Document:

THIS
      NOTE AND THE SECURITIES REPRESENTED BY THIS NOTE HAVE BEEN ACQUIRED FOR
      INVESTMENT PURPOSES ONLY AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD OR
      OTHERWISE TRANSFERRED OR PLEDGED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR SUCH APPLICABLE STATE SECURITIES LAWS,
      OR
      IF THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE
      SECURITIES ACT OR REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE
      SECURITIES LAWS. 

     

    LASERLOCK
      TECHNOLOGIES, INC.

     

    CONVERTIBLE
      PROMISSORY NOTE

     

    
      	
              $110,000

            	
              May
                18, 2007

            

    

    

    Section
      1. General.
      For
      value received, LASERLOCK
      TECHNOLOGIES, INC.,
      a
      Nevada corporation (including any successor thereto (by way of merger,
      consolidation, sale or otherwise), the “Payor”),
      hereby promises to pay to the order of Clydesdale Partners II, LLC or assigns
      (the “Payee”),
      the
      principal amount of One Hundred Ten Thousand Dollars ($110,000) or such greater
      or lesser principal amount which may be outstanding hereunder plus accrued
      interest, on August 31, 2008 (the “Maturity
      Date”).
      All
      payments hereunder shall be made in such coin or currency of the United States
      of America as at the time of payment shall be legal tender therein for the
      payment of public and private debts (unless, prior to accepting such form of
      payment, Payee elects to convert the principal and interest on this Note
      pursuant to Section 4 hereof, in which case such principal and interest
      shall be so converted on the terms set forth herein). The Payor shall pay
      interest in arrears on the unpaid balance of the principal amount of this Note
      from time to time at the rate of ten percent (10.0%) per annum (computed in
      either event on the basis of a 360 day year and the actual number of days
      elapsed) (the “Interest
      Rate”).
      Unless converted pursuant to Section 4, the principal of, and interest on,
      this Note shall be payable by wire transfer in immediately available funds
      to
      the account of the Payee or by certified or official bank check payable to
      the
      Payee mailed to the Payee at the address of the Payee as set forth on the
      records of the Payor or such other address as shall be designated in writing
      by
      the Payee to the Payor.

     

    This
      Convertible Promissory Note (this “Note”)
      is
      issued by the Payor to the Payee pursuant to the Convertible Note Purchase
      Agreement dated as of May 18, 2007 (the “Purchase
      Agreement”)
      among
      the Payor, the Payee and the other signatories thereto, as of even date
      herewith.

     

    Capitalized
      terms used and not otherwise defined herein have the meanings ascribed thereto
      in the Purchase Agreement.

     

    Section
      2. Prepayment.
      Payor
      shall have the right to prepay this Note, in whole or in part, without penalty,
      upon sixty-one (61) days prior written notice to Payee; provided, however,
      that,
      Payee shall have the right at any time during such sixty-one (61) day period
      to
      convert the principal and interest on this Note pursuant to Section 4
      hereof, in which case such principal and interest shall be so converted on
      the
      terms set forth herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
      3. Events
      of Default.

     

    (a) In
      each
      case of the happening of the following events (each of which is an “Event
      of Default”):

     

    (i) if
      any
      representation or warranty made herein, in the Purchase Agreement or in any
      agreement executed in connection therewith, or in any report, certificate,
      financial statement or other instrument furnished in connection with this Note
      or the Purchase Agreement shall prove to have been false or misleading in any
      material respect when made; 

     

    (ii) if
      a
      default occurs in the payment of any premium, installment of principal of,
      interest on, or other obligation with respect to, this Note, whether at the
      due
      date hereof or upon acceleration hereof, and such default shall continue for
      more than ten (10) days after notice thereof from the holders of a majority
      in interest of the principal amount of the Notes subject to the Purchase
      Agreement; 

     

    (iii) if
      a
      default occurs in the due observance or performance of any covenant or agreement
      on the part of the Payor to be observed or performed pursuant to the terms
      of
      this Note or the Purchase Agreement and such default remains uncured for thirty
      (30) days; 

     

    (iv) if
      the
      Payor shall (1) discontinue its business, (2) apply for or consent to
      the appointment of a receiver, trustee, custodian or liquidator of it or any
      of
      its property, (3) admit in writing its inability to pay its debts as they
      mature, (4) make a general assignment for the benefit of creditors, or
      (5) file a voluntary petition in bankruptcy, or a petition or an answer
      seeking reorganization or an arrangement with creditors, or to take advantage
      of
      any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution
      or
      liquidation laws or statutes, or an answer admitting the material allegations
      of
      a petition filed against it in any proceeding under any such law; 

     

    (v) if
      there
      shall be filed against the Payor an involuntary petition seeking reorganization
      of the Payor or the appointment of a receiver, trustee, custodian or liquidator
      of the Payor or a substantial part of its assets, or an involuntary petition
      under any bankruptcy, reorganization or insolvency law of any jurisdiction,
      whether now or hereafter in effect (any of the foregoing petitions being
      hereinafter referred to as an “Involuntary
      Petition”)
      and
      such Involuntary Petition shall not have been dismissed within sixty
      (60) days after it was filed; 

     

    (vi) if
      final
      judgment(s) for the payment of money in excess of an aggregate of $150,000
      shall
      be rendered against the Payor and the same shall remain undischarged for a
      period of thirty (30) consecutive days, during which time execution shall not
      be
      effectively stayed; 

     

    (vii) if
      a
      default occurs in the due observance or performance of any material covenant,
      condition or agreement on the part of the Payor under any debt instrument having
      a value of more than $150,000, and such default shall permit the holder thereof
      to accelerate such indebtedness;

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    then,
      upon each and every such Event of Default and at any time thereafter during
      the
      continuance of such Event of Default, at the election of the holders of a
      majority of the outstanding principal amount of the Notes any and all
      indebtedness of the Payor under the Notes shall immediately become due and
      payable, both as to principal and interest (including any deferred interest
      and
      any accrued and unpaid interest), without presentment, demand, or protest,
      all
      of which are hereby expressly waived, anything contained herein or in the
      Purchase Agreement or other evidence of such indebtedness to the contrary
      notwithstanding (except in the case of an Event of Default under
      paragraphs (iv) or (v) of this Section 3(a), in which event such
      indebtedness shall automatically become due and payable).

    

    (b) Remedies
      on Default, Etc.
      In case
      any one or more Events of Default shall occur and be continuing and acceleration
      of this Note shall have occurred, the Payee may, among other things, proceed
      to
      protect and enforce its rights by an action at law, suit in equity or other
      appropriate proceeding, whether for the specific performance of any agreement
      contained herein or in the Purchase Agreement, or for an injunction against
      a
      violation of any of the terms hereof or thereof or in and of the exercise of
      any
      power granted hereby or thereby or by law. No right conferred upon the Payee
      hereby or by the Purchase Agreement shall be exclusive of any other right
      referred to herein or therein or now or hereafter available at law, in equity,
      by statute or otherwise.

     

    Section
      4. Conversion.
      

     

    (a) Subject
      to and upon compliance with the provisions of this Section 4, at the option
      of
      Payee, the entire principal balance of this Note, or any portion of the
      principal amount hereof and the interest related thereto may, at any time and
      from time to time, be converted into fully paid and nonassessable shares of
      the
      Preferred Stock of Payor, at a price equal to the Conversion Price (as
      hereinafter defined), as in effect at the time of conversion.

     

    (b) To
      exercise the conversion privilege, Payee shall surrender this Note, together
      with a written conversion notice, to Payor at its principal office. This Note
      or
      portion thereof shall be deemed to have been converted immediately prior to
      the
      close of business on the date of delivery of this Note, and the giving of such
      notice, to Payor, even if Payor’s stock transfer books are on that date closed,
      and Payee, or the nominee or nominees of Payee, shall be treated for all
      purposes as the record holder of the shares of Preferred Stock deliverable
      upon
      such conversion as of the close of business on such date. Promptly after receipt
      by Payor of this Note and the notice, Payor shall issue and deliver, at its
      expense, to Payee, or to the nominee or nominees of Payee, a certificate or
      certificates for the number of shares of its Preferred Stock due on such
      conversion. Interest shall accrue on the unpaid principal amount of this Note
      converted to the date of conversion, and Payor shall pay such interest at the
      time of conversion.

     

    (c) No
      fractional shares of Preferred Stock shall be issued upon conversion of this
      Note. Instead of any fractional share of Preferred Stock which would otherwise
      be issuable upon conversion of this Note, Payor shall pay a cash adjustment
      in
      respect of such fractional interest. Payee, by its acceptance thereof, expressly
      waives any right to receive any fractional share upon conversion of this
      Note.

     

    (d) The
      Conversion Price at which the Preferred Stock shall be issuable upon conversion
      of this Note shall initially be equal to $0.005333 (the “Conversion
      Price”);
      provided, however, that the Conversion Price and the conversion terms shall
      be
      subject to adjustment as set forth in Section 4(e) below.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (e) If
      at any
      time Payor shall:

     

    (i) subdivide
      its outstanding shares of Preferred Stock into a larger number of shares of
      Preferred Stock, or

     

    (ii) combine
      its outstanding shares of Preferred Stock into a smaller number of shares of
      Preferred Stock,

     

    then
      (A)
      the number of shares of Preferred Stock for which this Note is convertible
      into
      immediately after the occurrence of any such event shall be adjusted to equal
      the number of shares of Preferred Stock which a record holder of the same number
      of shares of Preferred Stock for which this Note is convertible into immediately
      prior to the occurrence of such event would own or be entitled to receive after
      the happening of such event, and (B) the Conversion Price shall be adjusted
      to
      equal (x) the current Conversion Price multiplied by the number of shares of
      Preferred Stock for which this Note is convertible into immediately prior to
      the
      adjustment divided by (y) the number of shares of Preferred Stock for which
      this
      Note is convertible into immediately after such adjustment.

     

    (f) In
      the
      event that Payor shall be a party to (i) any recapitalization or
      reclassification of the Preferred Stock (other than a change in par value or
      as
      a result of a subdivision or combination of the Preferred Stock); (ii) any
      consolidation or merger of Payor with or into another corporation as a result
      of
      which holders of Preferred Stock shall be entitled to receive securities or
      other property or assets (including cash) with respect to or in exchange for
      Preferred Stock (other than a merger which does not result in a
      reclassification, conversion, exchange or cancellation of the outstanding
      Preferred Stock); (iii) any sale or transfer of all or substantially all of
      the
      assets of Payor; or (iv) any compulsory share exchange, pursuant to any of
      which
      holders of Preferred Stock shall be entitled to receive other securities, cash
      or other property (each, a “Fundamental
      Change”),
      then,
      if this Note is not converted prior to such Fundamental Change, appropriate
      provision shall be made so that the holder of this Note shall have the right
      thereafter to convert such security only into the kind and amount of the
      securities, cash or other property that would have been receivable upon such
      recapitalization, reclassification, consolidation, merger, sale, transfer or
      share exchange by a holder of the number of shares of Preferred Stock issuable
      upon conversion of this Note immediately prior to such recapitalization,
      reclassification, consolidation, merger, sale, transfer or share exchange,
      at
      the Conversion Price (subject to adjustment pursuant to Section
      4(e)).

     

    (g) Payor
      will not, by amendment of its Articles of Incorporation or through any
      reorganization, recapitalization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms to be observed
      or performed hereunder by Payor, but will at all times in good faith assist
      in
      the carrying out of all the provisions of this Section 4 and in the taking
      of
      all such action as may be necessary or appropriate in order to protect the
      conversion rights of Payee of this Note against impairment.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (h) The
      issue
      of stock certificates upon conversion of this Note shall be made without charge
      to the converting holder for any tax in respect of such issue. Payor shall
      not,
      however, be required to pay any tax which may be payable in respect of any
      transfer involved in the issue and delivery of shares in any name other than
      that of the holder of any of this Note converted, and Payor shall not be
      required to issue or deliver any such stock certificate unless and until the
      person or persons requesting the issue thereof shall have paid to Payor the
      amount of such tax or shall have established to the satisfaction of Payor that
      such tax has been paid.

     

    (i) The
      holder of this Note shall not have any voting rights.

     

    Section
      5. Defenses.
      The
      obligations of the Payor under this Note shall not be subject to reduction,
      limitation, impairment, termination, defense, set-off, counterclaim or
      recoupment for any reason. 

     

    Section
      6. Exchange
      or Replacement of Notes.

     

    (a) The
      Payee
      may, at its option, in person or by duly authorized attorney, surrender this
      Note, including all accrued and unpaid interest hereon, for exchange at the
      principal business office of the Payor, and receive in exchange therefor, a
      new
      Note in the same principal amount as the unpaid principal amount of this Note
      and bearing interest at the same annual rate as this Note, each such new Note
      to
      be dated as of the date of this Note and to be in such principal amount as
      remains unpaid and payable to such person or persons, or order, as the Payee
      may
      designate in writing. 

     

    (b) Upon
      receipt by the Payor of evidence satisfactory to it of the loss, theft,
      destruction, or mutilation of this Note, and (in case of loss, theft or
      destruction) of an indemnity reasonably satisfactory to it, and upon surrender
      and cancellation of this Note, if mutilated, the Payor will deliver a new Note
      of like tenor in lieu of this Note. Any Note delivered in accordance with the
      provisions of this Section 7 shall be dated as of the date of this Note.

     

    Section
      7. Extension
      of Maturity.
      Should
      the principal of or interest on this Note become due and payable on other than
      a
      business day, the maturity date thereof shall be extended to the next succeeding
      business day, and, in the case of principal, interest shall be payable thereon
      at the rate per annum herein specified during such extension. For the purposes
      of the preceding sentence, a business day shall be any day that is not a
      Saturday, Sunday, or legal holiday in the State of New York. 

     

    Section
      8. Attorneys’
      and Collection Fees.
      Should
      the indebtedness evidenced by this Note or any part hereof be collected at
      law
      or in equity or in bankruptcy, receivership or other court proceedings, or
      this
      Note be placed in the hands of attorneys for collection, the Payor agrees to
      pay, in addition to principal and interest due and payable hereon, all costs
      of
      collection, including reasonable attorneys’ fees and expenses, incurred by the
      Payee in collecting or enforcing this Note. 

     

    Section
      9. Waivers.
      The
      Payor hereby waives presentment, demand for payment, notice of dishonor, notice
      of protest and all other notices or demands in connection with the delivery,
      acceptance, performance or default of this Note. No delay by the Payee in
      exercising any power or right hereunder shall operate as a waiver of any power
      or right, nor shall any single or partial exercise of any power or right
      preclude other or further exercise thereof, or the exercise of any other power
      or right hereunder or otherwise; and no waiver whatsoever or modification of
      the
      terms hereof shall be valid unless set forth in writing by the Payee and then
      only to the extent set forth therein. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
      10. Amendments
      and Waivers.
      No
      provision of this Note may be amended or waived except as provided in the
      Purchase Agreement. 

     

    Section
      11. Highest
      Lawful Rate.
      Notwithstanding anything herein to the contrary, if during any period for which
      interest is computed hereunder, the amount of interest computed on the basis
      provided for in this Note, together will all fees, charges, and other payments
      or rights which are treated as interest under applicable law, as provided for
      herein or in any other document executed in connection herewith, would exceed
      the amount of such interest computed on the basis of the Highest Lawful Rate,
      the Corporation shall not be obligated to pay, and the Holder shall not be
      entitled to charge, collect, receive, reserve, or take, interest in excess
      of
      the Highest Lawful Rate, and during any such period the interest payable
      hereunder shall be computed on the basis of the Highest Lawful Rate. As used
      herein, “Highest
      Lawful Rate”
means
      the maximum non-usurious rate of interest, as in effect from time to time,
      which
      may be charged, contracted for, reserved, received, or collected by the Holder
      in connection with this Note under applicable law. In accordance with this
      section, any amounts received in excess of the Highest Lawful Rate shall be
      applied towards the prepayment of principal then outstanding. 

     

    Section
      12. Governing
      Law.
      This
      Note is made and delivered in, and shall be governed by and construed in
      accordance with the internal laws of, the Commonwealth of Pennsylvania (without
      giving effect to principles of conflicts of laws). 

     

    Section
      13. Notices.
      The
      terms and provisions of Section 7.6 of the Purchase Agreement are expressly
      incorporated into this Note.

     

    (remainder
      of page intentionally left blank; signature page to follow)

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Payor has duly executed and delivered this Note as of the date first written
      above.

     

    

    
      	 	
              LASERLOCK
                TECHNOLOGIES, INC.

            
	 	 
	 	 
	 	 
	 	
              By:      
                /s/
                NORMAN
                GARDNER                                 
                

              Name: Norman
                Gardner

              Title:  
                President
                and Chief Executive Officer

            
	 	 
	 	 
	
              ACKNOWLEDGED
                AND ACCEPTED BY:

            	 
	 	 
	
              CLYDESDALE
                PARTNERS II, LLC

            	 
	 	 
	
              By
                its Manager, PFK Management Group, LLC, a California limited liability
                company

            	 
	 	 
	
              By:     
                /s/
                JAMES S.
                MADDEN                            
                 

              Name:
                James S. Madden

              Its:     
                Manager

            	 

    

    

    
      
         

      

      
        7NOTE
      PURCHASE AGREEMENT

     

    THIS
      NOTE
      PURCHASE AGREEMENT is made as of the 18 day of May, 2007, by and among LaserLock
      Technologies, Inc., a Nevada corporation (the “Corporation”),
      and
      the investors listed on Schedule
      A
      hereto
(as
      the
      same may be amended, modified or supplemented from time to time), and who have
      executed a counterpart signature page hereto (each individually, an
“Investor”
and
      collectively the “Investors”).

     

    THE
      PARTIES HEREBY AGREE AS FOLLOWS:

     

    1. Purchase
      and Sale of Notes.

     

    1.1 Purchase
      and Sale.
      Subject
      to the terms and conditions of this Agreement, at the Closing (as hereinafter
      defined), the Investors will purchase, severally and not jointly, and the
      Corporation will sell and issue to the Investors, convertible promissory notes,
      each in the form attached hereto as Exhibit
      A
      (collectively, the “Notes”
and
      each, individually, a “Note”)
      in the
      aggregate principal amount of $400,000.

     

    1.2 Closings.
      The
      purchase and sale of the Notes (the “Closings”)
      shall
      take place at the offices of Morgan, Lewis & Bockius LLP, 1701 Market
      Street, Philadelphia, Pennsylvania 19103, at 10:00 a.m. local time, on the
      dates
      set forth in Schedule
      A,
      or at
      such other location, dates and time as may agreed upon between the Investors
      and
      the Corporation (each a “Closing
      Date”).
      At
      each
      Closing, the Corporation shall issue and deliver to each Investor a Note in
      the
      principal amount set forth opposite each Investor’s name in Schedule
      A
      (the
“Purchase
      Amount”).

     

    1.3 Payments.
      At each
      Closing, against delivery of the Note being purchased by each Investor, such
      Investor shall (i) deliver to the Corporation either a bank or certified check
      payable to the order of the Corporation, or (ii) transfer such sum to the
      account of the Corporation by wire transfer.

     

    1.4 Deliveries.
      At each
      Closing, the Corporation will issue and deliver the Notes to the Investors
      against payment of the full purchase price therefor by wire transfer or bank
      or
      certified check payable to the order of the Corporation.

     

    1.5 Use
      of
      Proceeds.
      The
      Corporation will use the balance of the proceeds from the sale of the Notes
      for
      working capital and general corporate purposes and, at the first Closing, to
      repay all of the outstanding unsecured indebtedness of the Company to PFK
      Development Group, Ltd in the aggregate amount outstanding as of April 30,
      2007
      of $152,513.89.

     

    2. Representations,
      Warranties and Covenants of the Corporation.
      Subject
      to the exceptions disclosed in the forms, documents and other reports required
      to be filed or furnished by the Corporation with the Securities and Exchange
      Commission filed or furnished prior to the date of this Agreement (the
“SEC
      Documents”),
      the
      Corporation hereby represents and warrants to each Investor purchasing Notes
      at
      any Closing that as of the date of such Closing: 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.1 Organization.
      The
      Corporation is duly organized, validly existing and in good standing under
      the
      laws of the State of Nevada, and has all requisite corporate or other power
      and
      authority to own, lease and operate its properties and other assets and to
      carry
      on its business as presently conducted and as presently proposed to be conducted
      and as a foreign corporation in the State of Pennsylvania, which constitute
      all
      the jurisdictions in which the character of the property owned or leased by
      the
      Corporation or the nature of the activities conducted by the Corporation makes
      such qualification necessary, except where the failure to be so qualified could
      not reasonably be expected to have a material adverse effect on the assets,
      condition, or business as now conducted (“Material
      Adverse Effect”).
      

     

    2.2 Capitalization.
      The
      authorized capital stock of the Corporation immediately upon the consummation
      of
      the Closing shall consist of:

     

    (a) 75,000,000
      duly authorized shares of Preferred Stock $.001 par value per share
      (“Preferred
      Stock”),
      all
      of which have shares been designated “Series A Preferred Stock” and none of
      which shares are issued and outstanding.

     

    (b) 175,000,000
      duly authorized shares of Common Stock $.001 par value per share (“Common
      Stock”),
      of
      which, as of April 25, 2007, 73,440,506 shares are issued and outstanding,
      all
      of which are fully paid and nonassessable.

     

    (c) Except
      as
      contemplated hereby or in the SEC Documents, there are, and immediately upon
      consummation of the transactions contemplated by the Financing Documents (as
      hereinafter defined), there will be, no preemptive or similar rights to purchase
      or otherwise acquire capital stock of the Corporation pursuant to any provision
      of law, the Charter, the Bylaws or any agreement to which the Corporation or
      any
      stockholder thereof is a party. There is, and immediately upon the consummation
      of the transactions contemplated by the Financing Documents, there will be,
      no
      agreement, restriction or Encumbrance (such as a right of first refusal, right
      of first offer, proxy, voting trust, voting agreement, etc.) with respect to
      the
      sale or voting of any capital stock of the Corporation (whether outstanding
      or
      issuable upon conversion or exercise of outstanding securities). Except as
      contemplated hereby, there are no outstanding offers, commitments or other
      rights to purchase Notes.

     

    2.3 Authorization
      of Agreement, Etc.
      The
      execution, delivery and performance by the Corporation of this Agreement, the
      Notes and each other document or instrument contemplated hereby (collectively,
      the “Financing
      Documents”)
      have
      been duly authorized by all requisite corporate action by the Corporation;
      and
      this Agreement and each other Financing Document has been duly executed and
      delivered by the Corporation. Each of the Financing Documents is or, in the
      case
      of the Notes, will be, the valid and binding obligation of the Corporation,
      enforceable against the Corporation in accordance with its terms, subject to
      applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
      moratorium or other similar laws affecting creditors’ rights and remedies
      generally, and subject, as to enforceability, to general principles of equity
      (regardless of whether enforcement is sought in a proceeding at law or in
      equity). 

     

    2.4 No
      Conflicts.
      The
      execution, delivery and performance by the Corporation of this Agreement or
      the
      other Financing Documents, the issuance, sale and delivery of the Notes, and
      compliance with the provisions hereof by the Corporation, will not (a) violate
      any provision of law, statute, rule or regulation (whether foreign or domestic)
      applicable to the Corporation or any ruling, writ, injunction, order, judgment
      or decree of any court, arbitrator, administrative agency or other governmental
      body (whether foreign or domestic) applicable to the Corporation or any of
      its
      properties or assets or (b) conflict with or result in any breach of any of
      the
      terms, conditions or provisions of, or constitute (with notice or lapse of
      time
      or both) a default (or give rise to any right of termination, cancellation
      or
      acceleration) under, or result in the creation of, any encumbrance upon any
      of
      the properties or assets of the Corporation under, the articles of incorporation
      or bylaws of the Corporation or any contract or other agreement or instrument
      to
      which it is a party.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    2.5 Approvals.
      Except
      for the (a) filing of any notice subsequent to the Initial Closing which may
      be
      required under applicable foreign, federal or state securities law (which,
      if
      required, will be filed on a timely basis as may be so required) and (b)
      obtaining the consent of Senior Note Holders (as hereinafter defined) under
      the
      instruments and other documents delivered in connection with the Senior Loan
      Agreement (as hereinafter defined), no permit, authorization, consent or
      approval of or by, or any notification of or filing with, any person
      (governmental or private) is required in connection with the execution, delivery
      or performance of the Financing Documents by the Corporation.

     

    3. Representations,
      Warranties and Covenants of the Investors.
      Each
      Investor, severally and not jointly, hereby represents, warrants and covenants
      that:

     

    3.1 Authorization.
      This
      Agreement and the other Financing Documents to which it is a party constitute
      its valid and legally binding obligations, enforceable in accordance with their
      respective terms.

     

    3.2 Purchase
      Entirely for Own Account.
      This
      Agreement is made with each Investor in reliance upon such Investor’s
      representation to the Corporation, which by such Investor’s execution of this
      Agreement such Investor hereby confirms, that the Notes to be received by such
      Investor hereunder will be acquired for investment for such
      Investor’s own account, not as a nominee or agent, and not with a view to the
      resale or distribution of any part thereof, and that such Investor has no
      present intention of selling, granting any participation in, or otherwise
      distributing the same. By executing this Agreement, each Investor further
      represents that such Investor does not have any contract, undertaking, agreement
      or arrangement with any person to sell, transfer or grant participations to
      such
      person or to any third person, with respect to any of the Notes. Each Investor
      represents that it has full power and authority to enter into this Agreement
      and
      each of the other Financing Documents to which it is a party.

     

    3.3 Disclosure
      of Information.
      It
      believes it has received all the information it considers necessary or
      appropriate for deciding whether to purchase the Notes being offered, sold
      and
      delivered hereunder. Each Investor further represents that it has had an
      opportunity to ask questions and receive answers from the Corporation regarding
      the terms and conditions of the sale of the Notes.

     

    3.4 Investment
      Experience.
      It is
      an investor in securities of companies in the development stage and acknowledges
      that it is able to fend for itself, can bear the economic risk of its investment
      and has such knowledge and experience in financial or business matters that
      it
      is capable of evaluating the merits and risks of the investment in the Notes
      being issued hereunder. If other than an individual, each Investor also
      represents it has not been organized solely for the purpose of acquiring the
      Notes being issued hereunder.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    3.5 Restricted
      Securities.
      It
      understands that the Notes it is purchasing pursuant hereto and the Conversion
      Stock to be issued upon conversion of the Notes are characterized as “restricted
      securities” under the federal securities laws in as much as such shares are
      being acquired from the Corporation in a transaction not involving a public
      offering and that under such laws and applicable regulations such securities
      may
      be resold without registration under the Act only in certain limited
      circumstances, and is aware that the certificates representing such Investor’s
      respective ownership of Notes and Conversion Stock, as the case may be, will
      bear related restrictive legends. In this connection, each Investor represents
      that it is familiar with Rule 144 promulgated under the Act, as presently in
      effect, and understands the resale limitations imposed thereby and by the
      Act.

     

    3.6 Accredited
      Investor.
      Such
      Investor is an Accredited Investor within the definition set forth in Rule
      501(a) under the Act.

     

    3.7 Finder’s
      Fee.
      Such
      Investor is not obligated for any finder’s fee or commission in connection with
      the transactions contemplated by this Agreement. Each Investor shall indemnify
      and hold harmless the Corporation from any liability for any commission or
      compensation in the nature of a finder’s fee (and the costs and expenses of
      defending against such liability or asserted liability) for which the Investor
      or any of its officers, partners, employees, or representatives is
      responsible.

     

    4. Conditions
      of Each Investor’s Obligations at the Closing.
      The
      obligations of each Investor under Section 1 of this Agreement are subject
      to
      the fulfillment on or before each Closing Date of each of the following
      conditions, the waiver of which shall not be effective against any Investor
      who
      does not consent in writing thereto:

     

    4.1 Representations
      and Warranties.
      The
      representations and warranties made by the Corporation in Section 2 hereof
      shall
      be true and correct in all material respects on and as of such Closing Date
      as
      if made on and as of such date.

     

    4.2 Proceedings
      and Documents.
      All
      corporate and other proceedings in connection with the transactions contemplated
      at such Closing and all documents incident thereto shall be reasonably
      satisfactory in form and substance to such Investor, and each such Investor
      shall have received all such counterpart original and certified or other copies
      of such documents as the Investor may reasonably request, including but not
      limited to a copy of this Agreement and each of the other Financing Documents
      executed by the Corporation.

     

    5. Conditions
      of the Corporation’s Obligations at the Closing.
      The
      obligations of the Corporation to each Investor under this Agreement are subject
      to the fulfillment on or before each Closing Date of each of the following
      conditions by that Investor:

     

    5.1 Representations
      and Warranties.
      The
      representations and warranties of the Investor contained in Section 3 shall
      be
      true on and as of such Closing.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    5.2 Payment
      of Purchase Price.
      The
      Investors shall have delivered the purchase price specified in Section
      1.1.

     

    5.3 Execution.
      The
      Investor shall have executed and delivered a counterpart signature page to
      this
      Agreement and the other Financing Documents.

     

    6. Protective
      Provision.
      For so
      long as there are any Notes outstanding, the Corporation shall not, without
      the
      prior written consent of the holders of the majority of the outstanding
      principal amount of the Notes then outstanding, increase or decrease the number
      of authorized shares of Common Stock or Preferred Stock.

     

    7. Miscellaneous.

     

    7.1 Survival
      of Warranties.
      The
      warranties, representations and covenants of the Corporation and the Investors
      contained in or made pursuant to this Agreement shall survive the execution
      and
      delivery of this Agreement and the Closing and shall in no way be affected
      by
      any investigation of the subject matter thereof made by or on behalf of the
      Investors or the Corporation.

     

    7.2 Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      assigns of the parties. Nothing in this Agreement, express or implied, is
      intended to confer upon any party other than the parties hereto or their
      respective successors and assigns any rights, remedies, obligations, or
      liabilities under or by reason of this Agreement, except as expressly provided
      in this Agreement.

     

    7.3 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      Commonwealth of Pennsylvania (without reference to the conflicts of law
      provisions thereof).

     

    7.4 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.
      This
      Agreement may be executed by facsimile signature.

     

    7.5 Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    7.6 Notices.
      All
      notices, demands and requests of any kind to be delivered to any party in
      connection with this Agreement shall be in writing and shall be deemed to have
      been duly given if personally delivered or if sent by internationally-recognized
      overnight courier or by registered or certified mail, return receipt requested
      and postage prepaid, addressed as follows:

     

    (a) if
      to the
      Corporation, to:

     

    Laserlock
      Technologies, Inc.

    837
      Lindy
      Lane

    Bala
      Cynwyd, PA 19004

    Telecopy:
      (610) 668-2771

    Attention:
      Chairman and CEO

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (b) if
      to an
      Investor, to the address of such Purchaser set forth on Schedule
      A;

     

    or
      to
      such other address as the party to whom notice is to be given may have furnished
      to the other parties hereto in writing in accordance with the provisions of
      this
      Section 6.6. Any such notice or communication shall be deemed to have been
      received (i) in the case of personal delivery, on the date of such
      delivery, (ii) in the case of internationally-recognized overnight courier,
      on the next business day after the date when sent and (iii) in the case of
      mailing, on the third business day following that on which the piece of mail
      containing such communication is posted.

     

    7.7 Expenses.
      The
      Corporation shall pay all of the expenses (legal, accounting and other expenses,
      if any) incurred by the Investors in connection with the negotiation,
      preparation and execution of this Agreement and the transactions contemplated
      hereby.

     

    7.8 Amendments
      and Waivers.
      Any
      term,
      covenant, agreement or condition of this Agreement may be amended, and
      compliance therewith may be waived (either generally or in a particular
      circumstance and either retroactively or prospectively), by one or more
      substantially concurrent written instruments signed by the Corporation and
      by
      Investors holding Notes representing at least a majority of the principal amount
      of all of the outstanding Notes issued pursuant to this Agreement (the
“Majority
      Purchasers”).
      Any
      amendment or waiver effected in accordance with this Section 6.8 shall be
      binding upon all of the Investors and the Corporation. 

     

    7.9 Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of the Agreement shall be interpreted as if such provision were so
      excluded and shall be enforceable in accordance with its terms.

     

    7.10 Entire
      Agreement.
      This
      Agreement and the other documents delivered pursuant hereto and thereto
      constitute the full and, entire understanding and agreement between the parties
      with regard to the subjects hereof and thereof.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      above written.

     

    
      	 	
              LASERLOCK
                TECHNOLOGIES, INC.

               

               

              By:  /s/
                NORMAN
                GARDNER                             
                

              Name:
                Norman Gardner

              Title:  
                President and Chief Executive Officer

            
	 	 
	 	 
	 	 
	 	 
	 	 

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      Note Purchase Agreement dated as of May 18, 2007

    

    INVESTORS:

    

    CLYDESDALE
      PARTNERS II, LLC

     

    By
      its
      Manager, PFK Management Group, LLC,

    a
      California limited liability company

     

    

    

    
      	
              By:

            	
              /s/
                JAMES S. MADDEN

            
	 	
              Name:
                James S. Madden

            
	 	
              Title:
                Manager

            

    

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      Note Purchase Agreement dated as of May 18, 2007

    

    INVESTORS:

    

    NOB
      HILL
      CAPITAL PARTNERS LP

     

    By
      its
      General Partner, Nob Hill Capital Management, Inc.,

    a
      California corporation

     

    

    

    
      	
              By:

            	
              /s/
                STEPHEN MITTEL

            
	 	
              Name:
                Stephen Mittel

            
	 	
              Title:
                President

            

    

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
      A

    

    

    
      	
              Investor

            	
              Address

            	
              Purchase
                Amount

            	
              Closing
                Date

            
	
              Clydesdale
                Partners II, LLC

            	
              160
                Spear Street, Suite 230

              San
                Francisco, California 94105-1546

            	
              $110,000

            	
              May
                18, 2007

            
	
              --

            	
              --

            	
              $25,000

            	
              August
                31, 2007

            
	
              --

            	
              --

            	
              $25,000

            	
              September
                30, 2007

            
	
              --

            	
              --

            	
              $25,000

            	
              October
                31, 2007

            
	
              --

            	
              --

            	
              $25,000

            	
              November
                30, 2007

            
	
              --

            	
              --

            	
              $25,000

            	
              December
                31, 2007

            
	
              --

            	
              --

            	
              $25,000

            	
              January
                31, 2008

            
	
              Nob
                Hill Capital Partners LP

            	 	
              $140,000

            	
              May
                18, 2007

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