Document:

EXHIBIT
      10.1

    

    SECURED
      PROMISSORY NOTE

    

    
      	
              $527,849.50

            	
              September
                12, 2008

            

    

    

    This
      PROMISSORY NOTE (the “Note”), dated September 12, 2008, from VioQuest
      Pharmaceuticals, Inc. (“Maker”), a corporation duly formed and existing under
      the laws of the state of New Jersey, to Morgan, Lewis & Bockius, LLP
      (“Payee”), a limited liability partnership duly formed and existing under the
      laws of the Commonwealth of Pennsylvania.

    

    WHEREAS,
      Payee has provided legal advice and services from time to time to Maker relating
      to various aspects of Maker’s business;

    

    WHEREAS,
      Payee has accrued fees and expenses, which, as of the date hereof, total
      $527,849.50, and which are currently due and payable by Maker;

    

    WHEREAS,
      due to current financial limitations, Maker proposed to evidence its payment
      obligation in this Note, which Note shall be payable no later than December
      31,
      2008;

    

    WHEREAS,
      Payee has agreed to accept this Note on the terms and conditions contained
      herein;

    

    NOW,
      THEREFORE, FOR VALUE RECEIVED and intending to be legally bound, Maker hereby
      unconditionally promises to pay to the order of Payee, with an address of 1701
      Market Street, Philadelphia, Pennsylvania 19103 (or such other address as Payee
      may specify in writing), the principal amount of FIVE HUNDRED TWENTY-SEVEN
      THOUSAND, EIGHT HUNDRED FORTY-NINE DOLLARS AND FIFTY CENTS ($527,849.50), in
      the
      manner and upon the terms and conditions set forth below. 

    

    The
      actual amount due and owing from time to time under this Note shall be evidenced
      by Payee’s records of receipts and disbursements, which shall be prima facie
      evidence of such amount, absent manifest error. This Note shall not accrue
      interest.

    

    1.  Payment.
      The
      entire outstanding principal amount of this Note shall be due and payable upon
      the earlier of (a) the occurrence of one or more Liquidity Events, the aggregate
      proceeds of which are sufficient to satisfy in full Maker’s obligations under
      this Note, or (b) December 31, 2008. 

     

    For
      purposes of this Note, a “Liquidity
      Event”
shall
      mean the occurrence of one or more of the following: 

    (i)  the
      approval by the New Jersey Economic Development Authority (“NJEDA”)
      of
      Maker’s application (the “Application”)
      to
      sell Maker’s Unused Net Operating Losses Carryover (as defined in the
      Application) under NJEDA’s Technology Business Tax Certificate Transfer Program
      (the “Program”),
      and
      the subsequent sale of Maker’s Unused Net Operating Losses Carryover
      thereunder;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)  any
      sale,
      transfer or other disposition (including pursuant to a sale-leaseback
      transaction) of any property or asset of Maker or any subsidiary (other than
      sales of inventory in the ordinary course of business), unless, within 90 days
      of Maker’s receipt of such proceeds (or if committed to be reinvested within 180
      days of the receipt of such proceeds, within 180 days of the receipt of such
      proceeds), such proceeds are reinvested to replace the property or assets so
      sold, transferred or disposed of; 

     

    (iii)  any
      licensing or similar transaction pursuant to which Maker authorizes a third
      party to use, copy, enhance, modify, access, distribute and/or sublicense any
      of
      Maker’s intellectual property;

     

    (iv)  the
      incurrence, sale or issuance of any indebtedness and/or the issuance of any
      equity by Maker or any subsidiary thereof; or

     

    (v)  any
      casualty or other insured damage to, or any taking under power of eminent domain
      or by condemnation or similar proceeding of, any property or asset of Maker,
      unless within 90 days of Maker’s receipt of such proceeds (or if committed to be
      reinvested within 180 days of the receipt of such proceeds, within 180 days
      of
      the receipt of such proceeds), such proceeds are reinvested to repair or replace
      the property or assets so damaged or taken.

     

    2.  Mandatory
      Prepayment.
      Notwithstanding the provisions of Section
      1,
      upon
      the occurrence of any Liquidity Event, Maker shall promptly pay to Payee in
      full, in cash, that portion of the outstanding principal amount of the Note
      equal to the proceeds of the Liquidity Event, regardless of whether the proceeds
      of such Liquidity Event are sufficient to fully satisfy Maker’s payment
      obligations under this Note.

     

    3.  Security.
      

     

    (a)  As
      security for the prompt and complete payment and performance in full of all
      obligations under this Note, Maker hereby pledges and assigns to Payee, and
      hereby grants to Payee, a security interest in and a lien on all of the
      Collateral. For purposes of this Note, “Collateral”
shall
      mean all right, title and interest of Maker in, to and under any and all
      proceeds of the sale or sales of Maker’s Unused Net Operating Losses Carryover
      under the Program.

     

    (b)  Maker
      hereby irrevocably authorizes Payee at any time and from time to time to file
      in
      any filing office in any Uniform Commercial Code jurisdiction any initial
      financing and continuation statements and amendments thereto that are necessary
      or advisable, as determined by Payee, for the establishment and maintenance
      of
      Payee’s security interest hereunder.

     

    4.  Events
      of Default and Remedies.
      

     

    (a)  Events
      of Default.
      In case
      one or more of the following events (“Events
      of Default”)
      (whatever the reason for such Event of Default and whether it shall be voluntary
      or involuntary or be effected by operation of law or pursuant to any judgment,
      decree or order of any court or any order, rule or regulation of any
      administrative or governmental body) shall have occurred and be
      continuing:

     

    
      
         

      

      
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    (i)  default
      in the payment of all or any part of the principal of this Note as and when
      the
      same shall become due and payable; or

     

    (ii)  the
      issuance of any execution or distraint process against Maker, or any property
      of
      Maker is seized by any federal, state or local governmental entity;
      or

     

    (iii)  Maker
      pursuant to or within the meaning of any federal or state bankruptcy law: (A)
      commences a voluntary case or proceeding, (B) consents to the entry of an order
      for relief against it in an involuntary case or proceeding, (C) consents to
      the
      appointment of a receiver or trustee for it or for all or substantially all
      of
      its property, (D) makes a general assignment for the benefit of its creditors,
      or (E) admits in writing its inability to pay its debts as the same become
      due;
      or

     

    (iv)  a
      court
      of competent jurisdiction enters an order or decree under any federal or state
      bankruptcy law that: (A) is for relief against Maker in an involuntary case,
      (B)
      appoints a receiver or trustee of Maker or for all or substantially all of
      the
      property of Maker, or (C) orders the liquidation of Maker’s assets, and such
      order or decree remains unstayed and in effect for 60 days.

     

    (b)  Rights
      and Remedies upon an Event of Default.
      

     

    (i)  In
      each
      case where an Event of Default specified in Section 5(a) occurs, the principal
      hereunder shall become and be immediately due and payable without declaration,
      demand, notice, presentment or protest or further action of any kind on the
      part
      of the Payee. 

     

    (ii)  At
      any
      time following the occurrence and during the continuance of an Event of Default,
      Payee may, in its discretion, exercise all other rights, options and remedies
      granted or available to Payee under this Note or otherwise available at law
      or
      in equity, including, without limitation, the right to collect the unpaid
      obligations, liabilities and indebtedness of Maker arising under this
      Note.

     

    5.  Waiver
      by Maker.
      Maker
      hereby waives protest, demand, notice of nonpayment and all other notices in
      connection with the delivery, acceptance, performance or enforcement of this
      Note.

     

    6.  JUDGMENT
      BY CONFESSION.
      THE
      FOLLOWING SETS FORTH A WARRANT OF AUTHORITY FOR ANY PROTHONOTARY, CLERK OR
      ATTORNEY TO CONFESS JUDGMENT AGAINST MAKER. IN GRANTING THIS WARRANT OF ATTORNEY
      TO CONFESS JUDGMENT AGAINST MAKER, FOLLOWING CONSULTATION WITH (OR DECISION
      NOT
      TO CONSULT WITH) COUNSEL, AND WITH KNOWLEDGE OF THE LEGAL EFFECT HEREOF, MAKER
      HEREBY WAIVES ANY AND ALL RIGHTS IT HAS OR MAY HAVE TO PRIOR NOTICE AND AN
      OPPORTUNITY FOR HEARING UNDER THE CONSTITUTIONS AND LAWS OF THE UNITED STATES
      AND THE COMMONWEALTH OF PENNSYLVANIA. MAKER SPECIFICALLY ACKNOWLEDGES THAT
      PAYEE
      HAS RELIED ON THIS WARRANT OF ATTORNEY IN GRANTING THE ACCOMMODATIONS DESCRIBED
      HEREIN.

     

    IF
      PERMITTED BY LAW, MAKER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY
      OF ANY COURT OF RECORD, OR THE PROTHONOTARY OR THE CLERK OF ANY COURT OF RECORD
      IN THE COMMONWEALTH OF PENNSYLVANIA OR IN ANY JURISDICTION, TO APPEAR FOR MAKER
      IN ANY AND ALL ACTIONS WHICH MAY BE BROUGHT HEREUNDER IN THE COMMONWEALTH OF
      PENNSYLVANIA OR ELSEWHERE AND CONFESS AND ENTER JUDGMENT AGAINST MAKER IN FAVOR
      OF PAYEE FOR ALL, OR ANY PART OF, THE UNPAID PRINCIPAL AMOUNT AND ACCRUED
      INTEREST HEREUNDER, TOGETHER WITH ALL OTHER COSTS AND EXPENSES INCURRED IN
      CONNECTION THEREWITH, INCLUDING ATTORNEYS’ FEES OF FIVE PERCENT (5%) OF THE
      TOTAL OF THE FOREGOING SUM, BUT IN NO EVENT LESS THAN FIVE THOUSAND DOLLARS
      ($5,000), AND FOR SUCH PURPOSE, THE ORIGINAL OR ANY PHOTOCOPY OF THIS NOTE
      SHALL
      BE A GOOD AND SUFFICIENT WARRANT OF ATTORNEY. SUCH AUTHORIZATION SHALL NOT
      BE
      EXHAUSTED BY ONE EXERCISE THEREOF AND SHALL CONTINUE UNTIL THE OBLIGATIONS
      ARE
      FULLY PAID, PERFORMED, DISCHARGED AND SATISFIED.

     

    
      
         

      

      
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    TO
      THE
      EXTENT PERMITTED BY LAW, MAKER AUTHORIZES PAYEE TO SUBJECT ALL OF ITS PROPERTY,
      BOTH PERSONAL AND REAL ESTATE, TO LEVY AND EXECUTION (AND SHERIFF’S SALE),
      PURSUANT TO SUCH JUDGMENT AND WITHOUT NOTICE AND A PRIOR OPPORTUNITY FOR
      HEARING. MAKER ACKNOWLEDGES THAT IT HAS HAD CONSULTATION WITH (OR DECISION
      NOT
      TO CONSULT WITH) COUNSEL IN THE REVIEW AND EXECUTION OF THIS NOTE AND FURTHER
      ACKNOWLEDGES THAT THE MEANING AND EFFECT OF THE FOREGOING PROVISIONS CONCERNING
      CONFESSION OF JUDGMENT HAVE BEEN FULLY EXPLAINED TO THE MAKER BY SUCH
      COUNSEL.

     

    7.  Delay;
      Omission.
      No
      delay or omission by Payee in exercising any right or remedy hereunder shall
      operate as a waiver of such right or remedy or any other right or remedy; and
      a
      waiver on one occasion shall not be a bar to or waiver of any right or remedy
      on
      any other occasion. All rights and remedies of Payee hereunder, any other
      applicable document and under applicable law shall be cumulative and not in
      the
      alternative. No provision of this Note may be waived or modified orally but
      only
      by a writing (a) signed by the party against whom enforcement of such amendment,
      waiver or other modification is sought and (b) consented to in writing by
      Payee.

     

    8.  Waiver
      of Jury Trial.
      Maker
      hereby irrevocably and unconditionally waives
      any and all rights that it may have to a jury trial in connection with any
      litigation or other proceeding arising with respect to any rights and
      obligations of the parties hereto.

     

    9.  Successors
      and Assigns.
      This
      Note shall bind the Maker and the Maker’s successors and permitted assigns and
      shall inure to the benefit of Payee and the Payee’s heirs, representatives,
      successors and registered assigns. The term “Payee”
as
      used
      herein shall include, in addition to the initial Payee, any successors,
      endorsees, or other assignees of such Payee and shall also include any other
      holder of this Note.

     

    10.  GOVERNING
      LAW.
      THIS
      NOTE SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE COMMONWEALTH
      OF
      PENNSYLVANIA IN ALL RESPECTS, WITHOUT GIVING EFFECT TO CONFLICT OF LAW
      PRINCIPLES THEREOF.

     

    
      
         

      

      
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    11.  Consent
      to Jurisdiction.
      Maker
      agrees that any and all actions and proceedings, whether arising under this
      Note
      or under any related agreements, instruments, or other documents, may be brought
      in any state or federal courts located in the city of Philadelphia, Pennsylvania
      and irrevocably consents to the jurisdiction of such court and to service of
      process in any such action being made upon Maker. Maker hereby waives any
      objection that it may now or hereafter have to the venue of any such suit or
      any
      such court or that such suit is brought in an inconvenient court.

     

    12.  Severability.
      The
      provisions of this Note are to be deemed severable and the invalidity,
      illegality or unenforceability of one or more of the provisions of this Note
      in
      any jurisdiction shall not affect the validity, legality or enforceability
      of
      the remaining provisions of this Note in such jurisdiction, or the validity,
      legality or enforceability of this Note, including any such provision, in any
      other jurisdiction.

     

    13.  Headings.
      The
      headings of any section of this Note are for convenience only and shall not
      be
      used to interpret any provision of this Note.

     

    

     

    

    [Remainder
      of page intentionally left blank.]

     

     

     

     

     

     

     

     

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, Maker has caused this Note to be executed on the date first
      set
      forth above.

    

    
      	 	 	 
	 	MAKER:
	 	 
	 	VIOQUEST PHARMACEUTICALS, INC.
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Christopher
              P. Schnittker
	 	
              
Name:
              Christopher P. Schnittker
	 	Title:
              VP & CFO
	 	
              Address: 180 Mt. Airy Road, Suite 102 

                               
                Basking Ridge, NJ 07920

            
	 	 

    

     

     

     

    
      
         

      

      
        6JOINT
      VENTURE SHAREHOLDERS AGREEMENT

     

    THIS
      JOINT VENTURE SHAREHOLDERS AGREEMENT is made this 18th day of December, 2007
      (this "Agreement") by and among LASER ENERGETICS, INC., an Oklahoma Corporation
      with an address of 3535 Quaker Bridge Road, Suite 700, Mercerville, New Jersey
      08619 ("LEI") and LANTIS LASER, INC., a Nevada corporation with an address
      of 11
      Stonebridge Court, Denville, New Jersey 07834 ("LLI") (LEI and LLI are
      collectively referred to as the "Shareholders" and each a "Shareholder"); and
      HyGeniLase, Inc., a Delaware corporation with an address of 3535 Quaker Bridge
      Road, Suite 700, Mercerville, New Jersey 08619 (the "Company").

     

    WITNESSETH:

     

    WHEREAS,
      LEI is
      engaged in the design, engineering, manufacturing, sales and distribution of
      lasers; 

     

    WHEREAS,
      LLI is
      engaged in the commercialization of technology in the human and animal dental
      field including managing clinical development and sales and
      marketing;

     

    WHEREAS,
      LEI and
      LLI are parties to a certain Memorandum of Understanding dated October 25,
      2007
      (the "MOU") pursuant to which the Shareholders agreed to form a joint venture
      to
      develop, manufacture, market, sell and distribute dental laser systems and
      dental laser process technology to the dental markets (the "Joint
      Venture");

     

    WHEREAS,
      LLI has
      determined that research prototype and study found in LEI Quotation #10072147
      have been successfully completed, and accordingly has agreed to form the Company
      and enter into this Agreement in furtherance of the Joint Venture;

     

    NOW
      THEREFORE,
      in
      consideration of the premises and mutual understandings contained herein, the
      Shareholders agree as follows:

     

    1. ESTABLISHMENT
      OF THE COMPANY.
      Prior
      to the execution of this Agreement, the Shareholders have established a Delaware
      corporation, and accordingly will cause amendments to the corporation's
      organizational documents as follows:

     

    1.1 Name.
      The
      name of the Company shall be HyGeniLase, Inc., or if such name is not available,
      then such other name as the Shareholders mutually agree in writing.

     

    1.2 Purpose.
      The purpose of business of the Company shall be to develop, manufacture, market,
      sell and distribute dental laser systems and dental laser process technology
      to
      the dental markets worldwide. The Company shall not conduct any other business
      without the prior written consent of the Shareholders.

     

    1.3 Address.
      The principal office of the Company shall be located at the offices of
      LEI.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 Shareholders.
      In consideration for the payments, licenses and contributions by each of the
      Shareholders pursuant to the MOU and this Agreement, each Shareholder shall
      initially be issued 100 shares of Common Stock, par value $0.001 (along with
      any
      other shares issued to either of the Shareholders, the "Shares"), so that each
      Shareholder owns 50% of the issued and outstanding equity in the Company. Except
      as otherwise set forth in this Agreement, neither Shareholder shall have any
      further obligations to furnish additional funds in connection with the Company.
      No additional equity (whether by issuance of stock, convertible debt, warrants,
      options, or otherwise) in the Company shall be issued without the prior written
      consent of the Shareholders.

     

    1.5 Number
      of
      Directors. Board of Directors shall consist of two Directors. Each Director
      shall have one vote.

     

    1.6 The
      Board
      will consist of one Director nominated by LEI and one Director nominated by
      LLI.
      Initially, the Director nominated by LEI shall be Robert D. Bath, and the
      Director nominated by LLI shall be Stanley B. Baron. Each of LEI and LLI will
      have the exclusive right to remove its respective designees and to fill any
      vacancy caused by the removal, resignation or death of its respective designees.
      Each Shareholder shall vote all of its Shares in favor of the election of the
      Directors nominated in accordance with this Agreement.

     

    1.7 Fiscal
      Year. Fiscal Year of the Company shall commence on January 1 of each year and
      end on December 31 of the same year.

     

    1.8 Reporting.
      Each Shareholder and the Board shall be entitled to receive sufficient
      management and financial information and reports to allow the Directors to
      monitor the conduct of the business of the Company. All information provided
      thereunder will be provided subject to the terms of confidentiality set forth
      in
      Section 9 below.

     

    1.9 Access
      to
      Records. Subject to the requirements of confidentiality set forth in Section
      9
      below, each Shareholder may inspect the books, accounts and records of the
      Company and, to the extent necessary to ensure compliance with this Agreement,
      of the other Shareholder.

     

    2. ROLES
      OF THE PARTIES.
      The
      roles of each of the Shareholders shall be as follows:

     

    2.1 LEI'S
      Role. LEI shall be responsible for product development, product specifications,
      quality control, product improvement, and manufacturing. LEI shall be directly
      compensated by the Company for these functions at a rate equal to "cost plus
      10%" basis.

     

    2.2 LLI's
      Role. LLI shall be responsible for funding the Company, clinical evaluation,
      process development, market development, and sales and marketing to the human
      and animal dental market. LLI shall be directly compensated by the Company
      for
      these functions at a rate equal to of 5% of net sales less
      discounts.

     

    3. TECHNOLOGY.

     

    3.1 LEI
&
      LLI IP. Attached hereto as Appendix "A" LEI lists its intellectual property
      (the
      "LEI IP"), both patents and patents pending, if public, which is applicable
      to
      the dental markets, including the future LEI Patent for cleaning of teeth using
      the 3rd Harmonic (250nm) laser light. Attached hereto as Appendix "B" LLI lists
      it intellectual property (the "LLI IP"), both patents and patents pending,
      if
      public, which is applicable to the dental markets

     

    
      
        
        

      

      
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    3.2 Unless
      as
      otherwise provided for herein, all products, technology and intellectual
      property developed by LEI in connection with this Joint Venture shall be owned
      by LEI and all products, technology and intellectual property developed by
      LLI
      in connection with this Joint Venture shall be owned by LLI. LEI hereby grants
      the Company a royalty-free, exclusive worldwide license to make, use, market,
      sell and distribute the LEI IP, limited specifically to applications relating
      to
      the human and animal dental markets. LLI hereby grants the Company a
      royalty-free, exclusive, worldwide license to make, use, market, sell and
      distribute the LLI IP, limited specifically to applications relating to the
      human and animal dental markets in connection with the Joint Venture. Initial
      dental applications contemplated are for cleaning teeth, cutting
      teeth.

     

    4. FUNDING.

     

    a. LLI
      shall
      be responsible for raising the initial funding of the Company in the amount
      of
      approximately $650,000.00, of which $91,000.00 has been committed for the Laser
      Cost Study and the Refurbished ALX laser.

     

    b. LLI
      has
      already committed to LEI $91,000 and advanced $56,000 to LEI for the benefit
      of
      the Company. The Company will re-pay LLI all advances including this $56,000
      at
      such time as the Company has been funded with at least $750,000.

     

    c. LEI
      has
      incurred legal expenses in the amount of $5,000 for the benefit of the Company.
      The Company will reimburse LEI at such time as the Company has been funded
      with
      at least $750,000.

     

    d. LLI,
      for
      the benefit of the Company, has paid LEI and LEI has provided LLI, for the
      benefit of the Company, a full laser system cost analysis, as well as LEI will
      deliver a reconditioned research prototype Alexandrite laser
      system.

     

    e. The
      Company will fund and purchase from LEI a fully developed pre-production
      prototype dental laser system primarily for dental cleaning. The initial work
      of
      undertaking a full systems cost analysis has been successfully completed by
      LEI.
      LLI acknowledges that it has authorized, for the benefit of the Company prior
      to
      its formation, the development and building of a pre-production prototype dental
      laser system (the "Prototype") by LEI, in accordance with LEI & LLI MOU
      signed October 25th, 2007, for a total purchase price of $550,000 (to be paid
      to
      LEI directly by the Company,).

     

    f. Upon
      the
      execution of this Agreement, LLI shall pay LEI an initial non refundable down
      payment of $50,000. Further payments will be made as follows: $200,000 by
      January 31, 2008 and $150,000 by February 29, 2008. Upon commencement of the
      design review of the Prototype, LLI shall pay LEI an additional $100,000.00
      towards the purchase price for the Prototype, which is estimated to take place
      before March 30,2008. Upon final acceptance of the Prototype by the Company,
      the
      Company shall pay LEI the final payment of $50,000 for the Prototype. The full
      specification of the prototype is to be supplied against the final payment.
      Funding for the Joint Venture thereafter shall be provided by the Company,
      although LLI shall have primary responsibility for funding and will use its
      commercial best efforts to have the Company adequately funded to meet its
      objectives.

     

    
      
        
        

      

      
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    5. MANUFACTURING.
      LEI
      shall be responsible for the manufacturing of the dental laser systems and
      dental laser process technology under the Joint Venture. The Company and LLI
      hereby grant LEI the exclusive right to manufacture all of their requirements
      (and the requirements for any of their Affiliates) for dental laser systems
      and
      dental laser process technology for the dental markets. All systems and
      technology manufactured by LEI for the Company under the Joint Venture shall
      be
      provided pursuant to LEI's standard terms and conditions, which are attached
      hereto as Appendix "C" at a rate to be mutually agreed upon, which shall be
      on a
      manufactured "cost plus 10%" basis as defined in 2.1 above

     

    6. MARKET
      DEVELOPMENT AND MARKETING.
      LLI
      shall be responsible for organizing clinical evaluation, validation and
      worldwide sales and distribution of the products developed under the Joint
      Venture. All sales and distribution decisions will be made jointly by the
      Shareholders.

     

    7. REGULATORY
      COMPLIANCE.
      The
      Shareholders agree to engage a third party regulatory consultant (with costs
      to
      be financed by the Company, with assistance as necessary from LLI) to provide
      advice and assistance on the regulatory compliance of any dental laser systems
      and dental laser process technology developed or manufactured under the Joint
      Venture.

     

    8. TRANSFER
      OF SHARES.

     

    8.1 Transfers.
      A Shareholder may not transfer to any individual or entity any of its Shares
      except (i) with the written approval of all Shareholders, (ii) in accordance
      with clause 8.2 below. Any Transfer of Shares in violation of this Section
      8.1
      shall be null and void.

     

    8.2 Transfer
      to Affiliate Transferees. Any Shareholder may, in its sole discretion and
      without the consent of any other Shareholder, transfer all but not some of
      its
      Shares, directly to such Shareholder's Affiliate; provided, however, that (i)
      the transferring Shareholder shall neither be relieved of nor released from
      any
      of its obligations set forth in this Agreement and shall cause the transferee
      to
      abide by the provisions of this Agreement and guarantee such obligations of
      the
      transferee with respect to such transferred Shares; and (ii) no Shareholder
      shall permit an Affiliate to which Shares to cease to be an Affiliate, or permit
      such Affiliate to be dissolved, liquidated, wound-up or otherwise to cease
      to
      exist by the operation of law or otherwise, unless such Shareholder shall first
      have purchased all of the Shares that were transferred to such Affiliate. For
      the purposes of this Agreement, "Affiliate" means an entity that is controlled
      by, controls or under common control as a Shareholder, where control means
      the
      power to direct and/or influence the management or policies of an entity,
      whether through the ownership of voting securities or otherwise.

     

    9. CONFIDENTIALITY.
      Except
      as required by an officer or Director to carry out the business of the Company,
      no Shareholder will divulge any information, paper, or document relating to
      the
      assets, liabilities, operations, business affairs, or any other information
      about the Company or the other Shareholder. The right to maintain the
      confidentiality of the affairs of the Company and the Shareholders in connection
      with the Company's business may be enforced by any Shareholder or by the Company
      itself by way of an injunction issued out of any court of competent
      jurisdiction, and this right will not restrict or take the place of the
      Shareholders' or the Company's rights to money damages, actual and exemplary,
      for a violation of the provisions of this Section.

     

    
      
        
        

      

      
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    10. TERMINATION
      AND EVENTS OF DEFAULT.

     

    10.1 Special
      Termination Events. This Agreement shall be terminated in the following
      event:

     

    (a) the
      Company is liquidated or dissolved; or

     

    (b) with
      respect to any of the Shareholders, such Shareholder no longer is the
      shareholder of the Company subject to the terms and conditions set forth in
      this
      Agreement; or

     

    (c) the
      Shareholders mutually agree to terminate this Agreement in writing.

     

    Termination
      of this Agreement will be without prejudice to any accrued rights of the
      Shareholders and the Company.

     

    10.2 Events
      of
      Default. The occurrence of any of the following events shall be an Event of
      Default, it being understood that any Event of Default occurring with respect
      to
      any Shareholder that has transferred all or a part of its Shares to its
      Affiliate in accordance with the provisions of Section 8.2 shall be deemed
      to
      have also occurred with respect to such Affiliate transferee:

     

    10.2.1 If
      any
      Shareholder takes any action relating to the Company which constitutes gross
      negligence or willful misconduct, and if subject to cure, such Shareholder
      does
      not cure such gross negligence or willful misconduct within thirty days
      following delivery of notice of breach to such Shareholder by the nonbreaching
      Shareholder; or

     

    10.2.2 If
      the
      Company is unable to meet payment obligations for 45 days, such event shall
      constitute an event of default on the part of LLI; or

     

    10.2.3
      If
      any Shareholder takes any action or inaction relating to the Company which
      constitutes a material breach of the obligations of such Shareholder under
      this
      Agreement or any of the agreements with the Company or with other Shareholder,
      and if subject to cure, such Shareholder does not cure such breach within thirty
      days following delivery of notice of breach to such Shareholder by the
      nonbreaching Shareholder.

     

    10.3 Rights
      Upon Event of Default. Upon the occurrence of an Event of Default, the
      nondefaulting Shareholder shall be entitled to the right set forth
      below:

     

    (a) Where
      the
      nondefaulting Shareholder desire to discontinue the business of the Company,
      the
      nondefaulting Shareholder shall have the right (i) to apply for the dissolution
      of the Company, or (ii) to cause the defaulting Shareholder to purchase all
      but
      not less then all of the Shares owned by the nondefaulting Shareholders (i)
      at a
      price equal to 125 percent of the fair market value to be determined by a
      reliable and reputable third-party appraiser, or (ii) at a price equal to actual
      amount paid by such nondefaulting Shareholders for such Shares, whichever is
      higher; or

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b) in
      case
      the nondefaulting Shareholder desires to continue the business of the Company,
      the nondefaulting Shareholder shall have the right to purchase, from the
      defaulting Shareholder the Shares held by the defaulting Shareholder (i) at
      a
      price equal to 75 percent of the fair market value to be determined by a
      reliable and reputable third-party appraiser, or (ii) at a price equal to the
      actual amount paid by such defaulting Shareholder for such Shares, whichever
      is
      lower; provided however that exercise of such purchase right shall not affect
      the defaulting Shareholder's obligations under this Agreement.

     

    11. MISCELLANEOUS.

     

    11.1 Addresses.
      All notices, consents, waivers, and other communications under this Agreement
      must be in writing and will be deemed to have been duly given when (a) delivered
      by hand (with written confirmation of receipt), or (b) when received by the
      addressee, if sent by a nationally recognized overnight delivery service
      (receipt requested), in each case to the appropriate addresses set forth on
      the
      first page of this Agreement (or to such other addresses as a party may
      designate by notice to the other parties).

     

    11.2 Inconsistency.
      As among the Parties, the provisions of this Agreement shall prevail over any
      inconsistent section in the Certificate of Incorporation and By-Laws of the
      Company, and as soon as possible after becoming aware of such an inconsistency,
      all Parties will take all necessary steps to amend any inconsistency in the
      Certificate of Incorporation and By-Laws, as the case may be.

     

    11.3 Costs.
      The Shareholders will share equally the fees and costs for the preparation
      and
      execution of this Agreement, and any document executed to give effect to any
      provisions of this Agreement.

     

    11.4 Assignment.
      This Agreement will not be assignable or otherwise transferable by either
      Shareholder, other than in accordance with the provisions of Section 8.1, and
      any purported assignment or other transfer will be void and
      unenforceable.

     

    11.5 No
      Waiver. A provision of or right under this Agreement may not be waived except
      by
      a waiver in writing signed by the party granting the waiver, and will be
      effective only to the extent specifically set out in that waiver.

     

    11.6 Amendment.
      This Agreement may only be amended in a writing executed and delivered by all
      the parties.

     

    11.7 Governing:
      Law. This Agreement and the rights and duties of the parties hereunder will
      be
      governed by, and construed and interpreted in accordance with, the laws of
      Delaware, without giving effect to its principles or rules of conflict of
      laws.

     

    11.8 Further
      Action. Each party will, and will use all reasonable efforts to, take or cause
      to be taken all actions, and do or cause to be done all other things, necessary,
      proper or advisable in order to give full effect to this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    11.9 Remedies.
      The parties agree that any breach of the provisions of this Agreement by my
      party may result in irreparable injury to the other party, that money damages
      may be an inadequate remedy for such breach, and that, in addition to any other
      remedies which they may have, the other party may enforce their respective
      rights by actions for specific performance and for injunctive and other relief
      (to the extent permitted by law). Each party agrees not to oppose the granting
      of such relief in the event a court determines that such a breach has occurred,
      and to waive any requirement for the posting of any bond in connection with
      such
      remedy.

     

    11.10 Interpretation.
      The headings are for ease of reference only and do not affect the construction
      of this Agreement.

     

    11.11 Severability.
      If a court of competent jurisdiction or an arbitral panel holds that part of
      this Agreement is invalid, inoperative or unenforceable in any jurisdiction
      or
      circumstances, that part will not be invalid, inoperative or unenforceable
      in
      any other jurisdiction or circumstances, and no other part of this Agreement
      will be invalid, inoperative or unenforceable, or affected in any other way.
      If
      a provision of this Agreement is so broad as to be unenforceable, that provision
      will be interpreted to be only so broad as is enforceable.

     

    11.12 Counterparts.
      This Agreement may be executed in any number of counterparts, each of which
      will
      be deemed an original, and all those counterparts taken together will be
      regarded as one instrument.

     

    11.13 Entire
      Agreement. This Agreement constitutes the entire agreement and understanding
      of
      the parties as to their subject matter, and supersedes all prior agreements
      or
      understandings, both written and oral, between the parties with respect to
      such
      subject matter.

     

    [THIS
      SPACE INTENTIONALLY LEFT BLANK- SIGNATURE PAGE TO FOLLOW]

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Joint Venture Shareholders
      Agreement to be duly executed as of the date first written above.

     

    
      	
              LASER
                ENERGETICS, INC.

            
	 	 
	
              By:

            	 
	
              Name

            	
              Robert
                D. Battis

            
	
              Title:

            	
              President
                & CEO

            
	 	 
	
              LANTIS
                LASER, INC.

            
	 	 
	
              Name

            	
              Stanley
                B. Baron

            
	
              Title:

            	
              President
                & CEO

            
	 	 
	
              HYGENILASE,
                INC.

            
	 	 
	
              By:

            	 
	
              Name

            	 
	
              Title:

            	
              President
&
CEO

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    APPENDICES

    

    A:
      LEI
      IP

    B:
      LLI
      IP

    C.
      LEI
      TERMS & CONDITIONS

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Appendix
      A - LEI Intellectual Property

     

    
      	
              US
                Patent #

            	 	
              Title
                of Patent

            
	
              5,331,652

            	 	
              Solid
                State Laser Having Closed Cycle Gas Cooled Construction

            
	
              5,321,711

            	 	
              Segmented
                Solid State Laser Gain Media With Gradient Doping Level

            
	
              5,235,606

            	 	
              Amplification
                of Ultrashort Pulses with ND:Glass Amplifiers Pumped By Alexandrite
                Free
                Running Laser

            
	
              5,142,548

            	 	
              Broadband
                Tuning and Laser Line Narrowing Utilizing Birefringent Laser
                Hosts

            
	
              4,949,346

            	 	
              Conductively
                Cooled Diode Pumped Solid State Slab Laser

            
	
              4,933,946

            	 	
              Conductively
                Cooled Solid State Slab Laser

            
	
              4,809,283

            	 	
              **
                Method of Manufacturing Chromium - Doped Beryllium Aluminate Laser
                Rod and
                Lasers Incorportating the Rods therein.

            
	 	 	
              New
                Patent on Flash lamp pumped Lasers LEI is applying for in Dec
                2007

            

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Appendix
      B - LLI Intellectual Property

    

    LLI
      has no intellectual property with respect to the application of Alexandrite
      Lasers in Dentistry 

     

    
      
         

      

      
        10

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