Document:

EXHIBIT 10.5

                         CLEAN WATER TECHNOLOGIES, INC.
                              DBA SHEERVISION, INC.
                             4030 PALOS VERDES NORTH
                                    SUITE 104
                     ROLLING HILLS ESTATES, CALIFORNIA 90274

                                April ____, 2006

To the holders (including any successors
and permitted transferees and assignees
of such holders, the "HOLDERS") of
shares of the shares of Series A 9%
Cumulative Convertible Preferred Stock,
par value $0.001 per share (the
"PREFERRED STOCK"), warrants (the
"WARRANTS") to purchase shares of common
stock, par value $.001 per share (the
"Common Stock"), at an exercise price of
$1.00 per share, and the shares of
Common Stock, in each case of Clean
Water Technologies, Inc., a Delaware
corporation dba SheerVision, Inc. (the
"COMPANY"), issued by the Company
pursuant to, and in accordance with, the
Confidential Private Placement
Memorandum, dated April 20, 2006 (the
"MEMORANDUM")

Gentlemen:

        Reference   is  made  to  the   Subscription   Agreement   and  Investor
Questionnaires  submitted  by the  Holders  to the  Company  (the  "SUBSCRIPTION
AGREEMENTS").   This  letter  agreement  sets  forth  the  registration   rights
referenced in the Subscription Agreement.

        As  further   inducement  for  Holders  to  undertake  the  transactions
contemplated by the Subscription  Agreement,  the Company hereby agrees with the
Holders as follows:

                (a)     REGISTRATION RIGHTS.

(i)     On or prior to the date 45 days  following the date of the Final Closing
(as defined in the  Memorandum),  the Company shall file with the Securities and
Exchange  Commission  (the "SEC") a  registration  statement  (together with any
amendments or supplements thereto, the "REGISTRATION STATEMENT") on Form SB-2 or
another  appropriate  form under the  Securities  Act of 1933,  as amended  (the
"SECURITIES  ACT"),  to  register  the  resale  of the  Subject  Securities  (as
hereinafter   defined)  The  Registration   Statement  (and  each  amendment  or
supplement thereto, and each request for acceleration of effectiveness  thereof)
shall be provided in accordance with PARAGRAPH (a)(VII) to the Holders and their
counsel prior to its filing or other submission.  For purposes hereof,  "SUBJECT
SECURITIES"  shall mean (i) all shares of Common Stock issuable upon  conversion
of the Preferred

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Stock or upon any exercise of the Warrants,  or otherwise issued pursuant to the
offering  described  in the  Memorandum,  (ii) any  other  securities  issued or
issuable  with respect to or in exchange for Subject  Securities,  and (iii) any
securities  issued or issuable with respect to such securities by way of a stock
dividend  or  stock  split  or in  connection  with  a  combination  of  shares,
recapitalization,  merger, consolidation or other reorganization with respect to
any of the  securities  referenced  above.  At least  fifteen (15) Business Days
(which term is defined in this letter agreement as a day, other than Saturday or
Sunday, on which banks in New York City are open for the general  transaction of
business)  prior  to the  first  anticipated  filing  date  of the  Registration
Statement,  if any Holder elects to have any of the Subject Securities  included
in the  Registration  Statement,  the  Company  shall  notify such Holder of any
information  of such Holder that is required to be included in the  Registration
Statement  under  the  Securities  Act.  Any  such  Holder  shall  provide  such
information  to the  Company at least two (2)  Business  Days prior to the first
anticipated  filing date of such  Registration  Statement.  Notwithstanding  the
foregoing,  the Company  shall not be required to register the resale of Subject
Securities  held by any such Holder that does not,  within two (2) Business Days
prior to the anticipated filing date of such Registration Statement,  provide to
the Company such information.

                (ii)    The  Company   shall  use  best  efforts  to  cause  the
Registration Statement to be declared effective under the Securities Act as soon
as  practicable,  and in any  case,  within  90 days  following  the date of the
initial filing thereof (the "Filing Date").

                (iii)   In the event that the Registration  Statement should not
be filed with the SEC within forty five (45) days following the Final Closing or
be declared  effective  under the Securities Act within 90 days after the Filing
Date, the Company shall pay to each Holder,  as liquidated  damages and not as a
penalty,  an aggregate  amount in cash equal 0.5% of the purchase  price paid by
such Holder per Unit (as defined in the  Memorandum)  for each month (or partial
month)  during which the  Registration  Statement has not been filed or declared
effective  as required by this letter  agreement,  provided  that the  aggregate
payments  shall not exceed  5.0% of the  aggregate  purchase  price paid by such
Holder for such Units (the  "Liquidated  Damages").  The  payment of  Liquidated
Damages shall be made within 30 days  following the monthly  period during which
such Liquidated Damages were incurred. For clarification, the Liquidated Damages
shall be in addition to any other rights and remedies  that the Holders may have
available under this letter agreement, law or equity.

                (iv)    The  Company  shall  use  best  efforts,  including  the
preparation of post-effective  amendments and prospectus  supplements,  to cause
the Registration  Statement to remain continuously  effective (subject to clause
(vi)  below)  until the earlier of (A) the date the  Subject  Securities  may be
resold by investors  under Rule 144(k)  promulgated  under the Securities Act or
(B) the date  upon  which  the last of the  Subject  Securities  covered  by the
Registration Statement have been sold pursuant to the Registration Statement.

                (v)     The  Company  shall use best  efforts to (A) (1) prevent
the issuance of any stop order or other suspension of effectiveness  and, (2) if
such order is issued,

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obtain the withdrawal of any such order at the earliest  possible moment and (B)
cause all Subject Securities covered by a Registration Statement to be listed on
each securities exchange,  interdealer quotation system or other market on which
similar securities issued by the Company are then listed;

                (vi)    Notwithstanding the foregoing,  the Company shall not be
obligated to prepare and to file a post-effective amendment or supplement to the
Registration  Statement or the prospectus  constituting  a part thereof,  and no
Holder  may  offer  or sell  Subject  Securities  pursuant  to the  Registration
Statement,  during the  continuance  of a  Blackout  Event (as  defined  below);
provided,  however,  that (A) no Blackout  Event may be deemed to exist for more
than sixty (60) days,  (B) the Company shall  promptly (1) notify the Holders in
writing of the existence of (but in no event,  without the prior written consent
of the  Holder,  shall the  Company  disclose to the Holders any of the facts or
circumstances  regarding) the event giving rise to an Blackout Period,  provided
that  the  Company  shall  not  be  required  to  disclose  material   nonpublic
information to the Holder;  (2) advise the Holders in writing to cease all sales
under the Registration  Statement until the end of the Blackout Period;  and (c)
use commercially  reasonable efforts to terminate an Blackout Period as promptly
as practicable.  There may be no more than two Blackout Events during any twelve
(12) month  period.  A  "BLACKOUT  EVENT"  means any of the  following:  (a) the
possession  by  the  Company  of  material  information  that  is not  ripe  for
disclosure in a registration  statement or prospectus,  as determined reasonably
and in good faith by the Chief  Executive  Officer or the Board of  Directors of
the  Company  and  that  disclosure  of  such  information  in the  Registration
Statement or the  prospectus  constituting  a part thereof  would be  materially
detrimental  to the  business  and affairs of the  Company;  or (b) any material
engagement or activity by the Company which would,  in the  reasonable  and good
faith  determination of the Chief Executive Officer or the Board of Directors of
the Company,  be materially  adversely  affected by disclosure in a registration
statement or prospectus at such time. Without the express written consent of the
Holders,  if required to permit the continued  sale of Shares by the Holders,  a
post-effective   amendment  or  supplement  to  Registration  Statement  or  the
prospectus  constituting a part thereof must be filed no later than the 61st day
following commencement of a Blackout Event.

                (vii)   At least five Business Days prior to the filing with the
SEC of the Registration  Statement (or any amendment  thereto) or the prospectus
forming a part thereof (or any  supplement  thereto),  the Company shall provide
draft copies  thereof to the Holders and shall (A) consider  incorporating  into
such  documents such comments as the Holders (and its counsel) may propose to be
incorporated  therein  and (B) not file any  document  to  which  such  Holder's
counsel  may  reasonably  object  based  upon such  counsel's  belief  that such
Registration  Statement is not in  compliance  with  applicable  laws,  rules or
regulations or contains a material misstatement or omission. Notwithstanding the
foregoing,  no  prospectus  supplement,  the form of which has  previously  been
provided to the Holders, need be delivered in draft form to the Holders.

                (viii)  The Company  shall (A) promptly  notify the Holders upon
the  occurrence  of any of the following  events in respect of the  Registration
Statement or the prospectus  forming a part thereof:  (i) receipt of any request
for additional information

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from the SEC or any other  federal or state  governmental  authority  during the
Registration  Period,  the  response to which would  require any  amendments  or
supplements  to the  Registration  Statement  or  related  prospectus;  (ii) the
issuance by the SEC or any other federal or state governmental  authority of any
stop order suspending the  effectiveness  of the  Registration  Statement or the
initiation  of  any  proceedings   for  that  purpose;   (iii)  receipt  of  any
notification  with respect to the suspension of the  qualification  or exemption
from qualification of any of the Subject Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; or (iv) the
effectiveness  of the  Registration  Statement  within twenty four (24) hours of
such Registration  Statement being declared effective and (B) immediately notify
the Holders,  at any time when a prospectus  relating to Subject  Securities  is
required to be delivered  under the Securities Act, upon discovery that, or upon
the  happening  of any event or the  passage  of time as a result of which,  the
prospectus included in a Registration  Statement, as then in effect, includes an
untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements  therein not misleading
in light of the  circumstances  then  existing,  and at the  request of any such
Holder,  promptly  prepare  and furnish to such  Holder a  reasonable  number of
copies of a supplement to or an amendment of such prospectus or the Registration
Statement as may be necessary so that, as thereafter delivered to the purchasers
of such  Subject  Securities,  such  prospectus  shall  not  include  an  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 not  misleading in
light of the circumstances then existing.

                (ix)    The Company  shall,  as soon as  reasonably  practicable
after the  effectiveness of the Registration  Statement,  furnish to the Holders
with  respect  to the  Subject  Securities  registered  under  the  Registration
Statement one (1) copy of any Registration  Statement and any amendment thereto,
each  preliminary  prospectus  and  Prospectus  and each amendment or supplement
thereto,  and each  letter  written by or on behalf of the Company to the SEC or
the staff of the SEC, and each item of correspondence  from the SEC or the staff
of the SEC, in each case relating to such Registration Statement (other than any
portion of any  thereof  which  contains  information  for which the Company has
sought  confidential  treatment),  and such number of copies of prospectuses and
such  other  documents  as the  Holders  may  reasonably  request,  in  order to
facilitate  the public  sale or other  disposition  of all or any of the Subject
Securities by the Holders pursuant to the Registration Statement.

                (x)     The  Company  shall  file  or  cause  to be  filed  such
documents as are required to be filed by the Company for normal state securities
law or "blue sky"  clearance  in states  specified  in  writing by the  Holders;
PROVIDED,  HOWEVER,  that the  Company  shall not be  required  to qualify to do
business or consent to service of process in any jurisdiction in which it is not
now so qualified or has not so consented.

                (xi)    With a view  to  making  available  to the  Holders  the
benefits of Rule 144,  the Company  agrees,  from the date hereof and so long as
the Holders own Subject Securities, to:

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                        (A)     comply with the  provisions of paragraph  (c)(1)
of Rule 144; and

                        (B)     file with the SEC in a timely manner all reports
and other documents  required to be filed by the Company pursuant to Section 13,
14 or 15(d) under the  Exchange  Act;  and, if at any time it is not required to
file such reports but in the past had been required to or did file such reports,
it will, upon the request of the Holders,  make available  other  information as
required by, and so long as necessary to permit sales of its Subject  Securities
pursuant to, Rule 144.

                (xii)   The Company shall make available, during normal business
hours,  upon  reasonable  request,  for inspection and review by one counsel and
accounting  firm to the Holders,  all financial and other  records,  all filings
with the SEC, and all other documents  respecting the Company,  its assets,  its
properties or its business (including without limitation minute books, corporate
records,  financial  statements,   contracts,   permits,  licenses,   approvals,
technical or engineering reports, and any title opinions or valuations which the
Company has  obtained) as may be  reasonably  necessary  for the purpose of such
review,  and cause the Company's  officers,  directors and  employees,  within a
reasonable time period, to supply all such information  reasonably  requested by
the  counsel  and  accounting  firm  to  the  Holders  in  connection  with  the
Registration  Statement  (including,  without  limitation,  in  response  to all
questions and other  inquiries  reasonably  made or submitted by any of them) to
the extent not publicly  available on EDGAR or the Company's  website,  prior to
and from time to time  after the filing and  effectiveness  of the  Registration
Statement for the sole purpose of enabling the counsel and the  accounting  firm
to the Holders to conduct  initial and ongoing due diligence with respect to the
Company and the accuracy of such Registration Statement.  Notwithstanding any of
the  foregoing,  nothing  herein  shall  obligate  the Company to provide to the
Holder, or any advisors, any material nonpublic  information.  The Company shall
not disclose material  nonpublic  information to any Holders or such counsel and
accounting  firm,  unless prior to  disclosure of such  information  the Company
identifies such information as being material nonpublic information and provides
the Holders and such advisors and representatives with the opportunity to accept
or refuse to accept such material nonpublic information for review.

                (xiii)  cooperate  with the  Holders  to  facilitate  the timely
preparation and delivery of certificates  representing  Subject Securities to be
sold pursuant to a Registration Statement, which certificates shall, if required
under the terms of this letter  agreement,  be free of all restrictive  legends,
and to enable such Subject Securities to be in such denominations and registered
in such names as the Holders may request.

                (b)     FEES AND EXPENSES.  All expenses  incurred in connection
with registrations pursuant to this letter, including,  without limitation,  all
registration,  qualification and filing fees,  printing  expenses,  escrow fees,
fees  and  disbursements  of  counsel  for  the  Company,  reasonable  fees  and
disbursements of one counsel for the Holders, blue sky fees and expenses and the
expense of any special audits  incident to or required by any such  registration
(but excluding the fees and expenses of any counsel for

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any Holder  other than the one counsel  referenced  in this  sentence)  shall be
borne by the Company. All underwriting discounts,  selling commissions and stock
transfer  taxes  applicable  to the  Subject  Securities,  shall be borne by the
Holders.

                (c)     INDEMNIFICATION.

                (i)     Subject to the conditions  set forth below,  the Company
agrees to indemnify and hold harmless the Holders,  their  respective  officers,
directors,  partners,  employees,  agents, and counsel, and each person, if any,
who  controls  any such  person  within the  meaning of Section 15 of the Act or
Section 20(a) of the Securities  Exchange Act of 1934, as amended (the "EXCHANGE
ACT"), from and against any and all loss, liability,  charge, claim, damage, and
expense whatsoever (which shall include, for all purposes of this paragraph (c),
without limitation,  reasonable attorneys' fees and reasonable expenses incurred
in investigating,  preparing, or defending against any litigation,  commenced or
threatened, or any claim whatsoever,  and any and all amounts paid in settlement
of any claim or litigation),  as and when incurred,  arising out of, based upon,
or in connection with, (A) any untrue statement or alleged untrue statement of a
material  fact  contained  in  (1)  any  registration   statement,   preliminary
prospectus, or final prospectus (as from time to time amended and supplemented),
or any amendment or supplement thereto, relating to the offer and sale of any of
the  Subject   Securities,   or  (2)  any   application  or  other  document  or
communication   (in  this  paragraph  (c),   referred  to   collectively  as  an
"APPLICATION")  executed  by, or on behalf of, the Company or based upon written
information furnished by, or on behalf of, the Company filed in any jurisdiction
in  order to  register  or  qualify  any of the  Subject  Securities  under  the
securities or "BLUE SKY" laws thereof or filed with any securities exchange;  or
any omission or alleged  omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading,  unless such
statement or omission was made in reliance upon, and in conformity with, written
information  furnished  to the  Company  with  respect to such  Holder by, or on
behalf of, such person  expressly for inclusion in any  registration  statement,
preliminary  prospectus  or final  prospectus,  or any  amendment or  supplement
thereto,  or in any  application,  as the case may be, or (B) any  breach of any
representation,  warranty,  covenant,  or agreement of the Company  contained in
this letter agreement. The foregoing agreement to indemnify shall be in addition
to any liability the Company may otherwise have,  including  liabilities arising
under this letter, the aforementioned warrant, and the related documentation.

        If any action is brought  against  the  Holders or any of its  officers,
directors,  partners,  employees, agents, or counsel, or any controlling persons
of such person (an  "INDEMNIFIED  PARTY") in respect of which  indemnity  may be
sought against the Company pursuant to the foregoing paragraph, such indemnified
party or parties shall promptly notify the Company in writing of the institution
of such action (but the failure so to notify  shall not relieve the Company from
any liability it may have other than pursuant to this paragraph  (c)(i)) and the
Company shall  promptly  assume the defense of such action,  including,  without
limitation,   the  employment  of  counsel   reasonably   satisfactory  to  such
indemnified  party  or  parties  and  payment  of  reasonable   expenses.   Such
indemnified  party or  parties  shall  have the right to employ its or their own
counsel in any such case,

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but the fees and  expenses  of such  counsel  shall  be at the  expense  of such
indemnified  party or parties  unless the  employment of such counsel shall have
been authorized in writing by the Company in connection with the defense of such
action  or the  Company  shall not have  promptly  employed  counsel  reasonably
satisfactory to such indemnified  party or parties to have charge of the defense
of such action or such  indemnified  party or the Holders shall have  reasonably
concluded,  with the  advice of  counsel,  that  there may be one or more  legal
defenses  available  to it or them or to other  indemnified  parties  which  are
different  from,  or in addition to, those  available to the Company,  in any of
which events such  reasonable  fees and expenses  shall be borne by the Company,
and the Company shall not have the right to direct the defense of such action on
behalf of the  indemnified  party or parties.  Anything in this paragraph to the
contrary notwithstanding,  the Company shall not be liable for any settlement of
any such claim or action  effected  without its written  consent,  which consent
shall not be  unreasonably  withheld.  The Company shall not,  without the prior
written consent of each  indemnified  party that is not released as described in
this sentence,  settle or compromise any action,  or permit a default or consent
to the  entry  of  judgment  or  otherwise  seek to  terminate  any  pending  or
threatened  action,  in  respect  of which  indemnity  may be  sought  hereunder
(whether  or  not  any  indemnified  party  is a  party  thereto),  unless  such
settlement,  compromise,  consent,  or  termination  includes  an  unconditional
release of each indemnified  party from all liability in respect of such action.
The Company  agrees  promptly to notify the Holders of the  commencement  of any
litigation  or  proceedings  against  the  Company  or any of  its  officers  or
directors  in  connection  with  the  sale  of  any  Subject  Securities  or any
preliminary  prospectus,  prospectus,  registration  statement,  or amendment or
supplement  thereto,  or any  application  relating  to any sale of any  Subject
Securities.

                (ii)    the  Holders  agree,  severally,  but  not  jointly,  to
indemnify  and hold  harmless the Company,  each  director of the Company,  each
officer of the Company who shall have signed any registration statement relating
to Subject  Securities held by the Holders,  and each other person,  if any, who
controls  the  Company  within  the  meaning of Section 15 of the Act or Section
20(a) of the Exchange  Act, to the same extent as the foregoing  indemnity  from
the  Company to the Holders in  paragraph  (c)(i)(A),  but only with  respect to
statements or omissions, if any, made in any registration statement, preliminary
prospectus, or final prospectus (as from time to time amended and supplemented),
or any amendment or supplement thereto, or in any application, in reliance upon,
and in  conformity  with,  written  information  furnished  to the Company  with
respect to the Holders by, or on behalf of, the Holders  expressly for inclusion
in any such registration statement, preliminary prospectus, or final prospectus,
or any amendment or supplement thereto,  or in any application,  as the case may
be. If any action  shall be brought  against the Company or any other  person so
indemnified based on any such registration statement, preliminary prospectus, or
final prospectus,  or any amendment or supplement  thereto,  or any application,
and in respect of which indemnity may be sought against the Holders  pursuant to
this  paragraph  (c)(ii),  the Holders shall have the rights and duties given to
the Company, and the Company and each other person so indemnified shall have the
rights  and  duties  given to the  indemnified  parties,  by the  provisions  of
paragraph  (c)(i)(A).  The foregoing agreement to indemnify shall be in addition
to any liability the Holders may otherwise have.

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                (iii)   To provide for just and equitable  contribution,  if (A)
an  indemnified  party makes a claim for  indemnification  pursuant to paragraph
(c)(i) or (c)(ii)  (subject to the  limitations  thereof),  but it is found in a
final  judicial  determination,   not  subject  to  further  appeal,  that  such
indemnification  may not be  enforced  in such case,  even  though  this  letter
agreement  expressly  provides  for  indemnification  in such  case,  or (B) any
indemnified or indemnifying  party seeks  contribution under the Securities Act,
the Exchange Act, or otherwise, then the Company (including for this purpose any
contribution made by, or on behalf of, any director of the Company,  any officer
of the  Company  who signed any such  registration  statement,  any  controlling
person of the  Company),  as one  entity,  and the Holders  (including  for this
purpose any contribution by, or on behalf of, an indemnified party), as a second
entity,  shall  contribute  to the losses,  liabilities,  claims,  damages,  and
expenses  whatsoever  to  which  any of them  may be  subject,  on the  basis of
relevant equitable  considerations such as the relative fault of the Company and
the  Holders  in  connection  with the  facts  which  resulted  in such  losses,
liabilities,  claims,  damages, and expenses. The relative fault, in the case of
an untrue statement,  alleged untrue statement,  omission,  or alleged omission,
shall be determined  by, among other  things,  whether such  statement,  alleged
statement,  omission, or alleged omission relates to information supplied by the
Company or by the Holders, and the parties' relative intent,  knowledge,  access
to information,  and  opportunity to correct or prevent such statement,  alleged
statement, omission, or alleged omission. The Company and the Holders agree that
it would be unjust and inequitable if the respective  obligations of the Company
and the  Holders  for  contribution  were  determined  by pro rata or per capita
allocation of the aggregate losses,  liabilities,  claims, damages, and expenses
(even if the  Holders  and the other  indemnified  parties  were  treated as one
entity for such  purpose)  or by any other  method of  allocation  that does not
reflect the equitable  considerations referred to in this paragraph (c)(iii). In
no case shall the  Holders  be  responsible  for a portion  of the  contribution
obligation  imposed on all  holders of Subject  Securities  in excess of its pro
rata share  based on the number of shares of Common  Stock owned (or which would
be owned upon exercise of or conversion of other  securities) by it and included
in such  registration  as compared to the number of shares of Common Stock owned
(or  which  would  be owned  upon  exercise  or  conversion  of all  such  other
securities  ) by  all  holders  of  Subject  Securities  and  included  in  such
registration.  No person  guilty of a fraudulent  misrepresentation  (within the
meaning  of  Section  11(f)  of  the  Securities   Act)  shall  be  entitled  to
contribution   from  any   person   who  is  not   guilty  of  such   fraudulent
misrepresentation. For purposes of this paragraph (c)(iii), each person, if any,
who controls the Holders  within the meaning of Section 15 of the Act or Section
20(a) of the Exchange Act and each officer, director,  partner, employee, agent,
and  counsel  of the  Holders or control  person  shall have the same  rights to
contribution  as the  Holders or control  person and each  person,  if any,  who
controls  the  Company  within  the  meaning of Section 15 of the Act or Section
20(a) of the Exchange Act, each officer of the Company who shall have signed any
such  registration  statement,  each  director of the Company,  and its or their
respective  counsel shall have the same rights to  contribution  as the Company,
subject in each case to the provisions of this paragraph  (c)(iii).  Anything in
this  paragraph  (c)(iii)  to the  contrary  notwithstanding,  no party shall be
liable for  contribution  with respect to the  settlement of any claim or action
effected without its

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written consent.  This paragraph (c)(iii) is not intended to supersede any right
to contribution under the Securities Act, the Exchange Act, or otherwise.

                (d)     FURTHER  ASSURANCES.   The  parties  shall  execute  and
deliver  all such  further  instruments  and  documents  and take all such other
actions as may reasonably be required to carry out the transactions contemplated
hereby and to evidence the  fulfillment of the intent of the  agreements  herein
contained.

                (e)     TRANSFER AND  ASSIGNMENT.  The  registration  rights set
forth  herein may be  transferred  by the  Holders  together  with the  transfer
thereby of Subject  Securities.  This letter agreement shall be binding upon and
inure to the benefit of the parties and their  successors and permitted  assigns
and shall inure to the benefit of each Holder and its  successors  and permitted
assigns.  The Company may not assign this letter  agreement or any of its rights
or obligations  hereunder without the prior written consent of the Holder.  Each
Holder  may  assign its  rights  hereunder  in the manner and to the  Persons as
permitted under this letter agreement and the Subscription Agreement.

                (f)     REMEDIES.  In the event of a breach by the Company or by
the  Holders,  of any of their  obligations  under this  letter  agreement,  the
Holders or the  Company,  as the case may be, in addition  to being  entitled to
exercise all rights  granted by law and under this letter  agreement,  including
recovery of damages,  will be  entitled  to specific  performance  of its rights
under this letter  agreement.  The Company and the Holders  agree that  monetary
damages  would not  provide  adequate  compensation  for any losses  incurred by
reason of a breach by it of any of the  provisions of this letter  agreement and
hereby further agrees that, in the event of any action for specific  performance
in respect of such breach, it shall waive the defense that a remedy at law would
be adequate.

                (g)     NO INCONSISTENT  AGREEMENTS.  The Company has not, as of
the date hereof entered into and currently in effect, nor shall the Company,  on
or after  the date of this  letter  agreement,  enter  into any  agreement  with
respect to its securities  that is  inconsistent  with the rights granted to the
Holders in this letter  agreement or  otherwise  conflicts  with the  provisions
hereof.

                (h)     AMENDMENTS  AND WAIVERS.  The  provisions of this letter
agreement,  including  the  provisions  of this  sentence,  may not be  amended,
modified  or  supplemented,  and  waivers or  consents  to  departures  from the
provisions  hereof may not be given,  unless  the same  shall be in writing  and
signed by the Company and each of the Holders.  Notwithstanding the foregoing, a
waiver or consent to depart from the provisions  hereof with respect to a matter
that relates  exclusively to the rights of Holders and that does not directly or
indirectly  affect  the  rights of other  Holders  may be given by Holders of at
least a majority  of the  Subject  Securities  to which  such  waiver or consent
relates;  provided,  however,  that the  provisions  of this sentence may not be
amended,  modified,  or supplemented except in accordance with the provisions of
the immediately preceding sentence.

                                       9
<PAGE>

                (i)     NOTICES.  Any and all notices or other communications or
deliveries  required or permitted to be provided  hereunder  shall be in writing
and  shall be deemed  given  and  effective  on the  earlier  of (i) the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone  number  specified for notice prior to 5:00 p.m., EST, on a
business  day,  (ii) the  business day after the date of  transmission,  if such
notice or  communication  is delivered via facsimile at the facsimile  telephone
number  specified for notice later than 5:00 p.m.,  EST, on any date and earlier
than 11:59 p.m., EST, on such date, (iii) the business day following the date of
mailing,  if sent by nationally  recognized  overnight  courier  service or (iv)
actual  receipt by the party to whom such notice is  required  to be given.  The
addresses  for such  communications  shall be with respect to each Holder at its
address set forth under its name on the signature  page hereto,  or with respect
to the Company, at the address set forth in the letterhead above

                (j)     COUNTERPARTS.  This letter  agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be
an original and, all of which taken together  shall  constitute one and the same
agreement.

                (k)     CUMULATIVE  REMEDIES.  The remedies  provided herein are
cumulative and not exclusive of any remedies provided by law.

                (l)     SEVERABILITY.   If  any  term,  provision,  covenant  or
restriction  of this letter  agreement is held to be invalid,  illegal,  void or
unenforceable in any respect, the remainder of the terms, provisions,  covenants
and  restrictions  set forth  herein  shall  remain in full force and effect and
shall in no way be affected,  impaired or  invalidated,  and the parties  hereto
shall use their  reasonable  efforts to find and employ an alternative  means to
achieve the same or substantially  the same result as that  contemplated by such
term, provision,  covenant or restriction.  It is hereby stipulated and declared
to be the  intention of the parties that they would have  executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

                (m)     GOVERNING LAW; JURISDICTION.  The aforementioned matters
shall be governed by, and construed in accordance with, the laws of the State of
New York,  without giving effect to principles of conflicts of laws. Each of the
parties hereto irrevocably  submits to the exclusive  jurisdiction of the courts
of the State of New York and the United States  District  Court for the Southern
District of New York, in each case sitting in the Borough of Manhattan,  City of
New York, for the purpose of any suit,  action,  proceeding or judgment relating
to or arising out of this  letter  agreement.  Service of process in  connection
with any such suit,  action or  proceeding  may be served on each  party  hereto
anywhere  in the world by the same  methods as are  specified  for the giving of
notices  under this letter  agreement.  Each of the parties  hereto  irrevocably
consents  to the  jurisdiction  of any such  court in any such  suit,  action or
proceeding  and to the  laying  of  venue  in  such  court.  Each  party  hereto
irrevocably waives any objection to the laying of venue of any such suit, action
or proceeding  brought in such courts and irrevocably  waives any claim that any
such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum.

                                       10
<PAGE>

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                                       11
<PAGE>

        Please execute this letter  agreement  where  indicated below to express
your agreement with the terms hereof.

                                        CLEAN WATER TECHNOLOGIES,
                                                 INC.
                                                 DBA SHEERVISION, INC.

                                        BY:___________________________
                                              SUZANNE LEWSADDER
                                              CHIEF EXECUTIVE OFFICER

ACCEPTED AND AGREED TO AS OF
THE DATE FIRST ABOVE-WRITTEN:

HOLDERS

BY: NORTHEASTERN SECURITIES, INC.,
       ATTORNEY-IN-FACT

BY:______________________________
     NAME:
     TITLE:

                                       12EXHIBIT 4.4

THE REGISTERED  HOLDER OF THIS UNIT PURCHASE OPTION (THIS "PURCHASE  OPTION") BY
ITS  ACCEPTANCE  HEREOF,  AGREES THAT IT WILL NOT SELL,  TRANSFER OR ASSIGN THIS
PURCHASE  OPTION  EXCEPT AS HEREIN  PROVIDED AND THE  REGISTERED  HOLDER OF THIS
PURCHASE  OPTION  AGREES  THAT IT WILL NOT  SELL,  TRANSFER,  ASSIGN,  PLEDGE OR
HYPOTHECATE  THIS  PURCHASE  OPTION  FOR A  PERIOD  OF ONE  YEAR  FOLLOWING  THE
EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) LADENBURG THALMANN & CO.
INC. ("LADENBURG") OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE
OFFERING,  OR (II) A BONA FIDE  OFFICER OR PARTNER OF  LADENBURG  OR OF ANY SUCH
UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE  PRIOR TO THE LATER OF THE  CONSUMMATION
BY MEDIA & ENTERTAINMENT  HOLDINGS,  INC. ("COMPANY") OF A MERGER, CAPITAL STOCK
EXCHANGE,  ASSET  ACQUISITION OR OTHER SIMILAR BUSINESS  COMBINATION  ("BUSINESS
COMBINATION")(AS  DESCRIBED MORE FULLY IN THE COMPANY'S  REGISTRATION  STATEMENT
(DEFINED  HEREIN)) OR  _____________,  2007.  VOID AFTER 5:00 P.M. NEW YORK CITY
LOCAL TIME, 30 DAYS AFTER THE DATE THE UNIT PURCHASE OPTION BECOMES EXERCISABLE.

                              UNIT PURCHASE OPTION

                               FOR THE PURCHASE OF

                                 1,125,000 UNITS

                                       OF

                      MEDIA & ENTERTAINMENT HOLDINGS, INC.

1.      PURCHASE OPTION.

        THIS CERTIFIES THAT, in consideration of $100.00 duly paid by or on
behalf of Ladenburg ("HOLDER"), as registered owner of this Purchase Option, to
Media & Entertainment Holdings, Inc. ("COMPANY"), Holder is entitled, at any
time or from time to time upon the later of the consummation of a Business
Combination or _________, 2007 ("COMMENCEMENT Date"), and at or before 5:00
p.m., New York City local time, 30 days after the Commencement Date ("EXPIRATION
DATE"), but not thereafter, to subscribe for, purchase and receive, in whole or
in part, up to One Million One Hundred Twenty-Five Thousand (1,125,000) units
("UNITS") of the Company, each Unit consisting of one share of common stock of
the Company, par value $.0001 per share ("COMMON STOCK"), and one warrant
("WARRANT(S)") expiring four years from the effective date ("EFFECTIVE DATE") of
the registration statement ("REGISTRATION STATEMENT") pursuant to which Units
are offered for sale to the public ("OFFERING"). Each Warrant is the same as the
warrants included in the Units being registered for sale to the public by way of
the Registration Statement ("PUBLIC WARRANTS"), except that the Warrants
issuable hereby shall have an exercise price of $7.50 per share of Common Stock.
If the Expiration Date is a day on

<PAGE>

which banking institutions are authorized by law to close, then this Purchase
Option may be exercised on the next succeeding day which is not such a day in
accordance with the terms herein. During the period ending on the Expiration
Date, the Company agrees not to take any action that would terminate the
Purchase Option. This Purchase Option is initially exercisable at $10.00 per
Unit so purchased; provided, however, that upon the occurrence of any of the
events specified in Section 6 hereof, the rights granted by this Purchase
Option, including the exercise price per Unit and the number of Units (and
shares of Common Stock and Warrants) to be received upon such exercise, shall be
adjusted as therein specified. The term "Exercise Price" shall mean the initial
exercise price or the adjusted exercise price, depending on the context.

2.      EXERCISE.

        2.1     EXERCISE FORM. In order to exercise this Purchase Option, the
exercise form attached hereto must be duly executed and completed and delivered
to the Company, together with this Purchase Option and payment of the Exercise
Price for the Units being purchased payable in cash or by certified check or
official bank check. If the subscription rights represented hereby shall not be
exercised at or before 5:00 p.m., New York City local time, on the Expiration
Date this Purchase Option shall become and be void without further force or
effect, and all rights represented hereby shall cease and expire.

        2.2     LEGEND. Each certificate for the securities purchased under this
Purchase Option shall bear a legend as follows unless such securities have been
registered under the Securities Act of 1933, as amended ("ACT"):

                "The securities represented by this certificate have not been
                registered under the Securities Act of 1933, as amended ("Act")
                or applicable state law. The securities may not be offered for
                sale, sold or otherwise transferred except pursuant to an
                effective registration statement under the Act, or pursuant to
                an exemption from registration under the Act and applicable
                state law."

        2.3     CASHLESS EXERCISE.

2.3.1   DETERMINATION OF AMOUNT. In lieu of the payment of the Exercise Price
multiplied by the number of Units for which this Purchase Option is exercisable
(and in lieu of being entitled to receive Common Stock and Warrants) in the
manner required by Section 2.1, the Holder shall have the right (but not the
obligation) to convert any exercisable but unexercised portion of this Purchase
Option into Units ("CONVERSION RIGHT") as follows: upon exercise of the
Conversion Right, the Company shall deliver to the Holder (without payment by
the Holder of any of the Exercise Price in cash) that number of Units (or that
number of shares of Common Stock and Warrants comprising that number of Units)
equal to the quotient obtained by dividing (x) the "Value" (as defined below) of
the portion of the Purchase Option being converted by (y) the Current Market
Value (as defined below). The "Value" of the portion of the Purchase Option
being converted shall equal the remainder derived from subtracting (a) (i) the
Exercise Price multiplied by (ii) the number of Units underlying the portion of
this Purchase Option being converted from (b) the Current Market Value of a Unit
multiplied by the number of Units underlying the portion of the Purchase Option
being converted. As used herein, the term "CURRENT MARKET VALUE" per Unit at any
date means : (A) in the event that neither the Units nor

                                       2
<PAGE>

Public Warrants are still trading, the remainder derived from subtracting (x)
the exercise price of the Warrants multiplied by the number of shares of Common
Stock issuable upon exercise of the Warrants underlying one Unit from (y)(i) the
Current Market Price of the Common Stock multiplied by (ii) the number of shares
of Common Stock underlying one Unit, which shall include the shares of Common
Stock underlying the Warrants included in such Unit; (B) in the event that the
Units, Common Stock and Public Warrants are still trading, (i) if the Units are
listed on a national securities exchange or quoted on the Nasdaq National
Market, Nasdaq Capital Market or NASD OTC Bulletin Board (or successor
exchange), the last sale price of the Units in the principal trading market for
the Units as reported by the exchange, Nasdaq or the NASD, as the case may be,
on the last trading day preceding the date in question; or (ii) if the Units are
not listed on a national securities exchange or quoted on the Nasdaq National
Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or successor
exchange), but are traded in the residual over-the-counter market, the closing
bid price for Units on the last trading day preceding the date in question for
which such quotations are reported by the Pink Sheets, LLC or similar publisher
of such quotations; and (C) in the event that the Units are not still trading
but the Common Stock and Public Warrants underlying the Units are still trading,
the Current Market Price of the Common Stock plus the product of (x) the Current
Market Price of the Public Warrants and (y) the number of shares of Common Stock
underlying the Warrants included in one Unit. The "CURRENT MARKET PRICE" shall
mean (i) if the Common Stock (or Public Warrants, as the case may be) is listed
on a national securities exchange or quoted on the Nasdaq National Market,
Nasdaq Capital Market or NASD OTC Bulletin Board (or successor exchange), the
last sale price of the Common Stock (or Public Warrants) in the principal
trading market for the Common Stock as reported by the exchange, Nasdaq or the
NASD, as the case may be, on the last trading day preceding the date in
question; (ii) if the Common Stock (or Public Warrants, as the case may be) is
not listed on a national securities exchange or quoted on the Nasdaq National
Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or successor
exchange), but is traded in the residual over-the-counter market, the closing
bid price for the Common Stock (or Public Warrants) on the last trading day
preceding the date in question for which such quotations are reported by the
Pink Sheets, LLC or similar publisher of such quotations; and (iii) if the fair
market value of the Common Stock cannot be determined pursuant to clause (i) or
(ii) above, such price as the Board of Directors of the Company shall determine,
in good faith. In the event the Public Warrants have expired and are no longer
exercisable, no "Value" shall be attributed to the Warrants underlying this
Purchase Option. Additionally, in the event that this Purchase Option is
exercised pursuant to this Section 2.3 and the Public Warrants are still
trading, the "Value" shall be reduced by the difference between the Warrant
Exercise Price and the exercise price of the Public Warrants multiplied by the
number of Warrants underlying the Units included in the portion of this Purchase
Option being converted.

2.3.2   MECHANICS OF CASHLESS EXERCISE. The Cashless Exercise Right may be
exercised by the Holder on any business day on or after the Commencement Date
and not later than 5:00 p.m., New York City local time on the Expiration Date by
delivering the Purchase Option with the duly executed exercise form attached
hereto with the cashless exercise section completed to the Company, exercising
the Cashless Exercise Right and specifying the total number of Units the Holder
will purchase pursuant to such Cashless Exercise Right.

3.      TRANSFER.

                                       3
<PAGE>

        3.1     GENERAL RESTRICTIONS. The registered Holder of this Purchase
Option, by its acceptance hereof, agrees that it will not sell, transfer,
assign, pledge or hypothecate this Purchase Option for a period of one year
following the Effective Date to anyone other than (i) Ladenburg or an
underwriter or a selected dealer in connection with the Offering, or (ii) a bona
fide officer or partner of Ladenburg or of any such underwriter or selected
dealer. On and after the first anniversary of the Effective Date, transfers to
others may be made subject to compliance with or exemptions from applicable
securities laws. In order to make any permitted assignment, the Holder must
deliver to the Company the assignment form attached hereto duly executed and
completed, together with the Purchase Option and payment of all transfer taxes,
if any, payable in connection therewith. The Company shall within five business
days transfer this Purchase Option on the books of the Company and shall execute
and deliver a new Purchase Option or Purchase Options of like tenor to the
appropriate assignee(s) expressly evidencing the right to purchase the aggregate
number of Units purchasable hereunder or such portion of such number as shall be
contemplated by any such assignment.

        3.2     RESTRICTIONS IMPOSED BY THE ACT. The securities evidenced by
this Purchase Option shall not be transferred unless and until (i) the Company
has received the opinion of counsel for the Holder that the securities may be
transferred pursuant to an exemption from registration under the Act and
applicable state securities laws, the availability of which is established to
the reasonable satisfaction of the Company (the Company hereby agreeing that the
opinion of Kirkpatrick & Lockhart Nicholson Graham LLP shall be deemed
satisfactory evidence of the availability of an exemption), or (ii) a
registration statement or a post-effective amendment to the Registration
Statement relating to such securities has been filed by the Company and declared
effective by the Securities and Exchange Commission (the "COMMISSION") and
compliance with applicable state securities law has been established.

4.      NEW PURCHASE OPTIONS TO BE ISSUED.

        4.1     PARTIAL EXERCISE OR TRANSFER. Subject to the restrictions in
Section 3 hereof, this Purchase Option may be exercised or assigned in whole or
in part. In the event of the exercise or assignment hereof in part only, upon
surrender of this Purchase Option for cancellation, together with the duly
executed exercise or assignment form and funds sufficient to pay any Exercise
Price and/or transfer tax, the Company shall cause to be delivered to the Holder
without charge a new Purchase Option of like tenor to this Purchase Option in
the name of the Holder evidencing the right of the Holder to purchase the number
of Units purchasable hereunder as to which this Purchase Option has not been
exercised or assigned.

        4.2     LOST CERTIFICATE. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Option and of reasonably satisfactory indemnification or the posting of
a bond, the Company shall execute and deliver a new Purchase Option of like
tenor and date. Any such new Purchase Option executed and delivered as a result
of such loss, theft, mutilation or destruction shall constitute a substitute
contractual obligation on the part of the Company.

5.      REGISTRATION RIGHTS.

        5.1     DEMAND REGISTRATION.

                                       4
<PAGE>

                5.1.1   GRANT OF RIGHT. The Company, upon written demand
("INITIAL DEMAND NOTICE") of the Holder(s) of at least 51% of the Purchase
Options and/or the underlying Units and/or the underlying securities ("MAJORITY
HOLDERS"), agrees to register (the "DEMAND REGISTRATION") under the Act on one
occasion, all or any portion of the Purchase Options requested by the Majority
Holders in the Initial Demand Notice and all of the securities underlying such
Purchase Options, including the Units, Common Stock, the Warrants and the Common
Stock underlying the Warrants (collectively, the "REGISTRABLE SECURITIES"). On
such occasion, the Company will file a registration statement or a
post-effective amendment to the Registration Statement covering the Registrable
Securities within sixty days after receipt of the Initial Demand Notice and use
its best efforts to have such registration statement or post-effective amendment
declared effective as soon as possible thereafter. The demand for registration
may be made at any time during a period of five years beginning on the Effective
Date. The Initial Demand Notice 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 the Purchase
Options and/or Registrable Securities of the demand within ten days from the
date of the receipt of any such Initial Demand Notice. 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 5.1.4.

                5.1.2   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.

                5.1.3   UNDERWRITTEN OFFERING. If the Majority Holders so elect
and such holders so advise the Company as part of the Initial Demand Notice, 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 the Majority Holders.

                5.1.4   REDUCTION OF OFFERING. If the managing underwriter or
underwriters for a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holders in writing that the dollar amount
or number of shares of Registrable

                                       5
<PAGE>

Securities which the Demanding Holders desire to sell, taken together with all
other shares of Common Stock or other securities which the Company desires to
sell and the shares of Common Stock, if any, as to which registration has been
requested pursuant to written contractual piggy-back registration rights held by
other stockholders of the Company who desire to sell, exceeds the maximum dollar
amount or maximum number of shares that can be sold in such offering without
adversely affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such offering (such maximum dollar
amount or maximum number of shares, as applicable, the "MAXIMUM NUMBER OF
SHARES"), then the Company shall include in such registration: (i) first, the
Registrable Securities as to which Demand Registration has been requested by the
Demanding Holders (pro rata in accordance with the number of shares that each
such Person has requested be included in such registration, regardless of the
number of shares held by each such Person (such proportion is referred to herein
as "PRO RATA")) that can be sold without exceeding the Maximum Number of Shares;
(ii) second, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clause (i), the shares of Common Stock or other
securities that the Company desires to sell that can be sold without exceeding
the Maximum Number of Shares; (iii) third, to the extent that the Maximum Number
of Shares has not been reached under the foregoing clauses (i) and (ii), the
shares of Common Stock or other securities registrable pursuant to the terms of
the Registration Rights Agreement between the Company and the initial investors
in the Company, dated as of ________, 2006 (the "REGISTRATION RIGHTS AGREEMENT"
and such registrable securities, the "INVESTOR 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.

                5.1.5   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 the Company
need not continue its obligations under Section 5.1.

                5.1.6   TERMS. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
any legal counsel selected by the Holders to represent them in connection with
the sale of the Registrable Securities, but the Holders shall pay any and all
underwriting commissions. The Company agrees to use its reasonable best efforts
to qualify or register the Registrable Securities in such states as are
reasonably requested by the Majority Holder(s); provided, however, that in no
event shall the Company be required to register the Registrable Securities in a
state in which such registration would cause (i) the Company to be obligated to
qualify to do business in such state, or would subject the Company to taxation
as a foreign corporation doing business in such jurisdiction or (ii) the
principal stockholders of the Company to be obligated to escrow their shares of
capital stock of the Company. The Company shall cause any registration statement
or post-effective

                                       6
<PAGE>

amendment filed pursuant to the demand rights granted under Section 5.1.1 to
remain effective for a period of nine consecutive months from the effective date
of such registration statement or post-effective amendment.

        5.2     "PIGGY-BACK" REGISTRATION.

                5.2.1   PIGGY-BACK RIGHTS. If at any time during the seven year
period commencing on the Effective Date the Company proposes to file a
registration statement under the 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
5.1), other than a registration statement (i) filed in connection with any
employee stock option or other benefit plan, (ii) for an exchange offer or
offering of securities solely to the Company's existing stockholders, (iii) for
an offering of debt that is convertible into equity securities of the Company or
(iv) for a dividend reinvestment plan, then the Company shall (x) give written
notice of such proposed filing to the holders of Registrable Securities as soon
as practicable but in no event less than ten (10) days before the anticipated
filing date, which notice shall describe the amount and type of securities to be
included in such offering, the intended method(s) of distribution, and the name
of the proposed managing underwriter or underwriters, if any, of the offering,
and (y) offer to the holders of Registrable Securities in such notice the
opportunity to register the sale of such number of shares of Registrable
Securities as such holders may request in writing within five (5) days following
receipt of such notice (a "PIGGY-BACK REGISTRATION"). The Company shall cause
such Registrable Securities to be included in such registration and shall use
its best efforts to cause the managing underwriter or underwriters of a proposed
underwritten offering to permit the Registrable Securities requested to be
included in a Piggy-Back Registration on the same terms and conditions as any
similar securities of the Company and to permit the sale or other disposition of
such Registrable Securities in accordance with the intended method(s) of
distribution thereof. All holders of Registrable Securities proposing to
distribute their securities through a Piggy-Back Registration that involves an
underwriter or underwriters shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such Piggy-Back
Registration.

                5.2.2   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 5.2, 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:

                        (a)     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

                                       7
<PAGE>

Maximum Number of Shares has not been reached under the foregoing clause (A),
the shares of Common Stock or other securities, if any, comprised of Registrable
Securities and Investor 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;

                        (b)     If the registration is a "demand" registration
undertaken at the demand of holders of Investor Securities, (A) first, the
shares of Common Stock or other 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
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

                        (c)     If the registration is a "demand" registration
undertaken at the demand of persons other than either the holders of Registrable
Securities or of Investor Securities, (A) first, the shares of Common Stock or
other securities for the account of the demanding persons that can be sold
without exceeding the Maximum Number of Shares; (B) second, to the extent that
the Maximum Number of Shares has not been reached under the foregoing clause
(A), the shares of Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Number of Shares; (C) third,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (A) and (B), collectively the shares of Common Stock or other
securities comprised of Registrable Securities and Investor Securities, Pro
Rata, as to which registration has been requested pursuant to the terms hereof
and of the Registration Rights Agreement, 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.

                5.2.3   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

                                       8
<PAGE>

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 5.2.4.

                5.2.4   TERMS. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
any legal counsel selected by the Holders to represent them in connection with
the sale of the Registrable Securities but the Holders shall pay any and all
underwriting commissions related to the Registrable Securities. In the event of
such a proposed registration, the Company shall furnish the then Holders of
outstanding Registrable Securities with not less than fifteen days written
notice prior to the proposed date of filing of such registration statement. Such
notice to the Holders shall continue to be given for each applicable
registration statement filed (during the period in which the Purchase Option is
exercisable) by the Company until such time as all of the Registrable Securities
have been registered and sold. The Holders of the Registrable Securities shall
exercise the "piggy-back" rights provided for herein by giving written notice,
within ten days of the receipt of the Company's notice of its intention to file
a registration statement. The Company shall cause any registration statement
filed pursuant to the above "piggyback" rights to remain effective for at least
nine months from the date that the Holders of the Registrable Securities are
first given the opportunity to sell all of such securities.

        5.3     DAMAGES. Should the registration or the effectiveness thereof
required by Sections 5.1 and 5.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Company shall, in addition
to any other equitable or other relief available to the Holder(s), be liable for
any and all incidental, special and consequential damages sustained by the
Holder(s), including, but not limited to, the loss of any profits that might
have been received by the holder upon the sale of shares of Common Stock or
Warrants (and shares of Common Stock underlying the Warrants) underlying this
Purchase Option.

        5.4     GENERAL TERMS.

                5.4.1   INDEMNIFICATION. The Company shall indemnify the
Holder(s) of the Registrable Securities to be sold pursuant to any registration
statement hereunder and each person, if any, who controls such Holders within
the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange
Act of 1934, as amended ("EXCHANGE ACT"), against all loss, claim, damage,
expense or liability (including all reasonable attorneys' fees and other
expenses reasonably incurred in investigating, preparing or defending against
litigation, commenced or threatened, or any claim whatsoever whether arising out
of any action between the underwriter and the Company or between the underwriter
and any third party or otherwise) to which any of them may become subject under
the Act, the Exchange Act or otherwise, arising from such registration statement
but only to the same extent and with the same effect as the provisions pursuant
to which the Company has agreed to indemnify the underwriters contained in
Section 5 of the Underwriting Agreement between the Company, Ladenburg and the
other underwriters named therein dated the Effective Date. The Holder(s) of the
Registrable Securities to be sold pursuant to such registration statement, and
their successors and assigns, shall severally, and not jointly, indemnify the
Company, its officers and directors and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act,

                                       9
<PAGE>

against all loss, claim, damage, expense or liability (including all reasonable
attorneys' fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become
subject under the Act, the Exchange Act or otherwise, arising from information
furnished by or on behalf of such Holders, or their successors or assigns, in
writing, for specific inclusion in such registration statement to the same
extent and with the same effect as the provisions contained in Section 5 of the
Underwriting Agreement pursuant to which the underwriters have agreed to
indemnify the Company.

                5.4.2   EXERCISE OF PURCHASE OPTIONS. Nothing contained in this
Purchase Option shall be construed as requiring the Holder(s) to exercise their
Purchase Options or Warrants underlying such Purchase Options prior to or after
the initial filing of any registration statement or the effectiveness thereof.

                5.4.3   DOCUMENTS DELIVERED TO HOLDERS. The Company shall
furnish Ladenburg, as representative of the Holders participating in any of the
foregoing offerings, a signed counterpart, addressed to the participating
Holders, of (i) an opinion of counsel to the Company, dated the effective date
of such registration statement (and, if such registration includes an
underwritten public offering, an opinion dated the date of the closing under any
underwriting agreement related thereto), and (ii) a "cold comfort" letter dated
the effective date of such registration statement (and, if such registration
includes an underwritten public offering, a letter dated the date of the closing
under the underwriting agreement) signed by the independent public accountants
who have issued a report on the Company's financial statements included in such
registration statement, in each case covering substantially the same matters
with respect to such registration statement (and the prospectus included
therein) and, in the case of such accountants' letter, with respect to events
subsequent to the date of such financial statements, as are customarily covered
in opinions of issuer's counsel and in accountants' letters delivered to
underwriters in underwritten public offerings of securities. The Company shall
also, 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. The Company shall also deliver promptly to Ladenburg, as
representative of the Holders participating in the offering, the correspondence
and memoranda described below and copies of all correspondence between the
Commission and the Company, its counsel or auditors and all memoranda relating
to discussions with the Commission or its staff with respect to the registration
statement and permit Ladenburg, as representative of the Holders, to do such
investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of the National
Association of Securities Dealers, Inc. ("NASD"). Such investigation shall
include access to books, records and properties and opportunities to discuss the
business of the Company with its officers and independent auditors, all to such
reasonable extent and at such reasonable times and as often as Ladenburg, as
representative of the Holders, shall reasonably request. The Company shall not
be required to

                                       10
<PAGE>

disclose any confidential information or other records to Ladenburg, as
representative of the Holders, or to any other person, until and unless such
persons shall have entered into reasonable confidentiality agreements (in form
and substance reasonably satisfactory to the Company), with the Company with
respect thereto.

                5.4.4   UNDERWRITING AGREEMENT. The Company shall enter into an
underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this
Section 5, which managing underwriter shall be reasonably acceptable to the
Company. Such agreement shall be reasonably satisfactory in form and substance
to the Company, each Holder and such managing underwriters, and shall contain
such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the
managing underwriter. The Holders shall be parties to any underwriting agreement
relating to an underwritten sale of their Registrable Securities and may, at
their option, require that any or all the representations, warranties and
covenants of the Company to or for the benefit of such underwriters shall also
be made to and for the benefit of such Holders. Such Holders shall not be
required to make any representations or warranties to or agreements with the
Company or the underwriters except as they may relate to such Holders and their
intended methods of distribution. Such Holders, however, shall agree to such
covenants and indemnification and contribution obligations for selling
stockholders as are customarily contained in agreements of that type used by the
managing underwriter. Further, such Holders shall execute appropriate custody
agreements and otherwise cooperate fully in the preparation of the registration
statement and other documents relating to any offering in which they include
securities pursuant to this Section 5. Each Holder shall also furnish to the
Company such information regarding itself, the Registrable Securities held by
it, and the intended method of disposition of such securities as shall be
reasonably required to effect the registration of the Registrable Securities.

                5.4.5   RULE 144 SALE. Notwithstanding anything contained in
this Section 5 to the contrary, the Company shall have no obligation pursuant to
Sections 5.1 or 5.2 for the registration of Registrable Securities held by any
Holder (i) where such Holder would then be entitled to sell under Rule 144
within any three-month period (or such other period prescribed under Rule 144 as
may be provided by amendment thereof) all of the Registrable Securities then
held by such Holder, and (ii) where the number of Registrable Securities held by
such Holder is within the volume limitations under paragraph (e) of Rule 144
(calculated as if such Holder were an affiliate within the meaning of Rule 144).

                5.4.6   AMENDMENTS AND SUPPLEMENTAL PROSPECTUS. The Company
shall prepare and file with the Commission such amendments, including
post-effective amendments, and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective and in compliance with the provisions of the
Securities Act until all Registrable Securities and other securities covered by
such registration statement have been disposed of in accordance with the
intended method(s) of distribution set forth in such registration statement
(which period shall not exceed the sum of one hundred eighty (180) days plus any
period during which any such disposition is interfered with by any stop order or
injunction of the Commission or any governmental agency or court) or such
securities have been withdrawn. Each Holder agrees, that upon receipt of any
notice from the Company of the happening of any event as a result of which the
prospectus included in the

                                       11
<PAGE>

registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing, such Holder will immediately discontinue
disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Holder's receipt of the copies
of a supplemental or amended prospectus, and, if so desired by the Company, such
Holder shall deliver to the Company (at the expense of the Company) or destroy
(and deliver to the Company a certificate of such destruction) all copies, other
than permanent file copies then in such Holder's possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

                5.4.7   NOTIFICATION. After the filing of a registration
statement pursuant to Section 5 hereof, 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, 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 reasonably object.

                5.4.8   STATE SECURITIES LAW COMPLIANCE. The Company shall use
its best efforts to (i) register or qualify the Registrable Securities covered
by any registration statement prepared pursuant to Section 5 hereof 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

                                       12
<PAGE>

jurisdiction where it would not otherwise be required to qualify but for this
paragraph or subject itself to taxation in any such jurisdiction.

                5.4.9   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.

                5.4.10  RECORDS. The Company shall make available for inspection
by the holders of Registrable Securities included in such registration
statement, any underwriter(s) 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(s), 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.

                5.4.11  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.

6.      ADJUSTMENTS.

        6.1     ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF SECURITIES. The
Exercise Price and the number of Units underlying the Purchase Option shall be
subject to adjustment from time to time as hereinafter set forth:

                6.1.1   STOCK DIVIDENDS - SPLIT-UPS. If after the date hereof,
and subject to the provisions of Section 6.3 below, the number of outstanding
shares of Common Stock is increased by a stock dividend payable in shares of
Common Stock or by a split-up of shares of Common Stock or other similar event,
then, on the effective date thereof, the number of shares of Common Stock
underlying each of the Units purchasable hereunder shall be increased in
proportion to such increase in outstanding shares. In such case, the number of
shares of Common Stock, and the exercise price applicable thereto, underlying
the Warrants underlying each of the Units purchasable hereunder shall be
adjusted in accordance with the terms of the Warrants. For example, if the
Company declares a two-for-one stock dividend and at the time of such dividend
this Purchase Option is for the purchase of one Unit at $8.00 per whole Unit
(each Warrant underlying the Units is exercisable for $6.00 per share), upon
effectiveness of the dividend, this Purchase Option will be adjusted to allow
for the purchase of one Unit at $8.00 per Unit, each Unit entitling the holder
to receive two shares of Common Stock and two Warrants (each Warrant exercisable
for $3.00 per share).

                                       13
<PAGE>

                6.1.2   AGGREGATION OF SHARES. If after the date hereof, and
subject to the provisions of Section 6.3, the number of outstanding shares of
Common Stock is decreased by a consolidation, combination or reclassification of
shares of Common Stock or other similar event, then, on the effective date
thereof, the number of shares of Common Stock underlying each of the Units
purchasable hereunder shall be decreased in proportion to such decrease in
outstanding shares. In such case, the number of shares of Common Stock, and the
exercise price applicable thereto, underlying the Warrants underlying each of
the Units purchasable hereunder shall be adjusted in accordance with the terms
of the Warrants.

                6.1.3   REPLACEMENT OF SECURITIES UPON REORGANIZATION, ETC. In
case of any reclassification or reorganization of the outstanding shares of
Common Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or
that solely affects the par value of such shares of Common Stock, or in the case
of any merger or consolidation of the Company with or into another corporation
(other than a consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization
of the outstanding shares of Common Stock), or in the case of any sale or
conveyance to another corporation or entity of the property of the Company as an
entirety or substantially as an entirety in connection with which the Company is
dissolved, the Holder of this Purchase Option shall have the right thereafter
(until the expiration of the right of exercise of this Purchase Option) to
receive upon the exercise hereof, for the same aggregate Exercise Price payable
hereunder immediately prior to such event, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution
following any such sale or transfer, by a Holder of the number of shares of
Common Stock of the Company obtainable upon exercise of this Purchase Option and
the underlying Warrants immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by
Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections
6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall
similarly apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

                6.1.4   CHANGES IN FORM OF PURCHASE OPTION. This form of
Purchase Option need not be changed because of any change pursuant to this
Section, and Purchase Options issued after such change may state the same
Exercise Price and the same number of Units as are stated in the Purchase
Options initially issued pursuant to this Agreement. The acceptance by any
Holder of the issuance of new Purchase Options reflecting a required or
permissive change shall not be deemed to waive any rights to an adjustment
occurring after the Commencement Date or the computation thereof.

        6.2     SUBSTITUTE PURCHASE OPTION. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental Purchase Option providing that the holder of each
Purchase Option then outstanding or to be outstanding shall have the right
thereafter (until the stated expiration of such Purchase Option) to receive,
upon exercise of such Purchase Option, the kind and amount of shares of stock
and other securities and property receivable upon such consolidation or merger,
by a holder of the number of shares of Common Stock of the Company

                                       14
<PAGE>

for which such Purchase Option might have been exercised immediately prior to
such consolidation, merger, sale or transfer. Such supplemental Purchase Option
shall provide for adjustments which shall be identical to the adjustments
provided in Section 6.1. The above provision of this Section shall similarly
apply to successive consolidations or mergers.

        6.3     ELIMINATION OF FRACTIONAL INTERESTS. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
or Warrants upon the exercise of the Purchase Option, nor shall it be required
to issue scrip or pay cash in lieu of any fractional interests, it being the
intent of the parties that all fractional interests shall be eliminated by
rounding any fraction up to the nearest whole number of Warrants, shares of
Common Stock or other securities, properties or rights.

7.      RESERVATION AND LISTING. The Company shall at all times reserve and keep
available out of its authorized shares of Common Stock, solely for the purpose
of issuance upon exercise of the Purchase Options or the Warrants underlying the
Purchase Option, such number of shares of Common Stock or other securities,
properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of the Purchase Options and payment of
the Exercise Price therefor, all shares of Common Stock and other securities
issuable upon such exercise shall be duly and validly issued, fully paid and
non-assessable and not subject to preemptive rights of any stockholder. The
Company further covenants and agrees that upon exercise of the Warrants
underlying the Purchase Options and payment of the respective Warrant exercise
price therefor, all shares of Common Stock and other securities issuable upon
such exercise shall be duly and validly issued, fully paid and non-assessable
and not subject to preemptive rights of any stockholder. As long as the Purchase
Options shall be outstanding, the Company shall use its best efforts to cause
all (i) Units and shares of Common Stock issuable upon exercise of the Purchase
Options, (ii) Warrants issuable upon exercise of the Purchase Options and (iii)
shares of Common Stock issuable upon exercise of the Warrants included in the
Units issuable upon exercise of the Purchase Option to be listed (subject to
official notice of issuance) on all securities exchanges (or, if applicable on
the Nasdaq National Market, Capital Market, OTC Bulletin Board or any successor
trading market) on which the Units, the Common Stock or the Public Warrants
issued to the public in connection herewith may then be listed and/or quoted.

8.      CERTAIN NOTICE REQUIREMENTS.

        8.1     HOLDER'S RIGHT TO RECEIVE NOTICE. Nothing herein shall be
construed as conferring upon the Holders the right to vote or consent as a
stockholder for the election of directors or any other matter, or as having any
rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Purchase Options and their exercise, any of the
events described in Section 8.2 shall occur, then, in one or more of said
events, the Company shall give written notice of such event at least fifteen
days prior to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled to such
dividend, distribution, conversion or exchange of securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of the
closing of the transfer books, as the case may be. Notwithstanding the
foregoing, the Company shall deliver to each Holder a copy of each notice given
to the other

                                       15
<PAGE>

stockholders of the Company at the same time and in the same manner that such
notice is given to the stockholders.

        8.2     EVENTS REQUIRING NOTICE. The Company shall be required to give
the notice described in this Section 8 upon one or more of the following events:
(i) if the Company shall take a record of the holders of its shares of Common
Stock for the purpose of entitling them to receive a dividend or distribution
payable otherwise than in cash, or a cash dividend or distribution payable
otherwise than out of retained earnings, as indicated by the accounting
treatment of such dividend or distribution on the books of the Company, or (ii)
the Company shall offer to all the holders of its Common Stock any additional
shares of capital stock of the Company or securities convertible into or
exchangeable for shares of capital stock of the Company, or any option, right or
warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up
of the Company (other than in connection with a consolidation or merger) or a
sale of all or substantially all of its property, assets and business shall be
proposed.

        8.3     NOTICE OF CHANGE IN EXERCISE PRICE. The Company shall, promptly
after an event requiring a change in the Exercise Price pursuant to Section 6
hereof, send notice to the Holders of such event and change ("PRICE NOTICE").
The Price Notice shall describe the event causing the change and the method of
calculating same and shall be certified as being true and accurate by the
Company's President and Chief Financial Officer.

        8.4     TRANSMITTAL OF NOTICES. All notices, requests, consents and
other communications under this Purchase Option shall be in writing and shall be
deemed to have been duly made when hand delivered, or mailed by express mail or
private courier service: (i) if to the registered Holder of the Purchase Option,
to the address of such Holder as shown on the books of the Company, or (ii) if
to the Company, to the following address or to such other address as the Company
may designate by notice to the Holders:

                      Media & Entertainment Holdings, Inc.
                      4429 Edmondson Avenue
                      Dallas, Texas 75205
                      Attn:  Herbert A. Granath, Chairman of the Board and
                             Chief Executive Officer

9.      MISCELLANEOUS.

        9.1     AMENDMENTS. The Company and Ladenburg may from time to time
supplement or amend this Purchase Option without the approval of any of the
Holders in order to cure any ambiguity, to correct or supplement any provision
contained herein that may be defective or inconsistent with any other provisions
herein, or to make any other provisions in regard to matters or questions
arising hereunder that the Company and Ladenburg may deem necessary or desirable
and that the Company and Ladenburg deem shall not adversely affect the interest
of the Holders. All other modifications or amendments shall require the written
consent of and be signed by the party against whom enforcement of the
modification or amendment is sought.

                                       16
<PAGE>

        9.2     HEADINGS. The headings contained herein are for the sole purpose
of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase
Option.

        9.3     ENTIRE AGREEMENT. This Purchase Option (together with the other
agreements and documents being delivered pursuant to or in connection with this
Purchase Option) constitutes the entire agreement of the parties hereto with
respect to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties, oral and written, with respect to the subject
matter hereof.

        9.4     BINDING EFFECT. This Purchase Option shall inure solely to the
benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representatives and assigns,
and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Purchase
Option or any provisions herein contained.

        9.5     GOVERNING LAW; SUBMISSION TO JURISDICTION. This Purchase Option
shall be governed by and construed and enforced in accordance with the laws of
the State of New York, without giving effect to conflict of laws. The Company
hereby agrees that any action, proceeding or claim against it arising out of, or
relating in any way to this Purchase Option shall be brought and enforced in the
courts of the State of New York or of the United States of America for the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company hereby waives any objection
to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any process or summons to be served upon the Company may be served by
transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section
8 hereof. Such mailing shall be deemed personal service and shall be legal and
binding upon the Company in any action, proceeding or claim. The Company and the
Holder agree that the prevailing party(ies) in any such action shall be entitled
to recover from the other party(ies) all of its reasonable attorneys' fees and
expenses relating to such action or proceeding and/or incurred in connection
with the preparation therefor.

        9.6     WAIVER, ETC. The failure of the Company or the Holder to at any
time enforce any of the provisions of this Purchase Option shall not be deemed
or construed to be a waiver of any such provision, nor to in any way affect the
validity of this Purchase Option or any provision hereof or the right of the
Company or any Holder to thereafter enforce each and every provision of this
Purchase Option. No waiver of any breach, non-compliance or non- fulfillment of
any of the provisions of this Purchase Option shall be effective unless set
forth in a written instrument executed by the party or parties against whom or
which enforcement of such waiver is sought; and no waiver of any such breach,
non-compliance or non- fulfillment shall be construed or deemed to be a waiver
of any other or subsequent breach or non-compliance.

        9.7     EXECUTION IN COUNTERPARTS. This Purchase Option may be executed
in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same agreement, and shall become
effective when one or more counterparts has been signed by each of the parties
hereto and delivered to each of the other parties hereto.

                                       17
<PAGE>

        9.8     EXCHANGE AGREEMENT. As a condition of the Holder's receipt and
acceptance of this Purchase Option, Holder agrees that, at any time prior to the
complete exercise of this Purchase Option by Holder, if the Company and
Ladenburg enter into an agreement ("EXCHANGE AGREEMENT") pursuant to which they
agree that all outstanding Purchase Options will be exchanged for securities or
cash or a combination of both, then Holder shall agree to such exchange and
become a party to the Exchange Agreement.

        IN WITNESS WHEREOF, the Company has caused this Purchase Option to be
signed by its duly authorized officer as of the ___ day of __________, 2006.

                                            MEDIA & ENTERTAINMENT HOLDINGS, INC.

                                            By:____________________________
                                               Name:  Herbert A. Granath
                                               Title: Chairman of the Board and
                                                      Chief Executive Officer

                                       18
<PAGE>

Form to be used to exercise Purchase Option:

Media & Entertainment Holdings, Inc.
4429 Edmondson Avenue
Dallas, Texas 75205
Attn:   Herbert A. Granath, Chairman of the Board and
        Chief Executive Officer

Date:_________________, 200__

        The undersigned hereby elects irrevocably to exercise all or a portion
of the within Purchase Option and to purchase ____ Units of Media &
Entertainment Holdings, Inc. and hereby makes payment of $____________ (at the
rate of $_________ per Unit) in payment of the Exercise Price pursuant thereto.
Please issue the Common Stock and Warrants as to which this Purchase Option is
exercised in accordance with the instructions given below.

                                       or

        The undersigned hereby elects irrevocably to convert its right to
purchase Units purchasable under the within Purchase Option by surrender of the
unexercised portion of the attached Purchase Option (with a "Value" based of $
based on a "Market Price" of $ ). Please issue the securities comprising the
Units as to which this Purchase Option is exercised in accordance with the
instructions given below.

                                    ___________________________
                                    Signature

                                    ___________________________
                                    Signature Guaranteed

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name

                            (Print in Block Letters)

Address

                                       19
<PAGE>

        NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A
BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING
MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

                                       20
<PAGE>

Form to be used to assign Purchase Option:

                                   ASSIGNMENT

        (To be executed by the registered Holder to effect a transfer of the
within Purchase Option):

        FOR VALUE RECEIVED,______________________________________________ does
hereby sell, assign and transfer unto___________________________________________
the right to purchase __________ Units of Media & Entertainment Holdings, Inc.
("COMPANY") evidenced by the within Purchase Option and does hereby authorize
the Company to transfer such right on the books of the Company.

Dated:___________________, 200_

                                    ___________________________
                                    Signature

                                    ___________________________
                                    Signature Guaranteed

        NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A
BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING
MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

                                       21

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