration statement.

        6.      INFORMATION.  The Company will provide to NESC such  information
regarding the business and financial condition of the Company and its affiliates
as NESC may reasonably request and as is reasonably required by NESC in order to
perform  its  obligations  hereunder,   including,   without  limitation,   such
information as NESC may request in order to satisfy itself as to the accuracy of
the Company's  representations  and warranties set forth herein. All information
supplied by the Company that is identified in writing as non-public will be kept
confidential  by NESC except as the Company may agree or otherwise in accordance
with non-disclosure agreement(s).

        7.      TERMINATION.  NESC's  engagement  under  this  Agreement  may be
terminated  at any time by either NESC or the  Company,  with or without  cause,
effective  upon 10  days  prior  written  notice  thereof  to the  other  party;
PROVIDED,  however,  that termination of NESC's  engagement  hereunder shall not
affect (a) the Company's  obligation  to pay fees to the extent,  in the amounts
and at  the  times  provided  for in  paragraph  2  hereof,  and  the  Company's
obligation to reimburse  NESC's expenses  accruing prior to such  termination to
the extent  provided for in Section 3 of this Agreement and (b) any of the terms
or  provisions of the Standard  Form of  Indemnification  Agreement set forth as
EXHIBIT A hereto.

        8.      INDEPENDENT  CONTRACTOR;  ADVICE.  NESC has been retained  under
this  Agreement  as an  independent  contractor  with  duties owed solely to the
Company.  The  advice  (written  or  oral)  rendered  by NESC  pursuant  to this
Agreement  is  intended  solely  for  the  benefit  of and use of the  Board  of
Directors  and senior  management of the Company in  considering  the matters to
which this Agreement relates, and the Company agrees that such advice may not be
relied  upon by any other  person,  used for any other  purpose  or  reproduced,
disseminated,  quoted  or  referred  to at any  time,  in any  manner or for any
purpose,  nor shall any public  reference  to NESC be made by the Company or its
representatives,  without the prior written consent of NESC, which consent shall
not be reasonably withheld or delayed.

        9.      ADVERTISEMENTS.  The  Company  agrees  that NESC  shall have the
right to place  advertisements in financial and other newspapers and journals at
its own expense describing its services to the Company hereunder,  provided that
NESC  will  submit  a copy of any  such  advertisement  to the  Company  for its
approval, and such approval shall not be unreasonably withheld or delayed.

        10.     GOVERNING LAW. This Agreement and all controversies arising from
or  relating  to  performance  under this  Agreement  shall be  governed  by and
construed in accordance  with the laws of the State of New York,  without giving
effect to such state's rules concerning conflicts of laws. ANY RIGHT TO TRIAL BY
JURY WITH  RESPECT  TO ANY  CLAIM OR ACTION  ARISING  OUT OF THIS  AGREEMENT  OR
CONDUCT IN CONNECTION WITH THE ENGAGEMENT IS HEREBY WAIVED.

        11.     MISCELLANEOUS.  This Agreement may be executed in  counterparts,
each of which  together  shall be considered a single  document.  This Agreement
shall be binding upon NESC and the Company and their  respective  successors and
assigns,  provided,  however,  that this

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Agreement  shall not be  assignable  by either party  without the prior  written
consent of the other.  This  Agreement is not intended to confer any rights upon
any  shareholder,  owner,  or partner of the Company,  or any other person not a
party  hereto other than the  indemnified  persons  entitled to  indemnification
hereunder.  This  Agreement,  and all  exhibits  hereto,  represent  the  entire
agreement  of the parties  and may not be amended or waived  except by a writing
signed by both parties.

        12.     INDEMNIFICATION.  The Company  agrees to indemnify  NESC and its
controlling   persons,   representatives  and  agents  in  accordance  with  the
indemnification  provisions set forth in EXHIBIT A, which is incorporated herein
by this reference.  This provision will apply regardless of whether the proposed
offering is consummated.

                            [SIGNATURE PAGE FOLLOWS]

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        We are pleased to accept  this  engagement  and look  forward to working
with the Company.  Please confirm that the foregoing is in accordance  with your
understanding  by signing and  returning  to us the  enclosed  duplicate of this
letter,  which shall thereupon  constitute a binding agreement among the Company
and NESC.

                                        Very truly yours,

                                        NORTHEAST SECURITIES, INC.

                                        By:
                                            -------------------------------
                                            Name: O. Lee Tawes
                                            Title: Executive Vice President

AGREED

CLEAN WATER TECHNOLOGIES, INC.

By:
     -------------------------------------
     Name: SUZANNE LEWSADDER
     Title: Chief Executive Officer

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                                                                       EXHIBIT A
                                                                       ---------

                   STANDARD FORM OF INDEMNIFICATION AGREEMENT
                   ------------------------------------------

                        INDEMNIFICATION AND CONTRIBUTION

        The  Company  agrees  to  indemnify  and  hold  harmless  NESC  and  its
affiliates (as defined in Rule 405 under the Securities Act of 1933, as amended)
and their  respective  directors,  officers,  employees,  agents and controlling
persons  (NESC and each  such  person  being an  "Indemnified  Party")  from and
against all losses,  claims,  damages and  liabilities  (or  actions,  including
shareholder  actions,  in  respect  thereof),  joint or  several,  to which such
Indemnified Party may become subject under any applicable  federal or state law,
or otherwise, which are related to or result from the performance by NESC of the
services  contemplated  by or the engagement of NESC pursuant to, this Agreement
and will promptly  reimburse any Indemnified  Party for all reasonable  expenses
(including  reasonable  counsel  fees  and  expenses)  as they are  incurred  in
connection with the  investigation  of,  preparation for or defense arising from
any  threatened or pending  claim,  whether or not such  Indemnified  Party is a
party and  whether or not such  claim,  action or  proceeding  is  initiated  or
brought by the Company.  The Company will not be liable to any Indemnified Party
under the foregoing  indemnification and reimbursement  provisions,  (i) for any
settlement by an Indemnified  Party effected  without its prior written  consent
(not to be  unreasonably  withheld),  (ii) to the extent  that any loss,  claim,
damage or liability is found in a final,  non-appealable  judgment by a court of
competent jurisdiction to have resulted primarily from NESC's willful misconduct
or bad faith or (iii) to the extent that any loss, claim, damage or liability is
found in a final,  non-appealable  judgment by a court of competent jurisdiction
to have resulted primarily from any material misstatement or omission based upon
written  information  provided by any  Indemnified  Party for  inclusion  in the
memorandum.  The Company  also agrees that no  Indemnified  Party shall have any
liability (whether direct or indirect,  in contract or tort or otherwise) to the
Company or its security  holders or  creditors  related to or arising out of the
engagement  of NESC  pursuant  to, or the  performance  by NESC of the  services
contemplated  by,  this  Agreement  except to the extent  that any loss,  claim,
damage or liability is found in a final,  non-appealable  judgment by a court of
competent  jurisdiction  to have  resulted  primarily  as a result of any of the
events described in clauses (i), (ii) or (iii) above..

        Promptly  after  receipt  by an  Indemnified  Party  of  notice  of  any
intention or threat to commence an action,  suit or  proceeding or notice of the
commencement of any action, suit or proceeding,  such Indemnified Party will, if
a claim in respect  thereof is to be made against the Company  pursuant  hereto,
promptly  notify the Company in writing of the same.  In case any such action is
brought against any Indemnified  Party and such  Indemnified  Party notifies the
Company of the commencement thereof, the Company may elect to assume the defense
thereof, with counsel reasonably  satisfactory to such Indemnified Party, and an
Indemnified  Party may employ  counsel to participate in the defense of any such
action provided, that the employment of such counsel shall be at the Indemnified
Party's  own  expense,  unless  (i) the  employment  of such  counsel  has  been
authorized in writing by the Company,  (ii) the Indemnified Party has reasonably
concluded (based upon advice of counsel to the Indemnified Party) that there may
be  legal  defenses  available  to it or  other  Indemnified  Parties  that  are
different  from or in  addition to

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those available to the Company,  or that a conflict or potential conflict exists
(based upon advice of counsel to the Indemnified  Party) between the Indemnified
Party and the Company that makes it impossible or inadvisable for counsel to the
Indemnifying  Party  to  conduct  the  defense  of  both  the  Company  and  the
Indemnified  Party (in which case the Company  will not have the right to direct
the defense of such  action on behalf of the  Indemnified  Party),  or (iii) the
Company  has  not  in  fact  employed  counsel  reasonably  satisfactory  to the
Indemnified  Party to assume the defense of such action within a reasonable time
after receiving notice of the action, suit or proceeding, in each of which cases
the reasonable fees,  disbursements and other charges of such counsel will be at
the  expense  of the  Company;  provided,  further,  that in no event  shall the
Company be required to pay fees and expenses for more than one firm of attorneys
representing  Indemnified  Parties. Any failure or delay by an Indemnified Party
to give  the  notice  referred  to in  this  paragraph  shall  not  affect  such
Indemnified Party's right to be indemnified hereunder, except to the extent that
such  failure or delay  causes  actual harm to the Company,  or  prejudices  its
ability to defend such action,  suit or proceeding on behalf of such Indemnified
Party.

        If the indemnification  provided for in this Agreement is for any reason
held  unenforceable by an Indemnified Party, the Company agrees to contribute to
the losses,  claims,  damages and liabilities for which such  indemnification is
held  unenforceable  (i) in such  proportion  as is  appropriate  to reflect the
relative  benefits to the Company,  on the one hand, and NESC on the other hand,
of the Offering as  contemplated  whether or not the Offering is consummated or,
(ii) if (but  only if) the  allocation  provided  for in  clause  (i) is for any
reason  unenforceable,  in such proportion as is appropriate to reflect not only
the relative  benefits  referred to in clause (i) but also the relative fault of
the Company,  on the one hand and NESC,  on the other hand, as well as any other
relevant equitable  considerations.  The Company agrees that for the purposes of
this paragraph the relative  benefits to the Company and NESC of the Offering as
contemplated  shall be deemed to be in the same  proportion that the total value
received or contemplated to be received by the Company or its  shareholders,  as
the case may be, as a result of or in  connection  with the Offering bear to the
fees  paid or to be  paid to NESC  under  this  Agreement.  Notwithstanding  the
foregoing,  the  Company  expressly  agrees  that NESC shall not be  required to
contribute  any amount in excess of the amount by which fees paid NESC hereunder
(excluding reimbursable expenses),  exceeds the amount of any damages which NESC
has otherwise been required to pay.

        Each party agrees that without the other's prior written consent,  which
shall not be unreasonably withheld, it will not settle, compromise or consent to
the  entry of any  judgment  in any  pending  or  threatened  claim,  action  or
proceeding  in  respect  of which  indemnification  could be  sought  under  the
indemnification  provisions  of this  Agreement  (in  which  NESC  or any  other
Indemnified  Party is an  actual or  potential  party to such  claim,  action or
proceeding),   unless  such  settlement,   compromise  or  consent  includes  an
unconditional  release of each Indemnified  Party from all liability arising out
of such claim, action or proceeding.

        In the event that an  Indemnified  Party is  requested  or  required  to
appear as a witness  in any action  brought  by or on behalf of or  against  the
Company in which such Indemnified Party is not named as a defendant, the Company
agrees to promptly  reimburse NESC on a monthly basis for all expenses  incurred
by it in connection  with such  Indemnified  Party's  appearing and

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preparing  to appear  as such a  witness,  including,  without  limitation,  the
reasonable fees and disbursements of its legal counsel.

        If  multiple  claims are brought  with  respect to at least one of which
indemnification  is permitted  under  applicable law and provided for under this
Agreement,  the Company  agrees that any  judgment or  arbitrate  award shall be
conclusively  deemed  to be  based on  claims  as to  which  indemnification  is
permitted and provided for, except to the extent the judgment or arbitrate award
expressly states that it, or any portion thereof,  is based solely on a claim as
to which indemnification is not available.

                                       9NORTHEAST SECURITIES, INC.
                           100 WALL STREET, 8TH FLOOR
                               NEW YORK, NY 10005

                                        As of April 20, 2006

SheerVision, Inc.
4030 Palos Verdes Drive N., Suite 104
Rolling Hills, CA 90274
Attention:  Ms. Suzanne Lewsadder
            Chief Executive Officer

Dear Ms. Lewsadder:

                Reference is made to the Engagement Letter (the "Engagement
Letter") dated April 11, 2006 between SheerVision, Inc. (the "Company") and
Northeast Securities, Inc. ("NESC") in which the Company has engaged NESC on an
exclusive basis in connection with the purchase and sale of securities of the
Company on a "best efforts" basis to qualified institutional buyers, or QIBS,
and accredited investors, as such terms are defined in the Securities Act of
1933, as amended, and the rules and regulations thereunder, all as further set
forth in the Engagement Letter. The Company proposes to complete an offering
(the "Offering") to purchase up to 60 units (each a "Unit"), each Unit
consisting of (i) 9% Convertible Notes in principal amount of $37,500, (ii)
16,667 shares of common stock of the Company (the "Common Stock") and (iii) a
warrant to purchase 3,750 shares of Common Stock at an exercise price of $1.00
per share, all as described in the Private Placement Memorandum dated April 20,
2006 (the "PPM") and a Subscription Agreement (the "Subscription Agreement")
between the Company and each of the investors in the Offering, and various other
transaction documents, in which NESC will act as placement agent.

                Pursuant to this letter agreement, the Company confirms and
makes certain representations, warranties, agreements and covenants to and for
the benefit of NESC as follows:

1.      The Company and NESC confirm that the terms of the Engagement Letter
        shall remain in full force and effect. In connection therewith, the
        Company hereby confirms its representations, warranties, agreements and
        covenants contained therein, including, without limitation, its
        obligations to indemnify and hold harmless NESC as set forth in Exhibit
        A to the Engagement Letter. In the event of any conflict between this
        letter agreement and the Engagement Letter, the terms of the Engagement
        Letter shall be binding and shall supersede the terms of this letter
        agreement.

2.      In each Subscription Agreement entered into by the Company with
        investors in the Offering, the Company made to such investors certain
        representations, warranties, agreements and covenants. Without limiting
        the Company's obligations to NESC under the Engagement Letter, the
        Company hereby (i) makes to NESC those representations, warranties,
        agreements and covenants contained in Sections C.II (the "Company
        Representations") and D.I (the "Company Covenants") of each Subscription
        Agreement and (ii) confirms that NESC shall receive the benefits of and
        be entitled to rely upon such representations, warranties, covenants and
        agreements, as well as those representations and warranties made by
        investors in Section C.I and D.II of the Subscription Agreement.

3.      The Company understands that NESC shall not have any obligation or
        responsibility to verify (i) the accuracy or completeness of any
        information contained in the PPM or any of the documents

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<PAGE>

        incorporated by reference therein or of any Subscription Agreement or
        any other documents or agreements provided by investors in the Offering
        or (ii) the authenticity, sufficiency or validity of any check or other
        payment made by such investors in the Offering.

4.      NESC's obligations pursuant to the Engagement Letter shall be subject,
        in its discretion, to the continuing accuracy of the Company
        Representations contained in the Subscription Agreement and in each
        certificate and document contemplated hereunder to be delivered to NESC
        or otherwise at any Closing (including, without limitation, all
        documents contemplated to be delivered by the Company as set forth in
        Subscription Agreement (the "Subscription Documents"), as of the date
        hereof (the "Initial Closing Date") or the date of any additional
        closing subsequent to the Initial Closing Date (each a "Closing"), to
        the performance by the Company of its obligations hereunder, and to the
        following conditions:

                (a)     At the initial Closing, NESC shall have received the
        favorable opinion of Reitler Brown LLP, counsel for the Company,
        reasonably satisfactory to NESC.

                (b)     If there is more than one Closing, then at each such
        Closing there shall be delivered to NESC updated opinions, certificates
        or other information described in this Section 4.

                (c)     On or prior to the final Closing, and assuming gross
        proceeds to the Company from the Offering as of such final Closing are
        equal to or greater than $3 million, the Company shall have (1) repaid
        any and all unpaid Principal and accrued and unpaid Interest to Holders
        (the "Holders") of its 12% Secured Convertible Notes due 2006 (the "12%
        Notes"), pursuant to the terms of such Notes, (2) received waivers from
        such Holders waiving their right to be repaid described in clause (1),
        or (3) received consents from such Holders such that the Principal plus
        any accrued, but unpaid, Interest on such 12% Notes be converted into
        Units, in each case pursuant to a Notice to Holders mailed to each
        Holder promptly following the date hereof in the form attached hereto as
        Exhibit A. . The terms "Principal", "Interest", "Holder" and "Maturity"
        have the meanings ascribed to such terms in the 12% Notes.

                (d)     Promptly following initial Closing, the Company shall
        have transmitted to the Securities and Exchange Commission a preliminary
        information statement pursuant to Rule 14C of the Securities and
        Exchange Act of 1934, as amended, in connection with shareholder
        approval of the amendment and restatement of the Company's certificate
        of incorporation to, among other things, authorize the Board to issue up
        to 10,000,000 shares of preferred stock having such rights, preferences
        and limitations as its board may deem appropriate from time to time.

                (e)     On or prior to or following the Closing Date, as the
        case may be, NESC shall have been furnished such information, documents
        and certificates as it may reasonably require for the purpose of
        enabling it to review the matters referred to in this Section 4 and in
        order to evidence the accuracy, completeness or satisfaction of any of
        the representations, warranties, covenants, agreements or conditions
        herein contained, or as it may otherwise reasonably request.

                (f)     At each Closing, NESC shall have received a certificate
        of the chief executive officer of the Company, dated, as applicable, as
        of the Closing Date or the date of such Closing, to the effect that, as
        of the date hereof and as of the applicable closing date, the Company
        Representations were and are accurate, and that, as of the applicable
        date, the obligations to be performed by the Company hereunder on or
        prior thereto have been fully performed in all material respects.

                (g)     At each Closing, NESC shall have received a Certificate
        of Good Standing or comparable certificate as to the Company, certified
        as of a recent date prior to the Closing Date by the Secretary of State
        of the Company's state of incorporation;

                                       2
<PAGE>

                (h)     At each Closing, NESC shall have received a customary
        certificate of the Secretary of the Company, dated as of the date of
        such Closing Date, in form and substance reasonably satisfactory to NESC
        and its counsel;

                (i)     All proceedings taken in connection with the issuance,
        sale and delivery of the Units and the Placement Agent Warrants (as
        defined in the PPM) shall be reasonably satisfactory in form and
        substance to NESC and its counsel, including without limitation
        execution and delivery of the various Transaction Documents (as defined
        in the Subscription Agreement), as well as the Placement Agent Warrant,
        by each of the parties thereto;

                (j)     At each Closing, the Company shall execute and deliver a
        "Joint Disbursement Letter" in substantially the form attached hereto as
        EXHIBIT A, which letter shall be countersigned by NESC as set forth
        thereon;

                (k)     Any certificate or other document signed by any officer
        of the Company and delivered to NESC and its counsel as required
        hereunder shall be deemed a representation and warranty by the Company
        hereunder as to the statements made therein. If any conditions to NESC's
        obligations hereunder have not been fulfilled as and when required to be
        so fulfilled, NESC may terminate the Letter Agreement or, if NESC so
        elects, in writing waive any such conditions that have not been
        fulfilled or extend the time for their fulfillment. In the event that
        NESC elects to terminate the Engagement Letter, NESC shall notify the
        Company of such election in writing. Upon such termination, neither
        party shall have any further liability nor obligation to the other
        except as otherwise provided in the Engagement Letter.

5.      This Agreement shall be governed by and construed in accordance with the
        laws of the State of New York, without giving effect to such state's
        rules concerning conflicts of laws. This Agreement may be executed in
        counterparts, each of which together shall be considered a single
        document.

6.      It is understood and agreed that NESC and its affiliates may from time
        to time make a market in, have a long or short position in, buy and sell
        or otherwise effect transactions for customer accounts and for their own
        accounts in the securities of, or perform investment banking or other
        services, for, the Company and other entities.

                                        Very truly yours,

                                        NORTHEAST SECURITIES, INC.

                                        By:
                                            ------------------------------------
                                            Name:  David Tsiang
                                            Title:   Vice President

ACCEPTED AND AGREED:

SHEERVISION, INC.

By:
   ------------------------------------
   Name:  Suzanne Lewsadder
   Title: Chief Executive Officer

                                       3
<PAGE>

EXHIBIT A

                         JOINT DISBURSEMENT INSTRUCTIONS
                           FOR CLOSING: APRIL __, 2006

        The undersigned, SheerVision, Inc. (the "Company") does hereby:

        1.      Acknowledge the acceptance of subscriptions from purchasers
representing gross proceeds of $___________ from the issuance and sale of __
Units of SheerVision, Inc. (the "Company"), such "Units" described in the
Confidential Private Placement Memorandum of the Company, dated April __, 2006.

        2.      Represent that all conditions precedent to closing of the
purchase and sale of the Units described in Section 1 hereof, such conditions
precedent set forth in Section 4 of that certain letter agreement between the
Company and Northeast Securities, Inc. ("NESC") have been satisfied or waived;
and

        3.      Agree that gross proceeds shall be disbursed via wire transfer
in immediately available funds, payable to the following parties:

GROSS PROCEEDS  FROM INVESTORS LISTED ON SCHEDULE A               $_____________

LESS:           COMMISSION OF 8% TO NESC WITH RESPECT TO NESC
                INVESTORS IDENTIFIED AS SUCH ON SCHEDULE A        $_____________

                COMMISSION OF 4% TO NESC WITH RESPECT TO
                COMPANY INVESTORS IDENTIFIED AS SUCH ON
                SCHEDULE A                                        $_____________

                EXPENSE REIMBURSEMENT TO NESC(1)                  $_____________

DISBURSEMENTS
TO COMPANY                                                        $_____________

                                              SHEERVISION, INC.

                                              By: ___________________________
                                              Name:  Suzanne Lewsadder
                                              Title:  Chief Executive Officer

AGREED AND ACKNOWLEDGED:

NORTHEAST SECURITIES, INC.

By:  __________________________
Name:  David Tsiang
Title: Vice President

----------
(1)  To a maximum of $50,000, as set forth in the Engagement Letter.

                                       4
<PAGE>

                 SCHEDULE A TO JOINT DISBURSEMENT INSTRUCTIONS:

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

--------------------------------------- ----------------------------------------
NESC INVESTORS:
--------------------------------------- ----------------------------------------

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

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

--------------------------------------- ----------------------------------------
COMPANY INVESTORS:
--------------------------------------- ----------------------------------------

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

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

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

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

                                       5
<PAGE>

                   EXHIBIT A - NOTICE TO HOLDERS OF 12% NOTES

                                       6

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